Marine VFD Market size is assessed at USD 978.8 million in 2024 and is expected to reach USD 1.9 billion by the end of 2037, witnessing around 5.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of marine VFD is estimated at USD 1.03 billion.
The rising industrial and sea trade activities worldwide are augmenting the need for energy-efficient systems including, marine (VFDs). These drives help enhance the operational efficiency and speed of electric motors installed in ships. According to the UN Trade and Development Organization, around 11 billion tons of goods were traded through sea routes in 2021. Maritime trade is comparatively cost-effective due to lower freight rates, and the increasing preference of traders for seaborne transportation of goods and products. The International Chamber of Shipping (ICS) estimates that 90% of global trade is carried out through shipping.
Moreover, manufacturers in the marine VFD market are focused on developing high-power drives and technologies to cater to the growing need for enhanced energy-efficient systems in the marine sector. In October 2021, Invertek Drives, a global manufacturer of VFDs and AC drives announced the launch of a novel range of high-power VFDs; size 8 IP20 and IP55 optidrive VFDs, capable of controlling electric motors up to 48 Amps.
Growth Drivers:
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.5% |
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Base Year Market Size (2024) |
USD 978.8 million |
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Forecast Year Market Size (2037) |
USD 1.9 billion |
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Regional Scope |
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Voltage (Low, Medium)
Low voltage segment is set to dominate marine VFD market share of around 84.2% by the end of 2037. The low voltage variable frequency drive offers increased production output and energy savings owing to its flexible and high-performance motor control features. The increasing trend towards automation in marine operations is fuelling the sales of low voltage variable frequency drives. In June 2019, CG Power & Industrial Solutions Ltd. announced the launch next generation of compact low-voltage VFD for industrial automation, including, marine sector.
Drive (AC, DC, Servo)
In marine VFD market, AC marine VFD segment is anticipated to account for revenue share of around 80.5% by 2037. The AC drive technology is gaining widespread popularity in the marine and offshore sectors due to its ability to adjust motor speed and mitigate energy consumption. Stringent regulations on emissions and energy consumption by the International Maritime Organization (IMO) are driving shipbuilders and operators to adopt advanced technologies such as AC drives that support compliance through improved fuel efficiency and lower emissions. Many long-haul vessels across the world are employed with conventional direct diesel propulsion, but to comply with strict regulations they are shifting toward hybridization by adopting advanced AC drive technologies.
Our in-depth analysis of the global market includes the following segments:
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Voltage
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Drive |
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Asia Pacific Market
Asia Pacific marine VFD market is set to hold revenue share of over 45.8% by the end of 2037, owing to the increasing industrial and offshore trading activities and rapid adoption of advanced technologies. India and China are witnessing high trade through sea routes, augmenting robust demand for advanced VFD in marine vessels. Japan and South Korea are well known for technological advancements and the market is no exception.
The India marine VFD market is foreseen to exhibit high growth due to the presence of large maritime sectors, an increasing industrial base, and rising external trade activities. For instance, according to the India Brand Equity Foundation, prime ports in the country handled around 783.50 million tonnes of cargo traffic in FY23 and the top 12 ports handled 819.227 million tonnes of cargo traffic in FY24. Moreover, rising government support and policies for advancing the shipping industry and rapidly expanding shipbuilding and repair sectors are anticipated to boost the marine variable frequency drive sales in the country going ahead. The Ministry of Shipping witnessed the allocation of USD 281.2 million in the Interim Union Budget 2024-25.
In China, the marine VFD market is expected to expand at a robust CAGR between 2025 and 2037 owing to high dominance in shipbuilding and growing adoption of advanced VFDs in new products to meet standards for energy efficiency and emission reduction. In addition, the government’s commitment to reach carbon neutrality by 2060 and the electrification of marine vessels are expected to contribute to market growth going ahead.
North America Market Statistics
The North America marine VFD market is expected to expand fast pace owing to the increasing adoption of advanced technologies. The companies in the region are investing heavily in R&D for the production of innovative technologies that aid in energy consumption and boost the operational efficiency of marine vessels.
The increasing offshore activities and strict emission regulations are pushing the marine VFD market growth in the U.S. To comply with rules implemented by the U.S. EPA the ship owners or operators are adopting energy-efficient marine VFD that aid in mitigating fuel consumption and emissions. For instance, the Bureau of Transportation Statistics reveals that marine vessels hold around 40.0% of U.S. international trade value.
Canada has the longest coastline in the world and connects the Great Lakes and the Atlantic, Pacific, and Arctic Oceans, booming the marine trade. For instance, the marine trade in Canada was valued at USD 345.0 billion in 2022. This trade hike is augmenting the need for marine vessels with advanced technologies such as variable frequency drives. Also, with the increasing contribution and leadership in marine trade, the country was re-elected to the International Maritime Organization Council for a two-year term in 2023.
Leading companies in the marine VFD market are employing several organic and inorganic strategies to earn high profits and reach a wider customer base. Key market players are forming strategic partnerships with other players and technology firms to co-develop innovative technologies and expand their geographical reach. Industry giants are focusing on advancing their after-sales services including maintenance, training, and technical support to attract more customers and encourage repeat business. Some of the key players include:
Author Credits: Dhruv Bhatia
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