by The global North America Variable Frequency Drive Market is estimated to be valued at US$ 6285.02 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Variable frequency drives, also known as adjustable speed drives (ASDs) or variable speed drives (VSDs), are devices used in electro-mechanical drive systems to control AC motor speed and torque by varying motor input frequency and voltage. They are used in various industrial applications such as fans, pumps, conveyors, packaging equipment, etc. where control of motor speed is required. They provide benefits such as energy savings, better process control, reduced mechanical wear & tear and long product life.
Market key trends:
One of the key trends in the North America variable frequency drive market size is the growing adoption in industrial automation applications. Automation and control of industrial processes have become essential for improved productivity and energy efficiency. Variable frequency drives offers precise control of motor speed which helps automate industrial operations like material handling, motion control, HVAC systems, etc. Moreover, stringent energy efficiency regulations in the region are driving increased uptake of VFDs in industrial fans, pumps and other applications to reduce energy consumption. Additionally, technological advancements like IoT connectivity and integration with cloud-based analytics are augmenting their demand.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the North America variable frequency drive market is low. This is because VFD’s involve complex technology that requires high R&D spending and manufacturing costs.
Bargaining power of buyers: The bargaining power of buyers is high. This is because VFD products are technologically evolving and there are many established players in the market providing substitutable products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. This is because suppliers need to maintain good relations with major players to sustain in this competitive market.
Threat of new substitutes: The threat of new substitutes is moderate. This is because energy efficient technologies are constantly evolving but switching costs for end-users are high.
Competitive rivalry: The competitive rivalry is high due to presence of many international and domestic players.
Key Takeaways
The North America variable frequency drive market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing demand for energy efficiency across industrial sectors.
Regional analysis
The US dominates the North America VFD market holding around 80% share due to high industrial automation adoption. Canada and Mexico are other key regions witnessing growth due to rising manufacturing activities.
Key players
Key players operating in the North America Variable Frequency Drive market are Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited.
