The North America Variable Frequency Drive Market is estimated to be valued at US$ 5,636.1 million in 2021 and is expected to exhibit a CAGR of 5.6% over the forecast period of 2021-2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Variable Frequency Drives (VFDs) are electronic devices used to control the speed and torque of electric motors. They provide various advantages such as energy efficiency, reduced maintenance costs, and improved process control, thereby increasing their demand in various industries. The need for VFDs is associated with the growing focus on energy conservation and the implementation of stringent government regulations to reduce carbon emissions. These drives are widely used in HVAC systems, pumps, compressors, and other motor-driven applications.
Market Key Trends:
The key trend driving the North America Variable Frequency Drive Market is the increasing adoption of energy-efficient technologies. With the growing awareness regarding environmental sustainability and the need to reduce energy consumption, industries are increasingly investing in energy-efficient equipment such as VFDs. These drives help in optimizing motor performance, reducing energy wastage, and improving overall system efficiency. Additionally, government initiatives promoting energy conservation and the use of eco-friendly technologies are further fueling the market growth. The demand for VFDs is expected to witness significant growth in industries such as oil and gas, water and wastewater treatment, and HVAC systems, among others.
PEST Analysis:
Political: The political stability and favorable government regulations in North America are expected to support the growth of the variable frequency drive market. However, changes in trade policies or political tensions between countries can impact the market.
Economic: The North America Variable Frequency Drive Market Growth is anticipated to witness significant growth, with a projected CAGR of 5.6% during the forecast period. This can be attributed to factors such as increasing industrialization, growing energy efficiency requirements, and investments in infrastructure development.
Social: The increasing awareness about energy conservation and the need for sustainable solutions are driving the demand for variable frequency drives in North America. Furthermore, the rising adoption of renewable energy sources is also contributing to market growth.
Technological: Technological advancements, such as the integration of IoT and automation in variable frequency drives, are expected to propel market expansion. These advancements allow for better control, monitoring, and energy optimization, which are highly valued by industries.
Key Takeaways:
Market Size: The North America variable frequency drive market is projected to experience high growth, exhibiting a CAGR of 5.6% over the forecast period. This growth can be attributed to increasing industrialization, energy efficiency requirements, and infrastructure development. The market size is estimated to reach US$ 5,636.1 million in 2021.
Regional Analysis: North America is the dominating region in the variable frequency drive market. It is also the fastest-growing region, driven by factors like robust industrial infrastructure, technological advancements, and growing awareness about energy conservation. The United States is a key market within North America, with extensive adoption of variable frequency drives across various industries.
Key Players: The key players operating in the North America variable frequency drive market include Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited.
