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AC Drives Market Research Report – Global Forecast till 2030

AC Drives Market Research Report: Information by Voltage (Up to 1 kV, and Above 1 kV), Application (Pumps, Compressors, Fans, Conveyors, Extruders, and Others), End Use (Power Generation, Oil & Gas, Food & Beverage, Building Automation, Metals & Mining, Chemicals & Petrochemicals, Water & Wastewater, Residential, and Others), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) - Forecast till 2030

ID: MRFR/E&P/6117-HCR | February 2021 | Region: Global | 143 pages

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AC Drives Market Synopsis:

AC Drives Market is projected to be worth USD 32.51 billion by 2027, registering a CAGR of 5.97% during the forecast period (2021 - 2027), The market was valued at USD 19.15 billion in 2020.

AC drive is a device that is used to control the speed of an electric motor. It helps in enhancing control and reducing energy consumption, thus, ensuring energy efficiency. Moreover, the AC drives also help decrease the mechanical stress on motor control applications.

By voltage, the global market has been segmented into up to 1 kV and above 1 kV.The up to 1 kV segment accounted for the largest market share of 60.86% in the global AC drives market.By application, the global market has been segmented into pumps, compressors, fans, conveyors, extruders, and others.The pumpsegment held the largest market share of 25.58% in the global AC drives market. By end use, the global market has been segmented into power generation, oil & gas, food & beverage, building automation, metals & mining, chemicals & petrochemicals, water & wastewater, residential and others.The power generation segment held the largest market share of 21.89% in the global AC drives market.

Competitive Landscape:

The global AC drives market is characterized by the presence of many local, regional, and global vendors. The AC drives market is highly competitive, with all the players continually competing to gain a larger market share.

Siemens is an industrial conglomerate that operates in automation, electrification, and digitalization globally. It offers power generation products for utilities, independent power producers, industrial customers, and engineering, procurement, and construction (EPC) customers.

The prominent players operating in the Global AC Drives Market are Siemens (Germany), ABB (Switzerland), Mitsubishi Electric Corporation (Japan), Schneider Electric (France), Danfoss (Denmark), Rockwell Automation Inc. (US), Eaton (Ireland), Yaskawa Electric Corporation (Japan), Parker Hannifin Corp. (US), and Hitachi Ltd. (Japan).

COVID-19 Analysis:

COVID-19 has led to severe impact across all the industries around the world. The rapid spread has led governments across the globe to take stricter actions for the operations of industrial plants and offices, leading to stricter lockdowns. The virus also had a significant impact on the factories manufacturing electric motors and AC drives due to the non-availability of motors and factory shutdowns.

Market Dynamics:

  • Drivers:

Investments in Manufacturing and Process Industries in Developing Countries

The manufacturing and process industries are engaged in transforming goods, materials, or substances into new products. Various electric components and equipment are installed based on industry type, operation mode, and voltage level requirement.

  • Restraints:

Decrease in foreign direct investments

Foreign direct investments (FDIs) play a huge role in shaping the country’s economy, especially in developing countries, such as India, Myanmar, Indonesia, and Nigeria. As per the United Nations Conference on Trade and Development, FDI has witnessed a 12% reduction in 2020.

  • Opportunities:

Industrial internet of things (IIOT)

The term Internet of Things (IoT) has been the need of the hour for rising industrialization and rising need for energy efficiency. IoT drives operational efficiencies through automation, connectivity, and analysis and has become popular among the electrical, automation, and manufacturing industries.

Segment Overview:

  • By Voltage:

Up to 1 kV

The below 1 kV voltage segment generally covers electrical equipment with low voltage ratings. The AC drives in this range are used in various end-use sectors, including residential, commercial, and transportation.

Above 1 kV

This segments segment comprises electrical equipment with voltage ratings above 1 kV. AC drives with voltage ratings of above 1 kV are used in various end use industries, including cement, mining & minerals, metals, power, marine, chemical, and oil & gas.

By Application:

  • Pumps

Pumps are exposed to failures due to varying operating conditions, including density, pressure levels, and flow rates. To evade such situations, AC drives provide accurate speed control of motor-driven pump application, enabling reaching an adequate efficiency point.

  • Compressors

Compressors primarily consist of AC drives which optimize the capacity control of industrial compressors. Additionally, the use of AC drives in compressors can help achieve the cost and efficiency targets for small, commercial high-speed centrifugal compressors.

  • Fans

Fans are deployed in various manufacturing industries as industrial fans providing high precision, distributed intelligence, user-friendly interfaces, and low operating costs. However, these fans require a proper control system to control and optimize the processes and reduce energy and maintenance costs.

  • Conveyers

AC drives are used with industrial conveyors, especially in the food & beverage industry. AC drives deployed on quarry conveyors offer reliable operation, reduce maintenance, and help save energy. The smooth operation that AC drive conveyor motors provide reduces the strain on the mechanical and electrical systems.

  • Extruders

AC drives find applications in extruders due to various reasons such as energy-saving potential, controlling operational cost, and low maintenance, among others. Moreover, AC drives generally have two ratings based on the load type, including a heavy-duty rating for constant torque loads and a normal duty rating for variable torque loads.

  • Others

Other applications for AC drives include HVAC systems, cranes, and dispensers, among others. In HVAC systems, AC drives are considered as one of the most effective ways to improve building energy efficiency. These drives are used in various areas in HVAC systems consisting of HVAC fields.

By End Use:

  • Power Generation

AC drives are used in the power generation sector for more reliable and efficient plant operations. AC drives help improve the heat rate and net power output of power plants and reduce operating costs. Moreover, deploying AC drives in power plants increases plant flexibility through improved process control and reduces emissions and maintenance costs.

