Variable Frequency Drives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The variable frequency drives market was valued at USD 9.76 billion in 2020 and expected to reach USD 12.89 billion by 2026 and grow at a CAGR of 4.8% over the forecast period (2021 - 2026). The Internet of Things (IoT) is a global trend in every industry having an impact on VFDs by speeding and simplifying the flow of information from machine to a technician and back again. As such, manufacturers are making changes to everything from their machines to their information technology (IT) departments to facilitate the collection, analysis, and application of drive data.

• The rising demand for process optimization is driving the market. Communication between modern motor controllers, such as VFD and process automation controllers, it is now possible to achieve much higher efficiency along with process improvement with reducing peak demand charges on an electricity bill by understanding in greater detail where and why power consumption varies.
• Rising demand for energy efficiency is driving the market. VFD uses an AC motor to control pumps and fans in a system without using valves and dampers. Traditionally, fixed-speed motors have to be controlled using valves and dampers, but they are a source of large amounts of energy loss. VFDs can create the same energy flow without the high pressure and power needed to adjust the flow, which saves a high amount of energy.
• Additionally, advanced and modern drives integrate networking and diagnostic capabilities into better performance and increased productivity. Intelligent motor control, energy savings, and reduction of peak-current drawn are some of the major reasons to choose a VFD as the controller in every motor-driven system.

Scope of the Report

The variable frequency drives market is growing with increase usage of VFDs across major industry verticals, rapid industrialization and urbanization, along with increasing investments on infrastructure development, and shifting focus on energy efficiency. Advanced and modern drives integrate networking and diagnostic capabilities into better performance and increased productivity for the market in applications like energy and power, mining and metals, etc.

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Key Market Trends

Energy and Power Segment to Hold Significant Market Share

• Variable Frequency Drives (VFDs) play the critical role of saving energy, improving performance, simplifying the 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 6kV recirculation pumps and more than 100 control values to operate simultaneously. This factor accounts for over 25% of the energy costs to run a nuclear power plant.
• Further, the applications of drive technology are assisting the plants with protecting nuclear fuel and fuel rods, both of which are vulnerable to turbulence, by ensuring continuous circulation of water without disruption. The regulations are very stringent in this respect. When the electricity supply is increased, its ascension should be gradual, which can be achieved through precise control of VFDs.
• As the advanced energy revenues are increasing, energy conservation is necessary for various applications because, with the ever-increasing demand, the need for electrical power can only be met by conserving electrical power in addition to the installation of new generating units. Variable frequency drive is one of the well-known energy-efficient drives, especially used in HVAC applications in the motor.

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