In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Variable frequency drive (VFD) is a type of power conversion device in which motor controller pushes an electric motor by varying the frequency and voltage supplied to the electric motor. The variable frequency drive also has the capacity to control ramp-down and ramp-up of the motor during start and stop of the motor. Variable frequency drive also known as adjustable speed drive, ac drive, adjustable frequency drive and variable speed drive.
The variable frequency drive market, in terms of value, is estimated around USD 20.10 Billion in 2017 and expected to grow rapidly during the forecasted period at a CAGR of 6.57%. Increasing government guidelines for reducing energy consumption to achieve a net zero energy goal are expected to drive the market of variable frequency drive over the forecasted period. Increasing use of connected devices in commercial, household and industrial sectors are also expected to spur the growth of variable frequency drive market globally over the forecasted period.
Asia Pacific holds the largest market share of variable frequency drive in terms of revenue as the developing economies in this region such as China and India are investing a heavy amount of money in energy efficient devices. China accounted the largest market share of variable frequency drive over the forecasted period. Increasing investments toward the establishment of manufacturing facilities with increasing demand for oil & gas and power generation industries in this region are expected to stimulate the market of variable frequency drive over the forecasted period.Europe is expected to be the fastest growing market for variable frequency drive in terms of revenue over the forecasted period due the strict government norms towards the adoption of energy efficient devices and demand for clean energy technology. European Union introduce climate and energy package to fight against climate change. European Union plan on climate change focuses on emissions cuts, energy efficiency and renewable energy. These factors are expected to bolster the growth of variable frequency drive market in this region over the forecasted period.
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North America is expected to show a positive growth in terms of revenue due to the rapid adoption of variable frequency drives in oil & gas and power generation industries. Rising initiatives toward the achievement of energy efficiency devices are also expected to spur the growth of variable frequency drive market in this region.Middle East and Africa regions are expected to show a positive growth over the forecasted period due to increase in regulations to use energy efficient devices in this region.
Our-in depth analysis of the global variable frequency drive market includes the following segments:
Global variable frequency drive market is further classified on the basis of region as follows:
Growing investments by the government across the globe in energy efficiency are expected to augment the demand for energy efficient devices, thereby bolstering the growth of variable frequency drive market globally. Due to increasing energy consumption and its unit rate, the various industries are now tending towards the use of variable frequency drives for better productivity, operation and energy efficiency of machines. These factors are also expected to fuel the demand for variable frequency drive market across the globe.
Rapid urbanization and industrialization along with growing investments toward infrastructure development across the globe will foster the growth of variable frequency drive market globally. Variable frequency drive motors require less maintenance as compared with other equipment. Components such as active filters, passive filters, circuit breakers, IGBT, ac reactors, harmonic filters, PLCs, and safety relays are less prone to damage. These advantages of variable frequency drive are also expected to spur the market of variable frequency drive globally over the forecasted period.Variable frequency drive controls the speed of motor and minimize the overall power utilization. Due to which overall energy cost gets reduced with higher efficiency. These factors of variable frequency drive are expected to bolster the growth of variable frequency drive market globally. Installations of variable frequency drives are easier as compared to other motor controllers which also projected to drive the market of variable frequency drive market globally.Lot of use of variable frequency drives will causes harmonics in the electric lines which can cause damage in sensitive electronic equipment and power factor. This will act as a major restraint for the growth of variable frequency drive market.
Some of the examples of market players in the global variable frequency drive market identified across the value chain include: