Automotive Low Voltage Drives Market Size

Automotive Low Voltage Drives Market Size

Automotive Low Voltage Drives Market was evaluated at over USD 2.4 billion in 2023 and the industry is set to grow at a rate of 4.5% by 2032. Automotive low voltage drives industry is anticipated to grow owing to the rising concerns towards related to the greenhouse gases and carbon emissions along with the growing sales of vehicle fleet backed by the presence of favorable incentive schemes and programs.

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For instance, as per the data by the International Organization of Motor Vehicle Manufacturers (OICA), the annual passenger cars sales volume totaled about 57.5 million units in 2022, experiencing above 6.6% increase over a couple of years from 53.9 million units in 2020.
 

Rising demand for surge in adoption of electric vehicles & clean transportation coupled with the large-scale investments by both private and public authorities will augment the market size. Moreover, the integration of energy-efficient variable frequency drives across a wide range of operations across automotive industry along with the continuous research & development by key industry players will play a pivotal role in shaping the industry outlook.
 

A low voltage drive is a device used to control the speed and torque of an electric motor in applications where a variable speed is required. Low voltage typically refers to drive systems that operate at voltage levels common in industrial and commercial settings. The device allows the motor to run at optimal speeds based on the actual load requirements, leading to significant energy savings compared to fixed-speed operation. Moreover, the LV drive units significantly aids in optimizing material handling processes and precise control of machine tools utilized across the automotive manufacturing plants exhibiting significant adoption potential over the forecast timeline.
 

The automotive low voltage drives industry have been significantly affected amid the COVID-19 pandemic attributed by the challenges in terms of supply chain, production, and utilization. The impact of the pandemic on industries, including automotive and manufacturing, has been dynamic, with fluctuations in demand, supply chain disruptions, and changes in operational priorities. In addition, reduced consumer spending, economic uncertainties, and stringent lockdown protocols have led to a decline in vehicle sales and shift in consumer behavior impacting the industry demand. However, the introduction of economic stimulus packages and support measures by respective governments coupled with the growing adoption of electric vehicle fleet supported by encouraging financial policies and lower carbon emissions will positively stimulate the industry landscape.