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 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. The market is expected to grow at a stable rate in the short term due to industrial development restrictions; however, the market is anticipated to grow during the forecast period backed by industrial and economic development across the globe. 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 increased industrial application of frequency converters is a key factor driving the market growth.
- The increasing demand for efficient electric machinery 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.
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. These machines have low installation costs, and they do not require any heavy machinery and careful alignment. They occupy less space and generate low noise than mechanical converters. 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. RFCs provide 100% electrical isolation at high-frequency conversions along with vertical and horizontal configurations, thereby observing the demand across the globe. 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 $22 billion by 2026. Strategic partnerships between vendors and OEMs and vendors and system integrators reduce operational costs. OEMs and system integrators are key contributors to the overall value chain of the frequency converter market. However, new entrants in the market are expected to rely on indirect sales channels, which, in turn, 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. Although indirect networks do not incur any distribution infrastructure, the price of frequency converters increases via indirect sales channels; hence, they are preferred.
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. Advances in technology strongly support the growth of the industry; however, due to the COVID-19 pandemic, the demand for metals has become highly uncertain. The metals and mining industry growth is highly unpredictable in the short term; however, it is expected to witness significant growth in the long run. Pumps, conveyors, compressors, fans, and positioning & synchronizations are the major applications of frequency converters in the food and beverage industry. To maintain and boost productivity to satisfy the increasing customer demands for food products, the F&B industry relies heavily on several processing equipment and conveyance systems. Hence, frequency converters are likely to grow in the food industry. Similarly, the demand for 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 APAC frequency converter market share and is likely to account for approx. $3 billion by 2026. The increasing number of investments in fully automated industrial machinery and YOY growth in government spending toward defense aircraft and equipment in major economies are the major factors responsible for the market's growth. Moreover, rapid urbanization and increased industrialization in APAC are other major factors driving the region's demand for frequency converter. 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. In the post-COVID landscape, the global economy and production in end-user industries are likely to recover significantly, driving the demand for frequency converters.
INSIGHTS BY VENDORS
ABB, Aplab, Bosch, Danfoss, and Siemens are the major vendors 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. Large companies are set to explore the market worldwide. 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 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