- Summary
- Table Of Content
- Methodology
Variable Frequency Drive Market Size:
Variable Frequency Drive Market size is estimated to reach over USD 39,437.96 Million by 2032 from a value of USD 26,595.07 Million in 2024 and is projected to grow by USD 27,443.46 Million in 2025, growing at a CAGR of 5.4% from 2025 to 2032.
Variable Frequency Drive Market Scope & Overview:
Variable frequency drive (VFD), also known as adjustable frequency drive, refers to a device that is designed for controlling the speed and torque of an electric motor by changing the frequency and voltage of power supplied to the motor. Moreover, VFDs provide a range of benefits such as fully adjustable speed, controlled starting, stopping, and acceleration, dynamic torque control, precise process control, enhanced energy efficiency, and others. The aforementioned benefits are further driving its adoption in oil & gas, power generation, automotive, food & beverage, mining, and other industries.
Variable Frequency Drive Market Dynamics - (DRO) :
Key Drivers:
Growing oil & gas sector are propelling the variable frequency drive market growth
Oil and gas applications rely significantly on motor-driven pumps, pumping systems, and compressor systems among others. Variable frequency drives are primarily used in oil & gas sector for controlling pumps, compressors, and other equipment involved in drilling and extraction processes. Moreover, VFDs are capable of adjusting the speed of pumps according to the process requirements, which provides improved control over flow and pressure, while improving operational efficiency and reliability.
- For instance, in May 2024, the Kuwaiti Government inaugurated its Al-Zour oil refinery located in Southern Kuwait, with a total production capacity of 615,000 b/d (barrels per day). Additionally, Kuwait Integrated Petroleum Industries Company had commissioned the first phase of the oil refinery in November 2022 while the second phase and third phase were commissioned in March 2023 and July 2023 respectively.
Hence, the growing oil & gas sector is driving the adoption of adjustable frequency drives for controlling pumps, compressors, and other equipment involved in drilling and extraction processes, in turn proliferating the variable frequency drive market size.
Key Restraints:
Availability of alternative solutions and operational limitations associated adjustable frequency drives are restraining the variable frequency drive market growth
There are various alternative solutions for adjustable frequency drives including Eddy current drives, belt drives, and others. Moreover, the alternative solutions have similar performance and applications in comparison to adjustable frequency drives, which is a key factor restricting the market. For instance, Eddy current drive is a reliable alternative to conventional VFDs. An eddy current drive is capable of controlling speed by regulating a direct-current excitation coil on a magnetic rotor. Eddy current drives are used in several industries and they are mostly utilized in small and large torque loads for different types of machinery. Operators typically use them for improving the functionality of automobiles, conveyors, and other industrial equipment.
Further, adjustable frequency drives are often associated with certain operational limitations including relatively higher cost, heat generation, generation of electromagnetic interference (EMI) or radio frequency interference (RFI), voltage transients, and complexity in installation and maintenance as compared to other types of motor control systems. Thus, the availability of alternative solutions and operational limitations associated adjustable frequency drives are hindering the variable frequency drive market expansion.
Future Opportunities :
Rising adoption of industrial automation fueled by Industry 4.0 is expected to drive the variable frequency drive market opportunities
Industry 4.0 enabled manufacturing represents automation readiness, extreme flexibility, minimal human intervention, and highest productivity. Moreover, the shift towards industrial automation has resulted in an increase in adoption of advanced equipment such as conveyer systems, material handling & packaging equipment, extrusion machines, mixing & agitating equipment, and other related equipment in industrial facilities to facilitate automation. Additionally, adjustable frequency drives are primarily used in aforementioned equipment to adjust and control the speed of above equipment based on the required processes while increasing operational efficiency and minimizing the risk of equipment damage.
- For instance, in July 2024, Xiaomi launched its completely automated smart factory in Beijing, China. The automated factory spans across 860,000 square feet and it is developed to manufacture approximately 10 million smartphones each year without any human intervention.
Thus, the rising adoption of industrial automation in manufacturing facilities is projected to drive the variable frequency drive market opportunities during the forecast period.
