Researchers Predict Strong Growth for AC Drives Market in the Near Future

The alternate current (AC) drive is an electronic device used for controlling the speed of an electric motor by varying the voltage, frequency, and magnetic flux in a motor circuit. It helps in saving energy, enhances efficiency of the system, and reduces motor wear. Moreover, its ease of use, less maintenance, and increasing motor applications across the globe is also boosting the demand for AC drives. With the rising prices of electricity and its increased demand from various regions, the overall market for AC drives is witnessing a significant growth.

Drivers for the Market

The growth of the global market for AC drives is being primarily influenced by the following factors:

  • Increasing urbanization & industrialization
  • Rising demand for electricity and energy
  • Increased electricity prices
  • Strict regulations enforced by governments in order to reduce carbon emissions during the production and consumption of electricity

Moreover, huge opportunity in the replacement sector and increasing popularity of Industrial Internet of Things (IIoT) is further propelling the growth of this market. However, the growth of AC drives market is likely to be affected by decrease in Greenfield investment. Furthermore, growing competition within the local players stands a key challenge for the growth of this market.

Market Trends

Estimated to grow at a CAGR of 7.4% during the forecast period, the value of the global AC drives market which was expected to be USD 14.6 Billion in 2015 will reach USD 21.0 Billion by the end of 2020. Geographically, the market in Asia-Pacific holds the largest market share, followed by Europe and North America, owing to increasing urbanization and developments in process industries. However, the Middle East & Africa is poised to grow at a faster pace, owing to the large-scale infrastructure spending coupled with oil & gas operations.

Based on end-user industry, oil & gas industry accounted for the largest market share of about 15% in 2014. The water & wastewater industry is expected to grow at a high CAGR, owing to the rapid urbanization & industrialization, especially in APAC and MEA. Based on voltage, low voltage AC drives took up the major share of the market. Although, low voltage AC drives find more applications in industries, the medium voltage AC drives is expected to grow at a higher CAGR over the forecast period, thanks to the rising demand from various industries.

The leading players of the global AC drives market include ABB Ltd. (Switzerland), Siemens AG (Germany), Danfoss Group (Denmark), Mitsubishi Electrical Co, Ltd., Fuji Electric Holdings, Emerson Electric Co., Hitachi Ltd., Parker Hannifin Co., Toshiba International Corporation Ltd., Schneider Electric (France), and Rockwell Automation (U.S.) among others.

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Research Scope

The global market for AC drives has been analyzed and predicted on the basis of following segmentation:

  • Voltage: Low Voltage, Medium Voltage
  • Power Rating: Low Power Drives, Medium Power Drives, High Power Drives
  • Application: Pumps, Fans, Compressors, Conveyors, Extruders, Others
  • End-Use Industry: Oil & Gas, Water & Wastewater, Power Generation, Building Automation, Food & Beverage, Metals & Mining, Chemicals & Petrochemicals, Others
  • Geography: Asia-Pacific, Europe, North America, Middle East & Africa, South America


Increasing urbanization and industrialization and rising demand for electricity is driving the AC drives market, globally.

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