Power Generation Low Voltage AC Drives Market Size, By Power Range (Low, Medium), By Efficiency Class (IE 1, IE 2, IE 3, IE 4), & Forecast, 2024 - 2032

Power Generation Low Voltage AC Drives Market Size

Power Generation Low Voltage AC Drives Market size was valued at over USD 2.9 billion in 2023 and the industry is projected to observe a substantial growth at a rate of 5% by 2032. The market for power generation low voltage AC drives is anticipated to witness significant growth owing to increasing investments in renewable energy projects and power generation infrastructure along with rising awareness and regulatory mandates for energy efficiency and emissions reduction.
 

In addition, ongoing technological advancements in AC drive technology, leading to improved performance, reliability, and efficiency, further influencing product adoption. Moreover, expansion of industrial automation and process control applications in power generation facilities is set to further augment the business landscape.
 

The swift expansion of industrial automation and process control applications in power generation facilities, along with accelerating utilization across power generation industrial operations is set to drive the industry dynamics. In addition, growing demand for efficient and reliable industry operations along with growing concerns related to emissions, elevating electricity demand coupled will add augment the power generation low voltage AC drives market outlook.
 

For instance, In January 2023, the U.S. government announced a significant investment of USD 2.7 billion dedicated to advancing and modernizing the rural electric grid infrastructure, with a concurrent focus on strengthening grid security protocols. This substantial funding initiative is designed to support 64 electric cooperatives and utilities across the country, aiming to enhance the reliability, efficiency, and resilience of the nation's rural electric infrastructure. This creates a conducive environment for manufacturers specializing in power generation low voltage AC drives, offering them a promising market for growth and expansion.
 

Power generation LV AC drives are sophisticated electronic devices used to control the speed, torque, and power output of electric motors in power generation applications. These drives offer precise control over motor operations, allowing for optimal performance, energy efficiency, and system reliability. Additionally, these units play a vital role in modern power generation systems by providing advanced control and optimization capabilities for electric motors. Their ability to regulate speed, torque, and power output contributes to improved efficiency, reliability, and performance of power generation equipment, ultimately leading to more sustainable and cost-effective power generation operations.
 

COVID- 19 Impact

The COVID-19 pandemic has had a notable impact on the power generation low voltage AC drives market. The global pandemic has led to reduced manufacturing operations, plant shutdowns, workforce disruptions, deployment constraints, and supply chain interruptions. However, industry players have actively implemented innovative strategies to address these challenges and maintain production, fostering a promising trajectory for the industry’s growth.
 

Power Generation Low Voltage AC Drives Market Trends

Increasing investments in power generation capacities to meet the rising energy demands, coupled with a growing emphasis on energy conservation and innovative exploration initiatives in the power sector, is set to positively influence the industry's growth. In addition, evolving consumer preferences towards minimizing operational costs through energy-efficient initiatives across intensive operations, along with a favorable reception of sustainable power generation technologies, are set to amplify opportunities power generation networks and fuel product installations.
 

For instance, in June 202, GE Vernova's Gas Power business has commenced commercial operations at Caithness Energy's 1,875-megawatt Guernsey Power Station in Ohio, utilizing GE's HA combined cycle technology. Located in a key shale gas development region, the facility can generate enough electricity for about 1.4 million homes in the PJM Energy Market, spanning 13 states and the District of Columbia. This project will further accelerate the deployment of power generation low voltage AC drives for smooth and efficient operation. Additionally, governmental bodies are implementing stringent policies to curtail greenhouse gas emissions from industrial sectors, fostering the adoption of energy-efficient solutions further driving the industry growth.
 

Power Generation Low Voltage AC Drives Market Analysis

Based on power range, the market is divided into micro and low. The low powered segment has witnessed a growth rate of about 5% by 2032 owing to the rising the growing need for uninterrupted and dependable electricity supply, driven by escalating energy consumption rates, coupled with the implementation of rigorous standards to promote energy efficiency, is set to stimulate the adoption of low voltage AC drives. Moreover, the continuous expansion of commercial operations and the introduction of advanced technologies have additionally contributed to the industry's expansion.
 

For instance, In November 2022, IEDC Corporation unveiled its latest innovation, the VF1A Doesa series, a new range of low voltage drives. Engineered for versatility, these units are designed to facilitate efficient motor control across a diverse array of applications. Moreover, accelerating research and development investments for product improvements and capability of these units to minimize energy consumption and offer financial advantages, will further propel power generation low voltage AC drives market expansion.
 

Micro drives are specifically designed to regulate the speed of compact AC motors utilized in low-power scenarios, frequently found in applications like pumps, fans, and conveyors. Their compact design catering to environments with space constraints stands out as a key factor accelerating the product adoption.
 

Additionally, these drives allow easy installation processes and user-centric interfaces, facilitating seamless programming which is set to further augment the product demand. Micro drives deliver precise speed regulation, optimizing energy utilization, and minimizing equipment cost. Their capability to facilitate gentle motor starts and stops further enhances the longevity of mechanical parts.
 

Incorporating advanced functionalities such as PID controllers and integrated communication protocols, these units seamlessly integrate with diverse automation systems. This integration enhances system control and monitoring capabilities and ensures efficient performance, and they emerge as a cost-efficient and dependable solution tailored for precision control in small motor applications which will further accelerate product deployment.

