The research study covers the present scenario and growth prospects of the global frequency converter market for 2016-2020. To calculate the market size, the report takes into consideration the demand for frequency converter generated from the application segments such as pumps, fans, compressors, and conveyors.
Technavio heavy industry analysts highlight the following three factors that are contributing to the growth of the global frequency converter market:
- Infrastructure development
- Rising power prices
- High demand for energy-efficient equipment
According to Technavio’s analysis, expenditure on infrastructure worldwide is projected to reach more than USD 14.5 trillion by 2025. Overall, global spending in this sector is expected to reach almost USD 78 trillion between 2014 and 2025. However, the spending is likely to be unequal, with infrastructure expenses in Western Europe not expected to reach pre-crisis levels before 2018, at the earliest.
Emerging economies, especially China and other Asian countries, which are not burdened with ailing banks or austerity measures, will see rapid growth. APAC, dominated by China, will account for nearly 60% of global infrastructure spending by 2025. By contrast, Europe, which dominates the frequency converter market due to the strong regulation of energy efficiency standards set by the EU, will see its share shrink to less than 10%, from double the figure a few years ago. “In APAC, the demand for frequency converters is driven by the high infrastructure spending. Therefore, by 2025, APAC is predicted to dominate the market, closely followed by Europe and North America,” says Anju Ajaykumar, a lead analyst at Technavio for research on test and measurement.
Rising power prices
Factors such as growing energy consumption, rising population, widespread industrialization, and growing number of middle-class families are contributing to the growing demand for electricity globally.
The rise in electricity demand has been accompanied by a simultaneous rise in the prices of raw materials that are used by the power generation and distribution companies. This has put pressure on power producers and suppliers to raise electricity prices to maintain operations and earn profits. Therefore, electricity charges account for a substantial portion of consumers' monthly utility bills, requiring homeowners to minimize their energy to reduce costs. This objective can be achieved through the use of frequency converters.
“Since the use of frequency converters allows energy savings, an issue that is becoming increasingly important in the face of rising electricity prices, its adoption is expected to increase, thus driving the market in the coming years,” says Anju.
High demand for energy-efficient equipment
The growing use of high energy consuming products such as compressors, HVAC equipment, pumps, lighting systems, and electrical and electronic devices by both residential and industrial users has led to a significant surge in average annual energy costs. Therefore, devices such as frequency converters that are energy efficient or enable users to attain energy efficiency are gaining popularity. Frequency converters allow energy saving through energy optimization. Depending on the application and individual needs, it is possible to regulate power consumption efficiently by controlling the motor speed. The use of frequency converters in fans, pumps, and compressor drives enable up to 70% savings in these applications. For example, energy recovery in lifting applications, especially in pumps, is a popular reason for the use of frequency converters. It will lead to growth in demand for frequency converters and drive the market during the forecast period.
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