The Variable Frequency Drive (VFD) Market exhibits remarkable robustness, characterized by an extensive supplier base and a well-established B2B network that extends throughout the value chain. To solidify their position, suppliers in this market have proactively pursued acquisition and regional expansion strategies, forging strong partnerships across various regions. Brand consciousness and aggressive marketing tactics have further fortified their dominance, posing significant challenges for new entrants attempting to gain a foothold in the competitive VFD market.
The market for variable frequency drives (VFD) has experienced significant stability over the past few years as a result of increased opportunities for infrastructure development in developing regions, which has increased demand for heating and ventilation systems. With the aim of minimising costs and reducing operational downtime, variable frequency drives market (VFD) development is currently shifting towards providing industry-specific solutions, spurring a slew of innovations on the part of manufacturers.
Participants in the industry have always placed a premium on cost optimisation, lowering total cost of ownership, and energy efficiency. These conditions need to be taken into account when operating with heavy loads. This is why, in 2020, the global VFD market saw volume sales of more than 32 million units.
According to the latest study conducted by ESOMAR-certified market research and consulting firm Future Market Insights (FMI), the report tracks the global sales of variable frequency drives in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the electronics industry in general, and variable frequency drives in particular.
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Key Takeaways
· When operating with heavy loads, it is crucial to keep some parameters in account such as cost optimization, reducing total cost of ownership, and energy conservation. These attributes have registered volume sales exceeding 32 million units in 2020 in the global VFD market.
· With consistent improvements and enhanced performance, variable frequency drivers have been positively impacting industrial growth throughout the assessment period.
· Manufacturers are likely to experience widening profit margins across the South Asia & Pacific region, with China emerging at the forefront in the wake of exploding construction and automotive sectors.
· Germany and the United States are also expected to yield immense opportunities. Based on these trends, the VFD market is poised to grow at a value CAGR exceeding 5% through 2031.
Competitive Landscape
ABB Ltd, Siemens AG, Danfoss A/S, Rockwell Automation, GE Energy Power Conversion, Toshiba International Corporation, Schneider Electric, Mitsubishi Electric Corporation, Honeywell International Inc., Emerson Industrial Automation, Fuji Electric Co. Ltd, Johnson Controls Inc., Eaton PLC, Hitachi Ltd are some of the key companies profiled in the full version of the report.
A large supplier base and strong B2B networks define the robustness of the market with strong partnerships throughout the value chain. Suppliers of variable frequency drives adopt acquisition and regional expansion strategies to establish a firm foothold. Brand consciousness and aggressive marketing make it challenging for new entrants in the variable frequency drives market.
More Insights into the Variable Frequency Drive (VFD) Market
The United States is poised to remain highly lucrative, capturing over three-quarters of the global market share throughout 2021. The presence of key OEMs is an important growth catalyst for the region’s market.
According to estimations projected by Future Market Insights nearly a quarter of the revenue generated across the United States market is likely to be from the oil & gas segment. As of 2019, it extracted a record high 4.46 billion barrels of crude oil while natural gas production amounted to 34 trillion cubic feet. A volume CAGR of over 6% is projected for the U.S market.
The German variable frequency drives market is likely to expand at an annual rate exceeding 7% through 2021, attributed to heightened HVAC systems applications across the automotive segment. Globally, Germany is a leading automotive market, generating an output of nearly 6 million vehicles in 2017.
According to the China Association of Automobile Manufacturers, car sales spiked by over 6% annual growth rate to nearly 3 million units by 2020-end. Sales of new energy vehicles such as battery-powered electric, plug-in hybrid Electric Vehicles and hydrogen fuel-cell vehicles also surged by a whopping 11% compared to 2019. Hence, VFD manufacturers have been experiencing credible investment opportunities.
Variable frequency drives Market: Segmentation
Drive Type
· AC Drive
· DC Drive
Voltage Range
· Low Voltage
· High Voltage
Application Type
· Standard
· Regenerative
End-use Application
· Pumps
· Fan
· Compressor
· Conveyor
· HVAC
· Others
End-use Industry
· Oil & Gas
· Food processing
· Automotive
· Mining & Metals
· Pulp & Paper
· Others
Region
· North America
· Latin America
· Europe
· East Asia
· South Asia
· Middle East and Africa (MEA)