Low Voltage Drives Market Dynamics, Top Trends & Competitive landscape 2022-2030

Rising emphasis on global energy-efficiency goals will augment the use of low voltage drives to curb power consumption

Low voltage drives are coming to be considered a cost-effective industrial solution with a low-electricity consumption attribute, serving the needs of myriad verticals including power generation. With the focus on energy efficiency growing, the deployment of low voltage VFD (variable frequency drive) is slated to proliferate worldwide.

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As per a 2020 annual survey conducted by the U.S. EIA (Energy Information Administration), over 502 electric utilities had EE programs that led to an estimated 28,167,459 MWh or nearly 28.2 billion kWh reductions in annual electricity consumption. Also, as of September 2021, 25 states had mandatory statewide EERS (Energy Efficiency Resource Standard) and 5 states and the District of Columbia had energy efficiency goals, which could bolster the demand for efficient low voltage drives. Based on estimates from a Global Market Insights Inc. report, the low voltage drives market is projected to depict a growth rate of nearly 4% through 2030.

Another key reason behind the burgeoning adoption of low voltage AC drives is the implementation of regulatory measures to save electricity. The Indian government, for example, unveiled plans to mandate new residential buildings to be compliant with the energy efficiency code in April 2022, a move that can help save over $1.5 billion worth of electricity by 2030. Factors like these could boost the popularity of low voltage drives to efficiently control electric motor speed and torque.

Rising investment in EVs and burgeoning popularity of e-mobility

Low voltage motor drives can offer innovative and space-saving options for motion control applications, which are conventionally handled by AC servo drives. Since motion control is a key consideration in modern automobiles, the increasing global reliance on electric vehicles to curb carbon emissions will add impetus to low voltage drives industry expansion.

According to the International Energy Agency, sales of EVs hit 6.6 million in 2021, representing nearly 9% of the global car industry, indicating a nearly threefold rise in market share from two years earlier. In addition, China accounted for a substantial share in the global electric car markets, with sales nearly tripling to over 3.4 million in 2021. Situations like these could increase the use of low voltage drives to control the motors of EVs.

Moreover, the investment interest of automobile vendors in e-mobility has escalated over the years. In December 2021, Volkswagen announced its plans to speed up spending on battery-powered EVs by around 50% to $59 billion by 2026. This is a part of its 5-year spending plan that foresees total investments of up to $170 billion between 2022 and 2026, thus contributing to the business growth of LV motor drives developers.

Implementation of drilling expansion and emission reduction strategies in America

Electric motors play a major role in the oil and gas industry since they provide consistent and reliable power for drilling equipment and rig systems. ExxonMobil, for example, announced drilling expansion plans for 2022, with a target to boost capital spending by 45% to $24 billion. This strong focus of American oil and gas firms on expanding drilling activities could consequently bolster the requirement for low voltage drives for electric motor applications.

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In addition, U.S. President Biden’s Bipartisan Infrastructure Law announced $225 million in funding to improve building codes. The reduction of emissions from commercial and residential buildings is also crucial to achieving President Biden’s target of a 100% clean electrical grid by 2035 as well as net-zero carbon emissions by 2050.

Since low-voltage drives consume less electricity and demonstrate strong application potential in the renewable energy industry, the introduction of energy efficiency and carbon reduction strategies could generate lucrative growth prospects for the low voltage drives market.

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