Low Voltage Drives Market size was over USD 18.99 Billion in 2023 and is projected to cross USD 38.09 Billion by the end of 2036, growing at more than 5.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of low voltage drives is estimated at USD 19.93 Billion. The growth of the market can be attributed to growing urbanization which has further estimated to boost the investment in construction activities. For instance, India's construction industry got FDI worth about USD 15 billion for infrastructure projects and approximately USD 24 billion for building development between April 2000 and September 2020. Hence, owing to the growing investment the spending on low voltage drives is anticipated to grow, since they are known to be the expensive alternative. However, using low voltage drives is one of the attractive solutions which makes them more preferable in construction activities.
Additionally, to increase the efficiency and dependability of the electrical supply, private and governmental investors are funding for the development of smart infrastructure. To guarantee that the proper voltage level is maintained, voltage drives are integrated into the power generators used in smart grids. Among the main causes promoting the deployment of power electronic components such as low voltage drives are the expanding deregulation of the energy industry, the emergence of micro grids, and distributed energy. Hence, the growing trend of smart cities is estimated to boost the market growth over the forecast period. Moreover, the business environment would be aided by strict government regulations supporting a sustainable environment and an increase in end user attention on highly efficient units.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
5.5% |
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Base Year Market Size (2023) |
USD 18.99 Billion |
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Forecast Year Market Size (2036) |
USD 38.09 Billion |
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Regional Scope |
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The global low voltage drives market is segmented and analyzed for demand and supply by end-user industry into automotive, oil & gas, chemicals & petrochemicals, F&B, water & wastewater, power generation, metal & mining, pulp & paper, HVAC, and discrete industries. Out of which, the automotive segment is anticipated to garner the highest revenue by the end of 2036. The growth of the segment can be attributed to growing automotive production, along with growing energy consumption in manufacturing. Around 79 million automobiles were produced globally in 2021. Comparing this number to the prior year, a rise of about 2% may be calculated. In addition, the government's increasing focus on promoting e-mobility vehicles, which could be used in challenging environments and have high shock and vibration tolerances, has expanded market penetration. However, the easiest approach to increase the power of electric drives is to increase voltage, which is in line with consumer expectations for more from electric vehicles. By doing so, the electrical safety issue is only made worse. Hence, the importance for low voltage drives in automotive sector is growing.
The global low voltage drives market is also segmented and analyzed for demand and supply by type into AC drives, DC drives, and serve drives. Amongst which, the AC drives segment is anticipated to grow significantly over the forecast period, backed by its ability to consume less energy. Lower energy use translates into lower productivity costs. Low voltage AC drives assist in achieving high frequency and higher machinery performance at low voltage since industry uses energy-intensive gear. This feature broadens the range of industrial equipment and machinery to which it could be applied. Particularly in the mining industry, AC drives make the machinery more environmentally friendly owing to their energy efficiency. Moreover, the fact that the speed could be changed depending on the situation is another crucial element. This is crucial in every industry, despite it's particularly crucial in the drilling-intensive construction, gas, and oil industries, as well as the mining sector. As a result of the energy use being significantly changed according to speed, hydraulic and pneumatic drilling systems are being replaced.
Our in-depth analysis of the global low voltage drives market includes the following segments.
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By Type |
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By End-User Industry |
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Asia Pacific Market Forecast
The Asia Pacific low voltage drives market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2036, backed by growing population which is further boosting the demand for power generation infrastructure, along with growing investment in construction projects. Since 2000, about 2 billion people in developing Asia have acquired access to electricity, with approximately 98% of the region having access in 2020 as opposed to about 67% in 2000. Two-thirds of this improvement was made in India, where the ambitious Saubhagya scheme, according to the government, connected more than 98% of the country's citizens in 2019. Moreover, by emphasizing 24/7 supplies, the government is now aiming to increase the quality of access. Additionally, the industrialization sector's expanding investments and the booming real estate industry would improve the market growth. Further, many government initiatives to increase the availability of electrical cars (EVs) would increase demand for EV accessories and fuel market growth.
North America Market Forecast
The North America low voltage drives market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market in this region can be attributed to growing demand for electric vehicles in this region. Moreover, the adoption of robots is extensively growing in the various industries in North America. Additionally, the large number of key players are focusing more on advancing the technology which would further increase the demand for low voltage drives in this region. Also, the expanding use of dependable units in the oil & gas, food processing, and power generation sectors would improve the overall business environment. Moreover, the market dynamics would be enhanced by the ongoing expansion of energy capacity as well as increased infrastructure investments by new firms and governmental entities in this region. Also, the market would be boosted by expanding electricity consumption in emerging nations such as US, along with increased energy storage capacity.
Europe Market Forecast
Additionally, the market in Europe region is also estimated growth significantly over the forecast period, backed by growing electricity consumption in this region. Moreover, in all end-user sectors, power consumption accounts for a significant portion of costs. Hence, this factor is also estimated boost the market growth in this region. Moreover, the region's market growth in the region could be linked to increased spending on sustainable and clean technologies for power production in the region, such as wind and solar. A key element that is estimated to boost the use of renewable energy sources in electricity production facilities is the implementation of tight regulations to limit GHG emissions from power generation facilities.
For condition-based monitoring of rotating equipment such pumps, motors, compressors, fans, blowers, and gearboxes, Honeywell International, Inc., has released the Versatilis Transmitters. In order to give intelligence that could increase safety, availability, and dependability across industries, Honeywell Versatilis Transmitters provide pertinent measurements of rotating equipment. A versatile device based on the low power, long range LoRaWAN protocol is the Honeywell Versatilis Transmitter. Manufacturers could deploy at scale with less capital and running expense owing to low power consumption and simple installation.
To assist industrial operators in the international IEC markets increase their output, safety, and energy performance, Rockwell Automation, Inc. added two extra PowerFlex variable frequency drives (VFDs) to the CENTERLINE 2500 low-voltage motor control centres (MCCs).
Author Credits: Richa Gupta
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