Low Voltage Drives Market

Low Voltage Drives Market Size

The global low voltage drives market was estimated at USD 19.9 billion in 2024, with expectations to reach USD 29.6 billion by 2034, growing at a CAGR of 3.9%. The ongoing demand for energy efficient systems coupled with the positive outlook to conserve power while reducing the overall consumption will favor the industry dynamics. Energy-efficiency of motor driven equipment plays a critical role in governing the overall load handling capabilities of appliances. Moreover, the positive outlook by the regulatory bodies with stringent energy efficiency norms in conjunction with the renewable energy targets will boost the product demand.

For example, in April 2024, the European Union launched a revision to the Energy Performance of Buildings Directive targeting to decarbonize the regional building stock. The EU/2024/1275 amendment has put the objectives for building decarbonization by 2050 and diminish GHG emissions by at least 60% by 2030. Furthermore, the governing body has further detailed its plans to mitigate emissions primarily from the newly constructed structures and transition towards the renovating constructions.

Various emerging as well as developed countries have observed substantial increase in energy consumption over the years. Expansion across various residential, commercial, and industrial infrastructures have further led to substantial increment in the overall energy intake. moreover, to counter the energy-security challenge, respective authorities have undertaken significant measures to boost the energy security and minimize energy loses.

The U.S. EIA stated in its December Energy Review 2024, the nation’s overall primary energy consumption summed over 70.34 trillion Btu within first three quarters of 2024. Moreover, the energy intake observed a total annual increase of around 0.6% amounting over 69.9 trillion Btu within the same period in 2023.

Low Voltage Drives Market Trends

Rapid technological advancements to boost the capabilities of AC, DC, and servo motors & drives systems in advent of the expanding operations of various sized motor systems will favor the industry outlook. Moreover, different scale manufactures are introducing new products at the national, regional, and global levels to expand their industry presence with new portfolio extensions catering to a wide range of application areas.

Invertek Drives introduced an addition to its Optidrive Coolvert (HVAC-R) line of low voltage VFDs in March 2024 for optimized performance at an event in Italy. The two new inclusions offer a compact footprint, high power ratings, and has been designed to seamlessly integrate across condensing units, heat pumps, and BLDC compressors enabling OEMs to boost system performance while consuming less space.

The low voltage drives market is expected to witness tremendous growth due to their low costs, compact sizes, easy availability, and other advantages that increase productivity in industrial operations. In addition, the increased demand for high-efficiency systems that will yield significant energy savings amidst rapidly growing energy consumption is also expected to transform the industry trends.

As per the Statistical Review of World Energy 2024, the overall energy intake across the world equaled over 619.6 exajoules (Ejs) in 2023 with leading position held by the countries within Asia Pacific. The primary energy consumption value reported over 2% year-on-year increment growing from above 607.3 Ejs from the last year.

Low Voltage Drives Market Analysis

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• The global low voltage drives industry was valued at USD 19.2 billion, USD 19.9 billion, and USD 20.9 billion in 2022, 2023, and 2024, respectively. Based on power range, the industry can be broadly bifurcated into micro and low.
  
• Low power drives segment is to hold the leading position and surpass USD 17.9 billion by 2034 backed by the increasing demand for consumer electronics, EVs, and various other sectors. Additionally, ongoing integration of automated production lines and rising demand for compact devices will add to the segment growth.
  
• The micro power industry is anticipated to observe a growth rate of over 3.5% by 2034 attributed by the growing inclination towards efficient medical handheld devices & tools coupled with the ongoing advancements in compact robotics & wearable technologies.
  
• Based on the rating, the market can be primarily categorized into < 2.2 kW, 7.5 kW - < 22 kW, 2.2 - < 7.5 kW, ≥ 110 kW - < 500 kW, ≥ 75 kW - <110 kW, 22 kW - < 75 kW, and ≥ 500 kW. The low voltage drives industry with 7.5 kW - < 22 kW ratings will experience substantial expansion owing to the increasing requirement for high-performance & reliable drive solutions across various scale buildings coupled with industrial establishments.
  
