AC Drives Market Size was valued at USD 19,765.5 Million in 2022. The AC Drives Market industry is projected to grow from USD 20,951.43 Million in 2023 to USD 31,496.4 Million by 2030, exhibiting a compound annual growth rate (CAGR) of 6.0% during the forecast period (2023 - 2030). AC drive is a device 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.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
There is increasing investment in manufacturing and process industries in developing countries such as India and China. Manufacturing and process industries have emerged as high-growth sectors in developing countries such as India and China. Between April 2000 and June 2021, cumulative FDI inflows into manufacturing subsectors were US$ 100.35 billion, according to the Department for Promotion of Industry and Internal Trade (DPIIT). China is the world's largest manufacturer in terms of output. The services industry, agriculture, manufacturing, and technology are the primary sectors and industries fueling China's growth.
The manufacturing and process industries transform goods, materials, or substances into new products. Various electric components and equipment are installed based on industry type, operation mode, and voltage level requirements. AC drives are commonly used in the process and manufacturing industries to increase equipment efficiency. They are one of the most effective tools managers use to control a facility’s energy use. They help in reduce machine expenses and require much less maintenance. This leads to increased application of AC drives in manufacturing and process industries around the globe.
Electric motors account for nearly 70% of all industrial electrical energy consumption. Pumps that move fluids, fans that move air, compressors, conveyors, and any other equipment that relies on rotational force to function are all powered by these motors. The number of magnetic poles incorporated into most motors, as well as the supplied supply voltage and frequency, determine how fast they spin. They are unable to alter their pace. Even with fixed speed systems, finding a motor that rotates at the correct speed for the application might be problematic.
AC drives provide effective speed control of AC motors by changing voltage and frequency. The controlled speed of a motor gives users improved process control, less wear on machines, increased power factor, and substantial energy savings. AC drives offer good speed controls and high energy savings. The uncertainties in oil supply and the fluctuating prices of conventional fuels lead to a rising need for energy efficiency. The rising need for energy efficiency in various industries creates demand for AC drives.Â
IoT drives operational efficiencies through automation, connectivity, and analysis and has become popular among the electrical, automation, and manufacturing industries. The Internet of Things (IoT) offers new opportunities for the players involved in the AC drives the market. Modern AC drives with embedded PLCs perform local level tasks to self-optimize, saving time in setting up and commissioning. Obtaining data in real-time makes it easier for OEMs to make recommendations to the end user for machine setup. OEMs can use the data from their machines to influence the design of future equipment. Intelligent AC drives provide a cost-effective way of bringing the latest high-performance technology into organizations.
The AC Drives Market segmentation, based on type, includes up to 1kV and above 1kV. The up to 1kV segment held the majority share in 2022 contributing to around ~60-65% with respect to the AC Drives Market revenue. In Up to 1 kV of low voltage AC drives, both low- and high-power applications can benefit from low-voltage drives. While medium voltage drives offer a lower current draw and use less energy, low voltage drives are frequently used because of their lower cost, smaller size, and greater availability. From micro and machinery drives for machine construction to industrial drives for regulating processing lines, industry-specific drives with purpose-built features and capabilities are available. For any industrial motion application, there are low voltage AC drives with general performance, high performance, component, distributed, and enclosed options.
The AC Drives Market data has been bifurcated by application largely into pumps, compressors, fans, conveyors, extruders and others. The pumps segment dominated the market in 2022. With multiple pump-dedicated control features and intelligent protection capability, AC drives optimize production and protect the drive, motor, and system equipment. Automatic Energy Optimization (AEO) provides additional energy savings of up to 5%. This feature matches the input current to the actual motor speed and load, and draws only the amount of power necessary for motor excitation and operation with this load. This avoids additional thermal losses in the motor. With efficiency ratings up to 99% and a true power factor greater than 0.9, AC drives are distinctly better than comparable devices.
The AC Drives Market data has been bifurcated by product largely into power generation, oil & gas, food & beverage, metals & mining, chemicals & petrochemicals, water & wastewater, residential and others. The power generation segment dominated the market in 2022. AC drives are used in the power generation sector for more reliable and efficient plant operations. AC drives help to improve power plants' heat rate and net power output and reduce operating costs. Moreover, deploying AC drives in power plants increases plant flexibility through improved process control and reduces emissions and maintenance costs.
By Region, the AC Drives Market industry study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. Asia-Pacific AC Drives Market accounted for USD 6,933.7 million in 2022 and is expected to exhibit a 6.6% CAGR during the study period. This is attributed to the presence of growing population and emerging market in the region.
North America and Europe are expected to grow at a rapid rate throughout the forecast period, as countries in these regions focus on improving their network infrastructure in response to the rising demand for energy-efficient equipment. This is expected to increase demand for electronic goods. One of the largest contributors to the AC drives market is North America. The increased demand for HVAC applications in the residential sector and the increasing affordability of household appliances are driving market expansion in the area. Because of technical developments and increased product usage in the oil & gas and mining industries, North America is expected to rise significantly over the projected period.
