The global VFD market is projected to reach a market size of USD 27.57 billion by 2023, at a CAGR of 5.87%, from an estimated USD 20.73 billion in 2018.

This growth can be attributed to the increased usage of VFDs across major industry verticals, rapid industrialization and urbanization, along with increasing investments on infrastructure development, and shifting focus on energy efficiency.

The report segments the VFD market, by voltage, into low and medium voltages. Increased investment on the growth of infrastructural activities, The low-voltage segment is expected to hold the largest market share by 2023.  renewable energy production, and growing need for energy efficiency would propel the demand for the AC drive segment.

  by power rating,The VFD market is segmented into micro-power drive, low-power drive, and medium-power drive, and high-power drive. The low-power drive segment is expected to become a domination of  the VFD market by 2023. The low-power drive segment provides higher energy savings at a very low capital costs and better process control to various industries such as building, automation, oil & gas, food & beverage, and pulp & paper. Increasing in production toward infrastructure activities in emerging countries would enlarge the low power drive segment 

market.The industrial segment is one of the major end-users of the VFD market. Also, this segment is expected to take the largest market share during the predicted period. Increasing demand for electric motors from various industries, such as cement,paper & pulp, marine, discrete manufacturing,  and others, it  is likely to give a rise to the demand for VFDs for industrial applications

In this report, the VFD market has been analyzed with respect to 6 regions, namely, Europe, North America,  South America, Africa, Asia Pacific,  and Middle East. The market in Asia Pacific  is estimated to be the largest VFD market, from 2018 to 2023. Countries such as India,  China, and Japan, are heavily investing on the renewable energy, which would have a positively impact on the VFD market. Also, massive investments on the manufacturing industry is also one of the major factors that would propel the growth of the VFD market. For instance, as per Asian Development Bank, the region will need an investment of USD 26 trillion from 2016 to 2030 or USD 1.7 trillion per year to respond to climate change and maintain its growth momentum.

Stagnant growth of the oil & gas industry due to declining oil prices has resulted in  decreasing in exploration & production activities and could act as restraints for the VFD market. The leading players in the VFD market include ABB (Switzerland), Danfoss (US), Schneider Electric (France),  Siemens (Germany), and Rockwell (US). New product launches is the most commonly adopted strategy by the top players. This was followed by contracts & agreements and investments & expansions.