FREQUENCY CONVERTER INDUSTRY INSIGHTS
The global frequency converter market size to cross USD 25 billion by 2026, growing at a CAGR of 5% during the period 2020-2026. The APAC region accounted for 37% of the market globally, followed by Europe and North America. The market is expected to grow due to the growth in industrial production, technological advancements, urbanization, and industries' expansion.
Static frequency converters are expected to witness the highest revenue share by product type, driving the market growth. Emerging markets such as APAC and Latin America are expected to witness the highest growth during the forecast period due to or increased investments by developed countries, favorable government policies, and FDIs, and shifting focus toward domestic manufacturing. Automation, robotization, energy conservation, and decarbonization trends are expected to boost frequency converters' demand. The competition is likely to intensify due to mergers and acquisitions. Large vendors will acquire small and medium-sized vendors to enhance their market presence and expand their product portfolios.
- The increased industrial application of frequency converters is a key factor driving the growth of the market.
- The increasing demand for efficient electrical equipment and advanced equipment in developing countries is likely to accelerate the global frequency converters market's growth.
- The development of high-speed rails that require frequency converters to control the speed of engines, pumps, and fans is acting as a catalyst for the market's growth.
- The increasing trend of offshore wind power generation is significantly increasing the demand for frequency converters.
- The advent of IIoT is expected to fuel the demand for frequency converters from several end-user industries.
- The demand for frequency converters is expected to increase due to the industrial expansion and investments by private and public players in the industrial sector across the globe.
- The advent of IoT will fuel the demand for frequency converters from several end-user industries.
- The development of high-speed rails that require frequency converters to control the speed of engines, pumps, and fans are further catalyzing the growth of the market.
- About 1,500 additional businesses in the US have been involved in the manufacturing of extremely demanding frequency converters used in the pharmaceutical sector. The rapid expansion of pharmaceutical facilities worldwide due to COVID-19 is further expected to drive the market growth during the forecast period.
GLOBAL FREQUENCY CONVERTER MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Product Type
- Sales Channel
INSIGHTS BY PRODUCT TYPE
- Static frequency converters are likely to grow at a CAGR of over 5% due to high-frequency stability and output voltage. These devices deliver the required power under fixed conditions in manufacturing units and commercial applications, which are increasing their demand. Static frequency converter system operates with up to 94.5% efficiency.
- Rotary frequency converters (RFC), on the other hand, are observing high application in several end-user segments, including aerospace & defense, rail & hydro facilities, sensitive electronics lab and research centers, process automation, and manufacturing lines. They are highly reliable and can produce high starting surge current for short periods, making them ideal for motor loads. However, they require regular maintenance and have a conversion efficiency of less than 85%.
INSIGHTS BY SALES CHANNEL
- Direct sales of frequency converters are expected to reach over USD 22 billion by 2026. Strategic partnerships between vendors and OEMs and vendors and system integrators reduce operational costs. The new entrants in the market are expected to rely on indirect sales channels. This is expected to decrease the usage of direct sales channels.
- Indirect sale channels include third-party purchases through distributors and dealers. A lack of awareness of brands, variety, and price factors drive customers to opt for indirect sales channels.
INSIGHTS BY END-USER
The metal & mining industry generated the highest demand for frequency converters owing to the expansion of mining activities in China, Australia, Brazil, India, the US, and the Middle East. Pumps, conveyors, compressors, fans, and positioning & synchronizations are the major applications of frequency converters in the food and beverage industry. The F&B segment holds the second largest frequency converter market share and is expected to reach USD 3.15 billion by 2026. The usage of frequency converters is high in the aerospace and defense industry due to the constant use of power electronics. Owing to less downtime, reduced costs, and the long lifespan of assets, the application of frequency converters is increasing.
INSIGHTS BY GEOGRAPHY
APAC accounts for the highest share in the global frequency converter market and is expected to grow significantly during the forecast period. China is expected to lead the Asia Pacific frequency converter market share and is likely to account for approx. USD 3 billion by 2026. The increasing number of investments in fully automated industrial machinery, government spending toward defense aircraft and equipment, rapid urbanization, and increased industrialization in APAC are the major factors driving the region's demand for frequency converters. However, the outbreak of the COVID-19 pandemic has decreased the growth in China from 6% in 2019 to 1.00%-1.50% by the end of 2020. The production in China's chemical manufacturing units declined by over 15%–20% in 2020, which negatively affected the demand for frequency converter from the chemical & petrochemical industry.
INSIGHTS BY VENDORS
ABB, Aplab, Bosch, Danfoss, and Siemens are the key players in the market. Innovations in technology, product lines, marketing strategies, and sales networks are the crucial attributes through which vendors are to be identified and selected. The entry of large companies into the market poses a significant threat to domestic vendors. Moreover, acquiring technology and commercial distribution is becoming increasingly important for vendors. Changes in local governments' economic policies, laws, and regulations, could have an adverse effect on vendors financial stability.
The global frequency converter market research report includes in-depth coverage of the industry analysis with revenue, competitive landscape, and forecast insights for the following segments:
- 5-40 KW
- 41–200 KW
- 201–600 KW
- >600 KW
- Food & Beverage
- Aerospace & Defense
- Metal & Mining
- Oil & Gas
- Power Generation
- Water & Wastewater
- Paper & Pulp
- Rubber & Plastic
- Forestry & Woodwork
- North America
- South Korea
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- Rest of Middle East