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

Market Overview

The global variable frequency drives (VFD) market was valued at USD 9.38 billion in 2020, and it is expected to reach USD 13.32 billion by 2026, registering a CAGR of 5.51% from 2021 to 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 the machine to the technician and back again. 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, saving 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.
• The COVID-19 outbreak had an unprecedented impact on the VFD market, with several end-user industries that deploy variable frequency drives facing several difficulties. The industries were riddled with nationwide lockdowns, which brought them to a standstill. However, with the reopening of the offices and industries in the post-COVID-19 era, the industry is expected to witness an increasing need for energy-efficient devices creating an ancillary demand for Variable Frequency Drives.
• Furthermore, various companies are investing significantly in the R&D of advanced products, with researchers working on developing next-generation drives, like regenerative energy drives, hybrid safety drives, and others. For instance, in May 2021, Emerson launched the Copeland VFD product line, which is available in two series. The Copeland EVM VFD series is intended for chillers, medical refrigeration, display cases, walk-ins, reach-ins, and other applications where less control functionality is needed. Such developments are expected to lead to product innovations and drive the market during the study period.

Scope of the Report

The variable frequency drives market is growing with the increased usage of VFDs across major industry verticals, rapid industrialization, urbanization, and increasing investments in 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 the 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.
• Furthermore, wind energy is one of the most important sources of renewable energy in the world, variable speed wind turbines used with different types of generators depend on many causes. The doubly-fed induction (DFIG) generator is one of these generators. Recently, researchers presented the stand-alone performance of DFIG using variable frequency drive (VFD) to improve variable speed constant frequency (VSCF), where it implemented the system practically by MATLAB simulation. Such research reflects a sign for the implementation of VFD in the wind energy sector.

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