Variable Frequency Drive Market To Generate $35.34 Billion Revenue by 2030

The variable frequency drive market size is expected to advance at a CAGR of 5.20% during 2022–2030, to reach USD 35.34 billion by 2030. This can be ascribed to the rising demand for energy efficiency and the increasing government regulations to reduce energy consumption in all industries.

Energy efficiency is the most cost-effective procedure to reduce energy costs for consumers, combat climate change, and improve the competitiveness of businesses. With an increasing focus on achieving net-zero emissions by 2050, countries are making energy efficiency regulations for industries. This is boosting the demand for variable frequency drives (VFDs), as they can help reduce the energy consumption of various electrical equipment and increase their life.

Moreover, the rising requirements for industrial automation and energy conservation continue to promote the development of VFDs and their applications in the electrical, power, cement, elevator, mining, metallurgy, transportation, and other sectors. With increasing applications, VFDs are becoming small, lightweight, environment-friendly, and of high performance.

Government Initiatives

There are various government initiatives that are being taken to increase the adoption of VFDs, as countries are focusing on making the industrial sector more energy efficient. For example, Japan's Ministry of Economy, Trade and Industry (METI) is providing subsidies for energy efficiency investments to reduce the upfront cost for the wider diffusion of energy-efficient technologies in the industrial and commercial sectors.

Similarly, Spain has submitted its recovery and resilience plans to the European Commission, in which USD 12.64 (EUR 12) million are expected to be invested in the industrial sector for energy efficiency measures. Additionally, the Institute for Energy Diversification and Saving (IDEA) in Spain expanded the budget for Aid Program for energy efficiency actions for SMEs and large companies. The fund of USD 398.33 (EUR 378) million is being used for the implementation of energy-saving and efficiency measures in industries to reduce carbon emissions and final energy consumption. Measures of this funding included regulations on motors and variable frequency drives.

Pump Dominates the Industry

In the application segment, the pump category holds the largest revenue share. VFDs can help pumps to reduce power consumption and wear and tear. Regulating the speed of a pump’s motor with a VFD is the best approach for its longevity and cost reduction. These devices are also being used in centrifugal pumps, whose demand is increasing in industrial and commercial applications. Also, due to the high usage of VFDs in the oil & gas sector, as these devices help the sector to reduce pressure waves in pipelines during the transition from one process to another and reduce the uneven process mode, the market for VFDs is rising.

Additionally, these drives are also used with pumps in wastewater treatment plants. Due to the increasing challenges in sewages, VFDs are being used to control the flow of sewage through pumps and help plants to achieve the required flow. Thus, these factors boost the market growth in this category.

The key variable frequency drive market players are ABB Ltd., Siemens, Danfoss, Schneider Electric, Rockwell Automation, Fuji Electric Co. Ltd., Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), Hitachi Industrial Equipment & Solutions America, LLC, General Electric, Nidec Corporation, Delta Electronics Inc., Sew-Eurodrive GmbH & Co KG, Parker Hannifin Corporation, and Eaton Corporation Plc.