Market Size of Alternating Current (AC) Electric Drives Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.40 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Alternating Current (AC) Electric Drives Market Analysis
The global alternating current (AC) electric drives market is expected to register a CAGR of 4.4% over the forecast period (2022-2027). AC drives are used in various industries, including power generation, oil and gas, and food and beverage. They are used in manufacturing processes to regulate and control rotating equipment like fans, compressors, conveyors, machine tools & spindles, and pumps and to increase the industry's energy efficiency.
- Due to the rising domestic consumption rate, the growing gas industry and improving manufacturing outlook are anticipated to augment the demand for AC electric drives. For instance, according to IEA, in China, the increasing heating demand, combined with a strong economic recovery, pushed y-o-y gas demand growth to 23% in January 2021.
- Manufacturers in the food industry are increasingly adopting automation to meet the guidelines and regulations set by the industry associations to maintain the quality of products offered. For instance, Food & Drug Administration's Food Safety Modernization Act (FSMA) introduced regulations that necessitate giant food manufacturers to meet preventive controls and Current Good Manufacturing Practice (CGMPS) requirements.
- The stringent government regulations regarding environmental concerns to cut down energy usage and carbon emission regulate the demand for low-power AC drive as it helps achieve energy efficiency and reduce operating costs by monitoring energy usage.
- Moreover, urbanization and industrialization have raised the demand for automated and motor-driven equipment that needs AC drives. However, the initial setup cost, maintenance, and presence of alternative options to Electric drives are the factors hindering the market's growth.
- The Covid-19 pandemic shutdown of factories has impacted manufacturing facilities and decreased the demand for electric drives across different industry verticals. The pandemic has also highlighted the need for factory automation to replace labor to deal with a skilled labor shortage and avoid workflow disruption due to the situation's unprecedented nature.
