Electric Drives Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Market Report Covers Smart Electric Drive Manufacturers and is Segmented by Product (AC Drives, DC Drives, Servo Drives), Voltage (Low-Voltage Drive (<372. 8KW or <1KV) (Embedded, Standalone), Medium-Voltage Drive (>=372. 8KW or >= 1KW)), by Power Rating Statistics (<250 KW, 251 - 500 KW, >500 KW), by End-User Industry (Oil and Gas, Water and Wastewater, Chemical and Petrochemical, Food and Beverage, Power Generation, HVAC, Pulp and Paper, Discrete Industries), by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Electric Drives Market Size

Electric Drives Market Summary
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Study Period 2019 - 2029
Market Size (2024) USD 25.51 Billion
Market Size (2029) USD 32.70 Billion
CAGR (2024 - 2029) 5.10 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific

Major Players

Electric Drives Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Electric Drives Market Analysis

The Electric Drives Market size is estimated at USD 25.51 billion in 2024, and is expected to reach USD 32.70 billion by 2029, growing at a CAGR of 5.10% during the forecast period (2024-2029).

An electric drive is a device used to control the output of a motor. It offers several advantages over traditional mechanical drive systems like internal combustion engines or hydraulic systems. These devices are more efficient, produce less vibration and noise, and allow for precise control of motor performance, making electric drives ideal for applications where more energy efficiency, accuracy, and environmental considerations are essential factors.

  • Rapid technological progress has led to the higher acceptability of drives in several industries. The advances focus on high reliability and reduced energy costs, potentially reducing the per-square-foot energy by 30-40% when equipped with motor-driven systems in commercial buildings. The advanced and modern drives also integrate networking and diagnostic capabilities into better performance and improved productivity. Intelligent motor control, reduction of peak-current drawn, and energy savings are significant reasons to choose an electric drive as the controller in every motor-driven system.
  • The market is also witnessing an increased focus on process optimization. An electric drive reduces downtime in the oil and gas industry because the gas turbines require frequent maintenance, while electric drives and motors require very little maintenance. This enables more production, lower maintenance expense, and improved productivity. This has encouraged various oil and gas companies to incorporate electric drives.
  • Energy efficiency has been of key focus for federal regulators and industry organizations. According to the International Energy Agency, electric motors consume 40% of the energy used in power industries. When these motors are deployed with electric drives in centrifugal load service, their efficiency increases. With the technological improvements in power electronics technology, drives' performance is expected to improve, helping conserve energy.
  • The addition of electric drives in existing motors gives rise to several technical problems, which have created a barrier to adoption among numerous players in various industries. After integrating the drive with an existing motor, the speed of the motor shaft reduces, which causes decreased cooling from the shaft-driven fan. The rotors in the electric drive motors are very sensitive and can get damaged by frequent spinning. This occurs because of aggressive dynamic braking. When the rotors are stopped this way, the thermal expansion of the rotor produces a force that pulls the rotor shaft away from the stator, leading to bearing failure. This usually occurs when the VSD is not adequately cooled.
  • Growth in the market studied gradually increased during the COVID-19 pandemic because many governments worldwide pushed the semiconductor-based electronics and automation industry by providing funds to expand chips for various end-user industries, especially automobiles, consumer electronics, power, energy, and utilities. Moreover, governments helped semiconductor manufacturers shift their production facilities outside China to avoid supply chain disruption.

Electric Drives Market Trends

Power Generation to be the Major End-user Industry

  • Electric drives are critical in saving energy, improving performance, simplifying a system, and cutting downtime in nuclear reactors. For instance, during operations, when the fast passage of liquid is required to cool down the reactor core, it is usual to have four big 6 kV recirculation pumps and more than 100 control values operating simultaneously. This factor accounts for around 25% of the energy costs of running a nuclear power plant.
  • This supports the significance of using electric drives in the nuclear power industry. A nuclear power plant in the Tennessee Valley increased its efficiency from 70% to 95% by switching from motor technology to electric drives. Electricity costs can be cut by 50% when drives are used while reducing CO2 emissions.
  • Furthermore, by ensuring uninterrupted water circulation, drive technology applications help the plants protect the fuel rods and nuclear fuel, both vulnerable to turbulence. In this regard, the rules are very strict. It is best to increase the electricity supply gradually, which can be done by carefully controlling AC and DC drives. In nations like France and the United Kingdom, new opportunities are anticipated to result from this. Nuclear power plants produce more than two-thirds of the electricity in France.
  • Also, it has been estimated that electric motors account for about 65% of the electricity consumed in industrial applications; hence, the energy-saving potential of low-voltage motors in industries is enormous. Energy consumption depends on the motor's kW rating, loading, and hours run. Therefore, high-efficiency low-voltage motors, as such, can play a significant role in reducing CO2 emissions.

