DUBLIN--(BUSINESS WIRE)--The "Variable Frequency Drives Market - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The variable frequency drives market was valued at USD 20.85 billion in 2018 and is expected to reach a value of USD 28.55 billion by 2024, at a CAGR of 5.4% during the forecast period (2019-2024).
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 data generated for IIoT remote-monitoring solutions provides an unprecedented analysis of the nature of equipment use and performance.
- 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 use 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.
- Technical irregularities and heating problem associated with VFD is hampering the market. Due to the irregularities of the sine wave, which is known as harmonic causes problem in an ideal power circuit, which is a key restraint for the growth of the market.
Key Market Trends
Advanced Energy Equipment for Energy Conservation Expected to Lead the Market Share
- As the advanced energy revenues are increasing, the energy conservation is necessary for various applications because with the ever increasing demand, 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.
- VFD is used to run machinery at higher than rated speeds for short periods of time. This has additional advantages in terms of energy savings but must be done with appropriate caution. The large main motors on rolling mills are air-cooled and have an overhead heat exchanger supplied with cooling water, where cooling fan uses high energy consumption. With the VFD, the fan speed can be reduced when motor loading is low and cooling is not required and increased when the load is high, thereby considerably reducing fan energy consumption.
- In hot strip rolling mills, high-pressure water jets are used to remove scale from the steel bars just before they enter the rolling mill. Running the pump at a constant speed wastes energy and water, thus placing a VFD on the pump to automatically reduce the water flow reduces the load on the motor, the energy consumption, and water usage.
- Enabling precise speed control of applications such as conveyors or winders, other parameters such as pressure, flow and even temperature may be accurately controlled. The efficiency of the electrical supply is increased and more of the electrical current drawn is used to drive the load. Hence the implementation of VFD improves the power factor of the system.
North America Accounts for the Largest Market Share
- North America is having high market share due to the implementation of new regulations to achieve an emphasis on energy efficiency. Process engineers are adopting energy-saving devices to reduce operational expenses. For example, in 2015, US firm named Len Busch Roses which is one of the largest nurseries for cut-stem flowers, deployed variable frequency drive to regulate airflow in snapdragon greenhouse with better precision.
- The United States is highest in the market share. ABB low voltage AC and DC VFD products are manufactured in the United States and are used across all industries and applications. ABB VFD products provide scalable motor control from standard to demanding applications for a wide range of industries, especially in the process industries such as pulp and paper, metals, mining, cement, power, chemical, oil, gas, and more.
- Lenze Americas VFD and automation technology is used in a wide variety of industries including materials handling, packaging industry, robotics and automotive. Precision Electric offers Lenze VFD retrofit solutions to industrial manufacturers to increase energy efficiency and production for manufacturers across the nation, which drives the market in this country.
The variable frequency drives market appears to be moderately fragmented with the presence of several vendors. Various players The market has observed a growing need for energy-efficient equipment, by which international players in the market are fast increasing their footprints and local vendors find it difficult to compete with them in terms of quality, safety, and price, which is giving a high competition. Key players are Eaton Corporation, ABB Ltd., Honeywell International Inc., etc.
- May 2019 - Freeport LNG Development LP has selected KBR Inc. as the preferred bidder for the engineering, procurement, construction, and commissioning contract for Train 4 at Freeport LNG's export facility on Quintana Island near Freeport, Tex. Train 4 will use electric motors with variable frequency drive for the cooling and liquefaction compression power and will be constructed next to the first three trains. Train 4 has an expected start date in 2023. In total, the project's expected export capability is 20 million tonnes per year of LNG.
Key Topics Covered
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Rising Demand for Process Optimization
4.3.2 Rising Demand for Energy Efficiency
4.4 Market Restraints
4.4.1 Technical Irregularities and Heating Problem
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 AC Drives
5.1.2 DC Drives
5.1.3 Servo Drives
5.2 By Power Rating
5.2.1 Micro Power
5.2.2 Low Power
5.2.3 Medium Power
5.2.4 High Power
5.3 By End User
5.3.2 Food Processing
5.3.3 Energy and Power
5.3.4 Mining and Metals
5.3.5 Pulp and Paper
5.3.6 Other End Users
5.4.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.4.4 Rest of the World
126.96.36.199 Latin America
188.8.131.52 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Eaton Corporation
6.1.2 ABB Ltd.
6.1.3 Honeywell International Inc.
6.1.4 Rockwell Automation Inc.
6.1.5 Hitachi Ltd.
6.1.6 Crompton Greaves Consumer Electricals Limited
6.1.7 GE Company
6.1.8 Siemens AG
6.1.9 Mitsubishi Corporation
6.1.10 Toshiba Corporation
6.1.11 Schneider Electric SE
6.1.12 Johnson Controls Inc.
6.1.13 Emerson Electric Co.
6.1.14 Danfoss A/S
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
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