THE GLOBAL ELECTRIC DRIVES MARKET SIZE TO BE VALUED AT USD 29 BILLION BY 2026, GROWING AT A CAGR OF 4.6% DURING THE FORECAST PERIOD

Electric Drives Market Size, Share, Trends Analysis Report by Product Type (AC & DC); Sales Channel (Direct & Indirect); Voltage (Low and Medium); End-User (F&B, Metal & Mining, Chemicals, Oil & Gas, Power Generation, Packaging, Cement, Textile, Water & Wastewater, Paper & Pulp, Rubber & Plastic, Forestry & Woodwork, and Others); and Geography (APAC, North America, Europe, Latin America, and Middle East & Africa); Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021–2026

GET ACTIONABLE INSIGHTS ON HOW COVID-19 IS IMPACTING YOUR BUSINESS
Enquire Now Download Free Sample

Most Exhaustive Report

302 Pages

109 Tables

132 Charts

5 Regions

19 Countries

18 Companies

5 Market Segment

GLOBAL ELECTRIC DRIVES MARKET REPORT SCOPE

Report Attribute Details
MARKET SIZE (REVENUE) USD 29 BILLION (2026)
CAGR 4.6% (2021–2026)
Base Year 2020
Forecast Year 2021–2026
Market Segments Product Type (AC & DC); Sales Channel (Direct & Indirect); Voltage (Low and Medium); End-User (F&B, Metal & Mining, Chemicals, Oil & Gas, Power Generation, Packaging, Cement, Textile, Water & Wastewater, Paper & Pulp, Rubber & Plastic, Forestry & Woodwork, and Others)
Geographic Analysis North America, Europe, APAC, Latin America, and Middle East & Africa
Countries Covered US, Canada, UK, Germany, France, Spain, Italy, China, India, Japan, South Korea, Australia, Brazil, Mexico, Chile, Saudi Arabia, Turkey, Rest of Latin America, and Rest of Middle East & Africa

INDUSTRY INSIGHTS

The global electric drives market size to cross USD 29 billion by 2026, growing at a CAGR of 4.6% during the forecast period. The global market is expected to grow during the forecast period with the growth in industrial production, enhancement in technological advancement, increase in urbanization, and expansion of industries. Owing to the high energy cost associated with industrial motors, several players in end-user industries are focusing on incorporating energy-efficient techniques. Electric drives are one such variety of technology that delivers a highly-efficient production process at a low cost. As the electricity consumption is the major cost component across end-user industries, the demand for electric drives is expected to increase at a considerable rate during the forecast period. Furthermore, the increasing awareness and stringent government regulations on energy savings are fueling the demand for electric drives across the globe.

SNIPPETS

  • The demand for electric drives is anticipated to grow due to increased industrial production and the replacement of worn-out motors with energy-efficient ones for industries.
  • Strict government regulations and pollution reduction initiatives are expected to limit oil and gas demand growth, thereby limiting market development during the forecast period.
  • The rapidly changing technological environment is expected to adversely affect vendors as continual innovations and upgrades according to schemes and government policies are evolving.
  • The chemical industry is likely to grow at promising CAGR as electric motors help to have precise flow controls and achieve energy savings for manufacturers.

GLOBAL ELECTRIC DRIVES MARKET SEGMENTATION

This research report includes a detailed segmentation by

  • Product Type
  • Sales Channel
  • Voltage
  • End-User
  • Geography

INSIGHTS BY PRODUCT TYPE

Alternate current (AC) electric drives held over 80% of the electric drives market share in 2020. The market is highly fragmented due to the presence of several global and regional players. Several incentive programs in the US and European countries for the early replacement of low-efficient electric motors is expected to boost the demand for AC electric drives. However, these regions could not witness high growth owing to the shift of manufacturing plants of several motor vehicles and electronic appliances to Asian countries. APAC is expected to witness significant growth over the next few years owing to the increasing purchasing power, continuous production of AC motor-driven applications, and developing economies in India, China, and others. Moreover, the recent trend of the industrial internet of things (IIoT), Big Data, and other technological advancements is promoting huge competition in the global market.

Although direct current  (DC) drives offer several advantages, they suffer from higher disadvantages than AC ones. Therefore, the adoption is expected to be comparatively low among end-users during the forecast period. The oil & gas industry generates the highest demand for DC drives owing to their high requirement in production facilities and drilling rigs. Moreover, the water & wastewater industry is likely to act as a catalyst in the demand for DC drives. APAC is expected to lead the DC drives market as the region is the hub for the development of electronic components and products catering to several industries during the forecast period.

INSIGHTS BY VOLTAGE

The demand for low-voltage electric drives is driving by increased applications in several end-user industries and the ability to be cost efficient. However, strict government regulations regarding the application are favorably affecting the market growth. Retrofitting activities with regards to low-voltage electric drives are extremely high across industrial as well as commercial enterprises. This, in turn, is expected to boost the demand for low-voltage electric drives during the forecast period. Owing to the increasing implementation of low-energy systems, coupled with easy installation and availability of compact sizes, are the key features driving the electric drives' demand.

The marine industry is the major end-user for medium-voltage electric drives and accounts for around 15–20% of the market share. The decreasing cost of drives and advances in semiconductors technology are expected to develop favorable conditions for medium-voltage drive manufacturers. However, these drives require high input voltage, including expensive transformers, which are expensive, thereby hampering the market expansion.