Energy demand is rising steadily. At the same time, pressure to reduce energy consumption, lower carbon dioxide (CO2) emissions, and provide secure power supplies is becoming more reliable. According to Exxon Mobil, worldwide electricity demand will reach around 35.3 petawatt hours by 2040. It is expected to drive market growth over the forecast period.

Electric Drives Market: Electricity Demand, In Terawatt Hours, Global, 2017 - 2040

Asia Pacific Expected to be the Fastest Growing Region

  • The Asia-Pacific region is significantly investing in the studied market's growth, primarily due to the rapidly growing end-user industries such as oil and gas, water and wastewater, chemical and petrochemical, food and beverage, power generation, HVAC, pulp and paper, discrete industries, and many others in the studied market. 
  • The growth of the industrial and manufacturing sectors, especially across countries such as China, India, and Taiwan, is expected to drive the demand for AC electric drives during the forecast period. For instance, according to IBEF, in India, outputs increased for natural gas by 11.7%, petroleum refinery production by 3.7%, coal by 8.2%, steel by 2.8%, cement by 13.6%, and electricity by 0.5% in January 2022.
  • With increased investments in the oil and gas upstream and midstream sectors, the AC drive market is expected to grow during the forecast period. Furthermore, oil and gas upstream companies are gradually investing in oil production activities, which will increase the replacement rate of AC electric motors, supporting market growth. In addition, in May 2022, the ONGC announced plans to invest USD 4 billion from FY22-25 to increase its exploration efforts in India.
  • Furthermore, the economic growth of the middle class has significantly impacted the demand for automobiles in India. For instance, according to the Federation of Automobile Dealers Association (FADA), about 2,11,20,441 passenger vehicles and tractors were sold in the country in 2022, reporting a growth of about 15.28% year-on-year. Furthermore, in recent years, local automobile manufacturers have enhanced their presence, with companies like Tata Motors, Mahindra, Suzuki, and Bajaj significantly expanding their sales figures. To compete with global players, these companies are investing significantly in automated production lines and expanding their manufacturing footprint, driving the demand for electric drives.
  • South Korea is a highly urbanized country with a high per capita income. Due to a rising middle-class population and an increasing number of houses, commercial buildings, and other structures, the demand for HVAC systems has been increasing in the country. As these systems use electric drives for applications such as motor control, the growth of the sector will drive the demand for electric drives during the forecast period.
  • Although the growth of the electric drives market in Southeast Asian countries has not been at par with other major countries in the Asia-Pacific region, in recent years, the area's economic development and various industries' development have created opportunities in the studied market. The industrial and manufacturing sector is also witnessing notable growth in Southeast Asian countries such as Thailand and Indonesia. For instance, Thailand and Indonesia are among the leading automobile manufacturers in the region. As motors and generators are widely used in automated production lines of the automotive industry, the demand for electric drives is expected to grow during the forecast period.
Electric Drives Market - Growth Rate by Region

Electric Drives Industry Overview

The electric drives market is highly fragmented, with major players like ABB Ltd, Siemens AG, Danfoss, Rockwell Automation Inc., and Schneider Electric SE. Players in the market are adopting strategies such as partnerships, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

In May 2023, Siemens launched the SINAMICS S200 servo drive system, designed for many common applications in electronics, batteries, and other sectors. Its accurate servo drive, strong servo motors, and simple-to-use wires provide high dynamic performance. The new servo drive system is especially useful for applications that need accuracy in speed and torque, such as winding and unwinding machines used in battery manufacture and cell assembly.

In March 2023, ABB launched a medium-voltage VFD (Variable-frequency Drive) with a rated capacity of 400 to 1,000kV and a voltage of up to 6.9kV, appropriate for a broad range of applications without a unique engineering design. The air-cooled ACS2000 VFD (Variable-frequency Drive) was especially used for fans, compressors, pumps, and other public applications in cement, mining and mining, metallurgy, pulp and paper, electric power, water, chemical, oil, and gas industries.

Electric Drives Market Leaders

  1. ABB Ltd

  2. Siemens AG

  3. Danfoss

  4. Rockwell Automation Inc.

  5. Schneider Electric SE

*Disclaimer: Major Players sorted in no particular order

Electric Drives Market Concentration
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Electric Drives Market News

  • May 2023: Yaskawa Europe, the Japanese technology group Yaskawa Electric's European subsidiary, officially relocated to Hattersheim, near Frankfurt/Main. Yaskawa invested approximately EUR 23 million (USD 24.57 million) in the new building at its new Hattersheim industrial park location. The construction took about two years, as planned.
  • February 2023: Nidec-Shimpo Corporation expanded its current product lineup of drive modules for automated guided vehicles ("AGVs") and autonomous mobile robots ("AMRs") to include direct-current (DC) and 24 V modules. The newly introduced 24 V drive modules, which complement the existing DC 48 V product line, can be used with the same voltage (DC 24 V) as many peripheral devices. Compact and low-noise reducers, which are a Nidec-Shimpo specialty, are used in the drive sections of these new modules, with two allowable load capacities of 250kgf and 650kgf.

Electric Drives Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 An Assessment of the Impact of Key Macroeconomic Trends


    1. 5.1 Market Drivers

      1. 5.1.1 Rapid Industrialization and Increased use of Electric Drives Across Major Vertical Industries

      2. 5.1.2 Growing Demand for Energy Efficiency

    2. 5.2 Market Restraints

      1. 5.2.1 Technical Concerns of the Equipment

      2. 5.2.2 High Cost of the Equipment


    1. 6.1 By Product

      1. 6.1.1 AC Drives

      2. 6.1.2 DC Drives

      3. 6.1.3 Servo Drives

    2. 6.2 By Voltage

      1. 6.2.1 Low-Voltage Drive (<372.8KW or <1KV)

        1. Embedded

        2. Standalone

      2. 6.2.2 Medium-Voltage Drive (>=372.8KW or >= 1KW)

    3. 6.3 By Power Rating Statistics

      1. 6.3.1 <250 KW

      2. 6.3.2 251 - 500 KW

      3. 6.3.3 >500 KW

    4. 6.4 By End-user Industry

      1. 6.4.1 Oil and Gas

      2. 6.4.2 Water and Wastewater

      3. 6.4.3 Chemical and Petrochemical

      4. 6.4.4 Food and Beverage

      5. 6.4.5 Power Generation

      6. 6.4.6 HVAC

      7. 6.4.7 Pulp and Paper

      8. 6.4.8 Discrete Industries

      9. 6.4.9 Other End-user Industries

    5. 6.5 By Geography***

      1. 6.5.1 North America

        1. United States

        2. Canada

      2. 6.5.2 Europe

        1. Germany

        2. Italy

        3. United Kingdom

        4. France

        5. Rest of Europe

      3. 6.5.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 6.5.4 Latin America

        1. Brazil

        2. Mexico

        3. Rest of Latin America

      5. 6.5.5 Middle East and Africa

        1. United Arab Emirates

        2. Saudi Arabia

        3. Turkey

        4. Rest of Middle East and Africa


    1. 7.1 Company Profiles

      1. 7.1.1 ABB Ltd.

      2. 7.1.2 Siemens AG

      3. 7.1.3 Danfoss

      4. 7.1.4 Rockwell Automation Inc.

      5. 7.1.5 Schneider Electric SE

      6. 7.1.6 Yaskawa Electric Corporation

      7. 7.1.7 Mitsubishi Electric Corporation

      8. 7.1.8 Nidec Corporation

      9. 7.1.9 SEW-EURODRIVE GmbH & Co. KG

      10. 7.1.10 TMEIC Corporation

    2. *List Not Exhaustive


**Subject to Availability
***In the final report, Geography segment also includes Region-wise Voltage Rating and End-user Industry analysis
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Electric Drives Industry Segmentation

An electric drive is an electromechanical system that controls the motion of electrical machines, mechanisms, and process control applications. These drives convert the electrical power from a source into the appropriate form to drive an electric motor.

The electric drives market is segmented by product (AC drives, DC drives, servo drives), voltage (low-voltage drive (<372.8KW or <1kv) (embedded, standalone), medium-voltage drive (>=372.8KW or >= 1KW)), by power rating statistics (<250 KW, 251 - 500 KW, >500 KW), by end-user industry (oil and gas, water and wastewater, chemical and petrochemical, food and beverage, power generation, HVAC, pulp and paper, discrete industries), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Product
AC Drives
DC Drives
Servo Drives
By Voltage
Low-Voltage Drive (<372.8KW or <1KV)
Medium-Voltage Drive (>=372.8KW or >= 1KW)
By Power Rating Statistics
<250 KW
251 - 500 KW
>500 KW
By End-user Industry
Oil and Gas
Water and Wastewater
Chemical and Petrochemical
Food and Beverage
Power Generation
Pulp and Paper
Discrete Industries
Other End-user Industries
By Geography***
North America
United States
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Latin America
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
Rest of Middle East and Africa
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Electric Drives Market Research FAQs

The Electric Drives Market size is expected to reach USD 25.51 billion in 2024 and grow at a CAGR of 5.10% to reach USD 32.70 billion by 2029.

In 2024, the Electric Drives Market size is expected to reach USD 25.51 billion.

ABB Ltd, Siemens AG, Danfoss, Rockwell Automation Inc. and Schneider Electric SE are the major companies operating in the Electric Drives Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Electric Drives Market.

In 2023, the Electric Drives Market size was estimated at USD 24.21 billion. The report covers the Electric Drives Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Electric Drives Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Electric Drives Industry Report

Statistics for the 2024 Electric Drives market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Electric Drives analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Electric Drives Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)