Low Voltage Electric Drives Market Size & Growth Report to 2030

The global low voltage electric drives market size is estimated to register a significant CAGR of over 4% during the forecast period from 2023 to 2030. The market is driven by factors such as industrial automation, energy efficiency, cost savings, increasing industrialization, government regulations, technological advancements, and the growing renewable energy sector. These factors contribute to the demand for low voltage electric drives, which enable precise motor control, improve energy efficiency, reduce operational costs, and align with sustainability goals. As industries embrace automation and strive for energy efficiency, the adoption of low voltage electric drives increases. Furthermore, government regulations and advancements in drive technologies further propel market growth, meeting the evolving needs of industries across various sectors.

Market Snapshot:

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Market Drivers:

• Industrial Automation: The increasing adoption of automation in various industries is driving the demand for low voltage electric drives. These drives are essential components in industrial automation systems, enabling precise and efficient control of motor-driven equipment such as pumps, fans, compressors, conveyors, and machine tools.
• Energy Efficiency: Low voltage electric drives play a crucial role in improving energy efficiency in industrial processes. By adjusting motor speed and optimizing power consumption, these drives help reduce energy waste, lower operational costs, and contribute to sustainability goals.
• Cost Savings: Low voltage electric drives offer cost-saving benefits by optimizing motor performance. By controlling motor speed and torque, these drives prevent excessive energy consumption, reduce maintenance costs, and extend the lifespan of motors and equipment.
• Increasing Industrialization: The rapid industrialization across various sectors, such as manufacturing, oil and gas, mining, and utilities, drives the demand for low voltage electric drives. As industries expand and modernize their operations, the need for efficient motor control and automation grows, leading to increased adoption of low voltage electric drives.
• Government Regulations and Energy Standards: Government regulations promoting energy efficiency and the use of energy-saving technologies in industries drive the adoption of low voltage electric drives. Many countries have established energy efficiency standards and programs that incentivize the use of efficient motor control systems, contributing to market growth.
• Technological Advancements: Continuous advancements in low voltage electric drive technologies, such as improved efficiency, compact size, enhanced control features, and integration with digital platforms, drive market growth. These advancements provide customers with more options and improved capabilities for motor control and automation.
• Growing Renewable Energy Sector: The increasing integration of renewable energy sources, such as wind and solar power, into the electricity grid requires efficient motor control systems. Low voltage electric drives play a crucial role in controlling the speed and power output of renewable energy generators, contributing to the growth of the market.

Market Insights:

Market Analysis by Control Method:

The global low voltage electric drives market is bifurcated into voltage range, control method, end-use industry, and geography. On the basis of control method, the market is further segmented into AC drives, DC drives, and servo drives. The AC drives segment dominated the global market in 2022 and estimated to grow at the same trend over the forecast period. AC drives offer energy-saving benefits by adjusting motor speed to match the load requirements. By reducing motor speed when less power is needed, AC drives help minimize energy consumption and optimize efficiency. This energy efficiency feature aligns with sustainability goals and cost-saving initiatives in industries. Furthermore, AC drives are available in a wide range of power ratings, from small-scale applications to high-power industrial processes. This versatility allows AC drives to cater to diverse motor control requirements across different industries and applications.

AC Drives: AC drives, also known as variable frequency drives (VFDs) or inverters, are widely used in the low voltage electric drives market. AC drives control the speed and torque of AC induction motors by varying the frequency and voltage of the electrical supply. They offer efficient motor control, energy savings, and are suitable for a wide range of applications across various industries.

DC Drives: Although the use of DC drives has decreased with the advancement of AC drive technology, they still find application in specific industries and applications. DC drives control the speed and torque of DC motors by regulating the voltage and current supplied to the motor. They are known for their precise speed control and high starting torque, making them suitable for applications requiring rapid acceleration and deceleration.

Servo Drives: Servo drives are used for precise and high-performance motion control applications. They control the position, speed, and torque of servo motors with high accuracy and responsiveness. Servo drives provide precise positioning, rapid acceleration, and smooth motion control, making them ideal for applications that require high precision and dynamic performance, such as robotics, CNC machines, and automation systems.

Market Analysis by Application:

On the basis of application, the global low voltage electric drives market is further segmented into automotive, oil and gas, energy and power, manufacturing, chemicals and petrochemicals, water and wastewater, and others. The growth of the automotive low-voltage drive market is fueled by multiple factors. Firstly, the expansion of automotive production capacity, particularly in emerging nations, and the rising energy consumption in new manufacturing facilities contribute to market growth. Additionally, the increasing acceptance of electric vehicles among end-users and the focus on vehicle safety drive the adoption of low-voltage drives in the automotive sector. Moreover, government initiatives promoting e-mobility and the ability of low-voltage drives to withstand tough conditions and high shock loads further enhance market penetration. Volabo, an Ansys Startup Program member, offers a unique solution with its low-voltage electric drive operating at 48 volts, ensuring electrical safety. Their intelligent stator cage drives (ISCAD) system replaces expensive copper winding with cost-effective aluminum bars, simplifying manufacturing processes.

