North America Variable Frequency Drives Market – By Voltage, By Drive, By Application, By End Use & Forecast, 2025 - 2034

North America Variable Frequency Drives Market Size

North America variable frequency drives market size stood at USD 4.5 billion in 2024 and is projected to observe a growth rate of 3.8% from 2025 to 2034, driven by the ongoing industrial automation to boost productivity and the growing focus on energy-efficient solutions.
 

The increasing efforts to reduce carbon emissions and enhance energy efficiency, government regulations have significantly accelerated the industry growth. Various policies including the Energy Policy Act (EPAct) along with different state-level energy efficiency programs are providing financial incentives for the implementation of energy-saving technologies, including VFDs. These initiatives are playing a key role in driving the market's growth, as businesses and industries seek to comply with stricter environmental standards and improve operational efficiency.
 

North America Variable Frequency Drives Market Trends

North America variable frequency drives industry is experiencing substantial growth, fueled by rising demand in industrial automation and the need to protect against volatile energy prices. Electrical equipment, particularly pumping systems, plays a pivotal role in industrial infrastructure and is a major contributor to overall energy consumption. According to the U.S. Department of Energy, pumping systems alone account for 25% of the energy used by electric motors in the industrial sector. Furthermore, ongoing efforts to reduce energy loss and enhance the efficiency of industrial operations are expected to further drive positive the industry landscape.
 

North America Variable Frequency Drives Market Analysis

Low voltage segment is anticipated to grow over USD 5.8 billion by 2034, driving by the recent technological improvements in LV VFD systems resulting in additional efficiency and cost-effective solutions, expanding their accessibility across a broader range of industries and applications. Furthermore, encouraging government initiatives and financial incentives focused on promoting energy efficiency will positively stimulate the regional low voltage drives industry landscape.
 

The AC segment is anticipated to witness a CAGR of over 4% till 2034. The rapid increase in electricity consumption attributed by the expansion of industrial operations, driving demand for efficient LV AC drive systems. The implementation of stringent government policies focused on environmental sustainability is significantly transforming the industry landscape. Furthermore, the influx of new investments across diverse end-use sectors aimed at enhancing functional capabilities is expected to further strengthen the AC drives industry growth prospects.
 

The U.S. variable frequency drive market is set to grow over of USD 4.4 billion by 2034. The ongoing product innovations, fueled by technological advancements in electrical infrastructure, are poised to transform the business landscape. The automotive sector's expanding production capacity, coupled with rising energy demand in newly established manufacturing facilities, will drive growth. Additionally, efforts to reduce carbon footprints, particularly in emerging economies, are expected to further stimulate the U.S. variable frequency drives industry landscape.
 

The U.S. VFD industry outlook is significantly shaped by robust investments aimed at driving industrial development, the implementation of stern regulations on energy consumption, and the growing demand for energy-efficient solutions. For instance, in July 2024, the U.S. Department of Commerce unveiled a contest to support research and development initiatives focused on advancing semiconductor packaging technology offering up to USD 1.6 billion in funding. Under the CHIPS for America program, approximately USD 150 million will be allocated, with the intention of attracting substantial private sector investments to further accelerate innovation and growth in the sector.
 

North America Variable Frequency Drives Market Share

The North America variable frequency drive market is marked by intense competition, driven by the key industrial sectors, including mining, oil and gas, pulp and paper, and renewable energy. Industry giants including Siemens, ABB, Danfoss, Eaton, and Schneider Electric, among others, dominate the industry with comprehensive product offerings and established service networks. Moreover, key companies are focusing to offer tailored solutions to address the specific needs of major industries aiming to gain a wider customer base and boost their market share.
 

North America Variable Frequency Drives Market Companies

Major players operating across the industry include:

• ABB
• Anaheim Automation
• Danfoss
• Delta Electronics
• Eaton
• Emerson Electric
• Fuji Electric
• Hitachi Industrial Equipment & Solutions America
• Johnson Controls
• Mitsubishi Electric Corporation
• Nidec Industrial Solutions
• PARKER HANNIFIN
• Phase Technologies
• Rockwell Automation
• Schneider Electric
• Siemens
• TMEIC
• TRIOL CORPORATION
• WEG
• Yaskawa America
   

North America Variable Frequency Drives Industry News

• In April 2024, Rockwell expanded the scope of its PowerFlex MV drives to encompass permanent magnet motor applications. These drives are engineered to handle high-speed operations, delivering an output frequency of 120 Hz and accommodating voltage ranges from 2.3 kV to 11 kV. The versatility of PowerFlex medium voltage drives makes them suitable for a wide array of industries, including metals, oil & gas, HVAC, and paper manufacturing.
   
• In August 2023, Danfoss expanded its VLT drives lineup with the introduction of the VLT Real-time Clock MCB 117 option. This new feature incorporates a dependable system clock with battery backup, significantly improving data precision across the entire range. The addition enhances the ability to analyze errors and troubleshoot issues by providing clearer insights into events and their underlying causes. 
   

The North America variable frequency 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 Voltage

• Low
• Medium

Market, By Drive

• AC
• DC
• Servo

Market, By Application

• Pump
• Fan
• Conveyor
• Compressor
• Extruder
• Others

Market, By End-Use

• Oil & Gas
• Power Generation
• Mining & Metals
• Pulp & Paper
• Marine
• Others

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico