AC Drives Market Size – By Voltage, By Application, By End-Use, Analysis, Share, Growth Forecast, 2025 - 2034

AC Drives Market Size

The global AC drives market size was valued at USD 17 billion in 2024 and is estimated to grow at a CAGR of 4.4% from 2025 to 2034. The demand for energy-efficient motor control solutions, technological advancements, and the integration of motor control with industrial automation are driving the industry growth. Increasing industrialization, growing automation, and increasing emphasis on energy efficiency will complement the industry landscape. The widespread adoption of AC drives in industries such as manufacturing, oil and gas, HVAC, and water and wastewater treatment is further augmenting market growth.
 

The ability of these units to control motor speed and torque by varying frequency and voltage enhances their deployment across various applications. Moreover, manufacturers are also introducing new technologies and enhanced products for various industrial applications which will positively influence the business dynamics. For instance, in February 2024, ABB India introduces the ACH180, its latest compact drive for HVACR equipment. This new addition to the company’s HVACR drives portfolio offers precise control of high-efficiency motors. The units’ compact design provides space savings, reduces capital expenditure, and simplifies the commissioning process.
 

AC Drives Market Trends

AC drives industry is projected to observe significant expansion owing to the rising demand for automation across industries, increasing focus on energy efficiency, and growing need for reliable and efficient motor control solutions. Flourishing investments for industrial development, favorable government regulations and stringent regulations promoting energy efficiency will complement the industry landscape.
 

For instance, in July 2024, the U.S. Department of Commerce launched an initiative to boost domestic semiconductor advanced packaging which offers up to USD 1.6 billion for R&D activities. The program aims to distribute about USD 150 million while encouraging private sector participation to enhance the nation's semiconductor capabilities. Additionally, integration of advanced industrial automation technologies including Industrial Internet of Things across industrial operations is positively influencing the LV drives business dynamics.
 

AC Drives Market Analysis

The low voltage segment is anticipated to cross USD 23 billion by 2034. Increased demand for energy-efficient units in the industrial automation sector, driven by stringent government regulations aimed at promoting environmental sustainability is complementing the business landscape. The ability of these to precisely control speed and improve energy efficiency, by adjusting motor speed to match specific application needs, and offer significant benefits to users will augment the product deployment. Furthermore, manufacturers are continuously developing advanced variable frequency drives with integrated sensors and connectivity features to enhance operational efficiency, positively influencing the low voltage AC drives industry dynamics.
 

The AC drives market from pumps segment is poised to witness a CAGR of over 4% through 2034. The petrochemical industry's increasing need for efficient pumps along with focus on energy savings in power-intensive applications will augment the business landscape. Ongoing technological advancements and stringent regulations toward energy efficiency are driving demand for energy-efficient AC drive systems across pump applications. Shifting inclination toward energy conservation, cost reduction, optimize the performance of industrial equipment, leading to reduced power consumption will further accelerate the product demand.
 

U.S. AC drives market is set to surpass USD 3.6 billion by 2034. Increased spending in manufacturing and the widespread use of high-power equipment has accelerated the demand for motor control solutions, complementing the industry landscape. Ongoing innovations, introduction of stringent regulations by authorities promoting energy efficiency and reducing energy cost are shaping the business dynamics.
 

For instance, in January 2024, The U.S. Department of Energy has introduced new energy efficiency proposals for fans and blowers. These standards cover air circulating fans and general fans and blowers, as required by the Energy Policy and Conservation Act. Moreover, increasing automation across industrial and manufacturing process and growing inclination towards energy efficient technologies is augmenting the North America AC drives industry outlook.
 

AC Drives Market Share

Major AC drives manufacturers are forming strategic partnerships and acquiring companies to boost innovation and strengthen their market positions. These initiatives help them expand product lines, enter new markets, and reach more customers. By combining resources and expertise, firms can develop advanced solutions and offer them to a broader customer base across the industry. Strategic collaboration and consolidation by the companies is reshaping the competitive landscape of the AC drives industry.
 

AC Drives Market Companies

Major players operating across the industry include:

• ABB
• Danfoss
• Eaton
• Emerson Electric
• Fuji Electric
• GE Vernova
• Hitachi Hi-Rel Power Electronics
• Johnson Controls
• Nidec
• Parker Hannifin
• Rockwell Automation
• Schneider Electric
• Siemens
• Sprint Electric
• TMEIC
• WEG
• Yaskawa Electric
   

AC Drives Industry News

• In August 2024, Yaskawa introduced the GA800 variable speed drive, a versatile solution for controlling various motor technologies. It caters to a broad spectrum of applications, including simple fans and pumps as well as complex test dynamometers that demand precise control. These units include adaptable network communications, built-in safety functions, and intuitive tools that support mobile device integration.
   
• In August 2024, Sprint Electric launched Generis, a new AC drive technology, offers enhanced motor control with energy recovery and reduced harmonics. It improves efficiency, decreases heat generation, and boosts motor precision while simplifying control processes. The system uses a patented switching method that eliminates the need for a DC link, providing four-quadrant control as standard, along with unity power factor and minimal current distortion.
   

The AC drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” “‘from 2021 to 2034 for the following segments:

Click here to Buy Section of this Report

Market, By Voltage

• Low
• Medium

Market, By Application

• Pump
• Fan
• Conveyor
• Compressor
• Extruder
• Others

Market, By End-Use

• Oil & gas
• Power generation
• Mining & metals
• Pulp & paper
• Marine
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
  • Latin America
  • Brazil
  • Argentina