Australia and New Zealand low and medium voltage drive revenue totaled USD 718.3 million in 2022. Demand for low and medium voltage drive in Australia and New Zealand witnessed 3.8% year-on-year growth in 2022, taking overall valuation to USD 745.0 million in 2023.
Projections between 2023 and 2033 indicate a 4.9% CAGR for sales in the region, resulting in revenue of USD 1,137.1 million by 2033. According to the study, total sales are projected to create a definite financial potential of USD 392.1 million from 2023 to 2033.
Low and medium-voltage drives (also known as variable frequency drives or VFDs) are renowned for efficiently controlling the speed and torque of electric motors in industrial applications. Their demand is attributed to energy efficiency optimization, lower operating costs, and improved overall performance of machinery.
There has been a heightened awareness of the necessity to decrease carbon emissions and the rising demand for energy-efficient technologies, creating prospects for low and medium voltage drive manufacturers. The advancements in control algorithms, power electronics, and semiconductors have made it possible to produce more energy-efficient drives, which have grown more affordable and widely in demand.
The growing adoption of renewable energy sources such as wind and solar power has further driven the demand for energy-efficient voltage drives.
These energy sources require a more efficient and flexible power grid, and energy-efficient drives can help regulate the power flow in the grid and ensure that the power is distributed effectively. Consequently, rising demand for low and medium voltage drives from renewable energy sources is expected to boost sales.
The demand for advanced control and monitoring features in drives is a notable trend observed across Australia and New Zealand. This has been made possible by integrating cutting-edge sensors, communication protocols, and control algorithms.
The development of these features has resulted in drives that can monitor and control various parameters, such as voltage, current, temperature, and speed, in real-time. This has improved efficiency, reliability, and safety in applications such as pumps, fans, and compressors.
Safety is a crucial concern in various industrial and commercial settings, and manufacturers are witnessing a growing demand for drives with built-in safety features. Features like emergency stop buttons, safety interlocks, and overload protection are vital in preventing accidents.
They also protect equipment and personnel, and ensure compliance with safety regulations, making them popular among users. With rapid urbanization across the region, there has been an increase in demand for HVAC systems from the commercial and domestic sectors.
The need for district heating systems in colder areas has also been increasing. These systems comfort people in colder regions and hold a significant share in energy consumption; these systems use motorized fans and blowers for space heating and air circulation. Demand for such HVAC systems is anticipated to create meaningful opportunities for low and medium voltage drives in Australia and New Zealand.
Household appliances are also an important area of application for low voltage drives. An electric motor is a crucial part of many household appliances, ranging from small body care products such as shavers, hair dryers, etc., to sizeable domestic care appliances such as vacuum cleaners and kitchen suction hoods.
Sales of electronic household appliances are anticipated to witness sturdy growth over the forecast period, which, in turn, is expected to be a prime driver for the low and medium voltage drive demand.
| Attributes | Key Insights |
|---|---|
| Australia and New Zealand Low and Medium Voltage Drive Sales Value (2022A) | USD718.3 million |
| Estimated Australia and New Zealand Low and Medium Voltage Drive Revenue (2023E) | USD 745.0 million |
| Projected Value (2033F) | USD 1,137.1 million |
| Value-based CAGR (2023 to 2033) | 4.9% |
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From 2018 to 2022, low and medium voltage drive sales in ANZ grew at a CAGR of 4.1%. According to Future Market Insights (FMI), total revenue is expected to grow at a CAGR of 4.9% during the forecast period.
Historically, low and medium voltage drive sales in Australia and New Zealand have experienced steady growth. This growth is driven by industrial expansion, infrastructure development, and an emphasis on energy efficiency. There has been a notable shift towards energy-saving technology in both countries. Low and medium-voltage drives play a crucial role in improving the energy efficiency of industrial procedures, leading to augmented adoption.
Due to the importance of the mining and resources industries in Australia and New Zealand, these industries are the key drivers of demand for LV and MV drives. The need for precise motor control in mining processes has increased overall sales.
The low and medium-voltage drive demand has seen a boom with the increasing emphasis on renewable energy sources. These engines are essential for assimilating renewable energy into the grid and handling fluctuations in electricity production.
The adoption of Industry 4.0 principles and growing automation of industrial processes have fueled demand for motor control solutions. Low and medium-voltage drives are essential for automated manufacturing and smart industrial systems.
Australia and New Zealand have capitalized heavily on infrastructure projects over the years. This includes water treatment, transportation, and construction, all requiring advanced motor control solutions. Industries that focus on safety and reliability, such as oil and gas, have previously invested in advanced motor control solutions to ensure their processes run smoothly and safely.
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The below table highlight projected sales revenue in Australia and New Zealand low and CAGRs. Australia and New Zealand is anticipated to surge with a value of USD 1,137.1 million by 2033.
| Country | Australia and New Zealand |
|---|---|
| Projected Value (2033) | USD 1,137.1 million |
In the table below, the CAGRs of New Zealand is given for the review period 2023 to 2033. New Zealand is expected to remain dominant by exhibiting a CAGR of 5.7% by 2033.
| Country | New Zealand |
|---|---|
| Value-based CAGR (2023 to 2033) | 5.7% |
In the forecast period, demand for low and medium voltage drives in Australia and New Zealand is expected to grow at a 4.9% CAGR. Australia holds more than 80% share in the region. Sales in these nations are expected to rise steadily in the coming years.
