AC Drives Market Synopsis
The global AC Drives Market size was valued at USD 24.22 Billion in 2023 and is projected to reach USD 49.23 Billion by 2032, growing at a CAGR of 8.2% from 2024 to 2032.
An AC drive is a device used to control the speed of an electrical motor to enhance process control. Reduce energy usage and generate energy efficiently. Decrease mechanical stress on motor control applications. Optimize the operation of various applications relying on electric motors.
- AC drives, also known as variable frequency drives (VFDs) or inverters, are electronic devices used to control the speed and torque of an alternating current (AC) electric motor. They accomplish this by varying the frequency and voltage supplied to the motor. AC drives are essential in a wide range of industries and applications where precise control of motor speed is required.
- AC drives convert the incoming AC voltage (typically at a fixed frequency of 50 or 60 Hz) into a variable frequency and voltage output. By adjusting the frequency and voltage, the drive can control the motor's speed, allowing for precise regulation of processes.
- AC drives enable soft-start and soft-stop capabilities, reducing mechanical stress during motor start-up and shutdown. This feature prolongs the lifespan of motors and other connected equipment and contributes to energy savings by preventing abrupt, energy-intensive starts.
The AC Drives Market Trend Analysis
Increasing Rate of Industrialization and Urbanization to Fuel the Market
- Substantial increases in urbanization along with the growing rate of industrialization are the major factors driving the AC market growth. Urbanization would increase consumer demand, which results in to increase in the manufacturing sector, propelling the demand for AC drives during the forecast period.
- For instance, as per the Central Intelligence Agency, China, India, Malaysia, and Vietnam have an urban population of 60.3%, 34.5%, 76.6%, and 36.6% as of 2020 which is increasing at a rate of 2.4%, 2.4%, 2.1%, and 3% respectively. According to the World Investment Report, Governments are parallelly focusing on improvising the industrial policies and regulations to bring a conducive environment for exploring new industries and improve the sustainability amongst competitors such as strategic investment policy priorities, entry and establishment of foreign investors, and promotion and facilitation of investment policies. Hence, significant industrialization growth helps the market to grow at a faster pace. Rising urbanization and increasing rate of industrialization act as potential drivers for the AC drive market during the forecast period.
- Favourable government regulations and supportive policies enhance the growth of the manufacturing industry, which helps to boost the AC drives market. For instance, the implementation of standards such as ISO 50001 (energy- management-system standard) in the building & automation sector has the potential to accelerate the integration of building automation systems.
Increasing Trends for Industrial Automation
- Industrial automation systems aim to improve efficiency, reduce downtime, and enhance productivity. AC drives play a crucial role by providing precise control over motor speeds. This level of control allows machines and processes to operate at optimal speeds, leading to energy savings and increased efficiency.
- Energy efficiency is a top priority in industrial settings. AC drives allow motors to operate at variable speeds, which means they can run at lower speeds when full power is not required. This not only reduces energy consumption but also extends the lifespan of motors and reduces maintenance costs. As energy costs continue to rise, industries seek ways to reduce their power usage, making AC drives a valuable solution.
- Many industrial processes require precise control of motor speeds and torque to maintain quality and consistency. AC drives enable fine-tuned control, which is essential in industries such as chemical manufacturing, food processing, and pharmaceuticals. The demand for such control is a driving force behind the adoption of AC drives.
- The concept of Industry 4.0, which focuses on smart, connected manufacturing, relies on automation and data exchange. AC drives are an integral part of this transformation as they can be integrated with sensors and data analytics to enable predictive maintenance and real-time adjustments. This leads to reduced downtime and improved overall equipment effectiveness (OEE).
- As per Statista, the above graph shows the growth of the size of the global industrial automation market during 2020-2022. The global industrial automation market size was valued at USD 175 billion in 2020. The market is expected to grow at a compound annual growth rate (CAGR) of around 9% during the forecast period.
Segmentation Analysis of The AC Drives Market
The AC Drives market segments cover Voltage, Power Voltage, Application, and End User. By Power Voltage, the Low Power segment is Anticipated to Dominate the Market Over the Forecast period.
- Low-power drives are predominantly used for various applications such as fans, pumps, cranes, fluid machines, machine tools, printing machines, metal processing machines, food processing machines, and health & medical care instruments, among others. Due to the wide scope of application in vertical industries, the low-power drive segment is expected to dominate the market during the forecast period.
