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VFD (Variable Frequency Drive) market projected to touch USD 24.8 Billion mark by 2021.
A recent report by Business Wire-Dublin has suggested that the global VFD market is expected to reach $24.8 Billion with a Compound annual growth rate (CAGR) of 5.94% from 2016 to 2021. The news is no surprise as it is followed by an ever-increasing demand of the energy-saving VFDs which are used in almost every infrastructural movements such as Hospitals, Automation industries, Mining, Oil & Gas, Automotive, etcetera. The rapidly increasing urbanisation and industrialisation in growing countries have also triggered the demand of VFDs as energy efficiency and reduction in operating costs are the needs of the hour.
An interesting fact that has come up with this study is that, based on segment, the AC drives is backed to become the fastest growing market between the period beginning from 2016 and ending in 2021. The AC drives are major contributors in saving the energy and meeting the global energy demand. The fact that they can be deployed at both low and high voltage applications has contributed immensely to their popularity among all the industries. On top of that, the AC drives require less maintenance than the DC ones, thus they have a way higher market share than the DC drive segment.
Further, with regard to voltage, the low voltage section (without any surprise) is projected to grow at the fastest CAGR. The reason behind this projection is that the low-voltage drives find their applications in industries such as utilities, cement, petrochemicals, water & watershed, etc. The most common applications of LV drives are pumps, compressors, conveyors, fans and crushers.
If one goes by the present scenario, Asia-Pacific is the leading marketplace for VFDs, closely followed by Europe. The market in Asia is essentially driven by China and India with the former will continue to dominate the segment as the urbanisation and industrialisation continue to grow at the rate of knots.
The current VFD market is primarily driven by the increasing industrialisation and the increasing need for energy efficiency. The Government regulations, in most countries, are also a contributor to the market share of AC drives, however, the decrease in Greenfield investments may prove to be a restraint in the market’s growth.
- DUBLIN--(BUSINESS WIRE)—