by The North America Variable Frequency Drive Market is estimated to be valued at US$ 5,636.1 million in 2021 and is expected to exhibit a CAGR of 5.6% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Variable Frequency Drives (VFDs) are electronic devices that control the speed and torque of an electric motor by regulating the frequency and voltage supplied to the motor. They offer several advantages, such as energy savings, improved motor performance, reduced maintenance costs, and increased lifespan of the motor. With the growing demand for energy-efficient solutions in industries such as oil and gas, water and wastewater, HVAC, and manufacturing, the market for VFDs in North America is expected to witness significant growth.
Market Key Trends:
One key trend driving the North America Variable Frequency Drive Market is the increasing adoption of VFDs in the HVAC industry. HVAC systems account for a significant portion of energy consumption in residential and commercial buildings. VFDs help optimize the operation of HVAC systems by controlling the speed of motors based on the load requirements, resulting in energy savings. Additionally, VFDs also provide precise control over the indoor environment, leading to improved comfort and reduced noise levels. The growing emphasis on energy efficiency and sustainable practices in the HVAC industry is expected to drive the demand for VFDs in North America.
Key Takeaways
Porter’s Analysis
Threat of New Entrants: The North America Variable Frequency Drive (VFD) market faces a moderate threat of new entrants. The market is highly competitive, with established players having strong brand recognition and extensive distribution networks. Entry barriers include high capital investment requirements, stringent government regulations, and the need for technical expertise. However, the growing demand for energy-efficient solutions and the increasing focus on industrial automation are expected to attract new entrants to capitalize on the market potential.
Bargaining Power of Buyers: The bargaining power of buyers in the North America VFD market is moderate. While buyers have the advantage of numerous options and a highly competitive market, the dominance of established players and their strong relationships with suppliers and distributors limit the buyer’s ability to negotiate favorable terms. Moreover, the criticality of VFDs in various industries reduces the buyer’s bargaining power, as they cannot compromise on quality and reliability.
Bargaining Power of Suppliers: Suppliers in the North America VFD market hold a moderate bargaining power. The market is characterized by the presence of numerous suppliers offering similar products and services. However, key players in the market have long-term relationships with trusted suppliers, securing competitive prices and ensuring a reliable supply chain. The strategic alliances and partnerships between suppliers and manufacturers also enhance suppliers’ bargaining power.
Threat of New Substitutes: The threat of new substitutes in the North America VFD market is relatively low. VFDs play a crucial role in energy-saving, process control, and automation, making them an integral part of various industries. While there are alternative solutions, such as traditional motor starters, the increasing emphasis on energy efficiency and regulations promoting the use of VFDs reduce the likelihood of significant substitution in the near future.
Competitive Rivalry: The North America Variable Frequency Drive Market Growth is highly competitive, with key players fiercely competing for market share. Established companies such as Schneider Electric, ABB Ltd., and Siemens AG dominate the market due to their strong brand reputation, extensive product portfolios, and presence. The market is characterized by continuous innovation, mergers and acquisitions, and strategic partnerships aimed at gaining a competitive edge. The high competitive rivalry drives advancements in technology, product development, and service quality.
Key Takeaways
The North America Variable Frequency Drive market is expected to witness high growth, exhibiting a CAGR of 5.6% over the forecast period. The increasing need for energy-efficient solutions, government initiatives promoting sustainable practices, and the rising demand for industrial automation are driving market growth.
Regionally, North America is the fastest-growing and dominating region in the VFD market. The United States contributes significantly to market revenue due to its advanced industrial infrastructure, strong manufacturing sector, and increased adoption of VFDs in various industries such as oil and gas, power generation, and mining.
Key players operating in the North America VFD market include 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. These companies have a strong market presence, technological expertise, and focus on continuous innovation to maintain their competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
