Automotive Low Voltage Drives Market - By Power Range, By Drive & Forecast, 2025 - 2034

Automotive Low Voltage Drives Market Size

The global automotive low voltage drives market size in 2024 was valued at USD 2.5 billion and is estimated to grow at a CAGR of 4.1% from 2025 to 2034.
 

Rising demand for reliable motor control solutions coupled with significant investments from both private and public sectors toward automotive sector will complement the industry landscape. Increasing concerns over greenhouse gas emissions, government incentive programs, and the rising adoption of electric vehicles will complement the industry landscape.
 

Flourishing investments across the automotive industry for the development of electric vehicles to curb emissions will positively influence the business dynamics. For instance, in first quarter 2024, BMI monitored the announcement or commencement of 38 new automotive production ventures in Asia, worth above USD 44.4 billion. India emerged as the leading investment destination in Asia for the automotive sector during this period, followed closely by Thailand and South Korea. India recorded nine investments, while Thailand and South Korea secured six projects each. Moreover, widespread implementation of energy-efficient variable frequency drives in automotive operations and ongoing research efforts by manufacturers will augment the industry outlook.
 

Automotive Low Voltage Drives Market Trends

Automotive low voltage drives industry is set to grow on account of growing investments in advanced automotive manufacturing facilities with improved automation capabilities. Authorities are increasingly focusing on low-carbon technologies to reduce energy consumption and emissions will positively influence industry outlook. For instance, in May 2024, the European Union has approved strict CO2 emission standards for new heavy-duty vehicles, curbing emissions from trucks and buses by 90% by 2040 while large vehicles by 45% through 2030 and 65% through 2035. The EU will review these rules in 2027 to check their effectiveness.
 

Automotive Low Voltage Drives Market Analysis

Low segment is anticipated to grow over USD 2.2 billion by 2034. Rising demand for improved motor protection solutions and focus on energy efficiency is driving the demand for low power range drives. Ongoing incorporation of smart technologies like remote monitoring and predictive maintenance and increasing adoption of digital solutions and Industry 4.0 principles is further shaping the business landscape.
 

AC segment is anticipated to witness a CAGR of over 4.2% till 2034. Rising demand for precise and reliable motor control solutions across several industrial applications along with the ability to optimize motor performance by adjusting speeds based on load requirements will accelerate the product demand. Manufacturers are focusing on improving drive efficiency by introducing compact and modular designs to reduce energy consumption, further contributing to the low voltage AC drives industry growth.
 

Servo drives segment is anticipated to witness significant growth on account of increasing need for precise positioning and velocity control to enhance efficiency and accuracy in various automotive applications. Key manufacturers are investing in research and development to advance servo drive technology, improving capabilities, efficiency, and applications, further shaping the industry landscape.
 

U.S. automotive low voltage drives market is set to grow over USD 510 million 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. Flourishing investments, introduction of stringent regulations and favorable initiatives by authorities promoting energy efficiency, reducing energy cost are shaping the U.S. variable frequency drives business dynamics. For instance, in October 2024, The U.S. DOE has allocated USD 50 million to support six states with substantial automotive industries, which aims to help smaller automotive suppliers transition to electric vehicle production. It's part of a larger USD 2 billion program designed to facilitate the shift towards electric vehicle manufacturing across the nation.
 

Automotive Low Voltage Drives Market Share

The automotive low voltage drives industry is characterized by a wide range of suppliers and manufacturers contending to offer reliable, efficient, and cost-effective solutions. Industry leaders continually develop new technologies to ensure consistent performance across various operating conditions, significantly influencing market competition. Ongoing technological innovations, strict manufacturing standards, energy efficiency requirements, and evolving customer-specific needs will drive innovations and product differentiation among companies, to meet the changing industry demands and maintain their competitive edge.
 

Automotive Low Voltage Drives Market Companies

Key manufacturers operating across the market consist of:

• ABB
• Danfoss
• Emerson Electric
• Eaton
• Fuji Electric
• GE Vernova
• Infineon Technologies
• Kostal
• Mahle
• Nidec
• Omron
• Renesas Electronics
• Rockwell Automation
• Schneider Electric
• WEG
• Yaskawa
   

Automotive Low Voltage Drives Industry News

• In April 2024, Applied Motion Products Inc. has launched new range of LV integrated servo systems known as the MDX+ series. These compact units combine a servo motor, drive, and encoder into a single package, with power outputs ranging from 100 to 550 W. The systems support various control methods, including Pulse/Direction and CW/CCW, as well as communication protocols like RS-485, CANopen, and EtherCAT along with the plans to add Safe Torque Off (STO) functionality.
   
• In September 2023, Rockwell Automation and Infinitum joined forces to develop energy-efficient motors with integrated low-voltage VFDs. This collaboration aims to create products that consume less power, have a smaller carbon footprint, and operate more compactly. Rockwell's low-voltage drives will be incorporated into Infinitum's Aircore motors, offering significant advantages such as halving size and weight, reducing copper content by two-thirds, and lowering overall energy use by 10%.
   

The global automotive low voltage 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:

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Market, By Power Range

• Micro
• Low

Market, By Drive

• AC
• DC
• Servo

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

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