- Major players in the industry are projecting the demand for AC drive based on application and technological scenarios which helps to meet consumer demand. The key players offering the low-power drive are Siemens, TMEIC, Fuji Electric, Nidec Industrial Solutions, and other players.
- Low-power AC drives are generally more affordable than their medium-voltage counterparts. This affordability makes them an attractive option for businesses and industries looking to implement motor control solutions within budget constraints.
- There is a growing emphasis on energy efficiency across industries. Low-power AC drives are effective in improving energy efficiency for small and medium-sized motors. Many commercial and industrial facilities seek to reduce their energy consumption, which drives the demand for low-power AC Drivers.
Regional Analysis of The AC Drives Market
Asia Pacific is Expected to Dominate the Market Over the Forecast Period.
- APAC is home to the world's largest and fastest-growing industrial economies, including China and India. These countries have experienced significant industrialization and manufacturing expansion in recent decades. The demand for AC drives in various industries, such as automotive, electronics, chemicals, and textiles, has surged as a result.
- The countries in Asia Pacific have been investing heavily in infrastructure development, including transportation, energy, and construction projects. AC drives are widely used in infrastructure applications, such as elevators, escalators, pumps, and ventilation systems. The rapid urbanization in the region has driven the need for motor control solutions, contributing to the dominance of the AC drives market.
- The adoption of industrial automation and Industry 4.0 principles is on the rise in APAC. As industries seek to improve efficiency, productivity, and quality, they turn to AC drives for precise motor control. The automotive, electronics, and food processing industries, among others, heavily rely on automation systems that incorporate AC drives.
- APAC has become a global product manufacturing hub, including consumer electronics, automobiles, and machinery. These manufacturing facilities require AC drives to control motors in production lines and ensure consistent product quality.
COVID-19 Impact Analysis on AC Drives Market
The COVID-19 pandemic had a significant impact on the AC drives market. The pandemic disrupted global supply chains, leading to delays in producing and delivering AC drive components and equipment. Manufacturers faced challenges in sourcing raw materials and components, which affected their ability to meet demand. Many industries and businesses postponed or canceled capital expenditure projects during the pandemic due to economic uncertainty. This affected the demand for AC drives, particularly in the construction, manufacturing, and infrastructure development sectors. Various industries, including automotive manufacturing and some construction projects, temporarily shut down operations in response to lockdowns and social distancing measures. This led to reduced demand for AC drives during the shutdown periods.
Top Key Players Covered AC Drives Market
- Rockwell Automation, Inc. (USA)
- Emerson Electric Co. (USA)
- Parker Hannifin Corporation (USA)
- TMEIC Corporation (USA)
- ABB (Switzerland)
- Siemens AG (Germany)
- Invertek Drives Ltd. (United Kingdom)
- Control Techniques (Nidec Corporation) (United Kingdom)
- Lenze SE (Germany)
- Schneider Electric SE (France)
- Bonfiglioli Riduttori S.p.A. (Italy)
- Danfoss Group (Denmark)
- Mitsubishi Electric Corporation (Japan)
- Eaton Corporation plc (Ireland)
- Yaskawa Electric Corporation (Japan)
- Fuji Electric Co., Ltd. (Japan)
- Hitachi, Ltd. (Japan)
- Nidec Corporation (Japan)
- Toshiba Corporation (Japan)
- Delta Electronics, Inc. (Taiwan)
- Vacon (Nidec Corporation) (Finland)
- Hiconics Drive Technology Co., Ltd. (China)
- Hyosung Heavy Industries Corporation (South Korea)
- LS Electric (South Korea)
- WEG S.A. (Brazil)
Key Industry Developments in the AC Drives Market
In May 2023, ABB announced the opening of its manufacturing plant in Peenya, located in Bengaluru, India which will produce a new line of variable frequency drives. This factory will produce and offer drives ranging from 75 kW to 250 kW along with will catering to the major industrial segments. The expansion will strengthen the company's domestic supplier eco-system for low voltage AC drives product portfolio and enhance its market position across the AC drives industry.
In May 2023, Emotron Drives Power Control LLC, part of CG Drives & Automation inaugurated a new manufacturing facility in UAE. This state-of-the-art production plant will manufacture AC drives and will further enable shorter delivery times of high-powered variable frequency drives. This expansion will expand the company's market presence across the region and is set to enhance its position across the AC dives industry.
