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Variable Frequency Drives Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)

By on November 3, 2022 0

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The Variable Frequency Drive Market is expected to reach a value of USD 30.17 Billion by 2027, registering a CAGR of 5.0% over the forecast period. Variable frequency drives used to monitor motor speed have gained considerable traction due to their ability to optimize energy consumption in various industries.

New York, Nov. 03, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Variable Frequency Drives Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https:/ /www .reportlinker.com/p06155624/?utm_source=GNW
Besides energy efficiency, the popularity of VFDs can also be attributed to their ability to improve motor life and reduce maintenance by allowing distributed use throughout the life cycle, relieving it of constant use. under the same settings.

Highlights
The market is characterized by various government directives focused on improving the energy efficiency of the industrial sector. HVAC systems, especially chillers, a key deployer of VFDs, are increasingly being scrutinized by government agencies for their environmental friendliness. They have been regularized over time to comply with updated policies.
Rapid industrialization in emerging economies like China, Japan, India, Brazil, and South Korea has spurred innovations and the adoption of efficient industrial equipment. For example, according to the National Bureau of Statistics of China, in 2021 China’s industrial production increased by around 9.6% compared to the previous year. China aims to reach automobile production of up to 35 million units by 2025, up from 22.3 million units in 2018. With recent tax incentives and the “Made in China 2025” initiative, the units of manufacturing in the country is expected to increase rapidly. This provides several opportunities for the AMH equipment market in the country. ?
Energy efficiency has been a top concern for federal regulators and industry organizations. According to the International Energy Agency, electric motors consume 40% of the energy used in energy industries. When these motors are deployed with VFDs in centrifugal load duty, their efficiency increases. Due to technological improvements in power electronics technology, the performance of VFDs is expected to improve, which will help save energy.
There are several technical issues with adding VFDs into existing motors, which have created a barrier to adoption by many players in various industries. After integrating the drive with an existing motor, the motor shaft speed decreases, resulting in less cooling of the shaft-driven fan. VFD motor rotors are very sensitive and can be damaged by frequent rotations, which occur due to aggressive dynamic braking. When the rotors are stopped in this way, the thermal expansion of the rotor produces a force that pulls the rotor shaft away from the stator, causing the bearings to fail. This usually happens when the VSD is not cooled enough.
During the pandemic, the electricity sector received less traction with the closure of offices and complete cessation of activities in the industrial sector. With the reopening of industries and offices in the post-COVID-19 period, the industry is expected to witness an increasing demand for energy-efficient devices, creating ancillary demand for VFDs. The energy and electricity sector has been exposed to several new regulations following the COVID-19 pandemic, highlighting the need for contingency plans to save energy in order to move towards a sustainable future. These guidelines are expected to propel the growth of the market over the forecast period.

Main market trends

Rapid industrialization and increased use of VFDs in key industry verticals to drive the market

The rise of automation in the manufacturing sector has boosted the growth of the market. For example, according to the International Federation of Robotics, the annual installation of industrial robots increased from 382,000 in 2019 to 384,000 in 2020. According to IFR forecasts, global adoption is expected to increase significantly, with 518 000 industrial robots operational in factories worldwide by 2024.
A significant trend impacting the market is the emphasis on smart manufacturing practices. According to the India Brand Equity Foundation (IBEF), the Indian government has set an ambitious target to increase the contribution of manufacturing output to 25% of gross domestic product (GDP) by 2025 from 16%. The Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0 initiative aims to raise awareness of Industry 4.0 within the Indian manufacturing industry and enable stakeholders to address challenges related to the automation of handling.
With the global impact of Industry 4.0, IoT and smart manufacturing practices, the manufacturing industry is moving towards automation. VFDs are a perfect fit for this ever-evolving trend.
The market is also witnessing an increased focus on process optimization. A VFD reduces downtime in the oil and gas industry because gas turbines require frequent maintenance, while VFDs and motors require very little maintenance. This increases production, reduces maintenance expenses and improves productivity, thus encouraging various oil and gas companies to incorporate VFDs.
Focusing on the energy saving benefits of VFDs, various governments have partnered with manufacturers of VFDs and related products for installation in several sectors, driving the growth of the market studied. For example, Danfoss has partnered with Kolkata Metro Rail Corporation (KMRC) and Chennai Metro Rail (CMRL) to offer various drive solutions.
VFDs are applied to several new applications. Applications with network interfaces, such as frequency converters and pump storage, use VFDs. New industries such as carbon capture, hydrogen generation and transportation are also expected to rely on VFDs.

Asia-Pacific expected to be the fastest growing market

The variable frequency drive market is expected to hold a large share in China, driven by increasing operations primarily in power generation and oil and gas industry, as well as bold expenditures for establishing power generation facilities. manufacturing.
China’s focus on infrastructure expansion has resulted in FDI in many manufacturing and industrial sectors. The active support of the Chinese government has enabled more value-added industries, realizing overall industry growth, including several Chinese industrial sectors such as wind and solar power, telecommunications, automotive , petrochemical processing and steel production, among the major contributors to the progress of its economy. Hence, these industries have the greatest impact on the demand for variable frequency drives. As a result, China continues to be the most profitable market for VFDs.
India’s VFD industry is entering a growth phase with rising energy prices, which requires energy and operationally efficient motor control systems and drives. End-user awareness of additional drive benefits, such as improved process control performance, reduced maintenance requirements, and improved motor and equipment life, is driving the adoption of VFDs.
The residential air conditioner market in Japan is one of the largest in the world. Additionally, ownership of air conditioners in Japan is high due to thermal comfort expectations and socio-cultural preferences. The production of renewable energy in the country is proceeding at a breakneck pace. This needs to be integrated into the existing national grid, leading to the introduction of additional electrical infrastructure, which could ultimately boost the variable frequency drive industry.
There has been continuous enforcement of regulations by government agencies in Asia-Pacific countries in terms of energy consumption in recent years. This could bring good growth opportunities for the variable frequency drive industry over the next 5-7 years.

Competitive landscape

The variable frequency drive market is highly competitive due to the presence of numerous small and large players in the market. The market is witnessing a growing need for energy efficient equipment, due to which international market players are rapidly increasing their footprint, and local vendors are finding it difficult to compete with major players in terms of quality, safety and price. This factor stimulates competition in the market. Some of the major players are Eaton Corporation, ABB Ltd and Honeywell International Inc.

April 2022 – ABB has introduced the latest ACS1000i medium voltage VFD in a compact and fully integrated design with an integrated input transformer, input contactor and auxiliary power supply in response to the limited space requirements of industries in the water and electricity. The air-cooled ACS 1000i – rated from 315 kW to 1800 kW, voltage classes 3.3, 4.0/4.16, 6.0/6.6 kV – uses a drive cabinet standard with integrated input transformer and input contactor while retaining the compact design of its sister the ACS 1000. The traditional water-cooled ACS 1000 VFD can still be used for higher power levels.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06155624/?utm_source=GNW

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