Low Voltage Drives Market

Low Voltage Drives Market Overview 

The global Low Voltage Drives Market size was valued at USD XXX billion in 2023 and is predicted to reach USD XXX billion by 2030 with a CAGR of XXX % from 2024-2030.  

The low voltage drives (LVD) market refers to the sector providing equipment used to control electric motors’ speed, torque, and direction in industrial and commercial applications. This market includes solutions that enhance motor efficiency, reduce energy consumption and optimize performance in areas such as manufacturing processes, HVAC systems and automated machinery. These solutions contribute to improved operational reliability and reduce maintenance costs, making them essential for high performance.

Market Dynamics and Trends

The growing automotive industry fuels the growth of the market due to the increasing need for advanced motor control solutions in both manufacturing processes and vehicle systems. This growth is fuelled by rising customer demand and technological advancements, leading to higher production volumes and adoption of advanced manufacturing methods. According to the report of the European Automobile Manufacturers’ Association (ACEA) published in 2023, the global production of motor vehicles reached 85.4 million in 2022, an increase of 5.7% compared to 2021. This surge in global production of motor vehicles highlights the growing need for low voltage drives to enhance efficiency and precision in automotive manufacturing and operations. 

Additionally, the expansion of oil & gas sector increases the demand for reliable power management solutions due to the need for efficient operation in extraction, refining, and distribution processes. This sector requires effective systems to manage motor-driven equipment such as pumps and compressors, drives the growth of the low voltage drives market trends. According to the report published in 2024 by the Our World in Data, the global oil production increased from 51,520 TWh in 2022 to 52,432 TWh in 2023, marking a growth of 1.77%. With the growth of the oil & gas industry, the adaption of low voltage drives is set to increase, fueling the market growth and promoting innovations in power management solutions. 

Moreover, the rising industrialization propels the market growth due to the increasing demand for energy-efficient solutions, as industries seek to optimize production and reduce energy costs. The 2023 report by the United Nations Industrial Development Organization (UNIDO) states that, global industrial sectors such as manufacturing, mining and others accounted for 2.3% growth. This growth in industrial sectors increase the demand for motor control solutions such as low voltage drives, propelling the low voltage drives market expansion.

However, the high initial cost associated with low voltage drives pose a significant challenge for small and mid-sized enterprises. This financial barrier limits their ability to invest in advanced drive systems, hindering the growth of the market.

On the contrary, introduction of advanced technologies such as multi-axis and integrated solutions in low voltage drives is expected to create ample growth opportunity for the market in the future. The multi-axis control multiple motors from a single drive and integrated solutions combine drives, motors and controllers into one unit. For instance, in March 2024, Delta Electronics and Inovance introduced multi-axis capabilities in low-voltage drives that saves up to 50% in cabinet space and enhance machine design flexibility. Subsequently, this innovation is expected to drive the market growth as its offers significant space savings and improved design versatility. 

Market Segmentation and Scope of the Study

The low voltage drives market report is segmented on the basis of type, capacity, end user, and region. On the basis of type, the market is classified into AC, DC, and servo. Based on capacity, the market is segmented into < 2.2 kW, 2.2 - 7.5 kW, 7.5 kW - 22 kW, 22 kW - 75 kW, 75 kW - 110 kW, 110 kW - 500 kW, and >500 kW. On the basis of end user, the market is divided into automotive, oil & gas, chemical & petrochemical, water & wastewater, metal & mining, pulp & paper, marine, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW. 

Geographical Analysis 

Asia-Pacific dominates the low voltage drives market share and is projected to maintain its dominance throughout the forecast period. The expansion of the automotive industry in the region significantly fuels market growth, as the industry increasingly adopts advanced technologies such as electric and hybrid vehicles, the demand for low voltage drives rises. According to the report of the International Trade Administration (ITA) published in 2023, the domestic production of automobile in China is expected to reach 35 million vehicles by 2025. This substantial expansion in the automotive industry, driven by the increasing adoption of electric and hybrid vehicles, boosts the demand for low voltage drives.

