Accumulative electricity charges and surging demand for electricity across the world impacts burgeoning demand of the energy-efficient frequency converters. A socio-economic rise in the developed economies and upgradation of infrastructure in the industrial sectors are key factors influencing the high electricity consumptions. According to the U.S. Energy Information Administration (EIA), electricity consumption in the U.S. was about 3.95 trillion kWh in 2018. Also, capricious electrical standards of main electricity around the globe is a key factor driving the growth of the global frequency converter market. Frequency converters can minimize electrical and mechanical stress released during the operation of the equipment, which, in turn, reduces the energy usage of devices. The global Frequency Converter Market was valued at $19.4 billion in 2018, and is anticipated to grow with a CAGR of 8.9% throughout the forecast period 2019-2025.
A rise in demand for Frequency Converters in the industrial sector
The demand for economical devices in industries to enhance performance is another lucrative factor augmenting the growth of the market. Usage of frequency converters in power generation plants is a factor anticipated to grow the market globally. Most of the power generation plants use non-renewable fuels, and therefore, the importance of energy efficiency has gained substantial ground over time. The European Union revised its renewable energy directive in December 2018 and implemented the amended policies with a clearer vision of European countries fulfilling at least 20% of their total energy needs with the assistance of renewable energy sources by the end of 2020. Saving energy and optimizing energy consumption are major growth factors of the frequency converters industry. Depending on application, the maximum amount of energy savings are possible with pump, fan, and compressor drives. Frequency converters are most commonly used to control the speed of engines, and pumps. A rise in import and export accomplishments for manufactured goods, around the world are predicted to boost the magnification of frequency converters in the process industry. In the manufacturing companies, the electrical machinery is operated on varied power frequencies with the help of frequency converters. Low maintenance costs of devices and controlled speeds are additional features of the frequency converters that are leading to high adoption.
Economies from developed regions are spending more on modernization of infrastructures, such as airports and manufacturing & production amenities. The electric devices and equipment used in these industries require precise current frequency to run efficiently. Static frequency converters have a wide range of applications in the industries, as they are compact and require less installation price.
Surging Frequency Converter Market in Europe
Europe held the largest market share in the frequency converter market, with a 37.2% share of the global demand in 2018. The frequency converter market is gaining high revenue, due to increase in usage of technologically advanced devices and utilization of high-speed rails. Countries such as the U.K., Germany, and Italy are leading the market, owing to remarkable growth in the industrial sector.
The application segments that will be creating the most lucrative opportunities in the frequency converters market are aerospace and defense sector. These segments are collectively projected to grow at a CAGR of 9.52%, over the forecast period. Often aircraft utilize 400 Hz power, so a 50 Hz or 60 Hz to 400 Hz frequency converters are essential for use in ground control unit used to control the plane, while it is on the ground. Airlines utilize the frequency converters to offer in-air wall power to passengers for use with laptops. The rise in utilization of frequency converters in the aerospace sector triggers the growth of the market globally.
Frequency Converter Market Growth Drivers
· Demand for frequency converters is expected to rise, due to automation of the automotive industry. The ongoing R&D of autonomous vehicles entail frequency converters, leading to rise in its demand. Hybrid vehicles are equipped with frequency converters to manage the transmission of alternating current, which, in turn, increases the market for frequency converters.
· A rise in usage of converters in the atomic and weapons industry, where the control precision requirements are on bar high. The devices or the gadgets which are used in this industry control the operation of refinement axes.
· Increase in tendency for offshore wind electricity generation is getting momentum by using frequency converters across the world.
· For converting bulk alternative currents from one frequency to another, when two alternative electric grids operate at different utility frequencies in that scenario frequency changers are used across the energy sector.
The major players in the frequency converters Market
The prominent players in the frequency converters market include ABB Ltd. (Switzerland), Aplab Ltd. (India), Danfoss A/S (Denmark), General Electric Company (U.S.), Magnus Power (U.K.), Power System & Control (Virginia), Piller GmbH (Germany), Siemens AG (Germany), and Sinepower (Portugal). These companies are continuously focusing on R&D investments, mergers and acquisitions, and partnership strategies to gain ground in the global market.
Promising Mergers & Acquisitions
Mergers and acquisitions are other key strategies adopted by players to stay ahead of their competitors.
· On Jan 22, 2019, Danfoss A/S, a Denmark based power solutions company announced an acquisition with the U.S. based UAM Technologies, a leader in the alternative energy solutions.
· ABB Ltd., a Switzerland based company, a leader in electrification products, and industrial automation and power grids announced a merger with GE Industrial Solutions.
Such joint ventures aid the market players to expand their geographical boundaries and accentuate their footprint into the frequency converter market.
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