North America Variable Frequency Drives Market Analysis

North America Variable Frequency Drives Market Analysis

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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.