AC Drives Market

Global AC Drives Market Size (2024 to 2032):

The Global AC Drives Market was worth USD 17.82 billion in 2023 and is anticipated to reach a valuation of USD 29.57 billion by 2032 from USD 18.85 billion in 2024 and is predicted to register a CAGR of 5.79% during 2024-2032.

Current Scenario of the Global AC Drives Market

AC drives are electronic devices that alternate with voltage, frequency, and magnetic flux to regulate the speed and torque of an electric motor, In an energy-intensive industry, the optimal use of energy and the efficient use of its consumption is important to manage the overall operating costs of this industry. Frequency converters can optimize energy consumption while helping reduce operating costs by monitoring the speed and torque of electric motors. AC Drives is an electronic device that is employed to regulate the speed of an electric motor by varying the frequency, magnetic flux, and voltage in a motor circuit. In energy-intensive businesses, optimal use of energy and efficient use of energy is important for managing overall operating costs. These drives can optimize energy consumption while helping to reduce operating costs by monitoring the speed and torque of electric motors. The reduction in energy consumption and the gain resulting from the increase in the useful life of electrical equipment are the main factors in the adoption of these AC drives in various businesses like water and wastewater, oil and gas, and mining.

MARKET TRENDS

The main trend identified in the worldwide AC drives market is the transformation of the manufacturing industry with the strong adoption of the Industrial Internet of Things (IoT). By adopting this technology, manufacturers can increase the productivity and efficiency of their operations to remain competitive on a worldwide scale. This factor creates a positive environment for the call for servo drives and motors, which in turn will also increase the call for these drives as they are employed in motors to achieve energy efficiency.

MARKET DRIVERS

Rapidly growing industrialization and urbanization and various government regulations aimed at achieving energy efficiency are the main factors in the expansion of the global AC drives market.

Also, various processes to gain energy efficiency along with the increasing need for energy optimization in different industrial processes are the other key factors driving the expansion of the market. In addition to saving energy, VFDs reduce wear on mechanical components, reducing the downtime required for repairs and maintenance. This encourages the industrial sector to adopt these drives, which contributes to the expansion of the market. The low power consumption of AC drives is one of the main factors promoting the worldwide market. They adopt energy-saving techniques that avoid depleting natural resources and offer a better return on investment and efficiency. Using these devices also reduces power outages and carbon dioxide emissions. Rapid industrialization and urbanization have increased the call for automated and motorized equipment, which in turn has increased the sales of frequency converters worldwide. In addition, the improvement in living standards has catalyzed the development of modern infrastructure that further contributed to the expansion of the market.

MARKET RESTRAINTS

The main obstacles that are discouraging the expansion of the AC drives market include the decrease in foreign direct investment (FDI) due to the growing protectionism and the unstable scenario of the oil and gas industry, mainly in recent years.

MARKET OPPORTUNITIES

Increasing urbanization and the high expansion rate of industries around the world are the main aspects that are accelerating the adoption of this product.

The diversity of processes to gain energy efficiency and the growing need for energy optimization in different industrial processes are the key factors driving market expansion. The main factors driving the growth of the AC drives market are rising electricity prices, increased calls for power and electricity, and strict regulations imposed by the government to reduce carbon emissions during consumption. and electricity production, as well as industrialization and increasing urbanization. The low cost of production of the frequency converters coupled with an increase in electricity prices supported their sales. Since these drives consume a minimal amount of electricity, require less maintenance, and are easy to operate, they are preferred by manufacturers around the world for use in motorized equipment. The growing popularity of the industrial Internet of Things (IoT), along with the use of cloud computing, mobile communications, and web technologies to control and maintain these units, is also predicted to have a positive impact on the expansion of the industry.

MARKET CHALLENGES

The increasing prices of these drives would also hinder the market expansion during the foreseen period.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global AC Drives Market Analysis By Application

Compressors had the largest market share in terms of revenue during the historical period and will continue to dominate throughout the foreseen period, due to the increasing use of compressors in heating and ventilation equipment.

Global AC Drives Market Analysis By End-Use Industry

The oil and gas industry was the largest end-user of the AC drives market during historic times. The industry is also predicted to capture the largest market share in terms of revenue during the foreseen period due to the widespread use of derivatives to control the speed of pumps and compressors employed in the industry.

REGIONAL ANALYSIS

North America has the highest penetration of AC drives and also has a substantial share.

The AC drives market is predicted to post a significant CAGR over the foreseen period. Asia-Pacific accounts for a comparatively high market share and is growing at a relatively high CAGR during the foreseen period due to increasing calls for drives in a wide range of applications from various businesses. North America is experiencing a rapid increase in frequency converter production capacity, attributed to increased urbanization and the development of end-user businesses. Key factors driving the expansion of the AC Drives market in the region include the increasing expansion and technological advancement of the HDD market and high-end user applications in various businesses. The AC drive market is predicted to experience healthy expansion due to the increasing use of such drives around the world. The variable speed drivetrain market for the Asia-Pacific region is also predicted to see rapid expansion during the foreseen period, primarily driven by large-scale infrastructure expansion, especially in China and India.

KEY PLAYERS IN THE GLOBAL AC DRIVES MARKET

Companies playing a prominent role in the global AC drives market include ABB Ltd., Siemens AG, Danfoss Group, Schneider Electric SE, Yaskawa America Inc., Rockwell Automation Inc., Mitsubishi Electric Corporation, Fuji Electric Co. Ltd., Emerson Electric Co., Parker Hannifin Corporation, and Others.

RECENT HAPPENINGS IN THE GLOBAL AC DRIVES MARKET

• In recent years, there is a growing call for variable-speed drives that can be employed with induction motors for machine automation and energy savings. To meet this need, Bharat Bijlee has introduced a new range of superior-performance ACs.
• Samsung, India's largest and most trusted consumer electronics and mobile phone brand launched an exciting new line of air conditioners including Wi-Fi-enabled Wind-Free AC 2.0.

DETAILED SEGMENTATION OF THE GLOBAL AC DRIVES MARKET INCLUDED IN THIS REPORT

This research report on the global AC drives market has been segmented and sub-segmented based on application, end-use industry, and region.

By Application

• Compressors
• Fans
• Pumps
• Conveyors
• Extruders

By End-Use Industry

• Oil and Gas
• Power Generation
• Building Automation
• Food and Beverages
• Water and Wastewater
• Metals and Mining
• Chemicals and Petrochemicals

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa