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Low Voltage AC Drives Market Size
The global low voltage AC drives market was estimated at USD 14.8 billion in 2023 and is estimated to grow at a CAGR of 4.6% from 2024 to 2032, driven by the increasing industrial automation and energy efficiency demand across various industries.
The surge in electricity consumption in developing economies has observed significant increment on account of rising industrial operations complementing the demand for effective AC drive systems. The industrial automation sector is the growing need for energy-efficient units and stringent government policies which promote environmental sustainability are reshaping the industry landscape.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 14.8 Billion |
| Forecast Period: | 2024 - 2032 |
| Forecast Period 2024 - 2032 CAGR: | 4.6% |
| 2032 Value Projection: | USD 22.1 Billion |
| Historical Data for: | 2021 - 2023 |
| No. of Pages: | 110 |
| Tables, Charts & Figures: | 34 |
| Segments covered: | Power Range, Efficiency Class, Application, End Use, and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The increasing interest in smart industrial automation with the advancements in technology and the introduction of the Industrial Internet of Things (IIoT), is the key drive to increase the growth of the low voltage AC drives industry. These electronic devices control a motor's speed, acceleration, torque, deceleration, and rotation direction by adjusting the electrical supply frequency. Rapid industrialization and automation initiatives coupled with the new expansion initiatives by the key industry players will proliferate the industry dynamics. For instance, in May 2023, ABB India has expanded its manufacturing capabilities by adding a new production line for variable-speed drive modules at its facility in Bengaluru, India. The addition underscores ABB’s commitment to enhancing local manufacturing and supporting energy-efficient solutions in the country’s industrial sector.
Low Voltage AC Drives Market Trends
The rising adoption of IIoT technologies enhance the functionality and intelligence to AC drives offers real-time data collection and analysis, to have proper maintenance and improving operational efficiency. Ongoing technological advancements coupled with a shift toward sensor-less designs, enhanced control algorithms, and multi-drive systems will further shape the industry landscape. Moreover, the stabilization of global economic growth and manufacturers' heightened emphasis on cost-effectiveness will stimulate product demand.
Low Voltage AC Drives Market Analysis
Low power range segment is anticipated to grow over USD 13.5 billion by 2032, designed for controlling small AC motors in low-power applications with a power range of up to few kilowatts. These drives make common use in compact machinery like pumps, fans, and conveyors with the compact size which makes it ideal for space-constrained environments, and to initiate it user-friendly easy installation and quick programming. These drives offer precise speed control, optimizing energy efficiency and reducing equipment wear. Additionally, the benefits include soft starting and stopping capabilities, which contribute to extending the lifespan of mechanical components will boost the low voltage drives industry landscape.
Based on efficiency class, IE 2 is expected to surpass a CAGR of over 6% till 2032, offering progressively higher energy efficiency and it operates at around half efficiency. It is suitable for applications where energy savings are mandated by government regulations for new LV AC drive installations. It reduces energy consumption and premium efficiency class and is increasingly adopted in new installations with stringent energy requirements. It provides the highest efficiency, making it the optimal choice for new installations where they maximize energy conservation and minimizing operational expenses.
U.S. low voltage AC drives market is set to grow over USD 3 billion by 2032, driven by expanding applications in various sectors including industrial automation and renewable energy. Additionally, positive outlook by the federal and state administrations to strengthen the grid stability and minimize the energy intake across industrial and commercial settings will further boost the industry size. For instance, the American Council for an Energy-Efficient Economy (ACEEE) confirmed it objective to mitigate its carbon footprint to one-third as compared to 2019 along with ensuring industrial operations to utilize strategic energy management by the target year of 2030. Moreover, the increasing demand across automation sector coupled with the ongoing investment for industrialization will shape the North America AC drives industry size.
Low Voltage AC Drives Market Share
The low voltage AC drives industry is led by major players including ABB, Fuji Electric, Eaton, Siemens, and Rockwell Automation, among others. The companies hold a significant market share and actively pursue strategic initiatives to enhance their market position. Their strategies encompass forming partnerships, engaging in collaborations, and executing mergers. Additionally, the manufacturers focus on product innovation and expanding their production capabilities, contributing to the overall industry growth.
Low Voltage AC Drives Market Companies
Major players operating across the industry include:
- ABB
- Eaton
- Emerson Electric
- Fuji Electric
- General Electric
- Hitachi Hi-Rel Power Electronics Private Limited
- Johnson Controls
- NIDEC CORPORATION
- PARKER HANNIFIN
- Rockwell Automation
- Schneider Electric
- Siemens
- TMEIC
- WEG
- YASKAWA ELECTRIC CORPORATION
Low Voltage AC Drives Industry News
- In April 2024, Invertek Drives showcased its latest energy-saving variable frequency drives (VFDs) at IFAT Munich, Germany with a growing emphasis on water and raw materials management amid stringent EU and national regulations. It will also highlight how its VFDs optimize process efficiency to enhance energy savings and contribute to compliance with regulatory standards.
- In May 2024, ABB finished its acquisition of low voltage NEMA motor business by Siemens. This takeover supports the company’s Motion business area’s valuable growth strategy, solidifying its status as one of the key industrial NEMA motor producing company. Moreover, ABB is focusing on strengthening its platform to serve a wider customer base and meets growing industry demands with an enhanced portfolio of motor solutions.
Low voltage 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 2032 for the following segments:
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Market, By Power Range
- Micro
- Low
Market, By Efficiency Class
- IE 1
- IE 2
- IE 3
- IE 4
- Others
Market, By Application
- Pump
- Fan
- Conveyor
- Compressor
- Extruder
- Others
Market, By End use
- Oil & gas
- Power generation
- Food processing
- Automotive
- Mining & metals
- Pulp & paper
- Textile
- Marine
- Others
The above information has been provided for the following region:
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Denmark
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Latin America
- Brazil
- Argentina
Frequently Asked Questions (FAQ) :