Variable frequency drive is a type of motor drive that lowers power consumption and enhances the working of electrical equipment, making it more efficient and productive. They are effectively used for controlling the speed of an AC motor by varying the frequency of its voltage and power supply. The restrict a heavy load from staining the motor for seamless startup. Variable frequency drives are easy to maintain without any high maintenance cost along with the reduced operation time provided by them.
Forecast Analysis of Global Variable Frequency Drive Market
The global variable frequency drive market is anticipated to witness an exponential growth during the forecast period (2021-2028), owing to the surging demand for productive energy utilization of electrical equipment like pumps, fans, AC, and many more. In addition, its low maintenance expense and convenient application are further expected to drive the growth of the market during the forecast period. However, extortionate cost of initial investment on the installation of variable frequency drive is expected to impede the growth of the market during the forecast period. But rising adoption of advanced technologies like Industrial Internet of Things (IIOT) is expected to create immense opportunities for the growth of the variable frequency drive market during the forecast period.
According to the report published by Research Dive, the global variable frequency drive market is expected to generate a revenue of $26,897.3 million by 2028, exponentially growing at a CAGR of 5.2% during the forecast period. The prominent players of the market include Amtech, Siemens, General Electric, Schneider Electric, ABB, Rockwell Automation, Inc., Danfoss, Johnson Controls International Plc, Eaton Corporation Plc, Honeywell International Inc., and many more.
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global variable frequency drive market to grow exponentially.
For instance, in November 2019, Sumitomo Heavy Industries (SHI) Limited, a Japan-based manufacturing, industrial machinery and engineering company, acquired Invertek Drives Ltd, a UK-based variable frequency drive manufacturer, in order to bolster and extend SHI’s business by integrating new technologies in the areas of electric motors and VFDs.
In May 2021, Emerson Electric, a US-based multinational technology and engineering company providing various solutions to industrial, commercial, and residential markets, launched Copeland Variable Frequency Drive product lines for medical refrigeration, chillers, walk-ins, display cases, reach-ins and various other applications ideal for less control functionality.
In November 2019, Universal Robots, a dominant collaborative robot (cobot) manufacturer, announced the incorporation of two UR5 cobots by Invertek Drives, a global designer and manufacturer of variable frequency drives, for testing phase of its product line in order to lucratively enhance workflow consistency.
Most Profitable Region
The Asia-Pacific region is expected to have the highest market share, and hence dominate the market. The Asia-Pacific variable frequency drive market is expected to generate a revenue of $10,304.4 million during the forecast period. Increasing investment on industrial infrastructure and prevalence of emerging and developed countries in this region are expected to bolster the growth of the market during the forecast period.
COVID-19 Impact on the Market
The outbreak of coronavirus has had a moderate impact on the global variable frequency drive market, owing to consequent decrease in industrial demand due to the prevalence of lockdowns in various countries across the globe during the pandemic. Lockdowns led to the temporary closure various industries in order to curb the spread of the virus during the pandemic. But introduction of digital solutions and maintenance services by prominent players of the market may develop investment opportunities for the market. Thus, the pandemic has had a moderate impact on the market.