Based on efficiency class, the power generation low voltage AC drives market is segmented into IE 1, IE 2, IE 3, IE 4, and others. The rising prevalence of IE3 rated drives, particularly within the European Union, will enhance the growth of the low voltage AC drives market. Additionally, as global economic conditions stabilize and manufacturers increasingly prioritize cost-effectiveness, there is anticipated growth in product demand. The substantial potential of these drives to lower energy consumption, coupled with the monetary advantages derived from their installation, will persistently propel business expansion.
 

The IE 2 efficiency class has witnessed a market revenue share of 34.8% in 2023. In contrast, the IE2 efficiency class, mandated by the EU's Ecodesign Directive for Low Voltage (LV) AC drives in new installations, signifies a higher efficiency level, approximately 84%. Opting for IE2 rated drives not only facilitates a reduction in energy consumption but also contributes to decreased operational costs, underscoring their significance in promoting sustainable and cost-effective operations. The IE1 efficiency class, commonly referred to as standard efficiency, represents the baseline level of energy efficiency for motors, typically operating at an efficiency level of approximately 75%. These motors are generally employed in applications where stringent energy efficiency standards are not a primary consideration.
 

The IE4 efficiency class represents a pinnacle in energy efficiency for power generation low voltage AC drives, boasting an impressive efficiency level of approximately 90%. This class is garnering growing recognition and adoption, particularly in regions where stringent energy-saving regulations are enforced for new installations.

The Asia Pacific power generation low voltage AC drives market was evaluated at over USD 1.3 billion in 2023. The regional industry is set to witness significant growth, driven by factors such as growing population, expanding energy generation capabilities, and a rising demand for dependable electricity in various emerging countries within the region.
 

For instance, an innovative wind power complex with a capacity of 1,026 MW is under development in Queensland, Australia. This project is set to become the largest renewable energy facility across the region and among the world's most expansive onshore wind farms.
 

This project is anticipated to commence operations in 2024, and it stride towards sustainable energy production. Power generation LV AC drives offers adjustable fan speeds, enhance efficiency, prevent wind milling, reduce winter risks, manage vibrations, and negate seasonal blade adjustments, ensuring consistent performance.
 

In addition, increasing investments in T&D infrastructure development and the extension of energy grid networks to remote regions are prompting industry stakeholders to introduce innovative technological solutions, thereby enriching the overall industry landscape. Government authorities are increasingly directing their attention towards low-carbon or renewable power generation technologies, fostering a favorable industry outlook.
 

Power Generation Low Voltage AC Drives Market Share

The market is highly fragmented on account of the presence of numerous industry players. Key companies in the market are Siemens, General Electric, ABB, Fuji Electric and Schneider Electric accounted for majority of the market share in the year 2023. Various companies are aiming for partnerships to enhance their geographical expansion and is anticipated to intensify the market competition over the forecast timeframe.
 

For instance, In May 2023, Emotron Drives Power Control LLC, a subsidiary of CG Drives & Automation, announced the opening of its advanced manufacturing facility in the UAE. This advanced production hub is dedicated to the manufacturing of AC drives, aiming to significantly reduce delivery times for variable frequency drives.
 

Major players in the market are aiming for strategic activities, leveraging partnerships, expanding facilities, and engaging in mergers and acquisitions. These proactive measures are designed to strengthen their foothold in the market and drive industry growth by pioneering advanced and innovative technologies. This dynamic landscape is characterized by leading companies that are continually innovating and collaborating to shape the future of the power generation low voltage AC drives industry.
 

Power Generation Low Voltage AC Drives Market Companies

Key players in the industry include:

• General Electric
• Siemens
• ABB
• Fuji Electric CO., Ltd.
• Schneider Electric
• Rockwell Automation
• Eaton
• Yaskawa Electric Corporation
• WEG
• Delta Electronics, Inc.
• Nidec Industrial Solutions
• Danfoss
• Sprint Electric Limited
• PARKER HANNIFIN CORP
• Hitachi Hi-Rel Power Electronics Private Limited
• Toshiba International Corporation
   

Power Generation Low Voltage AC Drives Market News

• In October 2023, Sprint Electric has introduced its latest innovation, the Generis AC regeneration drive, which will make its debut at the SPS exhibition in Nuremberg this November, showcased at the Sprint Electric booth in Hall 4, stand 340. Representing the forefront of AC drive technology, the Generis drive offers customers a blend of cost-effective and dependable AC motor control, complemented by energy regeneration capabilities and minimal input current harmonics. Initially available from February 2024 in capacities up to 22 kW, the company plans to expand the Generis drive lineup over the next three years, progressively offering models with capacities reaching up to 200 kW.
   
• In July 2023, Siemens unveiled its specialized subsidiary, Innomotics, dedicated to providing a comprehensive range of products including medium-voltage converters, drives, geared motors, and a variety of motors spanning low to high voltage, as well as motor spindles. Based in Nuremberg, Germany, Innomotics boasts a team of approximately 15,000 skilled professionals. The company is poised to significantly enhance Siemens' footprint as a premier provider of large drives and motors, catering to diverse industry verticals worldwide.
   

The power generation 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 2019 to 2032 for the following segments:

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By Power Range, 2019 – 2032 (‘000 Units & USD Million)

• Micro
• Low

By Efficiency Class, 2019 – 2032 (‘000 Units & USD Million)

• IE 1
• IE 2
• IE 3
• IE 4
• 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
  • Denmark
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina