U.S Industrial VFD Market is set to rise from $3.2 Billion by 2027 growing at 5.6% CAGR through 2027. Energy-efficiency –related regulations and standards are gradually being intensified across the United States. For Instance: As per the IEC 61800-9 series of standards , improving energy efficiency is supported by a systematic selection of the most efficient converter and drive system technologies. Part 1 of the directive specified the methodology to determine the energy efficiency index of an application on the basis of the expanded product approach and semi-analytical models, whereas the part 2 entails indicators for the evaluation of the energy efficiency performance and classification of converters and drive systems. The considerations of eight application-relevant operating points is introduced as mandatory , in order to take the different applications into account in a targeted manner. Determination of loss values at these eight points and definition of efficiency classes are laid down by the standard in a uniform way. This enables data relevant to operations such as application-specific load profiles, to now be taken into account more easily in the energy efficiency analysis.

Also, Use of VFDs, while inferred as a potential compliance path in the IECC, still are not specifically mandated as the sole means for code compliance. The specific omission of a VFD requirement is somewhat odd when we consider the typical variable speed applications, VFDs dominate. Systems where VFDs are more or less the de facto means of code compliance include VAV fan systems in complex multi-zone systems, variable speed control for fan motors greater than 7.5 hp, and achieving stringent integrated part load value (IPLV) values for chillers. When trying to satisfy the code’s variable speed drive requirements, there are alternative to VFDs such as 2-speed motors, gearbox-motor combinations, and adjustable inlet guide vanes, but these are exceedingly rare in new construction due to their lower efficiency and greater complexity. The omission of a VFD-only requirement in the energy code could be partially attributed to the fact that until recently, there have not been industrywide accepted test standards for VFDs. Further, the rising application of AC VFDs in industrial sector requires huge amount energy. Reducing unnecessary energy consumption is the most effective and direct way to improve building energy efficiency. The growing advancement in electronic and control technology greatly improves the performance of variable speed drives. Variable frequency drives are being used in the industrial applications more frequently as it can modulate the motor speed very smoothly within a wide range which provides a significant reduction in motor power. As a result, the need for AC industrial VFD would rise in United States.

VFDs are expensive than direct on-line or across the line motor starter. Therefore, the initial cost for the installation of VFDs is fairy high which would influence the growth of the market.  Cost is often the deciding factor when choosing where and how to install  AC variable frequency drives (VFDs). However, putting cost ahead of key decisions regarding installing a drive, can lead to a higher cost of ownership. It also can increase the likelihood of unscheduled shutdowns and create potential safety issues.  Heat is the greatest enemy of VFD reliability. If it is not effectively managed, heat can build up in the "junction layers" of the drive’s power transistors. This can cause the layers to fuse or melt. Overheating also can compromise a VFD’s intelligent power module. And it can impact the hundreds of smaller discrete components and subassemblies that all work together in the drive. Installing a VFD in a motor control center (MCC) assembly is a desirable option from an environmental perspective. UL-845: Motor Control Centers assembly requirements and test procedures address heat management for the entire MCC lineup. This means the MCC manufacturer is required to certify that the VFD will not be harmed by being in the MCC, nor will the heat produced by the VFD compromise other equipment in the MCC. However, it is important to remember that proper thermal management and UL-845 listing of the assembly can only be done by MCC manufacturers. Panel builders, even those certified under UL-508a, cannot add VFDs into an MCC and maintain its UL-845 listing. If one unit in an MCC is not UL-845 listed, the listing of the entire MCC lineup is void. Housing a VFD in an industrial control panel (ICP) rather than in an MCC assembly puts the heat-management burden on the end user. Upfront costs, such as and maintenance and are expensive for a critical infrastructure organization to deploy owing to which organizations are reluctant to adopt AC Industrial VFDs in their environment due to the high costs of installation and maintenance of these drives.

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US Industrial VFD Market Growth Drivers:

Adoption of IIoT Solutions

The variable frequency drive market in the United States is expanding rapidly as a result of increased adoption of technologies such as the Industrial Internet of Things (IIOT). Due to social distancing norms imposed by various government bodies during the COVID-19 pandemic, manufacturing and process operations firms saw the need for remote operations of various power control and electrical systems. The Internet of Things (IoT) has revolutionised the industrial sector by improving industrial processes through the use of smart machines, inventory systems, and production machinery. It has also increased the use of automated equipment, such as variable frequency drives, which can be connected to the internet and monitored and controlled remotely as needed. This enables customers to run their businesses more efficiently and effectively. Furthermore, it gives machine builders the flexibility they need to accommodate end-user requirements. Controlling interfaces such as communication field buses, pulse trains, and digital or analogue I/O modules is part of this. Variable frequency drives that support web services enable machine builders to analyse and improve their applications as well as perform diagnostics locally or remotely. This enables them to implement fixes while testing and avoid unexpected downtime in the future, thereby providing growth opportunities for the variable frequency drives market.

Remote technicians will be able to control the frequency. Real-time monitoring, visual control, and predictive maintenance will be implemented. When the chances of equipment failure are high, the system can predict the need for drive maintenance. These features are expected to boost operational efficiency, mass customization, remote diagnostics, and other areas. In the forecast period, these factors are expected to open up new avenues of opportunity for the US variable frequency drive market. Furthermore, various companies are investing heavily in advanced product research and development, with researchers working on next-generation drives such as regenerative energy drives, hybrid safety drives, and others. Emerson, launched the Copeland VFD product line, which is available in two series, in May 2021. The Copeland EVM VFD series is designed for chillers, medical refrigeration, display cases, walk-ins, and reach-ins, as well as other applications requiring less control functionality. During the study period, such developments are expected to lead to product innovations and drive the market.

The Major Players in this Market Include

Major players in Heating Equipment Market include ABB, Siemens, Schneider, Yaskawa, Rockwell, Honeywell and G.E among others. In April 2020, ABB Ltd launched a series of variable frequency drives that will increase the performance of smart buildings and enable users to meet more stringent energy efficiency regulations. ACH580 VFDs are integrated with ABB ability monitoring services which provides real-time data about drive status and performance from any location.

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