Global AC Drives Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 24.22 Bn. |
CAGR: |
8.2 % |
Market Size in 2032: |
USD 49.23 Bn. |
Segments Covered: |
By Voltage |
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By Power Voltage |
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By Application |
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By End User |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the Report: |
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Chapter 1: Introduction
ā1.1 Research Objectives
ā1.2 Research Methodology
ā1.3 Research Process
ā1.4 Scope and Coverage
āā1.4.1 Market Definition
āā1.4.2 Key Questions Answered
ā1.5 Market Segmentation
Chapter 2:Executive Summary
Chapter 3:Growth Opportunities By Segment
ā3.1 By Power Rating
ā3.2 By Application
Chapter 4: Market Landscape
ā4.1 Porter's Five Forces Analysis
āā4.1.1 Bargaining Power of Supplier
āā4.1.2 Threat of New Entrants
āā4.1.3 Threat of Substitutes
āā4.1.4 Competitive Rivalry
āā4.1.5 Bargaining Power Among Buyers
ā4.2 Industry Value Chain Analysis
ā4.3 Market Dynamics
āā4.3.1 Drivers
āā4.3.2 Restraints
āā4.3.3 Opportunities
āā4.5.4 Challenges
ā4.4 Pestle Analysis
ā4.5 Technological Roadmap
ā4.6 Regulatory Landscape
ā4.7 SWOT Analysis
ā4.8 Price Trend Analysis
ā4.9 Patent Analysis
ā4.10 Analysis of the Impact of Covid-19
āā4.10.1 Impact on the Overall Market
āā4.10.2 Impact on the Supply Chain
āā4.10.3 Impact on the Key Manufacturers
āā4.10.4 Impact on the Pricing
Chapter 5: AC Drives Market by Power Rating
ā5.1 AC Drives Market Overview Snapshot and Growth Engine
ā5.2 AC Drives Market Overview
ā5.3 Low Power Drives
āā5.3.1 Introduction and Market Overview
āā5.3.2 Historic and Forecasted Market Size (2016-2028F)
āā5.3.3 Key Market Trends, Growth Factors and Opportunities
āā5.3.4 Low Power Drives: Geographic Segmentation
ā5.4 Medium Power Drives
āā5.4.1 Introduction and Market Overview
āā5.4.2 Historic and Forecasted Market Size (2016-2028F)
āā5.4.3 Key Market Trends, Growth Factors and Opportunities
āā5.4.4 Medium Power Drives: Geographic Segmentation
ā5.5 High Power Drives
āā5.5.1 Introduction and Market Overview
āā5.5.2 Historic and Forecasted Market Size (2016-2028F)
āā5.5.3 Key Market Trends, Growth Factors and Opportunities
āā5.5.4 High Power Drives: Geographic Segmentation
Chapter 6: AC Drives Market by Application
ā6.1 AC Drives Market Overview Snapshot and Growth Engine
ā6.2 AC Drives Market Overview
ā6.3 Pumps
āā6.3.1 Introduction and Market Overview
āā6.3.2 Historic and Forecasted Market Size (2016-2028F)
āā6.3.3 Key Market Trends, Growth Factors and Opportunities
āā6.3.4 Pumps: Geographic Segmentation
ā6.4 Fans
āā6.4.1 Introduction and Market Overview
āā6.4.2 Historic and Forecasted Market Size (2016-2028F)
āā6.4.3 Key Market Trends, Growth Factors and Opportunities
āā6.4.4 Fans: Geographic Segmentation
ā6.5 Compressors
āā6.5.1 Introduction and Market Overview
