VARIABLE FREQUENCY DRIVE MARKET ANALYSIS

Market Challenges And Opportunities

Global Variable Frequency Drive Market Opportunities:

Increasing adoption of advent of smart grid technology

Advent of smart grid technology can provide lucrative growth opportunities. Smart grid technology is being increasingly adopted in emerging applications of VFDs in smart grids. This is done to vary the phase angle and voltage required. This, in turn, ensures more efficient transmission of electricity. Thus, market players can capitalize on these opportunities and gain a competitive edge in the market.

Provision of one package solution can offer major business opportunities. Key players in the market are focused on launching bundled solutions in order to reduce customer buying efforts, thereby enhancing overall customer experience. Key players such as ABB, Siemens, and Rockwell Automation are offering combined motor-drive packages designed as per intended application. By offering a one-stop solution, players seek to enhance customer experience and generate higher revenues.

Global Variable Frequency Drive Market Drivers:

Increasing energy efficiency to drive growth the global variable frequency drive (VFD) market

Increasing energy efficiency is expected to drive growth the global variable frequency drive (VFD) market during the forecast period. Constantly increasing energy prices has led to the necessity of energy-efficient motor control systems. Process engineers and other executives managing the operation department are increasingly preferring deployment of variable frequency drives, in order to reduce energy consumption. This acts as an alternative to throttling devices such as dampers and valves and fixed speed controllers.

Extending areas of applications of VFD to propel the global variable frequency drive (VFD) market

Extending areas of applications of VFD is expected to propel the global variable frequency drive (VFD) market growth over the forecast period. Since the prices of VFDs are decreasing, the application areas have broadened significantly. Consumers are familiar with the advantages of VFDs and are deploying it for indoor applications as well. VFDs, when installed along with a flow-meter, ensure appropriate water volume and eliminate energy wastage due to worst-case design philosophy.

Global Variable Frequency Drive Market Restraints:

High initial costs of medium voltage VFDs is expected to hinder the global variable frequency drive (VFD) market growth over the forecast period. Although prices of VFDs have declined over the last decade, medium voltage VFDs come with a high price tag. Medium voltage VFDs are typically used in industrial sector and are expected to increase during the forecast period. However, high initial costs associated with medium voltage VFDs are a major hindering factor. Moreover, end users are preferring low-cost products made in China to manage budgets.

Technical challenges related to VFDs is expected to hamper growth of the global variable frequency drive (VFD) market during the forecast period. A majority of VFDs emit a series of pulses that are rapidly switched. In the presence of long cable between the motor and VFDs, these reflected pulses can lead to voltage production that exceeds line voltage, causing stress in motor windings and the cable. This, in turn, is leading to insulation failures, particularly for motors operating at 480 volts or higher. If these details are overlooked during installation phase, performance of VFDs can significantly hamper productivity of process systems, which can further lead to revenue losses.