Accumulative electricity
charges and surging demand for electricity across the world impacts burgeoning demand
of the energy-efficient frequency converters. A socio-economic rise in the
developed economies and upgradation of infrastructure in the industrial sectors
are key factors influencing the high electricity consumptions. According to the
U.S. Energy Information Administration (EIA), electricity consumption in the U.S.
was about 3.95 trillion kWh in 2018. Also,
capricious electrical
standards of main electricity around the globe is a key factor driving the growth
of the global frequency converter market. Frequency converters can minimize
electrical and mechanical stress released during the operation of the equipment,
which, in turn, reduces the energy usage of devices. The global Frequency Converter Market was valued at $19.4 billion in 2018, and is anticipated to
grow with a CAGR of 8.9% throughout the forecast period 2019-2025.
A
rise in demand for Frequency Converters in the industrial sector
The demand for
economical devices in industries to enhance performance is another lucrative
factor augmenting the growth of the market. Usage of frequency converters in
power generation plants is a factor anticipated to grow the market globally.
Most of the power generation plants use non-renewable fuels, and therefore, the
importance of energy efficiency has gained substantial ground over time. The
European Union revised its renewable energy directive in December 2018 and
implemented the amended policies with a clearer vision of European countries
fulfilling at least 20% of their total energy needs with the assistance of
renewable energy sources by the end of 2020. Saving
energy and optimizing energy consumption are major growth factors of the frequency
converters industry. Depending on application, the maximum amount of energy
savings are possible with pump, fan, and compressor drives. Frequency
converters are most commonly used to control the speed of engines, and pumps. A
rise in import and export accomplishments for manufactured goods, around the
world are predicted to boost the magnification of frequency converters in the
process industry. In the manufacturing companies, the electrical machinery is
operated on varied power frequencies with the help of frequency converters. Low
maintenance costs of devices and controlled speeds are additional features of
the frequency converters that are leading to high adoption.
Economies from developed
regions are spending more on modernization of infrastructures, such as airports
and manufacturing & production amenities. The electric devices and
equipment used in these industries require precise current frequency to run
efficiently. Static frequency converters have a wide range of applications in
the industries, as they are compact and require less installation price.
Surging
Frequency Converter Market in Europe
Europe held the largest market
share in the frequency converter market, with a 37.2% share of the global
demand in 2018. The frequency converter market is gaining high revenue, due to increase
in usage of technologically advanced devices and utilization of high-speed
rails. Countries such as the U.K., Germany, and Italy are leading the market,
owing to remarkable growth in the industrial sector.
The application segments
that will be creating the most lucrative opportunities in the frequency
converters market are aerospace and defense sector. These segments are collectively
projected to grow at a CAGR of 9.52%, over the forecast period. Often aircraft
utilize 400 Hz power, so a 50 Hz or 60 Hz to 400 Hz frequency converters are
essential for use in ground control unit used to control the plane, while it is
on the ground. Airlines utilize the frequency converters to offer in-air wall
power to passengers for use with laptops. The rise in utilization of frequency
converters in the aerospace sector triggers the growth of the market globally.
Frequency
Converter Market Growth Drivers
· Demand for
frequency converters is expected to rise, due to automation of the automotive
industry. The ongoing R&D of autonomous vehicles entail frequency
converters, leading to rise in its demand. Hybrid vehicles are equipped with
frequency converters to manage the transmission of alternating current, which,
in turn, increases the market for frequency converters.
· A rise in
usage of converters in the atomic and weapons industry, where the control
precision requirements are on bar high. The devices or the gadgets which are
used in this industry control the operation of refinement axes.
· Increase in tendency for offshore wind electricity
generation is getting momentum by using frequency converters across
the world.
· For converting bulk alternative currents from one frequency to another, when two alternative electric grids operate at different utility frequencies in that scenario frequency changers are used across the energy sector.
The major players in the
frequency converters Market
The prominent players in
the frequency converters market include ABB Ltd. (Switzerland), Aplab Ltd.
(India), Danfoss A/S (Denmark), General Electric Company (U.S.), Magnus Power
(U.K.), Power System & Control (Virginia), Piller GmbH (Germany), Siemens
AG (Germany), and Sinepower (Portugal). These companies are continuously
focusing on R&D investments, mergers and acquisitions, and partnership
strategies to gain ground in the global market.
Promising Mergers &
Acquisitions
Mergers and acquisitions
are other key strategies adopted by players to stay ahead of their competitors.
· On Jan 22,
2019, Danfoss A/S, a Denmark based power solutions company announced an
acquisition with the U.S. based UAM Technologies, a leader in the alternative
energy solutions.
· ABB Ltd., a
Switzerland based company, a leader in electrification
products, and industrial automation and power grids announced a merger with GE
Industrial Solutions.
Such joint ventures aid
the market players to expand their geographical boundaries and accentuate their
footprint into the frequency converter market.
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