July 24, 2024
VARIABLE FREQUENCY DRIVE MARKET

North America Variable Frequency Drive Market Is Driven By Growth In Oil And Gas Sector

Variable frequency drives are used to control the speed and torque of electric motors based on the load. They are used for controlling pumps, fans, and compressors in various industries including oil and gas, mining, food processing, metal processing, and others. VFDs help save energy by preventing motors from drawing more power than needed through constant speed control. The growth of end use industries such as oil and gas, mining, food processing is driving the demand for VFDs in North America. Increasing oil and gas exploration and production activities to meet the rising energy demand in the region is a major factor boosting the North America variable frequency drive market.

The global North America Variable Frequency Drive Market is estimated to be valued at Us$ 6285.02 Mn in 2023 and is expected to exhibit a CAGR Of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Growth of end use industries such as oil and gas, mining, food processing is driving the demand for VFDs in North America. Increasing oil and gas exploration and production activities to meet the rising energy demand in countries such as US and Canada is boosting sales of VFDs. Population growth and urbanization are fueling demand for electricity which is propelling investments in power infrastructure development. This is positively impacting the North America variable frequency drive market. Manufacturers are developing advanced and customized VFD solutions to meet specific application requirements of industries such as oil and gas, mining etc. They are also offering integration services and technical support to gain market share.

 

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as there exists economies of scale in production and distribution and threat from established players. However, scope for product differentiation exists.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many existing players and availability of substitutes. Buyers can negotiate on price.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of component suppliers. Component suppliers do not have pricing power over buyers.

Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes that can fulfill the functionality of a variable frequency drive at a competitive cost.
Competitive rivalry: The competitive rivalry is high among existing players due to presence of many firms operating at international and regional levels.

Key Takeaways

The Global North America Variable Frequency Drive Market Demand is expected to witness high growth over the forecast period supported by rise in industrialization and automation across major industries.

Regional analysis:

 

The US market holds the largest share in the North America variable frequency drive due to rise in manufacturing output across industries such as oil & gas, mining, and automotive. The growing number of industrial and manufacturing facilities also augments the demand in the country.

Key players:

 

Key players operating in the North America variable frequency drive market are Randmark Dental Products, LLC., S4S (UK) Limited, DentCare Dental Lab Pvt.Ltd., Glidewell, Burbank Dental Lab, Brux Night Guard, CUSTMBITE, DDS Lab, Watersedge Dental Laboratory Inc., Orofacial Therapeutics, LP., PFL Healthcare Limited, Keystone Industries, Artistic Dental Laboratories, Inc., Iverson Dental Laboratories, National Dentex Labs (NDX), BonaDent Dental Laboratories, Procter & Gamble. The market is concentrated in nature with top players accounting for majority market share. The market players are involved in mergers, acquisitions and strategic collaborations for technology advancement and new product launches.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it