The global variable frequency drive (VFD) market is anticipated to grow substantially from now until 2026. The growth is being driven by favorable government regulations toward distribution of sustainable energy and rising customer demand in the automobile sector. High flexibility and reliability in compliance with low maintenance and installation cost is expected to boost the market scenario further. Moreover, the replacement of conventional alternating current (AC) and direct current (DC) drives in commercial, residential and industrial segments should fuel the market growth.
The main function of a VFD is to facilitate smooth control together with energy savings. The variable speed motor drive system can be more effective in comparison to other flow control methods. Additionally, VFDs also decrease the wear caused to the motor while increasing the life span of the equipment and lowering maintenance costs. The adjustable speed motor-drive systems are considered more reliable and efficient than the conventional mechanical approaches.
According to Global Market Insights, Inc., the global VFD market is projected to exceed annual installations of 30 million units by the end of 2026.
Here are some key trends that are stimulating the global VFD market growth:
Expanding Applicability of DC VFDs
The DC VFD market size is poised to increase considerably due to its widening applicability across industries like chemical, cement and metal.
Characteristics such as simple circuits, constant speed, broad range of changing loads and high startup torque are key parameters that are likely to stimulate the applicability of grinders and cutters across the food processing sector.
The expansion of the automotive sector coupled with the growing applicability of DPG & TENV DC drives across manufacturing facilities will make a positive impact on the market outlook in coming years.
Increasing R&D Sector Investments
Several ongoing investments in research and development (R&D), in efforts to increase the product life cycle, flexibility and performance of voltage drives, will enhance the product landscape.
The solution features three separate network phases that has a supply voltage of 170 to 255 for a single phase and approximately 200 to 255 for three phases.
Moreover, the growing adoption of highly advanced technology across the sustainable energy network will further encourage the product demand in coming years.
HVAC Industry's Technology Upgrades
The adoption of technological innovations by the heating, ventilation and air conditioning (HVAC) industry to stand by energy efficiency norms is anticipated to boost the global variable voltage drive market outlook over the forecast time frame.
Adoption of such VFD solutions across the HVAC industry is likely to open up a lucrative revenue source for the VFD market in coming years.
Growing Product Demand Across Asia-Pacific
In 2019, the Asia-Pacific (APAC) region accounted for over 50 percent share of the global variable voltage drive market. Favorable government guidelines and policies toward renewable power sources coupled with tax rebates, financial incentives and resiliency initiatives are expected to encourage product penetration in the region over the coming years.
Rising energy demand throughout the region’s emerging economies and the subsequent adoption of VFD units throughout the oil and gas sector will drive the product demand further.
The VFDs find applications across industries for big induction motor, handling variable load, where the power ratings range from kilowatts (kW) to a couple of megawatts (MW). It is also used in traction system, for example in India it is being used by the Delhi Metro Rail Corp. The VFD is further used in modern escalators, pumping systems and lifts. These are also used in energy efficient ACs, refrigerators as well as in outside air economizers.
Overall, considering the aforementioned factors, the global VFD market is slated to chalk out a remunerative growth trend over the forthcoming time period.