Variable Frequency Drive Market Segmental Analysis :
By Type:
Based on type, the market is segmented into voltage-source inverter (VSI) drives, current-source inverter (CSI) drives, direct torque control (DTC) drives, and others.
Trends in the Type:
- Rising adoption of voltage-source inverter (VSI) drives due to its efficient use of energy and smooth control of motor speed and torque.
- Increasing utilization of direct torque control (DTC) drives, attributing to its several benefits including fast torque and flux control, reduced harmonic distortion, and superior motor control for complex applications.
Voltage-source inverter (VSI) drives segment accounted for the largest revenue share of 60.14% in the overall market in 2024, and it is anticipated to register substantial CAGR growth during the forecast period.
- Voltage-source inverter (VSI) drives are considered to be the most common variable frequency drives, which primarily consist of a rectifier that is used for converting AC to DC, a DC link, along with an inverter for converting DC back to AC.
- The inverter section utilizes pulse width modulation for controlling the frequency and voltage applied to the motor, which results in precise control of the motor’s torque and speed.
- Moreover, VSI drives provide several benefits including smooth control of motor speed and torque, efficient use of energy, and versatility in a wide range of motor applications.
- For instance, General Electric offers medium voltage variable speed drive system that features a combination of voltage source inverter (VSI) and an electric motor. The drive system offers a power capacity of up to 47 MW with a single VSI drive panel.
- Thus, increasing advancements associated with voltage-source inverter (VSI) drives are accelerating the variable frequency drive market size.
By Sales Channel:
Based on sales channel, the market is segmented into direct sales and distributor sales.
Trends in the Sales Channel:
- Factors including the availability of excellent support and warranty, higher product quality, and reliable shipping and return policies are key prospects driving the direct sales channel segment.
- Factors such as higher accessibility to a variety of products, higher flexibility, and expanded reach are major determinants for driving the distributor sales channel segment.
Direct sales channel segment accounted for a significant revenue in the overall variable frequency drive market share in 2024.
- In direct sales channel, adjustable frequency drives are available for direct sale to customers through several physical outlets such as company outlets.
- Moreover, the direct sales channel also consists of online mode, wherein the manufacturers sell adjustable frequency drives through its own company websites.
- Additionally, procuring adjustable frequency drives from direct sales channel provides multiple benefits including higher product quality, faster response time, competitive pricing, higher return on investments, and others which are significant aspects for increasing the purchase of adjustable frequency drives from direct sales channel.
- For instance, Eaton is an adjustable frequency drive manufacturer that offers a broad range of adjustable frequency drives for direct purchase through the company website.
- Therefore, increasing availability of adjustable frequency drives in direct sales channels are driving the variable frequency drive market trends.
Distributor sales segment is anticipated to register a substantial CAGR growth during the forecast period.
- The distributor sales channel comprises of indirect distribution of adjustable frequency drives, wherein the adjustable frequency drives are procured from numerous regional distributors operating in multiple regions across the world.
- Moreover, distributor sales channel offer a broad range of benefits such as increased market reach, improved cost efficiency, reduced capital expenditure, and others. The aforementioned benefits of distributor sales channel are driving its utilization for purchase of adjustable frequency drives.
- For instance, Sonepar India Private Limited, The Reynolds Company, Wesco International, and others are few of the distributors of adjustable frequency drives.
- Thus, the rising availability of adjustable frequency drives in distributor sales channel is projected to drive the market during the forecast period.
By Application:
Based on application, the market is segmented into pumps, HVAC systems, fans, conveyors, extruders, and others.
Trends in the Application:
- Increasing adoption of pumps in oil & gas, mining, food & beverage, power generation, and other industries.
- There is a rising trend towards utilization of HVAC systems in buildings and industrial settings for improved thermal comfort.
Pumps segment accounted for a significant revenue share in the total variable frequency drive market in 2024.
- Adjustable frequency drives are primarily used in pumps for adjusting the flow or pressure to the actual demand. They are used for controlling the frequency of the electrical power supplied to pumps.
- Moreover, adjustable frequency drives enable pumps to operate at variable speeds based on the demand for fluid flow, which further allows the pump output to be adjusted dynamically according to real-time requirements.