Pipelines transmit petroleum products from refineries to demand regions and crude oil from sources to inland refineries in the oil and gas industry. Because of its ability to manage flow efficiently and optimize energy use, AC drives are becoming more popular as the oil and gas sectors expand globally. The United Kingdom, Germany, Italy, and Norway are among the European countries investing in oil and gas production and development to reduce their reliance on foreign countries, supporting the AC drive business. Europe is in high demand due to the expanding building and mining industries. The region is one of the most important for electric motors for household appliances, with rising demand for home appliances and increased affordability driving growth in electric motors, which is expected to enhance the region's demand for household appliances.
Due to industrialization and urbanization, Asia-Pacific is one of the world's largest markets for AC drives and one of the fastest-growing markets throughout the forecast period. Furthermore, the market for AC drives in Asia-Pacific is likely to be driven by rising demand for energy-efficient equipment and supportive government programs. During the historical era, APAC was the largest contributor to the market in terms of value, followed by Europe. Increasing industrialization and urbanization, driven by China, India, Japan, and Australia, is likely to propel the APAC market's expansion over the forecast period.
Major market players’ growth depends on market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving services. Many global, regional, and local vendors characterize the AC Drives market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
Siemens is a global engineering and manufacturing company specializing in electrification, automation, digitalization, innovation, and technology. It provides engineering solutions in automation and control power AC drivers, transportation, and medical diagnosis. The company offers various products and services in drive technology, energy, financing, healthcare, industrial automation, mobility, services, software, and consumer products sectors. It is considered the world’s largest producer of energy-efficient and resource-saving technologies and a leading provider of power generation and medical diagnostic equipment. Siemens has a global presence in about 200 countries worldwide and operates through 289 production houses, manufacturing facilities, and R&D centers. The company’s business operations are segmented into six major categories: digital industries, smart infrastructure, gas & power, mobility, Siemens Healthineers, and Siemens Gamesa Renewable Energy.
ABB Group (ABB) has various segments, including electrification products, robotics & motion, Stationary automation, and AC driver segments. The company’s product offering includes control room solutions, drives, PLC automation, robotics, semiconductors, motors & generators, metallurgy products, PAFC & DMFC voltage products, robotics, transformers, and mechanical power transmission. ABB is the world's leading supplier of AC and DC low-voltage drives and high-power, medium-voltage drives, with a product portfolio of drive systems that extends across a large power range, from 100 watts to 100 megawatts. ABB VFD drives are developed, manufactured, and sold by ABB Group, it is a famous brand VFD. It is mainly used to control and adjust the three-phase AC motor's speed). The company is also developing low voltage AC drives with built-in features to adjust the speed and torque of standard AC motors with advanced technology. The company operates in 100 countries across the Americas, Europe, Asia, the Middle East, and Africa.
May 2022: Siemens announced a new collaboration effort with Xerox® Elem™ Additive Solutions to strengthen the metal additive manufacturing (AM) capabilities of both businesses. This relationship highlights both companies’ strong commitment to advancing the future of industrial additive manufacturing through innovation and partnerships.
February 2022: Hitachi launched its new TRO600 series wireless routers with 5G capability. These routers help industrial and utility customers achieve high reliability and resiliency in mission-critical operations. They enable a scalable, flexible, and secure, hybrid wireless communication architecture.
September 2021: MITSUBISHI Electric present the brand-new critical product line earmarked specifically for the North American mission critical market.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 19,765.5 Million |
| Market Size 2023 | USD 20,951.43 Million |
| Market Size 2030 | USD 31,496.4 Million |
| Compound Annual Growth Rate (CAGR) | 6.0% (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 – 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Voltage, Application, End Use and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and, Saudi Arabia, UAE, Brazil, Argentina, and others |
| Key Companies Profiled | ABB, Siemens, Schneider Electric, Parker Hanifin Corp., Hitachi, Mitsubishi Electric Corporation, Eaton Corporation, Danfoss, Rockwell Automation, Yaskawa Electric Corporation |
| Key Market Opportunities | Industrial Internet of Things (IOT) |
| Key Market Dynamics | Investments in manufacturing and process industries in developing countriesRising need for energy efficiency  |
AC Drives Market Highlights:
Frequently Asked Questions (FAQ) :
As of 2022, AC Drives is worth USD 19,765.5 million.
The AC Drives Market is growing at a CAGR of 6.0 %.
The Asia-Pacific region holds the largest market share in the AC Drives market.
ABB, Siemens, Schneider Electric, Parker Hanifin Corp., Hitachi, Mitsubishi Electric Corporation, Eaton Corporation, Danfoss, are some of the prominent players in the market.
The pumps segment in the AC Drives Market is leading commercial market growth.
The power generation segment has the largest market share.
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