Moreover, the increase in the chemical industry in countries such as China, Japan, and India drives the growth of low voltage drives industry due to the rising demand for effective and reliable motor control solutions in various chemical processing applications such as pumps, mixers, and agitators. As per the latest report published in 2024 by the India Brand Equity Foundation, India’s chemical sector valued at approximately USD 220 billion in 2022, is expected to expand to USD 300 billion by 2025 and USD 1 trillion by 2040. The rapid expansion of chemical sector highlights the growing need for low voltage drives to support its increasing demand for effective motor control solutions. 

On the other hand, North America is expected to show a steady rise in the low voltage drives market demand due to the significant growth of oil & gas industry in countries such as the U.S., Canada and Mexico, as these drives optimize the efficiency of pumps, compressors and other equipment. According to the latest report published in 2024 by the Our World in Data, the U.S. oil production increased from 8863 TWh in 2022 to 9620 TWh in 2023, marking a growth of 8.55%. This growth highlights the increasing need for reliable power management solutions to effectively manage motor-driven equipment such as extraction, refining and distribution process, thereby boosting market growth. 

Furthermore, the rising demand for energy efficiency such as optimization, conservation and reduction are fuelling the low voltage drives market growth as industries look to cut energy use and lower costs. Technologies that optimize motor performance and minimize energy waste become increasingly crucial. As per the report of the Statistics Canada published in 2023, the energy consumption in Canada by the manufacturing sector increased by 2.2% to 2181 petajoules from 2021 to 2022. This trend highlights the growing need for low voltage drives to achieve energy savings and operational efficiency, driving the market expansion as industries adopt these technologies to cut costs.

Competitive Landscape

The low voltage drives industry comprises of various key players such as Beckhoff Automation, Bosch Rexroth AG, CG Power & Industrial Solutions Ltd., Danfoss, Emerson Electric Co., Fuji Electric Co., Ltd., Hiconics Eco-energy Technology Co., Ltd., Honeywell International Inc., Rockwell Automation, Inc., Invertek Drives, and others. These market players are adopting various strategies including product launches to stay competitive and maintain their market positions. 

For instance, in March 2024, Invertek Drives launched a new high-powered addition to its  Optidrive Coolvert variable frequency drive (VFD) at MCE (Mostra Convegno Expocomfort). This low voltage drive offers compact, efficient performance for BLDC compressors and heat pumps, supporting natural refrigerants and F-Gas regulations. 

Moreover, in February 2024, Danfoss introduced a new IC2 micro drive, a compact low voltage drive offers a high-performance solution for HVAC systems, pumps, and fans. It boosts advanced control features, a user-friendly interface, and durable design with high-temperature tolerance and natural cooling.

Furthermore, in September 2023, Rockwell Automation partnered with Infinitum to develop and distribute a new class of high-efficiency low-voltage integrated drives and motors. Such initiatives enable industrial customers to save energy, reduce costs, and cut greenhouse gas emissions to meet sustainability.

Key Benefits

• The report provides quantitative analysis and estimations of the market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the low voltage drives market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the low voltage drives market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Low Voltage Drives Market Key Segments

By Type

• AC

• DC

• Servo

By Capacity

• < 2.2 kW

• 2.2 - 7.5 kW

• 7.5 kW - 22 kW

• 22 kW - 75 kW

• 75 kW - 110 kW

• 110 kW - 500 kW

• >500 kW

By End User

• Automotive

• Oil & Gas

• Chemical & Petrochemical

• Water & Wastewater

• Metal & Mining

• Pulp & Paper

• Marine

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Key Players

• Beckhoff Automation

• Bosch Rexroth AG

• CG Power & Industrial Solutions Ltd.

• Danfoss

• Emerson Electric Co.

• Fuji Electric Co., Ltd. 

• Hiconics Eco-energy Technology Co., Ltd.

• Honeywell International Inc. 

• Rockwell Automation, Inc. 

• Invertek Drives