- For instance, in October 2024, Pearl, a brand of PD Water Systems LLC, launched its new SMARTTI model of variable frequency drive, which is particularly designed for submersible pump applications. The drive offers several features including quick & simple installation, constant pressure, rugged and compact design, and others.
- According to the variable frequency drive market analysis, the rising innovations associated with adjustable frequency drives for application in pumps are driving the market.
HAVC systems segment is anticipated to register fastest CAGR growth during the forecast period.
- Adjustable frequency drives are typically used in HVAC (heating, ventilation, and air conditioning) systems for providing precise control over motor speed, which results in improved comfort, energy savings, and extended equipment life.
- Moreover, adjustable frequency drives are capable of matching the motor speed to varying heating and cooling demand throughout the day, thereby, reducing HVAC system’s energy consumption, enhancing control, and improving thermal comfort.
- For instance, Yaskawa Electric Corporation is an adjustable frequency drive manufacturer that offers HV600 model of VFD in its product portfolio, which is specifically designed for HVAC application. The HV600 drive is optimized for controlling HVAC applications and itis available in several configurations such as stand-alone Drive, narrow configured, and enclosed configured packages.
- According to the analysis, increasing advancements related to adjustable frequency drives for use in HVAC applications are anticipated to propel the variable frequency drive market trends during the forecast period.
By End-User:
Based on the end user, the market is segmented into oil & gas, power generation, building & infrastructure, automotive, food & beverage, mining, and others.
Trends in the End-User:
- Increasing adoption of adjustable frequency drives in oil & gas sector for controlling pumps, compressors, and other equipment involved in drilling and extraction processes.
- Factors including increasing rising development of power generation plants, expansion of oil & gas facilities, and increasing production from automotive, food & beverage, and other industries are among the key trends driving the adoption of adjustable frequency drives.
Oil & gas segment accounted for a significant revenue share in the total variable frequency drive market share in 2024.
- This dominance is attributed to the rising adoption of adjustable frequency drives in oil & gas sector for controlling pumps, compressors, and other equipment involved in drilling and extraction processes.
- Moreover, adjustable frequency drives are capable of adjusting the speed of pumps according to the process requirements, which provides improved control over flow and pressure, while improving operational efficiency and reliability in oil & gas operations.
- For instance, in 2022, Equinor ASA, in partnership with Var Energi and Petoro, invested approximately USD 6 billion in an oil & gas project, Johan Castberg Field, located in Norway. The Johan Castberg field development project comprises of three oil discoveries that are estimated to produce 400 to 650 million barrels of oil after operation.
- According to the analysis, the increasing development of oil & gas facilities is driving the market.
Food & beverage segment is anticipated to register a substantial CAGR growth during the forecast period.
- Adjustable frequency drives are primarily used in food & beverage sector for several applications involving conveyer systems, mixers & agitators, pumps, fans & blowers, and other related equipment.
- Moreover, adjustable frequency drives enable precise control of conveyor speeds, which ensures smooth operation and minimizes product damage during transportation.
- Similarly, adjustable frequency drives are used for controlling the speed of mixers and agitators, which play a crucial role in blending and mixing ingredients in food & beverage facilities.
- Additionally, adjustable frequency drives are also used for optimizing the speed of pumps used in food & beverage facilities, which ensures that appropriate flow rates and pressures are maintained.
- For instance, according to Food Drink Europe, the European Union food and beverage sector was valued at EUR 1,121 billion (USD 1,196.7 billion) in 2022, demonstrating a growth of 2.6% in comparison to EUR 1,093 billion (USD 1,166.8 billion) in 2021.
- Hence, the growing food & beverage is projected to increase the utilization of adjustable frequency drives, in turn driving the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 7,311.65 Million in 2024. Moreover, it is projected to grow by USD 7,565.65 Million in 2025 and reach over USD 11,200.38 Million by 2032. Out of this, China accounted for the maximum revenue share of 32.8%. As per the variable frequency drive market analysis, the adoption of adjustable frequency drives in the Asia-Pacific region is primarily driven by the increasing growing oil & gas, power generation, and automotive sectors among others. Additionally, the rising automobile production is further accelerating the variable frequency drive market expansion.
