The global AC drives market is projected to grow at a CAGR of 7.0% from 2016 to 2021, to reach a market size of USD 22.07 Billion by 2021. This growth is attributed to the increasing urbanization & industrialization, rising need for energy efficiency, and regulations on energy efficiency.
The report segments the AC drives market based on end-user industries into oil & gas, water & wastewater, power generation, building automation, food & beverage, metals & mining, chemicals & petrochemicals, and other industries. Oil & gas segment is the largest end-user of AC drives as it offers good speed controls & high energy savings. Based on voltage, the AC drives market has been segmented in low voltage and medium voltage AC drives. The low voltage AC drives segment is expected to dominate the AC drives market during the forecast period. The AC drives market has also been segmented based on power rating into three segments: low (below 40 kW), medium (41 – 200 kW), and high (above 200 kW). Demand from building automation, food & beverage, oil & gas, construction, and pulp & paper industries will drive the low power AC drives market during the forecast period. The report segments the AC drives market based on applications into pump, fan, compressors, conveyors, extruders, and others. Increased demand for HVAC applications offered by pumps is expected to dominate the AC drives market.
In this report, the AC drives market has been analysed with respect to five regions, namely, North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Asia-Pacific is expected to dominate the global AC drives market during the forecast period. Asia-Pacific is also projected to grow at the fastest CAGR from 2016 to 2021, owing to rising need for energy efficiency and industrialization in the region.
The decrease in Greenfield investment owing to continuous fall in oil prices is expected to slow down the demand for AC drives for the forecast period. However, AC drives have huge opportunity in replacement sector. In addition, industrial internet of things (IIoT) is also an opportunity for AC drives market. Some of the leading players in the AC drives market include ABB Ltd. (Switzerland), Siemens AG (Germany), Danfoss Group (Denmark), Schneider Electric SE (France), Rockwell Automation, Inc. (U.S.), Mitsubishi Electric Co. (Japan), and Yaskawa Electric Corporation (Japan). New product development was the strategy most commonly adopted by top players in the market, constituting 26.5% of the total developments from 2012 to 2016. It was followed by investment & expansion, contracts & agreements, and mergers & acquisitions.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst