APAC Variable Frequency Drives Market Size (2024 - 2029)

The Asia Pacific variable frequency drives market is experiencing significant growth, driven by the increasing adoption of VFDs for motor speed control due to their energy optimization capabilities. The market's expansion is supported by substantial investments in research and development, particularly in the region, which is benefiting from its infrastructure and economic development opportunities. Technological advancements are enhancing the reliability and energy efficiency of VFDs, making them increasingly popular across various industries, including HVAC systems in commercial and industrial sectors. Despite challenges posed by the COVID-19 pandemic, such as supply chain disruptions and operational shutdowns, the market continues to grow, reflecting the critical role of VFDs in managing variable loads and reducing energy costs.

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Market Size of APAC Variable Frequency Drives Industry

Asia Pacific Variable Frequency Drives Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 6.50 %
Market Concentration Medium

Major Players

APAC Variable Frequency Drives Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Variable Frequency Drives Market Analysis

The Asia Pacific variable frequency drives (VFD) market (hereafter referred to as the market studied) occupied the largest market share of 41.68%, and it is expected to witness the highest CAGR of 6.5% over the forecast period (2021 - 2026)

  • The Variable Frequency Drives used to monitor the speed of motors have gained significant traction due to their ability to optimize energy usage in various industries. Not only energy efficiency but the popularity of VFDs can also be attributed to their capacity to increase motor life and further reduce the maintenance of motor by allowing it distributed use across the life-cycle, relieving it from constant use under the same parameters.
  • Increased investments from several VFD vendors (especially in R&D) have allowed them to further the technology and prompt the growth of the variable frequency drives market. The investment in the Asia-Pacific region has been higher, owing to the opportunities arising from relatively higher infrastructure and economic development in the region.
  • Rapid technological advancement has led to higher acceptability of the drives in several industries. The advances are focused on high reliability and reduced energy costs which can potentially reduce the per square foot energy by 30-40% when equipped with motor-driven systems in commercial buildings.
  • Additionally, the advanced and modern drives integrate the networking and diagnostic capabilities into better performance and increased productivity. Intelligent motor control, energy savings, and reduction of peak-current drawn are some of the major reasons to choose a VFD as the controller in every motor-driven system.
  • For heating, ventilation, and air-conditioning systems used in the commercial and industrial sector, the Variable Frequency Drives find wide usage as they can handle the variable load in several components, like chillers. The VFD helps allow peak capacity to meet the high demands of peak loads in constant flow HVAC systems and then slowly control the energy with decreasing need for the load.
  • The COVID-19 outbreak had an unprecedented impact on the studied market, with several end-user industries that deploy variable frequency drives facing several difficulties. The industries were riddled with nationwide lockdowns, which brought them to a standstill. The pandemic led to supply chain disruptions and the manufacturing of Variable Frequency Drives creating difficulties for the vendors to run optimum production. Furthermore, the nationwide lockdown across countries resulted in the shutting down of operations. The pandemic also led to the closing of borders which made imports and exports of parts and the integration of the products at the installation site a challenge.

APAC Variable Frequency Drives Industry Segmentation

A variable frequency drive (VFD) is a motor controller that drives an electric motor by varying the frequency and voltage of its power supply. The VFD also has the ability to control ramp-up and ramp-down of the motor during start or stop, respectively. The study covers the trends and recent developments of Variable Frequency Drives across geographies and several end-user industries, like infrastructure, food processing, energy and power, mining and metals, and pulp and paper.

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APAC Variable Frequency Drives Market Size Summary

The Asia Pacific variable frequency drives (VFD) market is experiencing significant growth, driven by the increasing demand for energy-efficient solutions across various industries. VFDs are gaining traction due to their ability to optimize energy usage, extend motor life, and reduce maintenance costs by allowing distributed use over the motor's lifecycle. The region's rapid technological advancements and higher infrastructure development have further propelled the market, with substantial investments in research and development by VFD vendors. These drives are widely used in heating, ventilation, and air-conditioning systems, as well as in the food processing industry, where they help in managing variable loads and improving energy efficiency. The COVID-19 pandemic posed challenges, causing supply chain disruptions and operational halts, but the market is poised for recovery and growth.

China stands out as a significant player in the Asia Pacific VFD market, driven by its focus on infrastructural expansion and the establishment of manufacturing facilities. The country's initiatives, such as the Made in China 2025 program, aim to upgrade industries and boost the production of high-value-added products, including electric and plug-in hybrid cars. Despite challenges in technological innovation, China's policies supporting new energy and high-tech equipment manufacturing are expected to create substantial demand for VFDs. The market is fragmented, with key players like Eaton Corporation, ABB Ltd, and General Electric Company investing in research and development to enhance their offerings. Recent acquisitions by companies such as Eaton and Hitachi highlight the strategic moves to expand their presence and capabilities in the region, further contributing to the market's growth trajectory.

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APAC Variable Frequency Drives Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Value Chain / Supply Chain Analysis

    3. 1.3 Porters 5 Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

  2. 2. Market Dynamics

    1. 2.1 Market Drivers

    2. 2.2 Market Restraints

  3. 3. MARKET SEGMENTATION

    1. 3.1 By Power Rating

      1. 3.1.1 Low Voltage

      2. 3.1.2 Medium Voltage

    2. 3.2 By End-User Industry

      1. 3.2.1 Oil and Gas

      2. 3.2.2 Food Processing

      3. 3.2.3 Energy and Power

      4. 3.2.4 Water and Wastewater Management

      5. 3.2.5 Pulp and Paper

      6. 3.2.6 Other End User Industries

    3. 3.3 By Country

      1. 3.3.1 China

      2. 3.3.2 India

      3. 3.3.3 Japan

      4. 3.3.4 Rest of Asia Pacific

APAC Variable Frequency Drives Market Size FAQs

The APAC Variable Frequency Drives Market is projected to register a CAGR of 6.5% during the forecast period (2024-2029)

Eaton Corporation, General Electric Company, Toshiba Corporation, ABB Ltd and Hitachi Group are the major companies operating in the APAC Variable Frequency Drives Market.

APAC Variable Frequency Drives Report Snapshots

Asia Pacific Variable Frequency Drives Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)