North America Variable Frequency Drive Market Is Estimated To Witness
High Growth Owing To Increasing Industrial Automation and Energy Efficiency
Initiatives



The global 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 Ds) are power electronics devices used to control
motor speed and torque in various industrial applications. They enable energy
savings, reduce motor wear and tear, improve motor performance, and enhance
process control. VFDs find applications in various industries, including oil
and gas, power generation, manufacturing, HVAC, and water and wastewater
treatment.



Market Dynamics:

1. Driver: Increasing Industrial Automation

Industrial automation is witnessing rapid growth in North America, driven by
advancements in technology, the need for higher productivity and efficiency,
and the demand for cost-effective operations. VFDs play a crucial role in
industrial automation by providing precise control over motor speed and torque,
reducing energy consumption, and improving overall system performance.



For example, in manufacturing industries, VFDs are used to control the speed of
conveyor belts, pumps, and fans, enabling flexible production, reducing
downtime, and optimizing energy usage. In the oil and gas sector, VFDs are used
for controlling the speed of drilling rigs, compressors, and pumps, leading to
improved operational efficiency and cost savings.



2. Driver: Energy Efficiency Initiatives

Energy efficiency initiatives, driven by environmental concerns and government
regulations, are promoting the adoption of energy-saving technologies, including
VFDs. VFDs provide significant energy savings by adjusting motor speed to match
the required load, avoiding energy wastage during low-demand periods.



For instance, in HVAC systems, VFDs control the speed of fans and pumps based
on the cooling or heating demand, resulting in reduced energy consumption and
lower utility bills. In water and wastewater treatment plants, VFDs are used to
control the speed of pumps, reducing energy usage and operating costs.



SWOT Analysis:

- Strengths:

1. Enhanced Energy Efficiency: VFDs enable precise control over motor speed,
reducing energy consumption and improving energy efficiency.

2. Improved Process Control: North
America Variable Frequency Drive Market Growth
provide accurate control over motor torque and speed, leading to improved
process control and productivity.



- Weaknesses:

1. High Initial Cost: The installation and implementation of VFDs require
initial investment, which can be a barrier for small-scale industries.

2. Complexity: VFDs require expertise for installation, programming, and
maintenance, which may pose challenges for some end-users.



- Opportunities:

1. Growing Industrial Sector: The expanding manufacturing and industrial
sectors offer significant opportunities for VFD adoption.

2. Increasing Focus on Renewable Energy: The shift towards renewable energy
sources presents opportunities for VFDs in the wind and solar power sectors.



- Threats:

1. Economic Uncertainty: Economic downturns can affect industrial investments
and hinder the adoption of VFDs.

2. Technological Advancements: Rapid technological advancements may lead to the
development of alternative motor control technologies, posing a threat to VFDs.



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, due to increasing
industrial automation and energy efficiency initiatives.

- Regionally, the United States is expected to dominate the North America VFD
market, driven by the presence of key industries such as manufacturing, oil and
gas, and power generation.

- Prominent 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.



In conclusion, the North America Variable Frequency Drive market is poised for
significant growth due to increasing industrial automation and energy
efficiency initiatives. The adoption of VFDs enables precise control over motor
speed, optimizing energy usage and improving overall system performance.
However, the market faces challenges such as high initial costs and the need
for expertise in installation and maintenance. Nonetheless, the expanding
industrial sector and focus on renewable energy present ample opportunities for
the growth of the North America VFD market.

Rapid technological advancements may lead to the development of alternative
motor control technologies, posing a threat to VFDs.