[309 Pages Report] The North America variable frequency drive market is expected to hit a valuation of USD 5056.2 million by 2032. The market has a valuation of USD 4770 million as of 2022, and during the forecast period, the North America variable frequency drive market is expected to grow at a CAGR of 6%.
In 2021, the North America variable frequency drive market was valued at USD 4500 million.
Increasing technological advancements, the reduction in the prices of variable frequency drives, and many other factors are expected to surge the North America variable frequency drive market.
| Attributes | Value |
|---|---|
| North America Variable Frequency Drive Market Valuation (2021) | USD 4500 million |
| North America Variable Frequency Drive Market Valuation (2022) | USD 4770 million |
| North America Variable Frequency Drive Market Projected Size (2032) | USD 5056.2 million |
| North America Variable Frequency Drive Market Anticipated CAGR (2022 to 2032) | 6% |
North America can be considered the most developed region when it comes to automation and IT.
When we talk about variable frequency drives, are used to drive electric motors, and the operation of these motors can be controlled by varying the frequency and the voltage. This is especially crucial when the robots are put into operation, as many of them run using motors. This might influence the North America variable frequency drive market outlook.
With rising rates of electricity in North America, the demand for these frequency drives is expected to increase in the region. The reason is whenever the manufacturers feel that the electricity consumption for driving a machine should be less as compared to other machines, the voltage and the frequency can be regulated. This is expected to have a positive impact on the North America variable frequency drive market future trends.
Apart from that, the manufacturers in North America are developing frequency drive machines that fall in line with the environmental regulations that have been set up by the authorities, keeping in view the climatic conditions. This is expected to drive the North America variable frequency to drive market key trends & opportunities.
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If we compare the historical CAGR with the anticipated CAGR, we can see a very slight difference. The historical CAGR was 5.5%, and the expected CAGR was 6%.
Increasing industrial activities, coupled with regulated usage of electricity, are some of the reasons why the market is expected to grow during the forecast period.
Moreover, despite being a relatively developed region as compared to other regions, North America is still going through industrialization. The reason is the rapid growth of various sectors like IT, healthcare, Artificial Intelligence, mechatronics, etc.
Moreover, North America is believed to be one of the largest hubs for pulp and paper manufacturers. This industry particularly makes use of variable frequency drives as heavy motors are being put to application, and in order to avoid the scenario of voltage fluctuations, the manufacturers have started making use of variable frequency drives. This might drive the North America variable frequency drive market trends.
Technological advancements
One of the major drivers of the variable frequency drive market in North America is increasing technological advancements. These advancements have ensured that these frequency drives can be used beyond conventional purposes.
In the current scheme of things, the frequency drive is being employed as a standalone control system. This might have an impact on the North America variable frequency drive market size.
Decreasing price
The niches in which the variable frequency drives are broadening with the reduction in prices of these machines. For example, owing to the reduced price, the end users in many parts of North America have started making use of frequency drives for indoor activities as well. This can be a key factor in driving the North America variable frequency to drive key trends and opportunities.
Ensuring that water is not wasted.
When the variable frequency drives are installed with flow meters, it ensures appropriate usage of water and completely eliminates the scenario of water and energy wastage. These aspects are driving the North America variable frequency drive market.
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High installation cost
Despite the fact the prices of variable frequency drives have come down with time, the high installation cost is something that has bothered the end customers for quite some time. This has been observed especially in the case of medium voltage variable frequency drives.
Technical glitches
One of the biggest challenges of employing variable frequency drives is that they are subjected to technical glitches on a consistent basis. These glitches are beyond the comprehension of end-users, and only the technical staff can resolve these glitches. This as well might challenge the growth of the variable frequency drive market in North America.
Increasing usage in the railways sector
The railways sector presents a huge market in front of the North America variable frequency drive market. The manufacturers in this region have been developing AC/AC variable frequency drives as custom developments, especially for train manufacturers.
Not only are they but these are also being increasingly employed in industrial automation systems.
Usage in Industrial Internet of Things (IIoT)
Variable frequency drives are being increasingly adopted in the Industrial Internet of Things (IIoT). Through this, the technicians can monitor the conditions of the equipment from anywhere. Apart from that, the data can be accessed from multiple interfaces, thereby making shift changes and team operations seamless.
Thus, the combination of IIoT and variable frequency drives enables strong predictive maintenance, thereby allowing things to be fixed before they break down and avoiding any kind of downtime. This might help in the surge of the variable frequency drive market in North America.
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The low voltage range is expected to have the highest market share during the forecast period. The low voltage range is being utilized to drive equipment like fans, AC, etc., primarily those devices which do not consume much electricity.
Moreover, these also have the ability to control the electric appliances when there is a power cut for a long time, thereby acting like a proper control system.
The oil and gas segment is expected to have the highest market share. The reason is that the oil processing industry generally makes use of heavy motors, and it is imperative that the voltage and frequency be regularised at the required times.