  • Oil & Gas

In the oil & gas sector, AC drives are used to start motors and control flow in a wellhead. In oilfields, compressors and pumps use drives to smoothly start large motors and continuously adjust the speed to control flow.

  • Food & Beverage

In the food & beverage industry, AC drives help achieve precise process control and significantly improved energy efficiency. These drives also reduce system complexity and ensure compliance with required safety standards.

  • Building Automation

AC drives are used in the power generation sector for more reliable and efficient plant operations. AC drives help improve the heat rate and net power output of power plants and reduce operating costs. Moreover, deploying AC drives in power plants increases plant flexibility through improved process control and reduces emissions and maintenance costs.

  • Metals & Mining

Metals are essential raw materials in several industries, such as automotive and construction. However, metals need to be processed and shaped in a workable form before being shipped to end-use industries.

  • Chemicals & Petrochemicals

Within the chemicals & petrochemical industry, AC drives are used for efficient supply, transportation, and refining of the raw materials kept at accurate temperature. The high protection class and conformal coating of printed circuit boards in AC drives enhance protection against environmental pollution and harmful gases.

  • Water & Wastewater

AC drives are used in the water & wastewater industry for the purification of water. AC drives help to optimize the water supply, process use and effluent treatment within the industry. AC drives are generally used in every phase of water supply and wastewater plants. 

  • Residential

AC drives are used for compressor applications in residential buildings. Danfoss Group (Denmark) provides AC drives that help in reducing mechanical wear and ensuring fewer starts and stops. Moreover, these drives also have high pressure and low-pressure features that ensure the chillers' safe operation in residential areas.

  • Others

Other end use industries include pulp & paper, textile, pharmaceuticals, and marine. AC drives are used in various industries for various purposes. For instance, in escalators, AC drives help lower the speed with smooth acceleration and deceleration.

Regional Analysis:

  • North America

North America is one of the biggest regions contributing to the AC drives market. The growth of the market in the region can be primarily attributed to the rising demand for HVAC applications in the residential sector and the increasing affordability of household appliances.

  • Europe

The region is one of the most prominent for electric motors for household appliances, where the rising demand for household appliances and increased affordability of household appliances drive the growth of the electric motors, which is likely to support the demand for household appliances in the region.

  • Asia Pacific

Asia-Pacific is one of the largest markets for AC drives in the world and is one the fastest-growing market during the forecast period, mainly due to industrialization and urbanization. Moreover, the increased demand for energy-efficient equipment and supportive government plans are expected to drive the market for AC drives in Asia-Pacific.

  • Middle East & Africa

The increased investments in oil & gas exploration, specifically in Saudi Arabia and Qatar, creating opportunities for installing compressors and pumps, with subsequent investments contributing to the increased use of AC drives.

  • South America

South America primarily depends on industries such as mining, energy, food & beverage, and construction. Countries included in South America are Chile, Brazil, and Argentina. According to Invest Chile, a government agency, the mining industry in Chile is expected to be worth more than USD 60 billion over the next seven years.

Recent Development:

  • Date

  • Approach

  • Developments

November 2019

  • Collaboration

  • PT Elnusa Tbk collaborated with Schlumberger Indonesia to develop upstream oil & gas service lines.

November 2019

  • Collaboration

  • PT Elnusa Tbk collaborated with Schlumberger Indonesia to develop upstream oil & gas service lines.

March 2018

  • Contract

  • Velesto Energy received a contract from Petronas Carigali Sdn Bhd. (Malaysia) for the provision of 460,000 lbs capacity excitation systems.

August 2018

  • Contracts & Agreements

  • PT Elnusa Tbk received a contract of USD 280.83 million from PT Pertamina (Persero) Group (Indonesia) for oil base mud management and installation fabrication services in the Java sea and procurement of hydraulic workover services in Hululais, Indonesia.

February 2017

  • Contracts & Agreements

  • Uzma Berhad received a contract from Petronas Carigali Sdn. Bhd. (Malaysia) for providing electric wireline logging (EWL) and excitation systems and related services.

Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2027: USD 32.51 billion
  • 2030 : Significant value
  •   CAGR   5,97% CAGR (2022-2030)
      Base Year   2021
      Forecast Period   2022Β toΒ 2030
      Historical Data   2019Β &Β 2020
      Forecast Units   Value (USD Million)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   Voltage, Power Rating, Application, End-Use
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   ABB (Switzerland), Siemens (Germany), Danfoss Group (Denmark), Schneider Electric (France), Rockwell Automation, Inc. (US), Mitsubishi Electric Corporation (Japan), Yaskawa Electric Corporation (Japan), WEG (Brazil), Toshiba International Corporation (Japan), Hiconics Drive Technology Co. Ltd (China), Hitachi Ltd (Japan), Parker Hannifin Co (US), Delta Electronics, Inc. (Taiwan)
      Key Market Opportunities

  • Rapid industrialization
  • Growing GDP in the emerging countries
  •   Key Market Drivers

  • Energy saving
  • Reverse operation
  • Elimination of mechanical components to reduce maintenance cost

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    Frequently Asked Questions (FAQ) :

    The global market of AC drives can thrive at 5.97% CAGR between 2020 and 2027.

    The worldwide market of AC drives can value at USD 32.51 billion by 2027.

    Toshiba International Corporation (Japan), Hitachi Ltd (Japan), and Hiconics Drive Technology Co. Ltd (China) are some key players of the AC drives market.

    The growing requirement for AC drives in cash-rich sectors, such as F&B, pharmaceuticals, and others can impel the AC drives market.

    Increased in investment in energy efficient products can spur the AC drives market growth in APAC.