Asia Pacific Variable Frequency Drive Market To Reach $14.12 Billion By 2030

Asia Pacific Variable Frequency Drive Market Growth & Trends

The Asia Pacific variable frequency drive market size is expected to reach USD 14.12 billion by 2030 and registering a CAGR of 6.1% from 2023 to 2030, according to a new study by Grand View Research, Inc. Emerging economies in Asia Pacific, such as China and India, are witnessing rapid industrialization. As the manufacturing sector in both these countries continues to expand rapidly, employing energy-efficient solutions is becoming paramount to meet sustainability goals and mitigate the environmental impact. For instance, while China is investing aggressively in developing its electricity infrastructure, it is also pursuing ambitious targets for reducing greenhouse gas emissions by increasing the share of renewable energy in the country's electricity mix. According to the International Energy Agency (IEA), China invested USD 384 billion in clean energy in 2020. This represented a 12.0% increase compared to the previous year and marked the highest investments in clean energy by any country for the year. These investments were utilized in developing renewable energy projects, transmission and distribution networks, and energy storage systems.

The development of the Indian manufacturing industry and the development of smart cities is a major factor driving the market growth. Similarly, the Smart Advanced Manufacturing Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0 program is also aimed at increasing the knowledge about Industry 4.0 among Indian manufacturers. At the same time, several government agencies are partnering with manufacturers of variable frequency drives and related solutions for implementing variable frequency drives across various industries and industry verticals with a particular focus on reducing energy consumption.

Governments across the Asia Pacific region are implementing stringent energy efficiency regulations encouraging industries to adopt VFDs for motor control to reduce energy consumption. For instance, in India, Bureau of Energy Efficiency (BEE)promoted the use of VFDs in industries to comply with energy efficiency standards. Furthermore, the integration of renewable energy sources, such as solar and wind, in the Asia Pacific region increases the need for VFDs to manage variable energy inputs and energy grid stability.

The highly dynamic and competitive vendor landscape of the Asia Pacific variable frequency drive industry is prompting the market incumbents to reduce the prices of their products as a way of retaining consumers. However, the market incumbents are also putting a strong emphasis on developing new products with improved functionalities and compatibility with various electric drives. The growing number of advanced products being introduced in the market is expected to open promising opportunities for the growth of the market over the forecast period. For instance, in November 2022, ABB Ltd. introduced its new variable frequency speed drive specifically used by system integrators and OEMs. The product is compatible for all applications ranging up to 22 kilowatts. The device is said to offer application control and reliable machine operations.

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Asia Pacific Variable Frequency Drive Market Report Highlights

• The AC drives segment is anticipated to register the highest growth over the forecast period. Increasing emphasis on energy efficiency and the implementation of stringent regulations promote the adoption of AC drives to optimize energy consumption

• The micro (0-5kW) segment is expected to grow at the highest CAGR from 2023 to 2030. The demand for micropower variable frequency drives is attributed to compressors, electric fans, and kiln applications. Low-voltage frequency drives are widely used in end-use industries to power equipment, including conveyors, fans, centrifugal pumps, belts and conveyors, and pumps

• The power generation segment is anticipated to register considerable growth over the forecast period. The growing focus on power generation through renewable forms of energy such as windmills, hydro-electric, geothermal, tidal, and solar demands an increase in variable frequency drive

Asia Pacific Variable Frequency Drive Market Segmentation

Grand View Research has segmented the Asia Pacific variable frequency drive market based on product type, power range, application, end-use, and country:

Asia Pacific Variable Frequency Drive Product Type Outlook (Revenue, USD Million, 2018 - 2030)

• AC Drives

• DC Drives

• Servo Drives

Asia Pacific Variable Frequency Drive Power Range Outlook (Revenue, USD Million, 2018 - 2030)

• Micro (0-5 kW)

• Low (6-40 kW)

• Medium (41-200 kW)

• High (>200 kW)

Asia Pacific Variable Frequency Drive Application Outlook (Revenue, USD Million, 2018 - 2030)

• Pumps

• Electric Fans

• Conveyors

• HVAC

• Extruders

• Others

Asia Pacific Variable Frequency Drive End-use Outlook (Revenue, USD Million, 2018 - 2030)

• Oil & Gas

• Power Generation

• Industrial

• Infrastructure

• Automotive

• Food & Beverages

• Others

Asia Pacific Variable Frequency Drive Country Outlook (Revenue, USD Million, 2018 - 2030)

• China

• India

• Japan

• South Korea

• Australia

• Singapore

• Philippines

List of Key players in the Asia Pacific Variable Frequency Drive Market

• ABB Ltd.

• Danfoss A/S

• Eaton Corporation

• General Electric Company

• Hitachi, Ltd.

• Mitsubishi Electric Corporation

• Rockwell Automation, Inc.

• Schneider Electric

• Toshiba Corporation

• WEG S.A.

• Yaskawa Electric Corporation