This will ensure that the motors can operate in an uninterrupted manner, as regularisation would mean economically utilizing electricity, thereby making activities like pumping, extraction, etc., much more seamless.
The USA market is expected to be the largest market in the North American region during the forecast period. The market is expected to grow at a CAGR of 6.6% during the forecast period. Strict government measures, along with the usage of the variable frequency drive as a standalone device to optimize the flow of electricity, are some of the factors which are expected to make the USA the largest market.
The USA market is expected to be preceded by the Canada market. The reason for the growth of the Canada market remains the same as that of the USA market. The Canada market is expected to grow at a CAGR of 5.5% during the forecast period.
At present, there is not much happening in the start-up ecosystem of the North America variable frequency drive market.
Having said that, the market is undoubtedly a potential hotspot for entrepreneurs. The reason is that the manufacturers have explored and are still exploring newer ways to make use of variable frequency drives in North America.
Exhibiting characteristics like moderate usage of electricity, having the ability to control the speed, and working on the theory of ergonomics by providing enough power to ACs, fans, etc., the market has a lot to offer, especially for the people who know how to make the best use of technology.
However, the initial cost is something that bothers potential start-ups. But, with a number of start-ups being funded by UHNIs, angel investors, etc., aspiring entrepreneurs can certainly tap into the doors of investors who are willing to help the best minds. As they say, ‘Everything begins with an idea.
With a large emphasis being laid on sustainable development, the key players in the market are focusing on eco-friendly solutions for manufacturing variable frequency drives in North America. Moreover, the key players are putting a lot of emphasis on meaningful mergers and acquisitions, and are investing huge amounts in Research and Development.
Some of the recent developments are:
Schneider Electric has been at the forefront when it comes to developing climate-positive solutions for the larger interest. Their operation has been on the lines of energy and digital being a basic human right. Moreover, the company has been giving the best in the world solutions to help people experience seamless transition during the times of tectonic shift in the energy sector.
They firmly believe that electricity is the best carrier to achieve the process of complete decarbonization. Thus, they have been striving to be digital partners for sustainability and efficiency.
The processes adopted by Schneider have always aimed at integrating world-leading processes and energy technologies to realize the complete potential of the mission and vision statement put forth by their clients. They have also been providing cloud integration products, controls, and services.
On 28th September’22, Schneider Electric appointed Joshua Dickinson as SVP and CFO for the North America region.
Toshiba International Corporation has been serving its clients in North America for more than five decades. The company has been primarily targeting retailers, enterprises, municipalities, utilities, businesses, etc.
Toshiba is leading the way for the IoT revolution and is helping clients make massive transformations. In fact, they were the ones who pioneered Information and Communication Technology and bring decades of real-world experience in semiconductors, electronics, transportation, etc.
The IoT of Toshiba mainly works on the principle of accelerating sales of replacement parts and equipment, creating new revenue streams for the products and services, optimizing maintenance services, and improving operational efficiency.
Siemens AG believes in integrating solutions, instead of focusing on isolated problems. Siemens has been majorly focusing on industry, infrastructure, transport, and healthcare. By amalgamating the real and digital worlds, they have empowered their customers to transform markets.
Furthermore, the company has been offering state-of-the-art solutions, that specifically focus on IT, industry, finance, and energy.
On 20th September’22, Siemens showed digital solutions for transitioning to sustainable infrastructure.
The North America variable frequency drive market is expected to grow at a CAGR of 6% during the forecast period
The North America variable frequency drive market is expected to be valued at US$ 5056.2 million by 2032.
The North America variable frequency drive market is valued at US$ 4770 million as of 2022.
Main restraints are: high installation cost and technical glitches.
Main factors are: technological advancements and decreasing price.
1. Executive Summary | North America Market 2. Market Overview 3. Market Background 4. North America Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Drive Type 5.1. AC Drive 5.2. DC Drive 5.3. Servo Drive 6. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Voltage Range 6.1. Low Voltage Range 6.2. Medium Voltage Range 7. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application Type 7.1. Standard 7.2. Regenerative 8. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By End-Use Application 8.1. Pump 8.2. Fan 8.3. Compressor 8.4. Conveyor 8.5. HVAC 8.6. Others 9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By End-Use Industry 9.1. Oil & Gas 9.2. Food Processing 9.3. Automotive 9.4. Mining & Metals 9.5. Pulp and Papers 9.6. Other 10. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 10.1. North America 11. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Market Structure Analysis 13. Competition Analysis 13.1. Competition Deep Dive 13.2. Fuji Electric Co. Ltd. 13.3. Mitsubishi Electric Corporation 13.4. Siemens AG 13.5. ABB Ltd 13.6. American Electric Technologies Inc 13.7. General Electric Company 13.8. Hitachi Limited 13.9. Honeywell International Inc 13.10. Rockwell Automation Inc 13.11. Johnson Controls 13.12. Emerson Industrial Automation 13.13. Toshiba International Corporation 13.14. Schneider Electric SE 14. Assumptions & Acronyms Used 15. Research Methodology
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North America Variable Frequency Drive Market
