AC Drive Market Analysis By Voltage (Low, Medium), By End-user (Oil & Gas, Chemical & Petrochemical, Food & Beverage, Water & Wastewater, Power Generation, Metal & Mining, Pulp & Paper, HVAC, Discrete Industries, Others) & Forecast By 2031
- PUBLISHED ON
- 2023-04-28
- NO OF PAGES
- 256
- CATEGORY
- Electronics & Communication
The global AC Drive market was valued at USD 23.76 billion in 2022 and expected to grow at a CAGR of 7.2% during the forecast period.
Report Scope
Report Attributes | Description |
Market Size in 2022 | USD 23.76 Billion |
Market Forecast in 2032 | USD 47.7 Billion |
CAGR % 2023-2031 | 7.2% |
Base Year | 2022 |
Historic Data | 2019-2021 |
Forecast Period | 2023-2031 |
Report USP | Production, Consumption, company share, company heatmap, company production capacity, growth factors and more |
Segments Covered | By Voltage, By End-user |
Regional Scope | North America, Europe, APAC, South America and Middle East and Africa |
Country Scope | U.S.; Canada; U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico; Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria |
Key Companies | ABB Ltd., Danfoss, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, WEG SA, Yaskawa Electric Corporation, Toshiba International Corporation, Parker Hannifin Corporation, Fuji Electric Co. Ltd., Others |
Covid-19 Impact:
The COVID-19 pandemic has had a significant impact on many industries, including the AC drive industry. While the exact impact has varied depending on the industry and region, some of the notable effects include:
Supply chain disruptions: The pandemic has caused disruptions in the supply chain, including delays in the delivery of raw materials, components, and finished products. This has led to delays in the production and delivery of AC drives, as well as increased prices due to higher transportation costs.
Reduced demand: The economic downturn caused by the pandemic has led to reduced demand for AC drives in some industries. Many businesses have had to scale back their operations or close temporarily, leading to lower demand for AC drives and other equipment.
Increased demand in certain industries: On the other hand, some industries have seen increased demand for AC drives due to changes in consumer behavior and increased demand for certain products. For example, the food and beverage industry has seen increased demand for AC drives as a result of increased demand for packaged and processed foods.
Remote work: With many employees working remotely, there has been a greater reliance on remote monitoring and control of equipment, including AC drives. This has led to an increased demand for AC drives with remote monitoring and control capabilities.
Shift to sustainable solutions: The pandemic has highlighted the importance of sustainability and environmental responsibility. As a result, there has been a greater demand for AC drives and other energy-efficient solutions that can help reduce energy consumption and operating costs.
Overall, the COVID-19 pandemic has had a mixed impact on the AC drive industry, with some sectors experiencing increased demand while others face challenges due to disruptions in the supply chain and reduced demand. However, the industry is expected to continue to grow in the long term, driven by the increasing demand for energy-efficient solutions and the shift towards sustainability.
Market Dynamics:
Drivers:
Energy efficiency: AC drives are an effective way to improve the energy efficiency of motor-driven systems. By adjusting the speed and torque of the motor, AC drives can help reduce energy consumption and operating costs.
Cost savings: By reducing energy consumption and maintenance costs, AC drives can help businesses save money in the long term. The initial investment in an AC drive can be offset by the cost savings over time.
Increasing demand for industrial automation: As more industries adopt automation to increase efficiency and productivity, the demand for AC drives and other automation technologies is expected to grow.
Government regulations and incentives: Government regulations and incentives, such as energy efficiency standards and tax credits, can drive demand for AC drives and other energy-efficient technologies.
Growing demand for renewable energy: As more businesses and consumers switch to renewable energy sources, such as solar and wind power, the demand for AC drives that can efficiently manage these power sources is also increasing.
Technological advancements: As technology advances, AC drives are becoming more sophisticated, with improved control and monitoring capabilities. This is making them more appealing to businesses that are looking for advanced solutions to optimize their motor-driven systems.
