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AC Drives Market Overview
Major trend identified in the global alternate current (AC) drives market is the transforming manufacturing industry with high adoption of industrial internet of things (IoT). With the adoption of this technology, manufacturers can increase productivity and efficiencies of their operations to stay competitive on a global scale. This factor makes a positive environment for the demand of servo drives and motors, which in turn, will also augment the demand for these drives, as these are used in motors to attain energy efficiency.
AC drive is an electronic device that is used for regulating the speed of an electric motor by fluctuating the frequency, magnetic flux, and voltage in a motor circuit. In energy-intensive sectors, optimal usage of energy and efficient utilization of its consumption are important for managing the overall operating costs. These drives can optimize the energy usage and at the same time help in the reduction of operative costs by monitoring the speed and torque of electric motors. Reduction in energy usage and gain from increase in lifespan of electrical equipment are the main factors for the adoption of these drives in various industries such as water and wastewater, oil and gas, and mining.
Based on voltage, the AC drives market can be categorized into low and medium drives. Among these, the low voltage drives captured the largest market revenue share during the historical period and are expected to remain the largest category during the forecast period, due to their low cost and ability to work for both low- and high-power applications. On the other hand, the medium voltage drives is expected to be the fastest growing category on the account of rising demand from industries such as utilities, petrochemicals, water and wastewater, metals and mining, and cement. Medium voltage drives are deployed for pumps, compressors, conveyors, crushers and mills, fans, and kiln applications.
On the basis of power rating, the AC drives market is classified into up to 40 kW (low power), 40.1–200 kW (medium power), and above 200 kW (high power). Among these, up to 40 kW (low power) lead the market, owing to their growing applications in building automation, food and beverages, oil and gas, construction, and pulp and paper industries. Heightened construction activity in the Asia-Pacific (APAC) and the Middle East and Africa (MEA) will help the category to continue its dominance during the forecast period. Further, growing population, changing consumer food habits and lifestyle, and rising tour and travel sector are augmenting the food and beverages industry, which in turn, will also drive the demand for low power drives.
On the basis of application, the AC drives market is classified into compressors, fans, pumps, conveyors, and extruders. Compressors held the highest market share in terms of revenue during the historical period, and will continue dominating throughout the forecast period, owing to the increasing uses of compressors in heating, ventilating, and air conditioning equipment.
On the basis of end-user industry, the AC drives market can be categorized into oil and gas, power generation, building automation, food and beverages, water and wastewater, metals and mining, and chemicals and petrochemicals. Oil and gas industry was the largest end user of AC drives in the market during the historical period. The industry is expected to capture the largest market share in terms of revenue, during the forecast period as well, on account of widespread use of derives to control the speed of pumps and compressors used in the industry.
On the other hand, food and beverages has high growth potential for AC derives and is expected be the fastest growing category in the market during the coming years. Additionally, the increasing adoption of AC drivers in power generation and automation industries will also boost the AC drives market during the forecast period.
Based on region, the AC drives market is categorized into North America, Europe, Latin America (LATAM), APAC, and MEA. Among these, APAC was the largest contributor to the market, in terms of value, followed by Europe, during the historical period. The major factor expected to fuel the growth of the APAC market, during the forecast period, is increasing industrialization and urbanization, driven by China, India, Japan, and Australia. China was the largest market for AC derives in the APAC region during the historical period. Additionally, the increasing government initiatives to conserve electricity through energy efficiency norms are further expected to spur the growth of the market in the region.
AC Drives Market Dynamics
Rapidly growing industrialization and urbanization and various government regulations for obtaining energy efficiency are the major factors driving the growth of the AC drives market. Further, diverse processes for earning energy efficiency along with rising need for energy optimizations in different industrial processes are the other key factors boosting the market growth. Along with energy saving, AC drives reduces wear and tear of mechanical components, thereby decreasing the downtime required for repairs and maintenance. This encourages industrial sector to adopt these drives (instead of mechanical drive components), which aid the market growth.
Major restraints deterring the AC drives market growth include decline in foreign direct investments (FDIs) due to increasing protectionism and unstable scenario of oil and gas industry mainly in past few years. Further, the increasing prices of these drives would also hinder the market growth during the forecast period.
AC Drives Market Competitive Landscape
Some of the major companies operating in the global AC drives market include 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., and Parker Hannifin Corporation.
The study provides the historical as well the forecast market size data for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, Brazil, Mexico, Saudi Arabia, the U.A.E., and South Africa.