The North American Variable Frequency Drives Market is set for significant growth, fueled by demand for energy efficiency and sustainability. IoT integration for smart manufacturing and predictive maintenance is driving adoption across sectors like HVAC, oil & gas, and renewables. While challenges such as harmonics exist, VFDs optimize operations. Low-voltage drives dominate, with the U.S. leading demand.
NEWARK, DE / ACCESSWIRE / January 2, 2025 / The North America Variable Frequency Drives market, valued at USD 5.3 Billion in 2024, is set to experience robust growth, with a projected compound annual growth rate (CAGR) of 6.2% over the next decade. The market is expected to reach USD 9.8 Billion by 2034, driven by increasing energy efficiency demands, widespread adoption of automation, and the growing shift towards renewable energy sources.
North America can be considered the most developed region when it comes to automation and IT.
When we talk about variable frequency drives, are used to drive electric motors, and the operation of these motors can be controlled by varying the frequency and the voltage. This is especially crucial when the robots are put into operation, as many of them run using motors. This might influence the North America variable frequency drive market outlook.
With rising rates of electricity in North America, the demand for these frequency drives is expected to increase in the region. The reason is whenever the manufacturers feel that the electricity consumption for driving a machine should be less as compared to other machines, the voltage and the frequency can be regulated. This is expected to have a positive impact on the North America variable frequency drive market future trends.
Apart from that, the manufacturers in North America are developing frequency drive machines that fall in line with the environmental regulations that have been set up by the authorities, keeping in view the climatic conditions. This is expected to drive the North America variable frequency to drive market key trends & opportunities.
Trends Shaping the North America Variable Frequency Drives Market:
Integration of Smart and Connected VFDs: The integration of Variable Frequency Drives with the Industrial Internet of Things (IoT) is transforming the way manufacturers monitor and control their systems. These smart, connected drives enable real-time diagnostics and predictive maintenance, which significantly improves operational efficiency. As Industry 4.0 continues to revolutionize manufacturing processes, the demand for VFDs, especially in North America, is at an all-time high.
Focus on Energy Efficiency and Sustainability: With rising energy costs and the increasing need for sustainability, VFDs are gaining traction as key components in reducing energy consumption. These drives help industries optimize motor energy use, reduce operational costs, and meet energy-efficiency regulations. The United States, in particular, has implemented stringent energy efficiency standards, further propelling market growth.
Adoption in Renewable Energy Applications: VFDs are playing an integral role in renewable energy applications, such as solar power systems, wind turbines, and grid management. These drives optimize wind turbine speeds, enhance solar tracker performance, and improve the efficiency of grid-tied inverters, supporting the shift to cleaner energy solutions across North America.
Key Takeaways from the North America Variable Frequency Drives Market:
Integration of smart, IoT-enabled VFDs is driving demand as industries seek real-time diagnostics and predictive maintenance.
Rising energy efficiency demands and sustainability initiatives are fueling the adoption of Variable Frequency Drives in North American
VFDs are increasingly used in renewable energy applications like wind turbines, solar power systems, and grid management.
The oil and gas industry is expected to hold a 40% market share of VFDs in North America in 2024, driven by operational efficiency and energy savings.
Low-voltage VFDs are forecasted to account for 70% of the market share in 2024 due to their cost-effectiveness and ease of installation.
"Adoption of VFDs in renewable energy applications, such as wind and solar power, further accelerates market expansion. The oil and gas industry continues to be a major consumer, leveraging VFDs for enhanced operational efficiency. Low-voltage VFDs are expected to dominate the market due to their cost-effectiveness and ease of installation." - says Nikhil Kaitwade, Associate Vice President at Future Market Insights (FMI).
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Key Drivers of Growth in North America Variable Frequency Drives Market:
Energy Efficiency and Cost Savings: With escalating energy prices, particularly due to geopolitical factors and the global pandemic, industries are increasingly turning to VFDs to optimize motor speed and reduce energy consumption. The adoption of energy-efficiency standards and tax incentives in regions like the United States further encourages the widespread use of VFDs.
Automation in Industrial and Commercial Sectors: The growth of the Industrial Internet of Things (IIoT) and automation technologies has significantly boosted the demand for VFDs. They are essential for process control, motor optimization, and energy savings in various sectors, including automotive manufacturing, food and beverage processing, and oil & gas.
