Electric Drives Market Size

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.