āā6.5.2 Historic and Forecasted Market Size (2016-2028F)
āā6.5.3 Key Market Trends, Growth Factors and Opportunities
āā6.5.4 Compressors: Geographic Segmentation
ā6.6 Other
āā6.6.1 Introduction and Market Overview
āā6.6.2 Historic and Forecasted Market Size (2016-2028F)
āā6.6.3 Key Market Trends, Growth Factors and Opportunities
āā6.6.4 Other: Geographic Segmentation
Chapter 7: Company Profiles and Competitive Analysis
ā7.1 Competitive Landscape
āā7.1.1 Competitive Positioning
āā7.1.2 AC Drives Sales and Market Share By Players
āā7.1.3 Industry BCG Matrix
āā7.1.4 Heat Map Analysis
āā7.1.5 AC Drives Industry Concentration Ratio (CR5 and HHI)
āā7.1.6 Top 5 AC Drives Players Market Share
āā7.1.7 Mergers and Acquisitions
āā7.1.8 Business Strategies By Top Players
ā7.2 ABB LTD. (SWITZERLAND)
āā7.2.1 Company Overview
āā7.2.2 Key Executives
āā7.2.3 Company Snapshot
āā7.2.4 Operating Business Segments
āā7.2.5 Product Portfolio
āā7.2.6 Business Performance
āā7.2.7 Key Strategic Moves and Recent Developments
āā7.2.8 SWOT Analysis
ā7.3 DANFOSS GROUP (DENMARK)
ā7.4 MITSUBISHI ELECTRICAL CO. (JAPAN)
ā7.5 SCHNEIDER ELECTRIC CO. (FRANCE)
ā7.6 SIEMENS AG FUJI ELECTRIC CO. LTD. (JAPAN)
ā7.7 EMERSON ELECTRIC CO. (UNITED STATES)
ā7.8 HICONICS DRIVE TECHNOLOGY CO. LTD. (CHINA)
ā7.9 HITACHI LTD. (JAPAN)
ā7.10 PARKER HANNIFIN CO. (INDIA)
ā7.11 ROCKWELL AUTOMATION INC. (UNITED STATES)
ā7.12 OTHER MAJOR PLAYERS
Chapter 8: Global AC Drives Market Analysis, Insights and Forecast, 2016-2028
ā8.1 Market Overview
ā8.2 Historic and Forecasted Market Size By Power Rating
āā8.2.1 Low Power Drives
āā8.2.2 Medium Power Drives
āā8.2.3 High Power Drives
ā8.3 Historic and Forecasted Market Size By Application
āā8.3.1 Pumps
āā8.3.2 Fans
āā8.3.3 Compressors
āā8.3.4 Other
Chapter 9: North America AC Drives Market Analysis, Insights and Forecast, 2016-2028
ā9.1 Key Market Trends, Growth Factors and Opportunities
ā9.2 Impact of Covid-19
ā9.3 Key Players
ā9.4 Key Market Trends, Growth Factors and Opportunities
ā9.4 Historic and Forecasted Market Size By Power Rating
āā9.4.1 Low Power Drives
āā9.4.2 Medium Power Drives
āā9.4.3 High Power Drives
ā9.5 Historic and Forecasted Market Size By Application
āā9.5.1 Pumps
āā9.5.2 Fans
āā9.5.3 Compressors
āā9.5.4 Other
ā9.6 Historic and Forecast Market Size by Country
āā9.6.1 U.S.
āā9.6.2 Canada
āā9.6.3 Mexico
Chapter 10: Europe AC Drives Market Analysis, Insights and Forecast, 2016-2028
ā10.1 Key Market Trends, Growth Factors and Opportunities
ā10.2 Impact of Covid-19
ā10.3 Key Players
ā10.4 Key Market Trends, Growth Factors and Opportunities
ā10.4 Historic and Forecasted Market Size By Power Rating
āā10.4.1 Low Power Drives
āā10.4.2 Medium Power Drives
āā10.4.3 High Power Drives
ā10.5 Historic and Forecasted Market Size By Application
āā10.5.1 Pumps
āā10.5.2 Fans
āā10.5.3 Compressors
āā10.5.4 Other
ā10.6 Historic and Forecast Market Size by Country
āā10.6.1 Germany
āā10.6.2 U.K.