Renewable Energy and Infrastructure Modernization: As North American industries modernize aging infrastructure and embrace renewable energy sources, the demand for energy-efficient systems like VFDs continues to rise. These drives are increasingly used in renewable energy installations such as wind and solar farms, as well as in water treatment plants and transportation systems.
Regional Insights into the North America Variable Frequency Drives Market:
United States (70.3% Market Share): The United States remains the largest market for VFDs in North America, driven by industrial applications, energy efficiency regulations, and the growing demand for automation in manufacturing processes.
Canada (18.7% Market Share): Canada's industrial and renewable energy sectors continue to spur demand for VFDs, particularly in water treatment and HVAC systems, as well as renewable energy installations.
Mexico (11% Market Share): Mexico's manufacturing sector and the oil & gas industry are key drivers of VFD adoption, with significant investments in infrastructure modernization and energy efficiency.
Drivers for the North America Variable Frequency Drive Market:
Technological advancements -
One of the major drivers of the variable frequency drive market in North America is increasing technological advancements. These advancements have ensured that these frequency drives can be used beyond conventional purposes.
In the current scheme of things, the frequency drive is being employed as a standalone control system. This might have an impact on the North America variable frequency drive market size.
Decreasing price -
The niches in which the variable frequency drives are broadening with the reduction in prices of these machines. For example, owing to the reduced price, the end users in many parts of North America have started making use of frequency drives for indoor activities as well. This can be a key factor in driving the North America variable frequency to drive key trends and opportunities.
Ensuring that water is not wasted -
When the variable frequency drives are installed with flow meters, it ensures appropriate usage of water and completely eliminates the scenario of water and energy wastage. These aspects are driving the North America variable frequency drive market.
Restraints for the North America Variable Frequency Drive Market:
High installation cost -
Despite the fact the prices of variable frequency drives have come down with time, the high installation cost is something that has bothered the end customers for quite some time. This has been observed especially in the case of medium voltage variable frequency drives.
Technical glitches -
One of the biggest challenges of employing variable frequency drives is that they are subjected to technical glitches on a consistent basis. These glitches are beyond the comprehension of end-users, and only the technical staff can resolve these glitches. This as well might challenge the growth of the variable frequency drive market in North America.
Opportunities ahead for the North America Variable Frequency Drive Market:
Increasing usage in the railways sector -
The railways sector presents a huge market in front of the North America variable frequency drive market. The manufacturers in this region have been developing AC/AC variable frequency drives as custom developments, especially for train manufacturers.
Not only are they but these are also being increasingly employed in industrial automation systems.
Usage in Industrial Internet of Things (IIoT) -
Variable frequency drives are being increasingly adopted in the Industrial Internet of Things (IIoT). Through this, the technicians can monitor the conditions of the equipment from anywhere. Apart from that, the data can be accessed from multiple interfaces, thereby making shift changes and team operations seamless.
Thus, the combination of IIoT and variable frequency drives enables strong predictive maintenance, thereby allowing things to be fixed before they break down and avoiding any kind of downtime. This might help in the surge of the variable frequency drive market in North America.
Competitive Landscape of the North America Variable Frequency Drives Market:
The North American variable frequency drive (VFD) market is highly competitive, with major players like ABB Ltd., Siemens AG, Schneider Electric, and Rockwell Automation Inc., alongside niche companies such as American Electric Technologies Inc. and Toshiba International Corporation, commanding significant market shares. Notably, solutions like Schneider Electric's EcoStruxure and Siemens' MindSphere platforms are transforming automation and enhancing energy efficiency.
Leading Companies in the North America Variable Frequency Drives Market:
Fuji Electric Co.
Schneider Electric
Mitsubishi Electric Corporation
Toshiba International Corporation
Siemens AG
Emerson Industrial Automation
ABB Ltd.
Johnson Controls Inc.
American Electric Technologies Inc.
Rockwell Automation Inc.
North American Variable Frequency Drives Market Segmentation:
By Voltage Range Type:
Based on the voltage range type, the market is segmented into low voltage range and medium voltage range.
By End Use:
As per the North America variable frequency drives industry analysis, the end use for VDFs is oil and gas, food processing, and automotive.
By Application:
The market is bifurcated into standard and regenerative by application.
By Region:
The market is analyzed region-wise, including Midwest, Northeast, Southeast, Southwest, and West.
Author
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
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