Low Voltage Electric Drives Market

Global Low Voltage Electric Drives Market Size (2024 to 2029)

The size of the global low voltage electric drives market was valued at USD 18.4 billion in 2023 and is expected to grow at a CAGR of 4.6% during the forecast period and be worth USD 24.1 billion by 2029 from USD 19.25 billion in 2024.

Electric drives are electrical systems that control the motion of an electrical machine. It specifically controls the electrical energy into mechanical power using certain parameters. Based on voltage, they are classified into low voltage, medium voltage, high voltage, and extra high voltage. The International Electrotechnical Commission (IEC) Standard IEC 61140:2016 defines Low voltage as 0 to 1000 V AC RMS or 0 to 1500 V DC. The low-voltage drivers are applied in high-power applications to control the torque and speed of alternating current motors. The low voltage drives have high safety standards, positive energy balance, improved quality and productivity, and reduced energy consumption features.

Global Low Voltage Electric Drives Market Drivers:

The growing usage of low voltage electric drives due to their beneficial features is primarily propelling the growth of the global market. The low-voltage drives are low in cost and small and readily available and have the ability to boost productivity. The growing infrastructural funding on account of industrial development in developing countries is significantly contributing to the expansion of the low voltage electric drives market. Technological advancements are further fueling the growth rate of the global low voltage electric drives market. In addition, government policies and regulations for energy efficiency, growing population, rapid urbanization, and increase in energy consumption are supporting the low voltage electric drives market growth. Several governments worldwide have been working on energy efficiency and taking numerous initiatives to achieve the goal. Low voltage energy efficient drives are believed to reduce energy consumption by 30% in industrial applications.

The increase in the adoption of low voltage drives in the automotive industry provides a lucrative opportunity for the market participants. Electric cars have the capacity to withstand high shock loads and vibration levels and can be used in tough areas. The adoption of EVs is happening rapidly worldwide, and it is projected that the EV segment will occupy 58% of the worldwide automotive industry by 2040. The growing adoption of electric vehicles is expected to result in the increasing demand for low voltage electric drives directly and favor the global market growth. The rise in consumer awareness of energy-efficient solutions, and an increase in government investments to promote automation for industrial development provide a huge opportunity for the low-voltage electric drives market.

The growing usage of low voltage electric drives in the renewable energy sector is favoring the growth of the global market. The focus of governments on renewable energy has nearly increased severalfold in recent years. The capacity of renewable energy is expected to be increased by 50% in the next five years of the timeline. Furthermore, the rising emphasis on smart cities, the growing manufacturing sector, increased focus on infrastructural development by the governments, and rising construction activities of data centers are predicted to support the growth rate of the low voltage electric drives market in the coming years.

Global Low Voltage Electric Drives Market Restraints:

High Implementation cost is one of the significant restraints to the growth of the low voltage electric drives market. The installation of low-voltage drives accounts for the rise in initial capital expenditure and becomes a burden on manufacturing companies curtailing market growth. Further, the lack of technical personnel for operation and maintenance hampers the low-voltage electric drive market. Moreover, technical issues such as upgrading and replacement of current equipment as per specifications of low voltage drives are hindering the low Voltage electric drives market growth.

Impact of COVID-19 on the low voltage electric drives market:

COVID-19 has severe humanitarian and economic implications worldwide. Many companies have laid off their workers to compensate for the losses. Hence the world is facing a high rate of unemployment. Key projects of major market participants in processing and non-processing industries are facing a shortage of raw materials, a limited workforce, government restrictions, and supply chain disruptions. Even every nation has faced a shortage in the production of essential goods and services globally. Furthermore, several supply and demand mismatches in both developing and developed countries have negatively impacted interconnected economies globally. The low-voltage electric drives market also registered negative growth during COVID-19. Factors such as the complete or partial shutdown of nonessential industries have impacted the market growth. Further shortages in raw materials and a limited workforce curtailed the market expansion. However, the low voltage electric drives market witnessed significant growth as the energy sector and oil and gas industry resumed their operation activities post-COVID.

REPORT COVERAGE:

This research report on the global low voltage electric drives market has been segmented and sub-segmented based on type, end-user and region.

