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U.S Industrial VFD Market Overview
The U.S Industrial VFD market size in 2021 is estimated to be $2.3 Billion and is projected to reach $3.1 Billion in 2027 at a CAGR of 5.6% during the forecast period 2022-2027. Variable speed drives are widely used across industry sectors, such as Mining and Metal, Food and Beverage, Chemicals, Water and Wastewater, Energy and Power, Oil and Gas, Infrastructure and others, and play a significant role in regulating current in motor-based systems and enhance the energy efficiency. Hence, the increasing need for performance in persified equipment at minimum power consumption across industrial landscape is analysed to drive the U.S. Industrial VFD market. In recent years, AC motors are widely used in a persified range of machinery, and also, commonly used in Infrastructure sectors, and also, the growth of the U.S Industrial VFD Market is primarily due to the significant introduction of automation and robotics in factories, increasing prevalence of international standards for demonstrating efficiency of motor. Therefore, the industrial sectors are increasingly adopting this valuable energy management tool, VFD with varied up gradation and denote seamless and secure electrical distribution solutions, which in turn accelerate the U.S. Industrial VFD market.
U.S Industrial VFD Market Report Coverage
The report: “U.S Industrial VFD Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the U.S Industrial VFD industry.
By Drive Type: AC Drives, DC Drives and Servo Drives.
By Deployment Type: Greenfield and MRO.
By Power: Upto 5kW, 5-25kW, 25-180kW and Above 180kW.
By Phase: Single Phase and Three Phase.
By Sales Channel: Direct, Distributor, Third Party Service Company.
By End User: Water and Wastewater, Mining and Metal, Chemicals , Food and beverage, Energy and Power, Oil and gas, Infrastructure and Others),
By Application: Fans and Pumps.
By Geography: Northeast, Southeast, Mountain, Pacific Northwest and Midwest.
Key Takeaways
- The use of VFDs in several industry verticals, such as Food and Beverage, Mining and Metal, Chemicals, Water and Wastewater, Energy and Power, Oil and Gas, Infrastructure and others is gaining popularity due to a reduction in their price as well as size. In addition, AC motors are deployed in different industries, such as petrochemical, wastewater plants, mining, and various other general manufacturing sectors for high-precision performance and high-speed operation.
- The extensive integration of all-in-one servo motors across industrial production, process automation, and various other Infrastructure technologies worldwide, resulting in the growth of the U.S. Industrial VFD market. In addition, primarily due to the significant introduction of robotics in factories, along with the international standards for advancing efficiency of motors across the U.S.A, are observed to drive the growth of the U.S. Industrial VFD market.
- As the cost of electricity continues to rise, it becomes even more important to reduce energy consumption. Using a VFD to run a pump at the desired lower speed is usually a more efficient option than running a pump at full speed with a throttling valve. In addition, it is estimated that Energy and Power sector is analysed to hold $1266.55/ unit in 2021. The VFD saves energy, eliminates the need for a throttling valve, simplifies piping design and installation, and lowers maintenance costs.
U.S Industrial VFD Market, By Region, 2021
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U.S Industrial VFD Market Segment Analysis – By Application
The market for U.S. Industrial VFD for Fans is analysed to grow at highest CAGR of 5.8% during the forecast period 2022-2027. Variable frequency drives (VFDs) are used at every stage of the process, from the mine to the finished product, to smoothly start large motors and continuously adjust the speed as required by the machine or process. VFDs are used in induction and synchronous motors that drive excavators, conveyors, mills, fans, and pumps to provide high power and speed control while also generating significant energy and maintenance savings. The leading companies such as ABB Ltd, Siemens AG, Schneider Electric, Danfoss, Rockwell Automation and Yaskawa Electric Corporation are focusing on extensive research and developments activities in order to offer exemplary motors. Presently, the VFDs are considered as the significant part of the powertrain technology for mixers, conveyor belts, pumps, blowers, compressors and more. Thus, EU has extended the Ecodesign standards to introduce latest ambitious energy establishments in terms of electric motors, ranges from 0.12 kW - 1000 kW, which includes medium power motor to high power motor in January 2021. This design is formulated for all kinds of electric motor to minimize the impact of the complete climate footprint of the industry. As the demand of Low Voltage Motor for performing dynamic applications is growing promisingly, in July 2019, the leading manufacturer of motor solutions for the robotics industry, Kollmorgen, introduced the AKM2G low voltage version to the AKM2G portfolio. The AKM2G Low Voltage Servo Motor by Kollmorgen is suitable for different battery-operated solutions, such as mobile robots, portable medical devices and various other programs.
U.S Industrial VFD Market Segment Analysis – By End Use Industry
The Waste and wastewater is estimated to be $389.08 Million in 2021 and is analyzed to grow at a CAGR of 6.46% during forecast period 2022-2027. The operation of water and wastewater services consumes 30 to 50% of the average municipality's energy use, with pumps consuming 90% of that. As a result, achieving a highly efficient pumping operation while maintaining a satisfactory flow rate under varying conditions is an important goal for water service managers. In many cases, controlling the flow by combining the pump motor with a variable frequency drive (VFD) has recently emerged as a more viable solution. VFDs are frequently used in sewage transportation. VFDs, when used correctly and with detailed knowledge, can support trouble-free operation, but they can also disrupt the proper operation of a well-designed pumping station, resulting to the growth of the market. In September 2019, Salicru introduced new variable frequency drives for solar water pumping and extraction. Salicru's extensive line of variable frequency drives (VFDs) includes two innovative series that are ideal for use in water treatment equipment and their numerous applications: the CV30-PV and the CV50. The main feature of the CV30-PV product series is that it allows water pumping using solar panel radiation as an energy source. Solar energy is converted into direct current, which powers the drive, which in turn powers an alternating current submersible pump, allowing water to be extracted from the ground. Depending on the needs, the extracted water can be stored in a tank or pond for later use, or it can be used directly for irrigation. This is expected to boost the VFD Market growth.
