The global AC drives market size reached USD 26.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 41.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.3% during 2025-2033. Increasing demand for energy-efficient solutions, rapid industrialization and urbanization in emerging economies, the growth of renewable energy sectors, advancements in the Internet of Things (IoT) and Industry 4.0, stringent government regulations, technological innovations, and the need for precise motor control in various applications further stimulate market expansion.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024
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USD 26.3 Billion |
Market Forecast in 2033
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USD 41.8 Billion |
Market Growth Rate 2025-2033 | 5.3% |
Increasing Demand for Energy-Efficient Solutions
The rising demand for energy-saving products has been a major driver of the global market in AC drives. Escalating concerns about operational costs and carbon footprint is another factor supporting the AC drives market outlook. AC drives are an integral part of precise control of motor speeds, with the result that they make it feasible for motors to run at any given speed while still using little energy. They not only adjust the speed of electric motor with variable torque to cut power consumption, but also enhance the overall efficiency of machinery and equipment, which is further boosting the market. As a result, it is witnessing huge demand across the manufacturing, mining, petrochemicals, and oil and gas industries.
Rapid Industrialization and Urbanization in Emerging Economies
The swift industrial development and urbanization in emerging economies represents one of the key AC drives market dynamics, which has considerably surged the product demand. Asia, Africa, and Latin America are witnessing an upsurge in both industrial as well as urban development, which is pushing the demand for equipment on site that can manage both high-powered mechanical operation and control processes themselves, which is further creating a positive environment for the market growth. AC drives have an impact on modernization of industrial processes as they enable precision control over motor operation and help increase productivity and efficiency. Moreover, as these countries move towards a future of computer-controlled processes, the demand for energy efficient, high performance ac drives is projected to witness an upsurge, which is further increasing the AC drives market revenue.
Growth of Renewable Energy Sectors
The growing dependence on renewable energy such as wind power and solar power has considerably burned the demand for AC drives. In renewable energy systems AC drives are essential for use as speed control components for generators and motors, which is further creating positive opportunities for the market. They help improve performance and help with power savings. In wind power generation, AC drives act to control the rotor speed so as not only maximize energy yield but also ensure smooth operation under various wind conditions. Apart from this, the integration of AC drives in renewable energy installations also contributes to grid stability and reliability, which are critical as the share of intermittent renewable energy sources in the energy mix increases, which is fostering a positive AC drives industry outlook.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on the power rating, voltage, application, and end-use.
Breakup by Power Rating:
Low power drives (<40 kW) accounts for the majority of the market share
The AC drives industry report has provided a detailed breakup and analysis of the market based on the power rating. This includes low power drives (<40 kw), medium power drives (41 kw - 200 kw), and high power drives (>200 kw). According to the report, low power drives (<40 kW) represented the largest segment.
The low power drives (<40 kW) segment is driven by the increasing demand for energy efficiency across various industries. Businesses are focusing on reducing operational costs and minimizing their carbon footprint by adopting technologies that enhance energy conservation. Low power drives enable precise control of motor speeds, which leads to significant energy savings and improved operational efficiency. These drives are particularly beneficial for applications involving pumps, fans, and compressors, where energy consumption can be optimized by adjusting motor speed according to demand. Additionally, the growing awareness of environmental sustainability and the implementation of stringent energy efficiency regulations by governments worldwide are encouraging the adoption of low power drives. Industries are also motivated by financial incentives and rebates offered for using energy-efficient technologies.
Breakup by Voltage:
Low-voltage accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the voltage. This includes low voltage and medium voltage. According to the report, low-voltage represented the largest segment.
The low-voltage AC drives segment is driven by the increasing demand for energy efficiency across various industries. As companies aim to reduce energy consumption and lower operational costs, low-voltage AC drives offer a solution by providing precise control over motor speeds and torque. This results in significant energy savings and improved efficiency in motor-driven systems. These drives are particularly valuable in applications such as HVAC systems, pumps, fans, and conveyor belts, where varying the motor speed can lead to optimized performance and reduced power usage. Furthermore, the global push for sustainability and the implementation of stricter energy efficiency regulations by governments encourage industries to adopt energy-saving technologies like low-voltage AC drives. Additionally, advancements in drive technology, including enhanced digital control and integration capabilities, make low-voltage AC drives even more effective in achieving energy efficiency. As energy costs continue to rise and environmental concerns become more prominent, the adoption of low-voltage AC drives is expected to increase, driven by their ability to deliver substantial energy savings and contribute to greener industrial operations.
Breakup by Application:
Pumps accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the application. This includes pumps, fans, compressor, conveyors, extruders, and others. According to the report, pumps represented the largest segment.
