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AC Drives Market Research Report - Segmentation By application (Compressors, Fans, Pumps, Conveyors, and Extruders), by end use industry (oil and Gas, Power Generation, Building Automation, Food and Beverages, Water and Wastewater, Metals and Mining, and Chemicals and Petrochemicals), and Region - Industry Forecast 2024 to 2029

Published: March, 2023
ID: 10254
Pages: 150
Formats: report pdf report excel report power bi report ppt

AC Drives Market Size (2024 - 2029):

The Global AC Drives Market was worth USD 17.82 billion in 2023 and is anticipated to reach a valuation of USD 23.60 billion by 2029 and is predicted to register a CAGR of 5.79% during 2024-2029.

Market Overview:

AC drives are electronic devices that alternate with voltage, frequency, and magnetic flux to regulate the speed and torque of an electric motor, In an energy-intensive industry, the optimal use of energy and the efficient use of its consumption is important to manage the overall operating costs of this industry. Frequency converters can optimize energy consumption while helping reduce operating costs by monitoring the speed and torque of electric motors. AC Drives is an electronic device that is employed to regulate the speed of an electric motor by varying the frequency, magnetic flux, and voltage in a motor circuit. In energy-intensive businesses, optimal use of energy and efficient use of energy is important for managing overall operating costs. These drives can optimize energy consumption while helping to reduce operating costs by monitoring the speed and torque of electric motors. The reduction in energy consumption and the gain resulting from the increase in the useful life of electrical equipment are the main factors in the adoption of these AC drives in various businesses like water and wastewater, oil and gas, and mining.

Market Trends:

The main trend identified in the worldwide AC drives market is the transformation of the manufacturing industry with the strong adoption of the Industrial Internet of Things (IoT). By adopting this technology, manufacturers can increase the productivity and efficiency of their operations to remain competitive on a worldwide scale. This factor creates a positive environment for the call for servo drives and motors, which in turn will also increase the call for these drives as they are employed in motors to achieve energy efficiency.

Market Drivers

Rapidly growing industrialization and urbanization and various government regulations aimed at achieving energy efficiency are the main factors in the expansion of the global AC Drives market. Also, various processes to gain energy efficiency along with the increasing need for energy optimization in different industrial processes are the other key factors driving the expansion of the market. In addition to saving energy, VFDs reduce wear on mechanical components, reducing the downtime required for repairs and maintenance. This encourages the industrial sector to adopt these drives, which contributes to the expansion of the market. The low power consumption of AC drives is one of the main factors promoting the worldwide market. They adopt energy-saving techniques that avoid depleting natural resources and offer a better return on investment and efficiency. Using these devices also reduces power outages and carbon dioxide emissions. Rapid industrialization and urbanization have increased the call for automated and motorized equipment, which in turn has increased the sales of frequency converters worldwide. In addition, the improvement in living standards has catalyzed the development of modern infrastructure that further contributed to the expansion of the market.

Market Restraints:

The main obstacles that are discouraging the expansion of the AC drives market include the decrease in foreign direct investment (FDI) due to the growing protectionism and the unstable scenario of the oil and gas industry, mainly in recent years.

Market Opportunities:

Increasing urbanization and the high expansion rate of industries around the world are the main aspects that are accelerating the adoption of this product. The diversity of processes to gain energy efficiency and the growing need for energy optimization in different industrial processes are the key factors driving market expansion. The main factors driving the growth of the AC drives market are rising electricity prices, increased calls for power and electricity, and strict regulations imposed by the government to reduce carbon emissions during consumption. and electricity production, as well as industrialization and increasing urbanization. The low cost of production of the frequency converters coupled with an increase in electricity prices supported their sales. Since these drives consume a minimal amount of electricity, require less maintenance, and are easy to operate, they are preferred by manufacturers around the world for use in motorized equipment. The growing popularity of the industrial Internet of Things (IoT), along with the use of cloud computing, mobile communications, and web technologies to control and maintain these units, is also predicted to have a positive impact on the expansion of the industry.

Market Challenges:

The increasing prices of these drives would also hinder the market expansion during the foreseen period.

AC DRIVES MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2023 – 2029

Base Year

2023

Forecast Period

2024 - 2029

CAGR

5.79%

Segments Covered

By Application, End-Use Industry,

and Region.

 

Various Analyses Covered

Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

 

 

Market Leaders Profiled

ABB Ltd., Siemens AG, Danfoss Group, Schneider Electric SE, Yaskawa America Inc., Rockwell Automation Inc., Mitsubishi Electric Corporation, Fuji Electric Co. Ltd., Emerson Electric Co., Parker Hannifin Corporation, and Others.

AC Drives Market

Market Segmentation:

AC Drives Market - By Application:

  • Compressors
  • Fans
  • Pumps
  • Conveyors
  • Extruders

Compressors had the largest market share in terms of revenue during the historical period and will continue to dominate throughout the foreseen period, due to the increasing use of compressors in heating and ventilation equipment.

AC Drives Market - By End Use Industry:

  • Oil and Gas
  • Power Generation
  • Building Automation
  • Food and Beverages
  • Water and Wastewater
  • Metals and Mining
  • Chemicals and Petrochemicals

The oil and gas industry was the largest end-user of the AC drives market during historic times. The industry is also predicted to capture the largest market share in terms of revenue during the foreseen period due to the widespread use of derivatives to control the speed of pumps and compressors employed in the industry.

Market Regional Analysis:

  • North America 
  • Europe 
  • Asia Pacific 
  • Latin America 
  • Middle East & Africa 

North America has the highest penetration of AC drives and also has a substantial share. The AC drives market is predicted to post a significant CAGR over the foreseen period. Asia-Pacific accounts for a comparatively high market share and is growing at a relatively high CAGR during the foreseen period due to increasing calls for drives in a wide range of applications from various businesses. North America is experiencing a rapid increase in frequency converter production capacity, attributed to increased urbanization and the development of end-user businesses. Key factors driving the expansion of the AC Drives market in the region include the increasing expansion and technological advancement of the HDD market and high-end user applications in various businesses. The AC drive market is predicted to experience healthy expansion due to the increasing use of such drives around the world. The variable speed drivetrain market for the Asia-Pacific region is also predicted to see rapid expansion during the foreseen period, primarily driven by large-scale infrastructure expansion, especially in China and India.

Market Key Players:

Some of the major companies operating in the global AC Drives Market include

  1. ABB Ltd.
  2. Siemens AG
  3. Danfoss Group
  4. Schneider Electric SE
  5. Yaskawa America Inc.
  6. Rockwell Automation Inc.
  7. Mitsubishi Electric Corporation
  8. Fuji Electric Co. Ltd.
  9. Emerson Electric Co.
  10. Parker Hannifin Corporation

Market Recent Developments:

  • In recent years, there is a growing call for variable-speed drives that can be employed with induction motors for machine automation and energy savings. To meet this need, Bharat Bijlee has introduced a new range of superior-performance ACs.
  • Samsung, India's largest and most trusted consumer electronics and mobile phone brand launched an exciting new line of air conditioners including Wi-Fi-enabled Wind-Free AC 2.0.

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FAQ's

1. What is the AC Drives Market growth rate during the projection period?

The Global AC Drives Market is expected to grow with a CAGR of 5.79% between 2024-2029.

2. What can be the total AC Drives Market value?

The Global AC Drives Market size is expected to reach a revised size of USD 23.60 billion by 2029.

3. Name any three AC Drives Market key players?

Schneider Electric SE, Yaskawa America Inc., and Rockwell Automation Inc are the three AC Drives Market key players.

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