Automotive: The automotive industry utilizes low voltage electrical drives in manufacturing processes for applications such as assembly lines, conveyor systems, and robotic systems. These drives provide precise control, energy efficiency, and flexibility in automotive manufacturing operations.

Oil and Gas: The oil and gas industry relies on low voltage electrical drives for various applications, including pumps, compressors, and fans. These drives help control the speed and torque of motors, improving operational efficiency, reducing energy consumption, and ensuring reliable performance in demanding oil and gas operations.

Energy and Power: The energy and power sector employs low voltage electrical drives for applications in power generation, transmission, and distribution systems. These drives are used in pumps, fans, and other motor-driven equipment to optimize energy usage, enhance grid stability, and improve overall power system performance.

Manufacturing: Low voltage electrical drives find extensive use in general manufacturing industries, such as consumer goods, electronics, machinery, and more. They are utilized in various processes, including conveyor systems, packaging machines, and material handling equipment, to enhance productivity, control motor speed, and improve efficiency.

Chemicals and Petrochemicals: The chemicals and petrochemicals industry utilizes low voltage electrical drives in pumps, mixers, agitators, and other motor-driven equipment. These drives provide precise control and enable efficient operation, ensuring accurate dosing, blending, and process optimization in chemical manufacturing.

Mining and Metals: Low voltage electrical drives are employed in mining and metals applications for equipment such as crushers, conveyors, mills, and hoists. These drives help control motor speed, enhance process efficiency, and ensure safe and reliable operations in challenging mining and metals environments.

Food and Beverage: The food and beverage industry uses low voltage electrical drives in various applications, including pumps, mixers, and conveyor systems. These drives enable precise control, optimize energy consumption, and ensure hygienic and efficient processes in food and beverage manufacturing.

Water and Wastewater: Low voltage electrical drives play a crucial role in water and wastewater treatment processes, controlling the speed and efficiency of pumps, blowers, and other equipment. These drives help optimize energy usage, improve system performance, and ensure reliable water and wastewater management.

Others: The “Others” category encompasses other industries and sectors that utilize low voltage electrical drives, such as pulp and paper, pharmaceuticals, building automation, and more.

The low voltage electric drives market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Voltage Range:

• Less than 1 kV
• 1 kV to 5 kV
• 5 kV to 10 kV

By Control Method:

• AC Drives
• DC Drives
• Servo Drives

By End-Use Industry:

• Automotive
• Oil and Gas
• Energy and Power
• Manufacturing
• Chemicals and Petrochemicals
• Mining and Metals
• Food and Beverage
• Water and Wastewater
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

On the basis of region, the Asia Pacific is estimated as dominant region in the low voltage electrical drives market. This region is experiencing rapid industrialization, infrastructure development, and urbanization, driving the demand for low voltage electrical drives across various industries. Countries like China, India, Japan, and South Korea have significant manufacturing sectors and emerging economies, resulting in increased adoption of low voltage electrical drives for industrial automation and motor control applications. The presence of major automotive manufacturers and electronic industries in this region further contributes to its dominance in the market.

Competitive Assessment:

Some of the major market players operating in the global low voltage electric drives market are ABB Ltd., Siemens AG, Schneider Electric SE, Rockwell Automation, Inc., and Danfoss A/S. Companies are exploring markets through expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. For instance:

• In March 2022, Harju Elekter UAB and U.S. Steel Corporation (Exploratory Ventures LLC) entered into a contract to manufacture low voltage drives and MCC (Motor Control Center) systems for the management of 1500 motors at the new Big River Steel complex in Arkansas. The production and delivery of these systems will take place until April 2023. The value of the contract is estimated to be around EUR 10 million.
• Rockwell Automation and Comau announced a collaboration in 2021 to develop new automation solutions for the automotive industry. This collaboration aims to integrate Rockwell Automation’s control systems with Comau’s robotic technologies to enhance automotive manufacturing processes.
• ABB and IBM announced a collaboration to develop artificial intelligence (AI)-based solutions for industrial automation in 2021. The collaboration aims to combine ABB’s domain expertise in automation with IBM’s AI capabilities to deliver advanced solutions for optimizing industrial operations.
• Schneider Electric and Danfoss announced a partnership in 2021 to develop and market new digital solutions for energy management in buildings. This collaboration aims to combine Schneider Electric’s expertise in building automation and energy management with Danfoss’ technologies to provide more sustainable and energy-efficient solutions for building owners and operators.
• ABB launched its new low voltage drive, ACS480, in 2021. The drive is designed for a wide range of industrial applications and offers advanced motor control, energy efficiency features, and flexible connectivity options.

Key Companies:

• ABB Ltd.
• Siemens AG
• Schneider Electric SE
• Rockwell Automation, Inc.
• Danfoss A/S
• Mitsubishi Electric Corporation
• Fuji Electric Co., Ltd.
• Yaskawa Electric Corporation
• WEG Industries
• Eaton Corporation plc

Key Questions Answered by Low Voltage Electric Drives Market Report

• Global low voltage electric drives market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Low voltage electric drives submarket forecasts from 2023-2030 covering the market by voltage range, control method, end-use industry, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level low voltage electric drives markets from 2023-2030
• Competitive Landscape and market positioning of top 10 players operating in the market