U.S Industrial VFD Market Segment Analysis – By Geography
The Southwest is analysed to be $645.56 Million in 2021, and is successfully contributing towards the growth of U.S. Industrial VFD Market in US, and is also estimated to grow at a CAGR of 6.02% during 2022 to 2027. The prominent support from the Government of the U.S.A, growing regulations towards energy efficiency, up gradation & modernization of aging infrastructure and secure & safe distribution systems along with the increasing rate of urbanization and industrialization across the region have incurred a noteworthy opportunity for the U.S. Industrial VFD Industry. AC industrial VFD is used by various industrial sectors for energy savings. For Instance: as per the Industlabs , the Oil & Gas Industry is in need for extremely robust VFD solution for the mobile centrifugal machines. In Arizona, As per the National Conference of State Legislatures in September 2020, states have been actively updating and expanding their Energy Efficiency Resource Standards (EERS), which require utilities to achieve a certain percentage of energy savings based on the amount of electricity or natural gas sold in the state. According to the Southwest Energy Efficiency Project in 2017, in New Mexico, Public Service Company of New Mexico (PNM) offers its business customers rebates for a wide range of energy efficiency measures including motors, drives , HVAC equipment, lighting fixtures. This program includes a direct installation components for small businesses with a peak demand of 100kw or less.
U.S Industrial VFD Market Drivers
The introduction of the Industrial Internet of Things (IIOT) in the Variable Frequency Drive Market is expected to boost market growth:
The variable frequency drive market in the United States is expanding rapidly as a result of increased adoption of technologies such as the Industrial Internet of Things (IIOT). Due to social distancing norms imposed by various government bodies during the COVID-19 pandemic, manufacturing and process operations firms saw the need for remote operations of various power control and electrical systems. The Internet of Things (IoT) has revolutionised the industrial sector by improving industrial processes through the use of smart machines, inventory systems, and production machinery. It has also increased the use of automated equipment, such as variable frequency drives, which can be connected to the internet and monitored and controlled remotely as needed. This enables customers to run their businesses more efficiently and effectively. Furthermore, it gives machine builders the flexibility they need to accommodate end-user requirements. Controlling interfaces such as communication field buses, pulse trains, and digital or analogue I/O modules is part of this. Variable frequency drives that support web services enable machine builders to analyse and improve their applications as well as perform diagnostics locally or remotely. This enables them to implement fixes while testing and avoid unexpected downtime in the future, thereby providing growth opportunities for the variable frequency drives market.
Remote technicians will be able to control the frequency. Real-time monitoring, visual control, and predictive maintenance will be implemented. When the chances of equipment failure are high, the system can predict the need for drive maintenance. These features are expected to boost operational efficiency, mass customization, remote diagnostics, and other areas. In the forecast period, these factors are expected to open up new avenues of opportunity for the US variable frequency drive market. Furthermore, various companies are investing heavily in advanced product research and development, with researchers working on next-generation drives such as regenerative energy drives, hybrid safety drives, and others. Emerson, launched the Copeland VFD product line, which is available in two series, in May 2021. The Copeland EVM VFD series is designed for chillers, medical refrigeration, display cases, walk-ins, and reach-ins, as well as other applications requiring less control functionality. During the study period, such developments are expected to lead to product innovations and drive the market.
Increasing Renewable energy integration and ageing power infrastructure are expected to drive market growth
The growing demand for sustainable electricity generation to reduce carbon footprints, combined with supportive government initiatives, boost the use of renewable energy in the power system. As a result, the increasing demand for power generation from renewable energy sources is a critical factor in integrating renewable energy, which in turn accelerates the use of variable frequency drives. The need for installing and constructing new power structures is being driven by ageing power infrastructure. VFD is a cost-effective and dependable solution that is widely used in the development of industrial infrastructure. For example, in the United States, the Energy Independence and Security Act of 2007 mandated energy equipment standards and increased investments in intelligent electric network technologies, encouraging the use of VFDs.
U.S Industrial VFD Market Challenges
The availability of low-quality and low-cost goods in the grey market
The market for variable frequency drives is highly fragmented, with a large number of domestic and international players. In this market, product quality is a primary differentiating factor. The organised sector primarily targets industrial buyers and maintains higher product quality by adhering to various industrial product standards. At the same time, the unorganised sector provides less expensive ways to enter low-cost and locally untapped markets. Local manufacturers in country target the unorganised sector and compete fiercely in their respective markets with suppliers. The leading market players are currently facing stiff competition from new unorganised market players offering low-cost, low-quality products. These grey market players outperform the big players in terms of price competitiveness and local distribution network, posing a significant challenge to the variable frequency drives market players.
U.S Industrial VFD Market Landscape
The U.S Industrial VFD market is moderately consolidated with key players are adopting strategies such as acquisition, product launches and others with the players and companies prevalent in the market. The top companies present in the market include the below.
- Yaskawa
- Fuji Electric
- General Electric
- ABB
- Nidec
- Danfoss
- Honeywell
- Schneider
- Siemens
- Rockwell
- Parker Hannifin
Recent Developments
- In May 2021, Schneider Electric and REV have partnered to bring Altivar process ATV6000 medium voltage drive to meet operational and maintenance challenges, to deliver application specific solutions across a range of industries mining, mineral, oil and gas and power plants.
- In September 2021, Rockwell Automation launched a wide selection of VFD’s for low-voltage and medium voltage applications. The calculator shows potential energy and carbon emissions savings specific to each electrically driven asset. It is ideal for applications in the chemical industry and elsewhere involving electric motors not currently controlled by VFD’s
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