Low and medium-voltage drives are used in several industries, including oil and gas, mining, manufacturing, and utilities, to control the speed and torque of electric motors. These drives help improve energy efficiency, reduce operational costs, and enhance overall system performance.
Factors driving sales growth in Australia include increasing industrialization, infrastructure development, and the need for energy-efficient solutions. The region's focus on renewable energy sources, such as wind and solar power, also contributes to the demand for low and medium-voltage drives.
Government initiatives promoting energy efficiency and sustainability are also expected to boost the adoption of low and medium-voltage drives in Australia and New Zealand. These initiatives include regulations and incentives to reduce carbon emissions and improve energy management.
Key manufacturers of LV and MV drives in Australia and New Zealand include multinational companies like ABB, Siemens, Schneider Electric, Rockwell Automation, and local manufacturers and suppliers. These companies offer a wide range of drive solutions, including variable frequency drives (VFDs) and soft starters, catering to different industry requirements.
New Zealand is expected to surge at a CAGR of 5.7% by 2033. New Zealand has a diverse industrial landscape, including agriculture, manufacturing, construction, and mining. Each of these segments has its requirements for low and medium-voltage drives.
New Zealand has comparatively smaller revenue than other larger economies. However, it has had steady growth over the historical period. New Zealand places great stress on energy efficacy and sustainability. This emphasis has driven demand for the energy-efficient technologies, including low- and medium-voltage drives.
New Zealand is identified for its plentiful renewable energy resources, especially hydroelectricity. Low and medium-voltage drives play a dynamic role in efficiently managing and integrating this renewable energy into the grid. The agricultural and mining sectors are vital in New Zealand. Both industries need precise motor control, and low and medium-voltage fuel are imperious for operations in these sectors.
Infrastructure growth projects such as water treatment, road construction, and transportation systems have increased LV and MV drive demand. These drives are used for several different applications in projects with high requirements for safety and reliability, such as oil and gas, are vital consumers of medium and low-voltage drives. These actuators ensure procedures in these industries run smoothly and safely.
The table below signifies leading sub-categories under the power rating and end-use categories. 1 MW to 3 MW is expected to dominate by exhibiting a 7.4% CAGR in the evaluation period. Under the end-use, the power generation segment is projected to lead, thriving at a 4.0% CAGR.
| Category | Forecast CAGR (2023 to 2033) |
|---|---|
| 1 MW to 3 MW (power rating) | 7.4% |
| Power Generation (end-use) | 4.0% |
By power rating, the medium voltage drives (1 MW to 3 MW) segment accounts for a prominent share of 52.5% in 2023, witnessing its dominance during the forecast period. This is followed by taxi lights, which are expected to grow at a value CAGR of 7.4%.
Low and medium voltage drives in the 1 MW to 3 MW range forms an essential section in Australia and New Zealand. It is aimed at industries with high energy demands, and its development is often influenced by aspects specific to heavy industry.
Key sectors that benefit from measurements in this range comprise utilities (for controlling pumps and turbines), mining (for large mining equipment), and heavy industry (for machines such as mills and extruders). Efficacy is a critical aspect of this segment. Users of large motors are highly driven to optimize energy consumption owing to the significant energy costs associated with operating the machine in this power range.
Due to the precise needs of industries using 1 MW to 3 MW power drives, manufacturers in this segment offer tailored solutions. Customization involves communication interfaces, specialized control algorithms, or mechanical adjustments.
Submission with electrical safety standards and industry-specific guidelines is critical for manufacturers directing this segment. Continuous advances in control algorithms and power electronics have led to the growth of efficient, reliable, and feature-rich drives in power range.
By end-use industry, the medium voltage drives (power generation) segment accounts for a prominent share of 33.6% in 2023. This is followed by the oil and gas segment, which is expected to grow at a CAGR of 4.0%.
LV and MV drives have several applications in energy production installations like power generation, including fans, compressors, controlling pumps, and use in other machinery. Australia and New Zealand have diverse sources of electricity generation, including natural gas, coal, hydropower, wind, solar and geothermal. Each of these bases may require specific types of readers to function optimally, leading innovation in drives.
Australia and New Zealand are both actively transitioning to renewable energy sources. Low and medium-voltage drives are vital in effectively integrating renewable energy, such as solar and wind, into the grid. Hydropower is an essential source of renewable energy in both countries.
Solar and wind farms in both countries use quiet- and medium-voltage motors to control the speed and power of generators. These drives ensure that power generation is enhanced under changing wind and solar conditions, pushing sales in the region
LV and MV drives play an important role in network management. They help steady voltage levels and standardize frequencies, ensuring a stable and dependable power supply to consumers.
