AC Drives Market

AC Drives Market size reached USD 16.80 billion in 2022 and is estimated to reach USD 25.20 billion in 2030 and the market is estimated to grow at a CAGR of 5.2% from 2023-2030.

Overview of the AC Drives Market Report

AC drive is an electronic device used to control the motor’s velocity by alternating voltage, magnetic flux, and frequency in a circuit. AC drives help to improve the efficiency of the system to minimize motor wear and save energy. It is 20% to 40% lighter than the equivalent DC motor and decreases mechanical stress. The AC Drives market has a wide range of applications in industries like oil & gas, power generation, metals & mining, food & beverage, chemicals & petrochemicals, and others.

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Market Dynamic

Key Drivers and Emerging Trends

High industrialization growth rate and increasing urbanization across the globe are the primary factors responsible for the high adoption of AC drives. According to the world investment report 2018, developing economies across the world account for US$ 671 billion of inflow from foreign direct investment, which are majorly contributed by Singapore and China.  The high penetration rate in energy optimization for several industrial processes is another important factor that is making a significant contribution for the rapid expansion of the market. AC drives has various applications in wide range of industries. For instance, it is used in conveyors, pumps, compressors, etc. With the rising industrial application, the market will create its own space in numerous end-use industries. Furthermore, less maintenance cost associated with AC drives is the major factor that boosts the growth of the AC drives market share.

The government’s favourable regulations for energy optimization have tremendously propelled the market growth rate. For instance, the implementation of ISO 50001 in the building and automation sector can integrate the building automation systems for energy optimization. This has raised the demand for energy optimization, thus surging the growth of the AC drives market across the globe. Internet of Things (IoT) and its applications are expected to create ample of opportunities in the AC drives market. For instance, the novel design of IoT-based intelligent AC drive systems has been developed by using a space vector algorithm to improve an electric motor’s efficiency.

Restraint in the AC Drives Market

However, reduced foreign direct investments in the greenfield sector is one of the key factors that is hampering the market’s growth. Moreover, local vendors in the market offer a comprehensive list of products acting as a challenge for the key players to overcome.

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Voltage – Segment Analysis

Based on the Voltage, medium voltage is expected to grow at the higher CAGR in the AC drives market. Medium voltage has a vast end-user base. Medium voltage AC drives are used in vertical industries for catering to high as well as low voltage. Medium voltage has huge potential in consumer electronics as it offers various benefits like lower cost, improved power factor & availability, compact size etc.

End-Use Industry – Segment Analysis

Based on the End-Use Industry, the building automation segment is expected to dominate the AC drives market over the forecast period. The rising need for increased automation is boosting the growth of the segment in the market. The building automation industry plays a significant role in driving the global AC drives market. For instance, according to a report published by International Energy Agency, the electricity demand increased in 2018 by 4%, which is twice of overall energy demand. The food and beverage segment is expected to grow at a higher CAGR during the forecast period. Rise in awareness among the food & beverage industries for sustainable food production that promises reduced time and quality of the product has significantly improved the global AC drives market’s growth.

Application – Segment Analysis

Based on the Application, the compressors segment is expected to grow at a higher CAGR during the forecast period. Increase in the adoption of compressors for applications like operations of small engines, industrial cleaning by air blast, manufacturing of plastic, and other industrial products are primarily responsible for the market’s robust growth. Rise in the manufacturing and processing industry has led to the increased demand for compressors in the global market. It is also used in semiconductors, electronics, healthcare, and multiple applications, thus propelling market growth.

