Integrated Drive Systems Market Size - By Offerings (Hardware, Software, Services), By Communication Protocol (Industrial Ethernet, Wireless, Fieldbus), By End-use Industry (Food & Beverages, Automotive, Chemical, Oil & Gas) & Forecast, 2024 - 2032

Integrated Drive Systems Market Size

Integrated Drive Systems Market was valued at over USD 39.5 billion in 2023 and is estimated to register a CAGR of over 7% between 2024 and 2032, due to the growing adoption of integrated drive systems in industrial applications. Integrated drive systems come equipped with sophisticated control systems and software that allow for precise control over industrial processes. This precision is vital for industries that require exacting standards such as in pharmaceuticals or automotive manufacturing. Furthermore, these systems are typically designed to be compatible with Industry 4.0 technologies, supporting greater automation and data integration.
 

The growth in renewable energy applications is a significant driver for the expansion of the integrated drive systems market. As global focus shifts towards sustainable energy solutions to combat climate change and reduce reliance on fossil fuels, renewable energy industries such as wind, solar, and hydroelectric power are experiencing rapid growth.
 

Integrated drive systems typically combine multiple components such as motors, drives, controls, and automation software into a cohesive system. Designing and integrating these advanced technologies require substantial R&D efforts, specialized engineering, and often custom solutions tailored to specific industrial needs. The complexity of these systems not only adds to the direct costs of the components but also to the engineering and integration expenses. Integrated drive systems are generally more complex than traditional systems and require operators and maintenance personnel to have a higher level of skill and technical knowledge. Providing this training involves additional costs, which can be substantial, especially for large teams or in regions where skilled labor is scarce or expensive.
 

Integrated Drive Systems Market Trends

As industries move toward smarter manufacturing processes, the integration of automation and data exchange is becoming crucial. Integrated drive systems are at the heart of this transformation, providing critical components that facilitate seamless communication and automation across various manufacturing systems. This includes integration with IoT devices, real-time data analytics, and cloud computing, thereby enabling predictive maintenance and efficient operation management.
 

The integration of wireless technology and IoT capabilities into drive systems is becoming more prevalent. This allows for remote monitoring and control of systems, enhancing flexibility in manufacturing processes and enabling access to real-time operational data. These capabilities are essential for predictive maintenance, which can foresee equipment failures and schedule maintenance to avoid unplanned downtime. Moreover, with the cost of downtime being significantly high in many industries, there is a marked shift toward predictive & condition-based maintenance strategies. Integrated drive systems equipped with sensors and diagnostic tools can monitor system health, predict potential failures, and suggest maintenance activities before faults occur.
 

Integrated Drive Systems Market Analysis

Based on communication protocol, the industrial ethernet segment dominated the global market with a share of over 40% in 2023. Industrial ethernet offers high-speed, reliable, and deterministic communication capabilities, making it suitable for real-time control and monitoring applications in industrial environments. With the growing complexities of manufacturing processes and the need for precise synchronization & coordination among drive systems and other automation components, industrial ethernet provides the necessary bandwidth and low latency required for seamless data exchange.
 

Industrial ethernet networks are highly scalable, making it easy to add or remove devices without significant disruptions. This flexibility is invaluable in industrial settings where systems might need to be expanded or reconfigured to meet changing production demands. It allows for easy integration of new machines and sensors into the network, supporting gradual upgrades and expansion.
 

Based on offerings, the software segment is expected to register a CAGR of over 8.5% up to 2032 and is likely to reach USD 25 billion from 2024 to 2032. As industrial processes become more complex & automated, there is a growing need for advanced control and monitoring capabilities to optimize system performance, improve efficiency, and reduce downtime. Software solutions integrated into IDS offer features such as real-time monitoring, predictive maintenance, fault diagnostics, and remote access, enabling operators to effectively manage and control drive systems more.
 

As energy efficiency becomes a higher priority for businesses looking to reduce operational costs and comply with environmental regulations, software solutions that monitor and optimize energy use are increasingly important. These software systems can adjust operational parameters in real-time to ensure that energy usage is minimized without compromising performance.
 

North America region dominated the 30% share of the integrated drive systems market in 2023. North America has a strong presence of industries such as automotive, aerospace, manufacturing, and food processing, which are increasingly adopting industrial automation technologies to improve efficiency, productivity, and competitiveness. Integrated Drive Systems offer a comprehensive solution for automation applications, combining motors, drives, and controllers into a single integrated platform, thereby simplifying installation, operation, and maintenance.
 

The IDS market in North America benefits from ongoing technological advancements and innovations in drive systems, motor technologies, and automation software. Manufacturers continuously introduce new products and solutions with enhanced performance, reliability, and functionality, catering to the evolving needs of industries such as robotics, material handling, packaging, and process automation.
 

Integrated Drive Systems Market Share

ABB Ltd. and Siemens AG hold a significant share of over 10% in the integrated drive systems industry. ABB Ltd. holds a significant market share in Integrated Drive Systems due to its extensive portfolio of reliable and energy-efficient motor, drive, and automation technologies. Known for innovation and quality, ABB integrates these components seamlessly, providing customized solutions that enhance operational efficiency and reduce energy costs across various industries, solidifying its leadership in a competitive global market.
 

Siemens AG commands a major market share in the Integrated Drive Systems market because of its comprehensive, technologically advanced product range that includes high-quality motors, drives, and control systems. Siemens excels in providing highly efficient and scalable solutions tailored to industrial demands, coupled with strong global service networks and a focus on digitalization and automation enhancements, making it a preferred choice for many industries.
 

Integrated Drive Systems Market Companies

Major players operating in the integrated drive systems industry are:

• ABB Ltd.
• Siemens AG
• Schneider Electric SE
• Rockwell Automation, Inc.
• Mitsubishi Electric Corporation
• Bosch Rexroth AG
• Yaskawa Electric Corporation
   

Integrated Drive Systems Industry News

• In February 2024, ABB Ltd. launched next generation compact drive, ACH180, for HVACR (heating, ventilation, air conditioning and refrigeration) equipment. The new drive from ABB is intended for use in commercial structures like hotels, shopping centers, and data centers. The ACH180 drive's design enables operators to run motors in accordance with the requirements of the HVACR process. It facilitates the control of multiple motor types, such as conventional induction motors, permanent magnet motors, and permanent magnet-assisted synchronous reluctance motors like ABB's IE5 EC Titanium.
   
• In May 2023, Siemens AG launched Sinamics S200, servo drive system designed for a variety of standard applications in the battery, electronics as well as other industries. It has a high dynamic performance and is made up of strong servo motors, an accurate servo drive, and user-friendly cables. Depending on the application, the Sinamics S200 servo drive system is also very scalable and flexible. It can be used in conjunction with a low, medium, or high inertia motor and has a power range of 0.1 -1kW (200V) and 0.2 - 7kW (400V).
   

This integrated drive systems market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Offering

• Hardware
  • Converter
  • Motors
  • Drivers
  • Couplings
  • Gear units
  • Others
• Software
• Services

Market, By Communication Protocol

• Industrial ethernet
• Wireless
• Fieldbus

Market, By End-use Industry

• Food & beverages
• Automotive
• Chemical
• Oil & gas
• Pharmaceutical
• Water & wastewater management
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA