by The Global North America Variable Frequency Drive Market is estimated to be valued at US$ 6285.02 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A variable frequency drive is an industrial device that controls an electric motor’s operational speed by varying the frequency and voltage supplied to the electric motor. Variable frequency drives are widely used in industries such as oil & gas, metal & mining, pumps, fans, compressors, conveyors and other similar industrial applications where variable speed control is required. They provide various benefits such as improved energy efficiency, optimized power usage, lower maintenance costs, precise speed regulation, reduction in mechanical wear and tear. Growing industrialization and increasing demand for energy efficient equipment across various industries is driving the demand for variable frequency drives in the North America region.
Market key trends:
One of the key trends in the North America variable frequency drive market is growing adoption across the oil & gas industry. Oil & gas producers are increasingly using variable frequency drives for various pumping applications such as booster pumps, pipelines, fluid transfer pumps and other process applications to ensure precise flow control. They help optimize pump speed according to real-time process requirements thereby reducing energy consumption. Another major trend is increasing replacement of fixed speed drives with variable frequency drives across industries due to stringent energy efficiency norms. Variable frequency drives offer significant energy savings over traditional constant speed motor systems. Growing focus on reducing carbon footprint is propelling industries to replace outdated fixed speed systems with advanced variable frequency drives.
Porter’s Analysis
Threat of new entrants: The North America VFD market has high barriers for new entrants due to availability of established key players and requirement of high initial investment.
Bargaining power of buyers: Large buyers have strong bargaining power due tobulk purchasing options. However,differentiation provided by VFD providers mitigate the buyer power to some extent.
Bargaining power of suppliers: Major VFD providers develop components in-house limiting the supplier power.
Threat of new substitutes: There exists no direct substitute for VFDs. However, alternate low cost technologies can emerge as substitutes in future.
Competitive rivalry: The North America VFD market is competitive due to presence of numerous international and regional players.
Key Takeaways
The North America Variable Frequency Drive Market Analysis is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing focus on energy saving policies and growing need for efficient industrial automation. The U.S. is expected to dominate the North America VFD market throughout the forecast period.
The global variable frequency drive market size was valued at US$ 6285.02 Mn in 2023. Variable frequency drives help optimize power usage in HVAC, pumping, industrial machinery, and other applications. They are increasingly adopted across industries to achieve operational efficiencies.
Key players operating in the North America Variable Frequency Drive Market are Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
