VALLEY COTTAGE, N.Y. — The global variable frequency drive (VFD) market is expected to increase at a 7.2 percent compound annual growth rate (CAGR) in terms of value during 2016 to 2026, according to a report from Future Market Insights (FMI). Volume-wise, FMI estimates the VFD market to expand at an 8.5 percent CAGR.
Growth of the global VFD market is mainly being driven by an upsurge in energy prices, introduction of variable frequency drives that can be retrofitted on existing motors, widening application areas, and stricter energy efficiency standards. VFD manufacturers are focusing on diversifying their variable frequency drive portfolio in order to enhance their presence in the market.
FMI’s report has segmented the variable frequency drive market on the basis of drive type, voltage range, application type, end-use application, and end-use industry.
On the basis of drive type, the market has been segmented into ac, dc, and servo variable frequency drives. The ac variable frequency drive segment accounted for over 70 percent value share of the global market in 2014. However, by the end of 2026, this segment is expected to witness a decline in market share.
On the basis of voltage range, the VFD market is segmented into medium and low. Low voltage range VFDs account for a higher market share, and this segment is expected to increase at a 7 percent CAGR in terms of revenue.
VFD market segmentation by application type includes the standard and regenerative segments. In terms of value as well as volume, the regenerative application type is anticipated to expand at a higher CAGR during 2016-2026.
By end-use application, the global variable frequency drive market is segmented into pump, HVAC, fans, compressor, conveyor, and other. Among these, the pump segment dominated the overall market in terms of value with over 30 percent share in 2014; however, this segment is expected to witness a decrease in market share by the end of 2026.
By end-use industry, the market is segmented into oil and gas, food processing, automotive, metals and mining, pulp and paper, and other end-use industries. Of these segments, the oil and gas end-use industry segment dominated the market in terms of both value and volume in 2014.
Region-wise, the Asia Pacific excluding Japan (APEJ) market dominated the global VFD market in 2014, accounting for over 30 percent share in terms of both value and volume. APEJ is expected to remain the most lucrative market for variable frequency drives during the forecast period as well. Expansion of the industrial base and manufacturing capacity is fueling the growth of the APEJ market.
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Publication date: 3/30/2016