Frequency Converter Market Size to Reach Revenues of over USD 25 Billion by 2026 - Arizton

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Mar 17, 2021, 09:00 ET

CHICAGO, March 17, 2021 /PRNewswire/ -- In-depth analysis and data-driven insights on the impact of COVID-19 included in this global frequency converter market report.

The global frequency converter market is expected to grow at a CAGR of approximately 5% during the period 2020−2021.

Key Highlights Offered in the Report:

Regions such as APAC and Europe are expected to be the major demand generators in the market, followed by North America. However, the Middle East and Latin America regions are anticipated to create opportunities with industrial developments in the F&B, oil and gas, and other industries.
The market is highly fragmented with various vendors that operate and sell frequency converters across the globe. There is intense competition among vendors for market share and the market is characterized by the rapidly changing technological environment that is expected to adversely affect vendors.
The present scenario is driving vendors to change and refine their unique value proposition to achieve a strong market presence and the demand for frequency converters is anticipated to grow due to increased industrial production and replacement of old motors with new energy-efficient motors in industries.
Strict government regulations and pollution reduction initiatives are expected to limit the demand for oil and gas, thereby limiting market development during the forecast period.
A direct sales channel is commonly used in industries where products are sold directly to large end-customers and is expected to generate revenue of around USD 22 billion. In contrast, an indirect sales channel involves selling products to a partner who, in turn, sells them to end-customers and is expected to grow at an estimated revenue of around USD 3 billion. Some vendors within the frequency converter market utilize direct and indirect channels parallelly while some have entirely switched to an indirect sales channel to improve their business.
In terms of end users, vendor margins were affected in Q2 and Q3 2020 and vendors will continue to experience margin pressures as the payment terms are expected to be realigned in the short term. Metal and mining and F&B end user segments have the highest market share in 2020 at around 19% and 12% respectively. Since the industry is dependent on high working capital and characterized by payment delays, the COVID-19 impact in Q2 and Q3 2020 will be high.

Key Offerings:

Market Size & Forecast by Revenue | 2020−2026
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by product type, sales channel, end-user, and geography
Competitive Landscape – 5 key vendors and 15 other vendors

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Frequency Converter Market – Segmentation

Static frequency converters are likely to grow at a CAGR of over 5% due to high-frequency stability and output voltage. These devices deliver the required power under fixed conditions in manufacturing units and commercial applications, which are increasing their demand. These machines have low installation costs, and they do not require any heavy machinery and careful alignment.
Direct sales of frequency converters are expected to reach over $22 billion by 2026. Strategic partnerships between vendors and OEMs and vendors and system integrators reduce operational costs. OEMs and system integrators are key contributors to the overall value chain of the frequency converter market. However, new entrants in the market are expected to rely on indirect sales channels, which, in turn, is expected to decrease the usage of direct sales channels.
The metal & mining industry generated the highest demand for frequency converters owing to the expansion of mining activities in China, Australia, Brazil, India, the US, and the Middle East. Advances in technology strongly support the growth of the industry; however, due to the COVID-19 pandemic, the demand for metals has become highly uncertain.

Frequency Converter Market by Product Type

Static
Rotary

Frequency Converter Market by Sales Channel

Direct
Indirect

Frequency Converter Market by Power Output

5-40 KW
41–200 KW
201–600 KW
>600 KW

Frequency Converter Market by End-user

Food & Beverage
Aerospace & Defense
HVAC
Pharmaceutical
Marine
Metal & Mining
Chemicals
Oil & Gas
Power Generation
Packaging
Cement
Textile
Water & Wastewater
Paper & Pulp
Rubber & Plastic
Forestry & Woodwork
Others

Frequency Converter Market – Dynamics

Frequency converters are located in the nacelle of wind turbines and turbines are connected in series on the output side of the AC/DC converter. Frequency converters consist of an induction machine, a 3-phase AC to single phase AC converter, a high frequency high power transformer, and other components. The manufacturing of frequency converters is dependent on various semi-finished products and the price of raw materials. The expenses also include the cost of cable installation and protection, the cost of converter stations, and losses in converter stations. Renewable power is a low-cost climate and decarbonization solution, aligning short-term economic needs with medium- and long-term sustainable development goals. Renewable power installations form a major element of economic spur packages offered after the outbreak of the COVID-19 pandemic. Therefore, globally, offshore capacities have increased. As a result, the demand for frequency converters in offshore wind power generation is anticipated to increase.

Key Drivers and Trends fueling Market Growth:

Increased Demand from Automotive Industry
Development of High-speed Rails
Increasing Infrastructural Growth in Middle East
Increasing Demand for Water & Wastewater Treatment Plants

Frequency Converter Market – Geography

APAC holds a dominant position in the global frequency converter market due to the presence of leading manufacturing companies, rapidly growing industrial sector, and significant developments in emerging countries. With the continuous adoption of industrial automation in APAC, activities such as manufacturing, construction, power generation, and mining are driving the growth of the frequency converter market in the region. Urbanization and industrialization in emerging countries such as India have increased the demand for vehicles, thereby boosting the demand for frequency converters in the automotive industry. Moreover, investments and expansions by vendors in emerging nations in APAC are key strategies for growth. Hence, the sale of frequency converters is expected to spike during the forecast period.

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Frequency Converter Market by Geography

North America

US
Canada

Europe

UK
Germany
France
Italy
Spain

APAC

China
Japan
South Korea
India
Australia

Latin America

Brazil
Mexico
Chile
Rest of Latin America

Middle East & Africa

Saudi Arabia
Turkey
Rest of Middle East

Major Vendors

ABB
Aplab
Bosch
Danfoss
Siemens

Other Prominent Vendors

Avish Aviation Equipment
Aelco
Avionic Instruments
Georator
Jema
KGS Electronics
Magnus Power
MAK Controls
Nova Electric
NR Electric
Piller
Power System & Control
Sinepower
Sojitech
Westek Electronics

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About Arizton:

Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

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SOURCE Arizton Advisory & Intelligence