• < 2.2 kW LV drives are gaining substantial popularity backed by the introduction of stern energy performance directives by the respective authorities coupled with encouraging adoption of automation across a wide range of industry verticals including manufacturing, oil & gas, automotive, and food & beverage.
  
• ≥ 110 kW - < 500 kW segment will observe positive uptake due to the proven increase of new installations, flexible designs, easy frequency adjustments enabling it to easily regulate the system. In addition, various industries including food processing, paper and pulp, power generation, textile, and automotive are changing adopting energy-efficient measures complementing the market expansion.
  

Learn more about the key segments shaping this market

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• Based on the drive, the low voltage drives market is trifurcated into AC, DC, and servo. The AC drives segment is set to lead the industry with major market share of over 77% in 2024 while growing at a positive CAGR through 2034. The segment growth is attributed by the growing consumer inclination towards clean energy generation coupled with rapid investments for advanced electrical infrastructures strengthening energy security.
  
• DC drives segment is set to observe a growth rate of over 1.5% by 2034 on account of the rapid integration of digitalization and Internet of Things (IoT) into devices coupled with regular technological innovations & product launches by the key industry players. For instance, in September 2024, ElectroCraft presented the new motor control product called EZ Drive designed for brushless DC motors coupled with the primary application across medical & laboratory equipment to industrial operations.
  
• Growing influx of investments to boost the automation of industrial infrastructures coupled with the increasing demand for high precision control systems will add to the market size for servo drives segment. The International Federation of Robotics confirmed in April 2024 that the companies within the U.S significantly invested in automation with total robot installation witnessing 12% annual increment from last year totaling 44,303 units in 2023.
  
• Standard LV drives offer precise motor control at a low price point and are widely integrated across the emerging economies to deliver reliable predictive maintenance and condition monitoring tools to the industrial operations. Moreover, positive outlook by the companies to lower the total cost of ownership through minimizing operational expenses and boosting energy efficiency.
  
• Regenerative segment is projected to observe a substantial expansion backed by the ongoing adoption of energy recovery technologies across operations with frequent decelerations. For instance, in September 2024, data & AI powered technology company called Agmatix launched a new regenerative agriculture platform called RegenIQ facilitating data-driven approach to deliver customized regenerative practices.
  
• The conventional & unconventional resources exploration together with the availability of vast unexploited potential will stimulate investment in the oil & gas vertical landscape. The hydrocarbon companies are producing & processing substantial assets with advanced automation solutions. In 2024, Equinor found a gas reserve in the Norwegian continental shelf (NCS) that has an estimated size of between 0.3 and 2 million standard cubic meters.
  
• The stern regulatory policies paradigm shift towards deploying low carbon substitutes will favor the power generation segment. In 2024, Canadian government enacted Sustainable Development Goal (SDG) 7 which targets the doubling of renewable technology share in the energy generation mix.
  
• Automotive end-use vertical growth is largely favored by the construction of new manufacturing facilities along with the rapidly increasing demand for EVs. For reference, Stellantis confirmed to invest about USD 5 billion at its Belvidere production facility in the U.S. to boost the manufacturing capabilities and support strategic reshuffling.
  

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• The U.S. low voltage drives market is set to cross USD 3.9 billion by 2034. Ongoing technological advancements across the electrical infrastructure will favor the industry outlook. Moreover, the growing expansion of manufacturing & processing industries coupled with the favorable outlook towards adoption of low energy consuming alternatives will add to the industry growth.
  
• The Europe LV drives industry expansion is supported by the increment in clean energy technologies adoption within the mainstream electricity generation. A report made by the Fraunhofer Institute for Solar Energy Systems, Germany, states that clean energy systems contributed to 59.7% of net electricity generation of the country in 2023.
  