Global Low Voltage Electric Drives Market - By Type:

• AC Drives
• DC Drives
• Servo Drives

Based on type, the AC drives segment dominated the low voltage electric drives market in 2023, accounting for 52.8% of the global market share and the lead of the AC drives segment in the global market is likely to continue throughout the forecast period. The growing adoption of sensor-less vector control technology in AC drives for improved efficiency and reduced maintenance costs, rising demand for energy-efficient solutions, industrial automation trends and the expansion of manufacturing activities are propelling the growth of the AC drives segment in the global market.

On the other hand, the servo drives segment is expected to grow at a healthy CAGR during the forecast period owing to the rise in consumer focus on clean energy, along with the introduction of innovative products. Furthermore, ongoing investments in developing modern infrastructure and increasing usage of servo drives in the electric industry are contributing to the growth rate of the servo drives segment in the global market.

Global Low Voltage Electric Drives Market - By End-User Industry:

• Automotive
• Oil & Gas
• Chemical & Petrochemical
• F&B
• Water & Wastewater
• Power Generation
• Metal & Mining
• Pulp & Paper
• HVAC
• Discrete Industries
• Other

Based on the end-user industry, the automotive segment led the market in 2023, holding 24.9% of the worldwide market share and the domination of the automotive segment is estimated to continue throughout the forecast period. The consumer shift towards electric vehicles to promote clean energy initiatives is propelling the demand for low-voltage electric drives in the automotive industry and is contributing to the global market growth. Stringent emission standards and advancements in electric drive technology are further fueling the growth rate of the automotive segment in the global market.

Withholding 14.9% of the global market share in 2023, the oil and gas segment stood as the second major segment in the worldwide low voltage electric drives market based on end-user. The oil and gas segment is also predicted to showcase a prominent CAGR during the forecast period. Factors such as the growing adoption of electric drives for pumps, compressors, and other applications for energy efficiency, rising emphasis on energy savings, regulatory pressure for sustainable practices and increasing need for precise control in oil and gas operations are contributing to the growth of the oil and gas segment in the global market.

Global Low Voltage Electric Drives Market - By Region:

• North America
• Europe
• The Asia Pacific
• Latin America 
• The Middle East and Africa

Based on region, the Asia-Pacific region was the largest regional segment in the global market in 2023 and held 28.7% of the global market share. During the forecast period, the Asia-Pacific region is expected to register a healthy CAGR. The growing number of initiatives by the governments of APAC countries to adopt electric vehicles is majorly propelling the APAC market growth. Moreover, the increasing integration of clean energy networks for developing modern infrastructure, growing urbanization and increase in energy consumption are further fueling the growth rate of the APAC market. China led the low voltage electric drives market in the Asia-Pacific region, holding 54.9% of the APAC market share in 2023. India is a noteworthy regional market in APAC and is estimated to grow at a CAGR of 6.5% during the forecast period.

The North American region accounted for a substantial share of the global market in 2023 and is expected to witness the highest CAGR during the forecast period. The growth of the North American market is primarily attributed to the rising demand driven by the adoption of electric drives in manufacturing, infrastructure projects, the push for energy efficiency, industrial automation trends and rising focus on sustainability and increasing investments in smart grid technologies. The U.S. captured 69.7% of the North American market share in 2023.

Europe is a prominent regional market for low voltage electric drives and is predicted to account for a considerable share of the global market during the forecast period. Factors such as the growing emphasis on energy-efficient solutions, increased industrial automation, initiatives for renewable energy integration, European Green Deal objectives, industry 4.0 adoption and government incentives for energy-efficient technologies are contributing to the European market growth. Germany occupied the major share of the European market in 2023.

Latin America and MEA are predicted to account for a moderate share of the global market during the forecast period.

KEY MARKET PLAYERS:

Companies playing a notable role in the global low voltage electric drives market include ABB Ltd., Siemens AG, Hitachi, Ltd., Nidec Corporation, Rockwell Automation, Beckhoff Automation, Johnson Controls, Yaskawa America, Inc., Schneider Electric, Hiconics Eco-energy Technology Co., Ltd., Fuji Electric Co., Ltd and CG Power & Industrial Solutions Ltd.

RECENT HAPPENINGS IN THE MARKET:

• In 2022, ABB introduced flameproof low-voltage motors in India. The motors operate safely and reliably in explosive situations and include a remote monitoring feature, which expands the company portfolio in the country.
• In 2021, Mitsubishi Electric Corporation announced that it had received an R&D 100 award for its low-voltage air circuit breaker device from the U.S. publication R&D World. It is used for low-voltage power distribution in commercial buildings and factories.