- For instance, according to the International Organization of Motor Vehicle Manufacturers, the total passenger car production in Asia-Pacific region reached up to 46,612,738 units in 2023, representing an increase of 10% from 42,324,552 units in 2022. Adjustable frequency drives are often used for controlling automotive HVAC systems along with controlling manufacturing & assembly equipment used during automobile production, Therefore, the above factors are further driving the market in the Asia-Pacific region.
North America is estimated to reach over USD 13,527.22 Million by 2032 from a value of USD 9,126.58 Million in 2024 and is projected to grow by USD 9,417.33 Million in 2025.
In North America, the growth of variable frequency drive industry is driven by the growing investments in food & beverage, oil & gas, mining, and other sectors. Moreover, the increasing development of food & beverage facilities is contributing to the variable frequency drive market demand.
- For instance, Kerry Group, a food and beverage company, announced the launch of its new food manufacturing facility in Georgia, United States in 2022. The food manufacturing facility was developed to meet the rising consumer demand in seafood, poultry, and alternative protein markets across the United States and Canada. Adjustable frequency drives are primarily used in food & beverage facilities for several applications involving conveyer systems, mixers & agitators, pumps, and other related equipment. The above factors are projected to boost the market in North America during the forecast period.
The regional analysis depicts that the favorable that the prevalence of favorable government measures for facilitating industrial automation and increasing development of industrial facilities including food & beverage, power generation, automotive, and others are driving the variable frequency drive market demand in Europe. Furthermore, as per the market analysis, the market demand in Latin America, Middle East, and African regions is expected to grow at a considerable rate due to factors such as growing development of oil & gas sector, rising mining activities, and others.
Top Key Players and Market Share Insights:
The global variable frequency drive market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the variable frequency drive market. Key players in the variable frequency drive industry include-
- Siemens AG (Germany)
- Rockwell Automation Inc. (U.S)
- Hitachi Ltd. (Japan)
- Mitsubishi Electric Corporation (Japan)
- Schneider Electric (U.S)
- SmartD Technologies Inc. (Canada)
- Honeywell International Inc. (U.S)
- Yaskawa Electric Corporation (Japan)
- Eaton (Ireland)
- General Electric (U.S)
- Emerson Electric Co. (U.S)
Recent Industry Developments :
Product Launch:
- In October 2024, Pearl, a brand of PD Water Systems LLC, launched its new SMARTTI model of variable frequency drive, which is particularly designed for submersible pump applications.
Partnerships & Collaborations:
- In October 2024, SmartD Technologies, a silicon carbide (SiC)-based variable frequency drive manufacturer, partnered with Celestica with the aim of manufacturing its Clean Power VFD. This partnership enables SmartD to scale its supply chain and fulfill the growing need for adjustable frequency drives in industrial automation sector.
Variable Frequency Drive Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 39,437.96 Million |
| CAGR (2025-2032) | 5.4% |
| By Type |
|
| By Sales Channel |
|
| By Application |
|
| By End User |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the variable frequency drive market? +
The variable frequency drive market was valued at USD 26,595.07 Million in 2024 and is projected to grow to USD 39,437.96 Million by 2032.
Which is the fastest-growing region in the variable frequency drive market? +
Asia-Pacific is the region experiencing the most rapid growth in the variable frequency drive market.
What specific segmentation details are covered in the variable frequency drives report? +
The variable frequency drives report includes specific segmentation details for type, sales channel, application, end user, and region.
Who are the major players in the variable frequency drive market? +
The key participants in the variable frequency drive market are Siemens AG (Germany), Rockwell Automation Inc. (U.S), Honeywell International Inc. (U.S), Yaskawa Electric Corporation (Japan), Eaton (Ireland), General Electric (U.S), Emerson Electric Co. (U.S), Hitachi Ltd. (Japan), Mitsubishi Electric Corporation (Japan), Schneider Electric (U.S), and SmartD Technologies Inc. (Canada).
