logo

Alternating Current (AC) Electric Drives Market Size (2024 - 2029)

The alternating current (AC) electric drives market is experiencing growth driven by increasing demand across various industries such as power generation, oil and gas, and food and beverage. This demand is fueled by the need for energy efficiency and automation to meet regulatory standards, particularly in the food industry. Urbanization and industrialization further contribute to the market's expansion as they raise the need for automated equipment. However, challenges such as high initial costs, maintenance, and competition from alternative drive options pose obstacles to market growth. The Covid-19 pandemic has also impacted the market by disrupting manufacturing and highlighting the importance of automation to mitigate labor shortages.

Home Market Analysis Technology, Media and Telecom Research Automation Research Industrial Automation Research Industrial Machinery and Equipment Research Motors and Drives Research Alternating Current (AC) Electric Drives Market Market Size

Market Size of Alternating Current (AC) Electric Drives Industry

Alternating Current (AC) Electric Drives Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 4.40 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

rd-img

*Disclaimer: Major Players sorted in no particular order

Alternating Current (AC) Electric Drives Market Analysis

The global alternating current (AC) electric drives market is expected to register a CAGR of 4.4% over the forecast period (2022-2027). AC drives are used in various industries, including power generation, oil and gas, and food and beverage. They are used in manufacturing processes to regulate and control rotating equipment like fans, compressors, conveyors, machine tools & spindles, and pumps and to increase the industry's energy efficiency.

  • Due to the rising domestic consumption rate, the growing gas industry and improving manufacturing outlook are anticipated to augment the demand for AC electric drives. For instance, according to IEA, in China, the increasing heating demand, combined with a strong economic recovery, pushed y-o-y gas demand growth to 23% in January 2021.
  • Manufacturers in the food industry are increasingly adopting automation to meet the guidelines and regulations set by the industry associations to maintain the quality of products offered. For instance, Food & Drug Administration's Food Safety Modernization Act (FSMA) introduced regulations that necessitate giant food manufacturers to meet preventive controls and Current Good Manufacturing Practice (CGMPS) requirements.
  • The stringent government regulations regarding environmental concerns to cut down energy usage and carbon emission regulate the demand for low-power AC drive as it helps achieve energy efficiency and reduce operating costs by monitoring energy usage.
  • Moreover, urbanization and industrialization have raised the demand for automated and motor-driven equipment that needs AC drives. However, the initial setup cost, maintenance, and presence of alternative options to Electric drives are the factors hindering the market's growth.
  • The Covid-19 pandemic shutdown of factories has impacted manufacturing facilities and decreased the demand for electric drives across different industry verticals. The pandemic has also highlighted the need for factory automation to replace labor to deal with a skilled labor shortage and avoid workflow disruption due to the situation's unprecedented nature.

Alternating Current (AC) Electric Drives Industry Segmentation

An AC electric drive is a device used to control the speed of an electrical motor to enhance process control, reduce energy utilization and generate energy efficiently. The Alternating Current (AC) Electric Drives Market is segmented By Voltage (Low, Medium), By End-user Industry (Oil & Gas, Chemical & Petrochemical, Food & Beverage, Water & Wastewater, Power Generation, Metal & Mining, Pulp & Paper, HVAC, Discrete Industries) and Geography.

Need A Different Region Or Segment?
Customize Now

Alternating Current (AC) Electric Drives Market Size Summary

The global alternating current (AC) electric drives market is poised for steady growth, driven by their critical role in enhancing energy efficiency across various industries such as power generation, oil and gas, and food and beverage. These drives are integral in regulating and controlling equipment like fans, compressors, and pumps, thereby optimizing manufacturing processes. The increasing domestic consumption, coupled with a burgeoning gas industry and a positive manufacturing outlook, is expected to bolster the demand for AC electric drives. Additionally, stringent environmental regulations are pushing industries towards adopting low-power AC drives to reduce energy consumption and carbon emissions. However, challenges such as high initial setup costs and maintenance, along with the availability of alternative drive options, pose hurdles to market expansion.

The AC electric drives market is characterized by robust applications in the discrete manufacturing sector, which includes industries like aerospace, defense, and electronics. The United States, with its significant investments in aerospace and defense R&D, is a key player in this market, driving demand through increased manufacturing activities. The electronics sector, facing rising energy consumption due to higher production volumes, is also shifting towards automation and energy-efficient solutions, further propelling the adoption of AC drives. Regional advancements in industrial automation and the Internet of Things (IoT) are enhancing operational efficiencies, with countries like China leading in manufacturing transformations. The HVAC sector's demand for energy-efficient systems, driven by infrastructure projects, also contributes to market growth. The market remains highly competitive, with major players like Danfoss, ABB, and Siemens AG continuously innovating and expanding their product offerings to meet the growing global demand.

Explore More

Alternating Current (AC) Electric Drives Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porters Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitutes

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Assessment of Impact of COVID-19 on the Market

Alternating Current (AC) Electric Drives Market Size FAQs

The Alternating Current (AC) Electric Drives Market is projected to register a CAGR of 4.40% during the forecast period (2024-2029)

ABB, Danfoss, Rockwell Automation Inc., Schneider Electric SE and Siemens AG are the major companies operating in the Alternating Current (AC) Electric Drives Market.

Alternating Current (AC) Electric Drives Report Snapshots

Alternating Current (AC) Electric Drives Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)