• Asia Pacific LV drives market dynamics are largely shaped by the rapid rate of industrialization & urbanization coupled with the fast-paced boost in the energy consumption patterns. For example, the government of Australia launched a wide range of objectives encompassing reducing electricity bills, create job opportunities, and curb emissions with clean energy technologies. The initiative was termed as Powering Australia and aims to cut emissions by 43% by 2030, and thereby attain decarbonization by 2050.
  
• Escalating investment across new oil & gas production facilities along with growing measures to boost energy security will further stimulate the Middle East & Africa industry dynamics. In the first half of 2024, Saudi Aramco contracted about USD 25 billion worth of business to increase the natural gas production capacity as well as meet the growing energy demand in the country.
  

Low Voltage Drives Market Share

The top 6 players consisting of ABB, Danfoss, Yaskawa Electric, Rockwell Automation, Schneider Electric, Siemens, holds over 30% of the market share. The competition is primarily characterized by the technological advancements, integration of smart technologies, user friendly designs, and ability to withstand robust environments, among others.

The leading companies have observed greater acceptance from customers on account of their optimized pricing strategies and effective customer service. Moreover, the continuous fundings of large-scale projects across heavy-duty industrial operations requiring the automation solutions will unveil new traction towards the expansion opportunities for the industry competition.

Low Voltage Drives Market Companies

• ABB has emerged as one of the leading conglomerate catering various scale industries with a wide range of sustainable products & services. The company’s overall revenue in 2024, surpassed USD 32.8 billion, observing an annual increase of about 2% from 2023.
  
• Schneider Electric works as an MNC with operational sites all over the globe. It is a provider of broad comprehensive energy management and automation business solutions for many industries. Moreover, it features a long-standing offering of smart connected products, software, automations, and services to deliver resilient & smart solutions.
  
• Siemens is widely established manufacturer of LV and MV drives delivering enhanced operations with compact footprint. The company focuses on developing sustainable & innovative products to boost their presence. Moreover, Siemens confirmed that its overall R&D expenses totaled over USD 6.5 billion in 2024.
  

Major players operating in the low voltage drives industry are:

• ABB
• Beckhoff Automation
• Bosch Rexroth
• CG Power and Industrial Solutions
• Danfoss
• Eaton
• Emerson Electric
• Fuji Electric
• GE
• Hiconics Eco-energy Technology
• Hitachi
• Honeywell International
• Johnson Controls
• Mitsubishi Electric
• Nidec Corporation
• Rockwell Automation
• Schneider Electric
• Siemens
• WEG
• Yaskawa Electric
  

Low Voltage Drives Industry News

• In October 2024, B&R Industrial Automation expanded its product range by releasing new drives for adjustment axes and conveyors, called X20 Drives. This lineup includes models from a few watts to 1 kW for use across various sectors and industries and for varying automation needs.
  
• In October 2024, PD Water Systems introduced SMARTTI, an installation friendly lineup of VFDs with advanced specifications primarily for use in submersible pumps. Other benefits of the product line include fast installation, simple configuration, small size, simplified design & operations with set regulations, and easy-to-use display & keypad.
  
• In April 2024, Rockwell Automation released a new model of LV motor control center. The innovation in this product is the feature of real time monitoring & operational data which improves productivity and reduces downtime. In addition, this control center can be customized to the needs of oil & gas, food & beverage and other industries.
  
• In February 2024, Danfoss launched its iC2 Micro Drive in order to improve efficiency and reliability over HVAC systems. The compact product is fabricated to optimize fans & pumps and control the PM motors. The product consists of real-time data feedback, remote monitoring, and predictive maintenance functionality.
  

The 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 Capacity

• < 2.2 kW
• 2.2 - < 7.5 kW
• 7.5 kW - < 22 kW
• 22 kW - < 75 kW
• ≥ 75 kW - <110 kW
• ≥ 110 kW - < 500 kW
• ≥ 500 kW

Market, By Drive

• AC
  • Efficiency Class
    • IE1
    • IE2
    • IE3
    • IE4
    • Others 
• DC
• Servo

Market, By Technology

• Standard
• Regenerative

Market, By System

• Open loop
• Closed loop

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 regions and countries:

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