Asia Pacific Variable Frequency Drive Market Size, Share & Trends Analysis Report By Product Type (AC Drives, DC Drives, Servo Drives), By Power Range, By Application (Pumps, Electric Fans, HVAC, Conveyers), By End-use, By Country, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The Asia Pacific variable frequency drive market size was valued at USD 8.85 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. In emerging economies, rapid industrialization and the continued expansion of the manufacturing and industrial infrastructure are expected to drive the adoption of variable frequency drives. For instance, the incumbents of the power generation industry have been widely using variable frequency drives to ensure the smooth starting of huge motors and facilitate constant speed adjustment as needed. As such, the growing demand for variable frequency drives from the power generation industry bodes well for the growth of the market. In other industries, including metal & mining and food processing, variable frequency drives are being used to control the speed of service water pumps, conveyors, forced draught fans, boiler feed pumps, fans, and induction motors, among other equipment and devices, and save energy

The incumbents of the oil & gas and wastewater treatment industries are particularly replacing the hydraulic drives integrated with pumps with variable frequency drives as part of their efforts to smoothen the operations of the pumps and reduce the consumption of energy. The demand for variable frequency drives is poised to grow over the forecast period as this trend continues to penetrate other pump applications. As technologies advance and variable frequency drives are integrated with sensors, the incumbents of other industries, such as food & beverages and pulp & paper, are also expected to opt for new, innovative variable frequency drives to optimize the operations of their manufacturing facilities

Variable frequency drives integrated with various sensors can also be used pulp & paper to measure vital parameters, such as temperature and pressure, to ensure optimal performance. These sensors can play a potent role in protecting the motor by ensuring ideal working conditions. Such advances in product design are opening opportunities for the growth of the market. Given that electric motors used in various industrial applications consume a substantial amount of electricity; the demand for variable-frequency drives is poised for continued growth as more industries explore ways to reduce their energy consumption.

The growth of various industries and industry verticals in the Asia Pacific region and the subsequent rise in the demand for energy are driving the need for efficient energy management systems that can optimize energy consumption. Wastewater treatment, pulp & paper, chemical, mining, petrochemical, oil & gas, and cement are particularly considered energy-intensive industries, because most critical operations across these industries involve the use of energy-intensive equipment, such as fans, process pumps, utility pumps, conveyor fans, and blowers. Hence, the incumbents of these industries are particularly adopting variable frequency drives to reduce the amount of energy consumed by various equipment deployed across their industrial facilities.

The proliferation of connected devices integrated with advanced technologies in household, commercial, and industrial environments, is expected to boost the demand for variable frequency drives across the region. These devices are connected over a mesh with other devices and provide multiple energy-saving opportunities by providing more accurate and precise control, thereby resulting in optimum productivity with minimal energy usage. The growing demand for space cooling is also expected to contribute toward the rising energy demand. As such, VFDs are increasingly being employed in HVAC and cooling units to limit extensive energy consumption and ensure energy-efficient operations.

Product Type Insights

The AC drives segment accounted for the largest share of over 65% in 2022. The segment growth is ascribed to the widespread deployment of AC drive in almost all forms of industries. Furthermore, its amplified application in medium and heavy industries, such as oil and gas, power generation, infrastructure, food & beverages, automotive, pulp & paper, and many others, are expected to fuel the market share. Parallel to this, governments are concentrating on improving industrial policies and regulations to create a favorable environment for exploring new industries and enhancing sustainability among competitors, such as entry and establishment of foreign investors, promotion and facilitation of investment policies, and strategic investment policy priorities.

The DC drives segment is anticipated to register a considerable growth rate over the forecast period. Due to rising activity in the oil and gas industry, demand is anticipated to increase as DC controls the flow of crude oil products. However, the disadvantage of limited functionalities associated with DC (Direct Current) motors is driving down the share of Variable frequency drive for DC drives.

Power Range Insights

The low- power range type segment dominated the market in terms of revenue share accounting for more than 43% in 2022. Low-power drives have a short payback period since they conserve more energy while using less capital and have superior process control owing to their energy efficiency. They also find use in various industries such as automotive, gas and oil, construction, beverage and food, and paper & pulp. Asia Pacific dominated the low-power VFD drives segment due to the wide adoption of variable frequency devices in pumps, extruders, and conveyor applications across emerging economies such as India and South Korea and technologically advanced nations such as China and Japan.

The medium power range frequency drive is anticipated to register a considerable growth rate over the forecast period. One of the main reasons the medium (41-200 kW) power range is becoming more and more popular in various industries, including mining, petrochemical, and wastewater treatment facilities, is that it offers advantages including increased operating flexibility and greater control. Also, the expansion of the market is being driven by the petrochemical industry's increasing demand.

Application Insights

The pumps segment accounted for the largest revenue share of over 28% in 2022. The pumps have variable frequency drives built into them, which lowers their power consumption, reduces the cost of running a pump, and enables them to run at various speeds without a gearbox. Additionally, variable frequency drives provide phase loss detection, and variable frequency drives provide motor thermal overload safety. Moreover, variable frequency drives have characteristics like damaged pipe protection, loss of prime detection, no-flow (deadhead) pump detection, low/high-pressure level monitoring, and pump over-cycle safety.

The HVAC segment is anticipated to register the highest growth rate over the forecast period. Increasing non-residential and residential construction across developing and developed nations are expected to spur the demand for HVAC systems. Variable frequency drive is considered one of the most effective and finest energy management tools to intensify energy efficiency and the operational performance of HVAC. Energy savings are the main advantage of employing a variable frequency drive.

End-use Insights

The oil and gas segment dominated the market with a revenue share of over 18% in 2022. The oil & gas industry majorly rely on applications such as production, distribution, and refining, which use heavy power motor-driven pumps, and pumping systems. Thus, to drive these electric motors at optimum performance with the lowest possible energy consumption, variable frequency drive are integrated, and therefore the attempt to maximize the operating profit is expected to fuel the demand for variable frequency drive over the coming years.

The infrastructure segment is anticipated to grow at the highest CAGR from 2023 to 2030. The infrastructure segment growing in the developed and developing economies commercial and residential infrastructure projects are in progress which is increasing demand for variable frequency drives from the construction industry. Besides, ongoing replacements of hydraulic and mechanical drives by electric motors in the construction industry will surge the demand for energy-efficient devices to achieve the energy-saving goals set up by the governments of respective countries.

Country Insight

China held the largest market share of over 30% in 2022 and is expected to maintain dominance over the forecast period. Numerous Chinese industries, such as telecommunications, wind and solar power, petrochemical processing, automotive, and steel production, are among the top contributors to its economy's growth. The use of conveyors, fans, and extruders in different exhibit the highest impact on the demand for variable frequency drives. The Made in China 2025 program initiated by the government of China in 2015 to transition the Chinese economy from a low-cost mass production economy to a high-value-added advanced manufacturing economy holds the potential to make China the most lucrative market for variable frequency drives.

Key Companies & Market Share Insights

Key players in this Asia Pacific variable frequency drive market include Eaton Corporation, Rockwell Automation Inc., Danfoss A/S, Yaskawa Electric Corporation, and Toshiba Corporation. Market players frequently engage in acquisitions, collaborations, new product launches, partnerships, and product enhancements to maintain their market share. For instance, in July 2023, Danfoss A/S partnered with Infineon Technologies to develop and manufacture highly efficient Variable Frequency Drives (VFDs). The partnership combines Danfoss's expertise in VFD design and manufacturing with Infineon's leadership in semiconductor technology. Furthermore, in October 2022, Rockwell Automation Inc. reported that it had enhanced the output frequency of its variable frequency drive for high-speed motor applications. The improvement was disclosed in its POWERFLEX 6000T medium voltage.

Asia Pacific Variable Frequency Drive Market Report Scope 

Asia Pacific Variable Frequency Drive Market Report Segmentation

The report forecasts revenue growth at country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Asia Pacific variable frequency drive market report based on product type, power range, application, end-use, and country:

• Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • AC Drives

  • DC Drives

  • Servo Drives

• Power Range Outlook (Revenue, USD Million, 2018 - 2030)

  • Micro (0-5 kW)

  • Low (6-40 kW)

  • Medium (41-200 kW)

  • High (>200 kW)

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Pumps

  • Electric Fans

  • Conveyors

  • HVAC

  • Extruders

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Oil & Gas

  • Power Generation

  • Industrial

  • Infrastructure

  • Automotive

  • Food & Beverages

  • Others

• Country Outlook (Revenue, USD Million, 2018 - 2030)

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • Singapore

  • Philippines