Market Size of Electric Drives Industry
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*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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 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 | ||||
| ||||
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 | |
Other End-user Industries |
By Geography*** | |||||||
| |||||||
| |||||||
| |||||||
| |||||||
|
Electric Drives Market Size Summary
The electric drives market is poised for significant growth, driven by the increasing demand for energy-efficient and precise motor control systems across various industries. Electric drives, which control motor output, offer advantages over traditional mechanical systems, such as enhanced efficiency, reduced noise and vibration, and improved environmental sustainability. These drives are becoming increasingly popular due to rapid technological advancements that focus on high reliability and reduced energy costs. Industries such as oil and gas, nuclear power, and manufacturing are adopting electric drives to optimize processes, reduce downtime, and lower maintenance costs. The integration of networking and diagnostic capabilities further enhances the performance and productivity of these systems, making them a preferred choice for modern industrial applications.
The market is experiencing robust growth, particularly in the Asia-Pacific region, where burgeoning end-user industries like oil and gas, power generation, and manufacturing are driving demand. Countries such as China, India, and Taiwan are witnessing increased investments in industrial and manufacturing sectors, which is expected to boost the demand for electric drives. Additionally, the automotive industry's expansion in India and the rising demand for HVAC systems in South Korea are contributing to market growth. Despite challenges such as technical issues in integrating electric drives with existing motors, the market remains fragmented with key players like ABB Ltd, Siemens AG, and Schneider Electric SE actively engaging in partnerships, innovations, and acquisitions to enhance their offerings and maintain a competitive edge.
Electric Drives Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Market Overview
-
1.2 An Assessment of the Impact of Key Macroeconomic Trends
-
-
2. MARKET SEGMENTATION
-
2.1 By Product
-
2.1.1 AC Drives
-
2.1.2 DC Drives
-
2.1.3 Servo Drives
-
-
2.2 By Voltage
-
2.2.1 Low-Voltage Drive (<372.8KW or <1KV)
-
2.2.1.1 Embedded
-
2.2.1.2 Standalone
-
-
2.2.2 Medium-Voltage Drive (>=372.8KW or >= 1KW)
-
-
2.3 By Power Rating Statistics
-
2.3.1 <250 KW
-
2.3.2 251 - 500 KW
-
2.3.3 >500 KW
-
-
2.4 By End-user Industry
-
2.4.1 Oil and Gas
-
2.4.2 Water and Wastewater
-
2.4.3 Chemical and Petrochemical
-
2.4.4 Food and Beverage
-
2.4.5 Power Generation
-
2.4.6 HVAC
-
2.4.7 Pulp and Paper
-
2.4.8 Discrete Industries
-
2.4.9 Other End-user Industries
-
-
2.5 By Geography***
-
2.5.1 North America
-
2.5.1.1 United States
-
2.5.1.2 Canada
-
-
2.5.2 Europe
-
2.5.2.1 Germany
-
2.5.2.2 Italy
-
2.5.2.3 United Kingdom
-
2.5.2.4 France
-
2.5.2.5 Rest of Europe
-
-
2.5.3 Asia-Pacific
-
2.5.3.1 China
-
2.5.3.2 Japan
-
2.5.3.3 India
-
2.5.3.4 South Korea
-
2.5.3.5 Rest of Asia-Pacific
-
-
2.5.4 Latin America
-
2.5.4.1 Brazil
-
2.5.4.2 Mexico
-
2.5.4.3 Rest of Latin America
-
-
2.5.5 Middle East and Africa
-
2.5.5.1 United Arab Emirates
-
2.5.5.2 Saudi Arabia
-
2.5.5.3 Turkey
-
2.5.5.4 Rest of Middle East and Africa
-
-
-
Electric Drives Market Size FAQs
How big is the Electric Drives Market?
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.
What is the current Electric Drives Market size?
In 2024, the Electric Drives Market size is expected to reach USD 25.51 billion.