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Companies are investing significantly to expand their production in the regional areas and grab growth opportunities. Manufacturers are also expanding their reach to enhance sales and customer service through a strong distribution network. Key players are focusing on adopting alternative distribution channels, such as online, to strengthen their presence in regional and global areas.
Several key players are focusing on the acquisition of small players. In contrast, small-scale companies must invest significantly in research and development activities to introduce new products and enhance their global presence. In recent years, manufacturers have been highly focused on acquisitions to strengthen the Australia and New Zealand low and medium voltage drive product portfolio.
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| Attribute | Details |
|---|---|
| Estimated Size (2023) | USD 745.0 million |
| Projected Valuation (2033) | USD 1,137.1 million |
| Value-based CAGR (2023 to 2033) | 4.9% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Analysis | USD Million for Value and Units for Volume |
| Key Countries Covered | Australia and New Zealand |
| Key Segments Covered | Voltage Level, Power Rating, Drive Type, Current Type, End-Use Industry, Sales Channel, Region |
| Key Companies Profiled | Siemens AG; Delta Power Electronics; Fuji Electric Global; ABB; Yaskawa; Rockwell Automation; Eaton; Nidec; TMEIC; TECO; Schneider Electric; Amtech; GE Power Conversion; Benwshaw Applied Motor Controls; Maschinenfabrik Reinhausen GmbH |
| Report Coverage | Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Key Dynamics and Challenges, and Strategic Growth Initiatives |
Revenue in ANZ is expected to total USD 745.0 million in 2023.
Demand in ANZ is expected to increase at 4.3% CAGR through 2033.
Siemens AG, ABB, Rockwell Automation, Schneider Electric are the key players.
Total sales in ANZ are anticipated to total USD 1,137.1 million by 2033.
Total valuation in ANZ reached USD 678.2 million in 2018.
1. Executive Summary 2. Overview 3. Key Trends 4. Key Success Factors 5. Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Pricing Analysis 7. Demand (in Value or Size in USD million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Background 9. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Voltage Level 9.1. Medium Voltage Drive 9.1.1. Low-Medium Voltage (1 kV - 3 kV) 9.1.2. Medium-High Voltage (3 kV - 6 kV) 9.1.3. High Voltage (6 kV and above) 9.2. Low Voltage Drive 9.2.1. Up to 230V 9.2.2. 230V - 690V 9.2.3. 690V - 1 KV 10. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Power Rating 10.1. Medium Voltage Drive 10.1.1. <1MW 10.1.2. 1 MW - 3 MW 10.1.3. 3 MW- 7 MW 10.1.4. > 7 MW 10.2. Low Voltage Drive 10.2.1. Up to 750 W 10.2.2. 750 to 7500 W 10.2.3. 7500 to 75000 W 11. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Drive Type 11.1. Medium Voltage Drive 11.1.1. Variable Frequency Drive (VFDs) 11.1.2. Servo Drive 11.1.3. Direct Torque Control (DTC) Drive 11.1.4. Vector Control Drive 11.1.5. Sensorless Control Drive 11.2. Low Voltage Drive 11.2.1. Variable Frequency Drive (VFDs) 11.2.2. Servo Drive 11.2.3. Direct Torque Control (DTC) Drive 11.2.4. Vector Control Drive 11.2.5. Sensorless Control Drive 12. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Current Type 12.1. Medium Voltage Drive 12.1.1. AC 12.1.2. DC 12.2. Low Voltage Drive 12.2.1. AC 12.2.2. DC 13. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 13.1. Direct End-User 13.2. Direct Machine Builder 13.3. Direct Systems Integrator 13.4. Distribution/Partner 14. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use Industry 14.1. Medium Voltage Drive 14.1.1. Oil and Gas 14.1.2. Mining and Metals 14.1.3. Power Generation 14.1.4. Chemicals and Petrochemicals 14.1.5. Water and Wastewater 14.1.6. Marine and Offshore 14.1.7. Others 14.2. Low Voltage Drive 14.2.1. Building and Construction 14.2.2. Manufacturing 14.2.3. Food and Beverage 14.2.4. Transportation 14.2.5. Agriculture 14.2.6. Pharmaceuticals 14.2.7. Commercial Facilities 14.2.8. Others 15. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, by Country 15.1. Australia 15.2. New Zealand 16. Industry Attractiveness 2018 to 2022 and Forecast 2023 to 2033 17. Industry Attractiveness 2018 to 2022 and Forecast 2023 to 2033 18. Industry Structure Analysis 19. Competition Analysis 19.1. Siemens AG 19.2. Delta Power Electronics 19.3. Rockwell Automation 19.4. Eaton 19.5. Nidec 19.6. TMEIC 19.7. TECO-Westinghouse 19.8. Benshaw Applied Motor Controls 19.9. Schneider Electric 19.10. Maschinenfabrik Reinhausen GmbH 19.11. Ametech 19.12. GE Power Conversion 20. Primary Insights 21. Assumptions and Acronyms Used 22. Research Methodology
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Industry Analysis of Low and Medium Voltage Drive in Australia and New Zealand
