AC Drive Trends and Forecast
The future of the global AC drive market looks promising with opportunities in the oil & gas, water & wastewater, power generation, building automation, food & beverage, metals & mining, and chemicals & petrochemicals markets. The global AC drive market is expected to reach an estimated $29.5 billion by 2030 with a CAGR of 6.8% from 2024 to 2030. The major drivers for this market are rising trend of urbanization and industrialization, growing need for enhanced energy efficiency, and increasing preference for automated and motor-driven equipmentÄX%$%Xs.
• Lucintel forecasts that, within the voltage category, low voltage is expected to witness the highest growth over the forecast period.
• Within the end use category, power generation is expected to witness the highest growth over the forecast period.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period.
Gain valuable insights for your business decisions with our comprehensive 150+ page report.
Emerging Trends in the AC Drive Market
As the AC drive market increases, some trends may be seen in the future. These trends align with changes in technology, policies, and industrial requirements. Some of the key trends are summarized as follows:
• IoT Integration: The incorporation of IoT in AC drives facilitates the use of real-time monitoring and predictive maintenance. This enhances operational efficiency and minimizes downtime by providing useful information for advanced operational planning.
• Energy Efficiency: The need to develop energy-efficient AC drives is increasing to meet regulatory standards and help reduce overhead running costs. More energy-efficient designs help cut down on energy usage and improve environmental credentials.
• Smart Drives: There has been a general increase in the availability of smart drives, which are equipped with self-control features and artificial intelligence. This provides flexibility, performance, and auto-tuning for shifting drives, thus optimizing all systems and reducing the need for maintenance.
• Increased Automation: There is an increase in industrial automation, fueling the demand for complex AC drives capable of performing demanding tasks with precision. These drive technologies contribute to the control and flexibility offered by automated systems.
• Compact Designs: Compact and modular designs of AC drives are increasingly being embraced. These designs have space-saving advantages and are easy to install, making them suitable for areas with space constraints and high densities.
The AC drive market is being shaped by these trends, as they lead to the innovation of new technologies, improve effectiveness, and create new areas of application.
Recent Developments in the AC Drive Market
The AC drive market has experienced some critical changes that are determining its future evolution. These developments are the result of technological advancements, market changes, and evolving industrial requirements. Some of the most impactful developments are as follows:
• Acceptance of IoT in Drives: Modified AC drives equipped with internet connectivity have also changed market dynamics by enabling remote monitoring and diagnostics, thus improving operational efficiency and enhancing predictive maintenance of assets.
• Design of Energy-Saving Drives: New energy-efficient AC drives are being developed in response to global energy efficiency directives and cost-of-ownership concerns. These drives are designed to use less energy while maintaining adequate performance.
• Innovations in Drive Technology: The development of new drive technologies, such as vector control and direct torque control, is also making industrial processes more efficient by providing better accuracy and control.
• Rise in Automation Solutions: The demand for AC drives compatible with advanced automation solutions is increasing, driven by the need for higher productivity and enhanced integration with smart manufacturing technologies.
• Increased Range of Applications: The scope of AC drive applications is expanding to include areas such as HVAC systems and renewable energy installations, indicating their flexibility and growing significance across industries.
These advancements are contributing to market growth by improving technological capabilities, operational efficiency, and expanding applications.
Strategic Growth Opportunities for AC Drive Market
The AC drive market presents several key sectors with growth opportunities. Identifying these opportunities allows stakeholders to capitalize on developing trends and market demands. Below are the most notable opportunity areas:
• Industrial Automation: As industries increasingly focus on automation, there are significant opportunities for manufacturers of AC drives to provide next-generation systems that support automation and robotics, increasing efficiency and productivity.
• HVAC Systems: In HVAC systems, the demand for more energy-efficient AC drives is growing in response to the need for improved performance and energy savings. There is a market for the design of specialized HVAC drives.
• Renewable Energy: The increase in the capacity and use of renewable energy systems, such as wind and solar energy, is driving the need for AC drives, which are crucial in regulating and controlling energy conversion. This area presents growth opportunities.
• Electric Vehicles: The rise in electric vehicle (EV) adoption is creating a demand for highly efficient AC drives, which are essential for controlling EV powertrains. This opens up development opportunities for manufacturers.
• Building Automation: The shift towards smart buildings and building automation systems is enabling the integration of advanced control systems with AC drives to manage energy consumption and building operations.
Current conditions offer immense growth opportunities, shaping the AC drive market through innovation, new application areas, and the ability to meet changing industrial requirements.
AC Drive Market Driver and Challenges
The AC drive market is influenced by several factors, both favorable and unfavorable to its expansion. These factors include technological progress, economic conditions, and regulatory requirements governing the market segment. Below is a summary of these key factors:
Factors driving the AC drive market include:
• Technological Advancements: Continued development of drive technologies, such as IoT and control algorithms, is benefiting the market by increasing performance and efficiency, making AC drives in high demand.
• Energy Efficiency Regulations: Laws and regulations promoting energy efficiency have greatly influenced the industryÄX%$%Xs adoption of energy-saving AC drives, thus boosting market growth.
• Industrial Automation Trends: The increasing trend toward automation and smart systems in manufacturing is driving the need for advanced AC drives capable of enhancing industrial processes.
• Growth in Renewable Energy: The growing generation of energy from renewable sources is increasing the need for high-quality AC drives for energy conversion and integration.
• Expanding Applications: The expanding use of AC drive designs, such as in HVAC systems and electric vehicles, is opening up new growth opportunities for the market.
Challenges in the AC drive market include:
• High Initial Costs: The high initial costs associated with advanced AC drives may deter some industry players, negatively affecting market growth.
• Complex Integration: Integrating advanced AC drives with existing systems can be challenging and may require extensive technical expertise, creating barriers to adoption.
These drivers and challenges define the AC drive market through technology adoption, regulatory requirements, and market structure.
List of AC Drive Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies AC drive companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the AC drive companies profiled in this report include-
• ABB
• Siemens
• Danfoss Group
• Schneider Electric
• RockWell Automation
• Mitsubishi Electric
• Yaskawa Electric Corporation
AC Drive by Segment
The study includes a forecast for the global AC drive by voltage, application, power rating, end use, and region.
AC Drive Market by Voltage [Analysis by Value from 2018 to 2030]:
• Low Voltage
• Medium Voltage
AC Drive Market by Application [Analysis by Value from 2018 to 2030]:
• Pumps
• Fans
• Compressor
• Conveyors
• Extruders
• Others
AC Drive Market by Power Rating [Analysis by Value from 2018 to 2030]:
• Low Power Drives (< 40 kW)
• Medium Power Drives (41 – 200 kW)
• High Power Drives (> 200 kW)
AC Drive Market by End Use [Analysis by Value from 2018 to 2030]:
• Oil & Gas
• Water & Wastewater
• Power Generation
• Building Automation
• Food & Beverage
• Metals & Mining
• Chemicals & Petrochemicals
• Others
AC Drive Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the AC Drive Market
As technological advancements and regulatory requirements evolve in different countries, the AC drive market is witnessing changes across industries globally. One of the main drivers of these changes is the rise in automation, energy efficiency commitments, and technological innovations. Below is a summary of key developments in important markets:
• United States: The United States has seen a proliferation in the use of smart AC drives with IoT integration for enhanced efficiency and predictive maintenance. Manufacturers are focusing on designing energy-efficient drives with improved connectivity, in line with Industry 4.0 and sustainability goals.
• China: China is at the forefront of acquiring and producing highly efficient AC drives needed by its expanding industrial sector. As the country accelerates industrialization, new developments include the introduction of modern drive systems with high accuracy and energy-saving features.
• India: India is experiencing a steadily growing market for affordable, energy-efficient AC drives, primarily due to rapid industrialization and infrastructure development. The increased localization of production and development of tailored solutions for specific industrial needs have been seen, driven by government initiatives promoting energy efficiency and industrial automation.
• Japan: JapanÄX%$%Xs AC drive market is investing in high-precision, highly reliable drive systems. Recent developments include compact and efficient drives for robotics and automation applications, aimed at increasing industrial efficiency and supporting technological advancements in the country.
Features of the Global AC Drive Market
Market Size Estimates: AC drive market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: AC drive market size by various segments, such as by voltage, application, power rating, end use, and region in terms of ($B).
Regional Analysis: AC drive market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different voltages, applications, power ratings, end uses, and regions for the AC drive market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the AC drive market.
Análisis de la intensidad competitiva de la industria basada en el modelo de cinco fuerzas de Porter.
If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
Preguntas frecuentes
Q.1 What is the AC drive market size?
Answer: The global AC drive market is expected to reach an estimated $29.5 billion by 2030.
Q.2 What is the growth forecast for AC drive market?
Answer: The global AC drive market is expected to grow with a CAGR of 6.8% from 2024 to 2030.
Q.3 What are the major drivers influencing the growth of the AC drive market?
Answer: The major drivers for this market are rising trend of urbanization and industrialization, growing need for enhanced energy efficiency, and increasing preference for automated and motor-driven equipmentÄX%$%Xs.
Q4. What are the major segments for AC drive market?
Answer: The future of the AC drive market looks promising with opportunities in the oil & gas, water & wastewater, power generation, building automation, food & beverage, metals & mining, and chemicals & petrochemicals markets.
Q5. Who are the key AC drive market companies?
Answer: Some of the key AC drive companies are as follows:
• Abb
• Siemens
• Danfoss Group
• Schneider Electric
• RockWell Automation
• Mitsubishi Electric
• Yaskawa Electric Corporation
Q6. Which AC drive market segment will be the largest in future?
Answer: Lucintel forecasts that low voltage is expected to witness the highest growth over the forecast period.
Q7. In AC drive market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the AC drive market by voltage (low voltage and medium voltage), application (pumps, fans, compressor, conveyors, extruders, and others), power rating (low power drives (< 40 kW), medium power drives (41 – 200 kW), and high power drives (> 200 kW)), end use (oil & gas, water & wastewater, power generation, building automation, food & beverage, metals & mining, chemicals & petrochemicals, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to AC Drives Market, AC Drives Market Size, AC Drives Market Growth, AC Drives Market Analysis, AC Drives Market Report, AC Drives Market Share, AC Drives Market Trends, AC Drives Market Forecast, AC Drives Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.