Top Trends in Variable Frequency Drive Technology: Key Stats and Growth Insights
RELEASE DATE: Oct 2024 Author: Spherical Insights Request Free Sample
What Is Variable Frequency Drive?
A variable frequency drive modifies the voltage and frequency of an AC motor's power source to control the motor's speed and torque. Additionally, during motor start-up and stop, a VFD allows for controlling the motor's acceleration and deceleration. A VFD lowers energy usage by modifying the motor's speed and flow in accordance with the demands of the process and the load. Furthermore, the manufacturing and industrial sectors are expanding rapidly in developing nations due to rapid industrialization, which is bolstering the growing demand for the variable frequency drive market.
Opportunities and Future Prospects in the Variable Frequency Drive Industry
1. Power Infrastructure Modernization
The necessity for secure and dependable transmission and distribution (T&D) networks has arisen due to the rising energy demand. The US Department of Energy (DOE) claims that the only way to guarantee continuous power is to have a system that can manage abrupt power swings. Aging infrastructure, a lack of investment, and unclear strategies to update the grid are the main causes of the rising frequency of blackouts. Additionally, according to projections from the Canadian Power Association, the country's power industry will require $400 billion in investments over the next 20 years to make the switch to a cleaner energy infrastructure and meet net-zero emissions targets.
2. A Growing Demand in Electric Vehicles Infrastructure for Charging
A wise strategy to make a profit from the growing electric vehicle (EV) market is to develop VFDs for EV charging infrastructure. Businesses may lead the way in offering efficient and scalable charging solutions at a time when electric vehicles are becoming more and more common. The company is leading the electric mobility revolution and following the global trend toward sustainable transportation with this well-thought-out strategy. By offering specialized VFD solutions for EV charging, businesses may uphold their leadership position in the energy transition, fulfill the evolving demands of the transportation industry, and support the expansion of EV infrastructure.
Key Challenges Facing the Variable Frequency Drive Sector
1. The variable frequency may be hampered by the availability of cheap and low-quality products
The market for variable frequency drives is dominated by major domestic and foreign companies. Low-quality, inexpensive goods are sold on the gray market by some unorganized industries. These goods serve as Variable Frequency Drive substitutes. These are distributed worldwide and produced by regional producers. By offering consumers low-cost products, players from an unorganized market are fiercely competing with the market's top competitors. These are the main obstacles that the worldwide variable frequency drive market will have to overcome throughout the projected period.
2. High establishing expenditures of medium voltage VFDs.
The high establishing expenditures of medium voltage VFDs are projected to stymie the worldwide variable frequency drive (VFD) market growth throughout the forecast period. Although VFD prices have fallen over the previous decade, medium voltage VFDs remain expensive. Medium voltage VFDs are commonly utilized in the industrial sector, and they are predicted to grow during the forecast period. However, the high initial costs associated with medium voltage VFDs are a considerable deterrent. Furthermore, end users prefer low-cost Chinese-made products to manage their budgets.
Trends in Variable Frequency Drive Technology
1. The growing need for energy-efficient solutions encourages market prospects
It is estimated that around 45% of the electricity used in buildings and other industrial uses worldwide is derived from electric-powered motors. The primary users of power are structures and industrial infrastructure. An increasing number of people will use variable speed drives (VFDs) as the world economy expands. This is because installing VFDs can lower power usage by up to 25%, particularly in typical applications like pumps, fans, and compressors found in all buildings and enterprises. More environmental advantages are also anticipated as a result of growing public awareness of the need to combat climate change and employ sustainable technologies.
2. Industry 4.0 Technology Adoption
The emergence of Industry 4.0 technologies is a significant step forward for the variable frequency drive (VFD) market. Presently, producers are incorporating into their VFDs cutting-edge functionalities like predictive maintenance, data analytics, and Internet of Things connecting. This breakthrough enables remote motor performance optimization, problem diagnosis, and real-time operation monitoring for Internet of Things-enabled VFDs. They so greatly minimize downtime and enable preventive maintenance. These smart technologies enable enterprises to increase operational efficiency, reduce maintenance costs, and improve overall equipment effectiveness (OEE), which results in more efficient and productive operations. For instance, in October 2023, Siemens has introduced the SINAMICS G220, a high-performance variable frequency drive that is intended to address present and future industry difficulties. The SINAMICS G220 elevates digital drive technology to a new level, enabling customers' applications to be more effective, safe, and future-proof with its enhanced hardware and software.
3. A focus on sustainability and energy efficiency
Concerns about sustainability and energy efficiency have taken center stage for businesses looking to cut expenses and their carbon footprint. Because they maximize motor speed and minimize energy consumption during part-load operation, VFDs are essential components of energy management methods. VFDs further improve energy efficiency in industrial operations by enabling power factor correction, regenerative braking, and energy recovery. Industries can save a lot of money, meet legal requirements, and support environmental sustainability objectives by investing in energy-efficient VFD systems. For instance, in November 2023, Johnson Controls, a worldwide pioneer in intelligent functioning properly, and sustainable buildings, has introduced the first air-cooled variable speed drive (VSD) screw chiller in the US to employ the extremely low global warming potential (GWP) refrigerant R-1234ze.
4. Smart Pumping System Modification
The most significant trend to affect VFDs is total pump system optimization. In multi-pumping installations, VFDs use built-in lead/lag and alternation abilities to adjust the acceleration of the motor and pump based on requirements. Pump owners and operators who were early users of VFDs were promised improved pumping performance, which they delivered. Drives are now more popular than pump starters, particularly soft starts. This is attributable to not only the performance of VFDs but also their ability to optimize a complete process. With increased drive acceptance, more installations are taking advantage of the unique control features that VFDs provide.
5. Machine Learning and artificial intelligence (AI) Integration
VFD manufacturing is being revolutionized by artificial intelligence (AI) and machine learning. These technologies have the ability to automatically adjust VFD settings, detect anomalies in the system, and forecast variations in load. To minimize human interaction and increase efficiency, manufacturers are creating variable frequency drives (VFDs) with reactive control systems that can acquire knowledge and optimize performance over time.
Regional Insights into the Global Variable Frequency Drive Market
- Electricity demand is expected to increase during the predicted period. The majority of this growth will take place in the rapidly expanding Asia Pacific region, which will account for the majority of the VFD market. The expansion of renewable energy in North America and Europe is predicted to provide this area with a large market share. Latin American countries will see increased investment in the mining and oil and gas sectors. The expanding landscape of various businesses across the area results in a sizable market share during the projection period.
Global Expansion of the VFD Market
The global variable frequency drive market size was valued at USD 22.16 billion in 2022 and is projected to USD 36.79 billion by 2032, exhibiting a CAGR of 5.2% during the forecast period 2023-2033. The top companies in the global cosmetic market include ABB Ltd, Siemens AG, Schneider Electric, Rockwell Automation, Danfoss A/S, Mitsubishi Electric Corporation, Honeywell International Inc., Fuji Electric Co., Ltd., Toshiba International Corporation, Eaton Corporation.
Conclusion
The global variable frequency drive (VFD) market Driven by the need for increased energy efficiency, sustainability, and technological breakthroughs like artificial intelligence and the internet of things, the variable frequency drive (VFD) market is expanding quickly. VFDs may now more efficiently optimize motor performance, cutting downtime and enhancing overall operations due to Industry 4.0 adoption. Businesses are investing in energy-saving technologies as a result of this trend towards sustainable operations. Processes are becoming even more streamlined and productive due to new trends like AI integration and smart pumping systems.
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