Market Overview:
Global AC Drives Market size was valued at USD 14.8 Billion in 2022 and is projected to reach USD 23.28 Billion by 2030, growing at a CAGR of 6.49% during the forecast period.
Alternate Current (AC) drives are electronic components that control an electric motor's speed and torque by varying variables including voltage, frequency, and magnetic flux. An alternative current regulates these alternating parameters. Optimizing energy utilization demands considerable attention if the operational costs of energy-intensive sectors are to be managed. One of the main purposes of AC drives is to regulate the speed and torque of electric motors, allowing for considerable cost reductions as well as increases in energy efficiency.
Top Key Players for AC Drive Market:
ABB LTD. (Switzerland), Danfoss Group (Denmark), Mitsubishi Electrical Co. (Japan), Schneider Electric Co. (France), Siemens Ag Fuji Electric Co. Ltd. (Japan), Emerson Electric Co. (United States), Hiconics Drive Technology Co. Ltd. (China), Hitachi Ltd.(Japan), Parker Hannifin Co. (India), Rockwell Automation Inc. (United States), and Other Major Players
Market Dynamics and Factors for AC Drive Market:
Drivers:
Urbanization and Industrialization are Growing Rapidly
Rapidly growing industrialization and urbanization have fueled the demand for AC drives in the market. As industries and cities expand, there is an increased need for energy-efficient solutions to control and regulate electric motors in various applications. AC drives, also known as variable frequency drives, offer significant energy savings and precise motor control, making them essential for modern industrial and urban infrastructure. With a focus on sustainability and cost-effectiveness, industries and urban centers are embracing AC drives as a key growth driver to optimize energy consumption and enhance overall operational efficiency.
Opportunities:
Wide Range of the Industrial Internet of Things (IoT) Increasing Popularity
The wide range of increasing popularity of the Industrial Internet of Things (IoT) presents a significant opportunity for the AC drives market. IoT integration allows AC drives to be connected to a network, enabling real-time data monitoring and analysis. This connectivity empowers industries to implement predictive maintenance, optimize energy consumption, and enhance operational efficiency. With IoT-enabled AC drives, industries can achieve better automation, reduce downtime, and improve overall productivity. The growing adoption of IoT-driven solutions in various sectors creates a strong demand for AC drives, positioning them as essential components in the modern industrial landscape.
Segmentation Analysis of the AC Drive Market:
By Power Rating, The Medium Power Drives segment is dominating the AC drives market due to its versatile applications across various industries. It offers a balance between power capacity and affordability, making it a popular choice for mid-sized industrial processes. Its ability to cater to a wide range of applications has resulted in widespread adoption, contributing to its dominant position in the market.
By Application, the Compressors segment is dominating the AC drives market due to its significant role in various industries. AC drives are extensively used in compressor systems to control motor speed, optimize energy consumption, and ensure efficient operation. As industries prioritize energy efficiency and cost savings, the demand for AC drives in compressor applications has surged, leading to its dominant position in the market.
Regional Analysis of the AC Drive Market:
The ability to produce AC drives is growing significantly in North America. Rapid urbanization and technological advancements in the end-user sector are the main drivers of this growth. This may be related to the current strong economic growth the area is currently experiencing. The growth of the AC drives market in the region is being fueled by two key factors: the expansion of the overall market as well as the ongoing technological advancement of the drives industry. Another factor that is contributing to the growth of the market is the increasing prevalence of high-end user applications across numerous sectors.
Key Industry Development:
In February 2021, Yaskawa Electric Corporation successfully shipped 30 million AC drives in total. The accomplishment is a result of the company's advancements in drive technologies and motor control, which have prompted widespread acceptance.
In March 2021, a mill plant in China received a motor drive system and an automation system from Toshiba Mitsubishi-Electric Industrial Systems Corporation. This has made it possible for the facility to enhance several operations and increase both the variety and volume of steel production.
For this report, Introspective Market Research has segmented the AC Drive Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- US
- Canada
- Mexico
Eastern Europe
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Russia
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Thailand
- Vietnam
- The Philippines
- Australia
- New Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Bahrain
- Kuwait
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