āā10.6.3 France
āā10.6.4 Italy
āā10.6.5 Russia
āā10.6.6 Spain
āā10.6.7 Rest of Europe
Chapter 11: Asia-Pacific AC Drives Market Analysis, Insights and Forecast, 2016-2028
ā11.1 Key Market Trends, Growth Factors and Opportunities
ā11.2 Impact of Covid-19
ā11.3 Key Players
ā11.4 Key Market Trends, Growth Factors and Opportunities
ā11.4 Historic and Forecasted Market Size By Power Rating
āā11.4.1 Low Power Drives
āā11.4.2 Medium Power Drives
āā11.4.3 High Power Drives
ā11.5 Historic and Forecasted Market Size By Application
āā11.5.1 Pumps
āā11.5.2 Fans
āā11.5.3 Compressors
āā11.5.4 Other
ā11.6 Historic and Forecast Market Size by Country
āā11.6.1 China
āā11.6.2 India
āā11.6.3 Japan
āā11.6.4 Singapore
āā11.6.5 Australia
āā11.6.6 New Zealand
āā11.6.7 Rest of APAC
Chapter 12: Middle East & Africa AC Drives Market Analysis, Insights and Forecast, 2016-2028
ā12.1 Key Market Trends, Growth Factors and Opportunities
ā12.2 Impact of Covid-19
ā12.3 Key Players
ā12.4 Key Market Trends, Growth Factors and Opportunities
ā12.4 Historic and Forecasted Market Size By Power Rating
āā12.4.1 Low Power Drives
āā12.4.2 Medium Power Drives
āā12.4.3 High Power Drives
ā12.5 Historic and Forecasted Market Size By Application
āā12.5.1 Pumps
āā12.5.2 Fans
āā12.5.3 Compressors
āā12.5.4 Other
ā12.6 Historic and Forecast Market Size by Country
āā12.6.1 Turkey
āā12.6.2 Saudi Arabia
āā12.6.3 Iran
āā12.6.4 UAE
āā12.6.5 Africa
āā12.6.6 Rest of MEA
Chapter 13: South America AC Drives Market Analysis, Insights and Forecast, 2016-2028
ā13.1 Key Market Trends, Growth Factors and Opportunities
ā13.2 Impact of Covid-19
ā13.3 Key Players
ā13.4 Key Market Trends, Growth Factors and Opportunities
ā13.4 Historic and Forecasted Market Size By Power Rating
āā13.4.1 Low Power Drives
āā13.4.2 Medium Power Drives
āā13.4.3 High Power Drives
ā13.5 Historic and Forecasted Market Size By Application
āā13.5.1 Pumps
āā13.5.2 Fans
āā13.5.3 Compressors
āā13.5.4 Other
ā13.6 Historic and Forecast Market Size by Country
āā13.6.1 Brazil
āā13.6.2 Argentina
āā13.6.3 Rest of SA
Chapter 14 Investment Analysis
Chapter 15 Analyst Viewpoint and Conclusion
Global AC Drives Market |
|||
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 24.22 Bn. |
CAGR: |
8.2 % |
Market Size in 2032: |
USD 49.23 Bn. |
Segments Covered: |
By Voltage |
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By Power Voltage |
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By Application |
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By End User |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the Report: |
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Frequently Asked Questions :
The forecast period in the AC Drives Market research report is 2024-2032.
Rockwell Automation Inc. (USA), Emerson Electric Co. (USA), Parker Hannifin Corporation (USA), TMEIC Corporation (USA) ABB (Switzerland), Siemens AG (Germany), Invertek Drives Ltd. (United Kingdom), Control Techniques (United Kingdom), Lenze SE (Germany), Schneider Electric SE (France), Bonfiglioli Riduttori S.p.A. (Italy), Danfoss Group (Denmark), Mitsubishi Electric Corporation (Japan), Eaton Corporation plc (Ireland), Yaskawa Electric Corporation (Japan), Fuji Electric Co., Ltd. (Japan), Hitachi, Ltd. (Japan), Nidec Corporation (Japan), Toshiba Corporation (Japan), Delta Electronics, Inc. (Taiwan), Vacon (Nidec Corporation) (Finland), Hiconics Drive Technology Co., Ltd. (China), Hyosung Heavy Industries Corporation (South Korea), LS Electric (South Korea), WEG S.A. (Brazil), and Other Major Player.
The AC Drives Market is segmented into Voltage, Power Voltage, Application, End User, and region. By Voltage, the market is categorized into Low Voltage, Medium Voltage, and High Voltage. By Power Voltage, the market is categorized into Low Power, Medium Power, and High Power. By Application, the market is categorized into Pumps, Fan, Conveyor, Compressor, and Extruders. By End User, the market is categorized into Oil and gas, Power Generation, Food and Beverages, Building Automation, Mining and metals, and Other Industries. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
An AC drive is a device used to control the speed of an electrical motor to enhance process control. Reduce energy usage and generate energy efficiently. Decrease mechanical stress on motor control applications. Optimize the operation of various applications relying on electric motors.
The global AC Drives Market size was valued at USD 24.22 Billion in 2023 and is projected to reach USD 49.23 Billion by 2032, growing at a CAGR of 8.2% from 2024 to 2032.