Overall, the demand for AC drives is being driven by a combination of economic, regulatory, and technological factors, and is expected to continue to grow as businesses and consumers increasingly prioritize energy efficiency and sustainability.
Restraints:
High initial investment: AC drives can be expensive to purchase and install, which can be a barrier for some businesses. While the long-term cost savings may be significant, some businesses may not have the capital available to make the initial investment.
Lack of awareness: Despite the benefits of AC drives, some businesses may not be aware of their potential for energy savings and improved efficiency. This can limit demand for AC drives, particularly in smaller or less technologically advanced markets.
Availability of alternative technologies: There are alternative technologies, such as soft starters and mechanical variable-speed drives, that can provide similar benefits to AC drives. While these technologies may not be as effective as AC drives in all applications, they may be sufficient for some businesses.
Economic uncertainty: Economic uncertainty, such as recessions or global economic downturns, can reduce demand for AC drives as businesses look to cut costs and conserve capital.
Compatibility issues: AC drives may not be compatible with all types of motors, particularly older or less common motor types. This can limit the applicability of AC drives in some industries.
Maintenance requirements: While AC drives can help reduce maintenance costs over the long term, they do require some maintenance to ensure they are operating properly. This can add additional costs and complexity for businesses.
Overall, while there are several factors driving demand for AC drives, there are also several factors that may limit their adoption. As the industry continues to develop and technologies improve, it is possible that some of these restraining factors may become less significant over time.
Regional Analysis:
North America: North America is a mature market for AC drives, with a high level of industrial automation and a focus on energy efficiency. The United States and Canada are the largest markets, driven by industries such as oil and gas, food and beverage, and manufacturing.
Europe: Europe is also a mature market for AC drives, with a strong emphasis on energy efficiency and environmental sustainability. Germany, France, and the United Kingdom are the largest markets, driven by industries such as automotive, chemicals, and water and wastewater treatment.
Asia-Pacific: Asia-Pacific is the fastest-growing market for AC drives, driven by the rapid industrialization and economic growth in countries such as China, India, and Japan. The region is home to several large industries, including automotive, oil and gas, and mining, which are driving demand for AC drives.
Middle East and Africa: The Middle East and Africa are emerging markets for AC drives, driven by the growth of industries such as oil and gas, mining, and water and wastewater treatment. Countries such as Saudi Arabia, the UAE, and South Africa are the largest markets in the region.
Latin America: Latin America is a developing market for AC drives, driven by the growth of industries such as mining, oil and gas, and manufacturing. Brazil, Mexico, and Argentina are the largest markets in the region.
Overall, the demand for AC drives is expected to grow in all regions, driven by factors such as energy efficiency, industrial automation, and government regulations. However, the growth rate may vary by region, influenced by factors such as economic conditions and industrial development.
Competitive Landscape:
The global AC Drive market is highly competitive and fragmented with the presence of several players. These companies are constantly focusing on new product development, partnerships, collaborations, and mergers and acquisitions to maintain their market position and expand their geographical presence.
• ABB Ltd
• Danfoss
• Rockwell Automation Inc.
• Schneider Electric SE
• Siemens AG
• WEG SA
• Yaskawa Electric Corporation
• Toshiba International Corporation
• Parker Hannifin Corporation
• Fuji Electric Co. Ltd.
• Others
Segments:
By Voltage
• Low
• Medium
By End-user
• Oil & Gas
• Chemical & Petrochemical
• Food & Beverage
• Water & Wastewater
• Power Generation
• Metal & Mining
• Pulp & Paper
• HVAC
• Discrete Industries
• Others
By Geography
• North America
o U.S.
o Canada
o Mexico
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Russia
• Asia-Pacific
o Japan
o China
o India
o Australia
o South Korea
o ASEAN
• Latin America
o Brazil
o Argentina
o Colombia
• MEA
o South Africa
o Saudi Arabia
o UAE
o Egypt
Quality Assurance Process
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Case Study- Automotive Sector
One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).
Solution
The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research
The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.
Market Estimates and Forecast
In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.
Case Study- ICT Sector
Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.
Business Solution
An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.
Conclusion
The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.
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