Market Trends of Variable Frequency Drives Industry
Low Voltage Segment to Dominate the Market
The low-voltage segment is the largest in the VFD market, accounting for 61.02% of the total market share in 2021. This segment is forecasted to grow from USD 14.45 billion in 2022 to USD 20.04 billion by 2029, with a CAGR of 5.1%.
- Energy efficiency in focus: Low-voltage VFDs help optimize energy use across multiple industries, including commercial buildings, which account for 40% of U.S. energy consumption.
- Regulatory push: Government policies like the EU’s Tier-2 Ecodesign Directive (2021) and the European Green Deal are driving adoption of VFDs in energy-intensive industries.
- Technological innovations: Advanced VFDs now come with features like braking methods, power boost during ramp-up, and advanced controls during ramp-down.
- Industry application: The food processing industry is a major adopter, with Invertek’s Optidrive E3 being installed for airflow management at Kuala Lumpur’s Pilgrim Assembly Point Terminal.
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Asia Pacific The Fastest-Growing Regional Segment
Asia-Pacific is the fastest-growing region for VFD adoption, with projected growth from USD 10.10 billion in 2022 to USD 15.39 billion by 2029 at a CAGR of 6.2%.
- Industrial development: Rapid automation and industrial growth in China are driving significant VFD demand in the region.
- Energy regulations: Strict government policies around energy efficiency are creating growth opportunities in countries like China and India.
- Strategic partnerships: Companies are expanding in the region, with Rockwell Automation partnering with Singapore-based CAD-IT in 2021 to provide smart manufacturing solutions in Southeast Asia.
- HVAC sector expansion: The growing market for HVAC systems in urbanizing regions is driving VFD demand, as seen in Grundfos’ 2021 partnership with BBP for sustainable cooling in Southeast Asia.
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