INSIGHTS BY END-USER

The expansion and investments in oil & gas, chemical, mining, and other industries in the Middle East, North America, and APAC are expected to increase electric drives demand in the coming years. Thus, the demand for drives in several industrial applications is anticipated to grow. Further, the current uncertainty over the macro-outlook for the global economy has been reduced by the recent COVID-19 outbreak and has affected the market, thus developing a challenge for the motor market growth in the short term. The end-user industry demand for electric drives has been adversely affected in 2020 on account of the COVID-19 outbreak. Technological advances in drives and industrial revolution are strongly supporting the growth of the market, however, due to the ongoing pandemic, the demand for metals has become highly uncertain. Owing to the significant usage of drives in several applications in the food processing industry across the globe, the demand for electric drives is expected to grow at a significant rate during the forecast period.

INSIGHTS BY SALES CHANNELS

Direct sales hold a prominent share in the market as they offer scope for strategic partnerships between vendors and OEMs, thereby helping to reduce operational costs for OEMs. APAC and Europe are expected to dominate the share of direct electric drives sales owing to the high popularity of direct selling in the region. However, India and China are expected to witness the highest growth in direct sales owing to rapidly growing industrialization during the forecast period. Indirect sales hold a low share in the market majorly due to increased operational cost and rising awareness of traceability among buyers. Indirect networks relieve the manufacturer from start-up expenses, they are better to handle than direct delivery networks.

INSIGHTS BY GEOGRAPHY

APAC accounts for the highest share of the global electric drive market due to rapidly increasing urbanization and industrialization in the region. Continuous industrial automation in manufacturing, increasing focus on automating manufacturing processing, construction, power generation, and mining end-users are significantly increasing, which is increasing the application of electric drives. Urbanization and industrialization in emerging countries such as India, China, and other countries in Southeast Asia are driving the demand for vehicles, which, in turn, is boosting the demand for electric drives from the automotive industry. However, the breakout of the COVID-19 pandemic affected the growth prospects of the industry. The growth in China witnessed a decline from around 6% in 2019 to 1–1.5% by the end of 2020. The production in chemical manufacturing units in China declined by over 15–20% in 2020, which is expected to negatively impact the demand for electric drives from the chemical & petrochemical industry. Similarly,  the oil & gas industry has been one of the most adversely affected globally and oil & gas production in the APAC region has been badly hit. However, post-COVID the global economy, as well as the production in end-user industries, is expected to recover, which is likely to drive the demand for electric drives.

INSIGHTS BY VENDORS

Siemens, ABB, Schneider Electric, Emerson Electric, Mitsubishi Electric, and Danfoss are the major vendors in the global electric drive market. These vendors offer high-quality reliable devices with technological advancement. However, the cost of drives remains high face intense competition from small vendors that provide low-quality products at an inexpensive price. The competition is likely to intensify due to the rise in merger and acquisition activities. Major vendors are expected to acquire small- and medium-scale vendors to enhance their market presence and expand their product portfolios.

The electric drives market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Product Type

  • AC
  • DC

Sales Channel

  • Direct
  • Indirect

Voltage

  • Low
  • Medium

End-User

  • F&B
  • Metal & Mining
  • Chemicals
  • Oil & Gas
  • Power Generation
  • Packaging
  • Cement
  • Textile
  • Water & Wastewater
  • Paper & Pulp
  • Rubber & Plastic
  • Forestry & Woodwork
  • Others

By Geography

  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia
  • Latin America
    • Brazil
    • Mexico
    • Chile
    • Rest of Latin America
  • Middle East & Africa
    • Saudi Arabia
    • Turkey
    • Rest of Middle East

Frequently Asked Questions

The global electric drives market is expected to grow at a CAGR of over 4.6% during the period 2021–2026.
The arrival of IIoT in electric drives is the major technology advancement witnessed in the market.
APAC is the largest revenue-generating region in the market on account of high industrialization and favorable government support.
Siemens, ABB, Schneider Electric, Emerson Electric, and Mitsubishi Electric are some of the key players in the market.
The metal and mining segment is expected to contribute the highest revenue to the global electric drives market.
Download Free Sample
Read More

Select a license type that suits your business needs

Single User Licence
$3750.00
  • Report accessible by one user only
  • Free 10% or 3 days of customization
  • Free post-sale service assistance
  • Continuous support through email
Best Value Tag
5 User Licence
$4250.00
  • Report accessible by 5 users within the organization
  • Free 15% or 4.5 days of customization
  • Free post-sale service assistance
  • Continuous support through email and telephone
  • Free analyst hour
  • Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge
Corporate Licence
$5250.00
  • Free Datasheet worth $1500
  • Report accessible by the entire organization
  • Free 20% or 6 days of customization
  • Free post-sale service assistance
  • Continuous support through email and telephone
  • Direct access to lead analysts
  • Free analyst hour
  • Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge
Datasheet Licence
$1500.00
  • Report accessible by 1 user only
  • Free 15% or 32 hours of customization
  • Free post-sale service assistance
  • Direct access to lead analysts

Select a license type that suits your business needs

Best Value Tag
Coming Soon
  • Stay tuned with us.

YOU CAN GET A FREE SAMPLE OF THIS REPORT!

Fill out your details & get your free sample

Our Clients

Licence Types What are these?

Our Clients Speak

"The report by Arizton was spot on. It not only gave us insight into the pro audio market, we used it to raise funds for our company. The data proved (to the VC we pitched to) that the market was large enough for our company to not only survive but also grow."

Erik Young
CEO, Co-founder
Audink Inc., DBA Audios
SPEAK WITH OUR ANALYST

Want to know more about the report or any specific requirement?

Click to Email +1-312-235-2040

Why Arizton?

  • 100% Customer Satisfaction
  • 24x7 availability – we are always there when you need us
  • 200+ Fortune 500 Companies trust Arizton's report
  • 80% of our reports are exclusive and first in the industry
  • 100% more data and analysis
  • 1000+ reports published till date