The industrial pumps segment is driven by the increasing need for efficient and reliable fluid handling solutions across various industries such as oil and gas, chemicals, power generation, and water and wastewater treatment. As industries expand and modernize, the demand for pumps that can handle a wide range of fluids under different conditions intensifies. The emphasis on energy efficiency and sustainability also propels the adoption of advanced pump technologies that minimize energy consumption and operational costs. Furthermore, the rise of automation and Industry 4.0 technologies necessitates pumps that can integrate seamlessly with smart manufacturing systems, providing real-time monitoring and control. Regulatory pressures to reduce emissions and manage water resources more effectively drive investments in advanced pumping solutions that comply with environmental standards. Additionally, the replacement of aging infrastructure in developed regions and the rapid industrialization in emerging markets create substantial growth opportunities for the industrial pumps segment.
Breakup by End-Use:
Power accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the end-use. This includes food and beverage, water and wastewater, HVAC, oil and gas, power, metal processing, chemicals, and others. According to the report, power represented the largest segment.
The power segment is driven by the increasing adoption of renewable energy sources. As the global focus shifts towards sustainable and environmentally friendly energy solutions, there is a significant rise in the deployment of solar, wind, and hydropower systems. These renewable energy sources require advanced technologies to efficiently convert, manage, and distribute the generated power. For instance, solar power systems rely on inverters and controllers to convert direct current (DC) to alternating current (AC), ensuring compatibility with the grid. Similarly, wind turbines use sophisticated control systems to optimize blade angles and generator speed, maximizing energy capture. Governments worldwide are implementing policies and providing incentives to promote the use of renewables, further accelerating their adoption. Additionally, technological advancements in energy storage, such as battery systems, complement renewable energy sources by addressing intermittency issues and enhancing grid stability. The integration of smart grid technologies also plays a crucial role in managing and distributing renewable energy efficiently.
Breakup by Region:
APAC leads the market, accounting for the largest AC drives market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. According to the report, APAC accounted for the largest market share.
The APAC region is driven by the increasing demand for energy-efficient solutions, which is a key factor propelling the AC drives market. As industries across Asia Pacific strive to lower operational costs and reduce their environmental impact, the adoption of AC drives is becoming essential. These drives enable precise control over motor speeds, leading to significant energy savings and enhanced operational efficiency. The push for energy efficiency is particularly strong in countries like China, India, and Japan, where industrial activity is high, and energy consumption is substantial. Governments in these countries are implementing stringent regulations and offering incentives to promote energy-efficient technologies, further encouraging the adoption of AC drives. Moreover, the rising awareness about sustainability and the need to cut down greenhouse gas emissions are prompting industries to invest in advanced motor control solutions. The emphasis on green manufacturing practices and the integration of smart technologies in industrial processes also contribute to the growing demand for AC drives in the APAC region.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Power Ratings Covered | Low Power Drives (<40 kW), Medium Power Drives (41 kW - 200 kW), High Power Drives (>200 kW) |
Voltages Covered | Low Voltage, Medium Voltage |
Applications Covered | Pumps, Fans, Compressor, Conveyors, Extruders, Others |
End-Uses Covered | Food and Beverage, Water and Wastewater, HVAC, Oil and Gas, Power, Metal Processing, Chemicals, Others |
Regions Covered | Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Companies Covered | ABB Ltd, Danfoss Group, Schneider Electric Se, Siemens AG, Mitsubishi Electrical Corporation, Fuji Electric Co. Ltd., Emerson Electric Co., Hitachi Ltd, Parker Hannifin Corporation, Rockwell Automation, Inc., Toshiba International Corporation, WEG SA, Yaskawa Electric Corporation, etc. |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
The global AC drives market was valued at USD 26.3 Billion in 2024.
We expect the global AC drives market to exhibit a CAGR of 5.3% during 2025-2033.
The rising adoption of energy-efficient products, such as AC drives, to reduce power loss and enhance the energy efficiency of motors is primarily driving the global AC drives market.
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations, resulting in the temporary closure of numerous end-use industries for AC drives.
Based on the power rating, the global AC drives market has been divided into low power drives (<40 kW), medium power drives (41 kW - 200 kW), and high power drives (>200 kW). Currently, low power drives (<40 kW) exhibit a clear dominance in the market.
Based on the voltage, the global AC drives market can be categorized into low voltage and medium voltage, where low voltage currently holds the majority of the total market share.
Based on the application, the global AC drives market has been segmented into pumps, fans, compressor, conveyors, extruders, and others. Currently, pumps account for the largest market share.
Based on the end-use, the global AC drives market can be bifurcated into food and beverage, water and wastewater, HVAC, oil and gas, power, metal processing, chemicals, and others. Among these, the power sector exhibits a clear dominance in the market.
On a regional level, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where Asia Pacific currently dominates the global market.
Some of the major players in the global AC drives market include ABB Ltd, Danfoss Group, Schneider Electric Se, Siemens AG. Mitsubishi Electrical Corporation, Fuji Electric Co. Ltd., Emerson Electric Co., Hitachi Ltd, Parker Hannifin Corporation, Rockwell Automation,Inc., Toshiba International Corporation, WEG SA, Yaskawa Electric Corporation, etc.