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Regional – Segment Analysis

Based on the region, North America is experiencing robust growth in the AC drives the market and is expected to dominate the market. The rapid urbanization across the region, and developments in the end use industries for applications are driving the market. In the U.S., the AC drives market has been significantly driven because of advancements in the pumps & compressors. According to World Energy Report 2019, North America held 12.1% of oil production from 2017-2018 which boosted the regional demand.  The top five oil producing states in the U.S. are Texas (41.4%), North Dakota (11.6%), New Mexico (7.4%), Oklahoma (4.7%), and Colorado (4.2%). Hence, this production of the U.S. is much more than other regions. The collaboration with OPEC has strategically increased the number of investors in the oil and gas industry. Thus, the North America is expected to dominate the AC drives market. Furthermore, the rise in demand of HVAC applications offered by AC drives supports the growth of the market in the region.

Top Market Players

Various notable players operating in the market, include, ABB, Danfoss, Schneider Electric, Siemens, Mitsubishi Electric Corporation, Fuji Electric Co., Emerson Electric Co., Hitachi, Ltd., PARKER HANNIF CORP, and Rockwell Automation, Inc., among others. 

Key Developments:

• • In 2020, Danfoss delivered AC drives and products to Wärtsilä‘s Smart Technology Hub for development and research. This strategic platform partnership helped the company in generating more revenue form the novel product.
  • In 2019, ABB launched ASC6080 novel high-performance motor control for medium voltage industrial applications. This helped in expanding the product portfolio of the company and crate its own space in the market.

Segments Covered in the Report:

The global AC Drives market has been segmented based on voltage, power rating, end-use industry, application, and regions. Based on voltage, the market is segmented into low voltage and medium voltage. Based on power rating, the market is segmented into low power, medium power & high power. Based on end-use industry, the market is segmented into water & wastewater, power generation, building automation, food & beverage, metals & mining, chemicals & petrochemicals, oil & gas and others. Based on application, the market is segmented into pumps, fans, compressors, conveyors, extruders & others. 

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Key questions answered in this research report:

• • At what pace is global AC drives market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in AC drives market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global AC drives market?
  • Which voltage generated maximum revenues in 2019 and identify the most promising voltage during the forecast period?
  • What are the various power rating areas of global AC drives market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Revenues (2022)	USD 16.80 billion
Market Base Year	2022
Market Forecast Period	2023-2030
Base Year & Forecast Units	Revenues (USD Billion)
Market Segment	By Voltage, By Power Rating, By End-Use Industry, By Application, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	ABB, Danfoss, Schneider Electric, Siemens, Mitsubishi Electric Corporation, Fuji Electric Co., Emerson Electric Co., Hitachi, Ltd., PARKER HANNIF CORP, Rockwell Automation, Inc.; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global AC Drives Market by Voltage

• • Low Voltage
  • Medium Voltage

Global AC Drives Market by Power Rating

• • Low Power
  • Medium Power
  • High Power

Global AC Drives Market by End-Use Industry

• • Oil & Gas
  • Water & Wastewater
  • Power Generation
  • Building Automation
  • Food & Beverage
  • Metals & Mining
  • Chemicals & Petrochemicals
  • Others

Global AC Drives Market by Application

• • Pumps
  • Fans
  • Compressors
  • Conveyors
  • Extruders
  • Others

Global AC Drives Market by Region

• • North America AC Drives Market (Option 1: As a part of the free 25% customization)

    • By Voltage
    • By Power Rating
    • By End-Use Industry
    • By Application
    • US Market All-Up
    • Canada Market All-Up

  • Europe AC Drives Market (Option 2: As a part of the free 25% customization)

    • By Voltage
    • By Power Rating
    • By End-Use Industry
    • By Application
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific AC Drives Market (Option 3: As a part of the free 25% customization)

    • By Voltage
    • By Power Rating
    • By End-Use Industry
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW AC Drives Market (Option 4: As a part of the free 25% customization)

    • By Voltage
    • By Power Rating
    • By End-Use Industry
    • By Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the AC Drives (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • ABB
  • Danfoss
  • Schneider Electric
  • Siemens
  • Mitsubishi Electric Corporation
  • Fuji Electric Co.
  • Emerson Electric Co.
  • Hitachi, Ltd.
  • PARKER HANNIFAN CORP
  • Rockwell Automation, Inc.