Global Electric Drives Market Worth USD 35.39 Billion With a CAGR of 4.42%

Introduction

The electrical drive is the system that controls the motion of an electrical machine. In other words, an electrical drive is a drive that employs an electric motor. The electrical drive uses diesel or gasoline engines, gas or steam turbines, steam engines, hydraulic motors, and electric motors as its principal movers. This prime mover gives the motor the mechanical energy necessary for motion control. Electrical drives are comprised of the power modulator, the motor, the controlling unit, and the sensing units.

Market Dynamics

Increasing Adoption of Automation Drives the Global Market

As the need for optimized and adaptable products to meet expanding customer demand reaches an all-time high, the global market for electric drives continues to expand. This development is evident in both highly developed markets and emerging nations as businesses attempt to abandon obsolete technology and automate their factories and plants. Businesses are utilizing the "digital factory paradigm," which offers a clear competitive advantage as traditional IT concepts and industrial technologies converge. The production model is shifting toward digitalization in all industries and across the globe, and an increasing number of businesses are adapting to this shift. Industrial automation has increased product demand, which is anticipated to increase the demand for electric drives.

Future Potential for Integrated Motor Drive (IMD) Creates Tremendous Opportunities

Integrated motor drive (IMD) incorporates an electric motor and power electronics in the same physical structure. Several costly components, such as shielded connection cables, a distinct housing for the inverter, a centralized controller cabinet, and a high-voltage current bus used in the electric drive system, are eliminated to form the IMD. This results in a 10%–20% improvement in power density and a 30%–40% reduction in installation and manufacturing costs relative to the total system cost.

With the adoption of IMDs, system efficiency enhancements are inevitable, resulting in lower life-cycle energy costs and savings that exceed the IMD's price premium. In addition, the ability to provide adjustable-speed motor drives in a single assembly as opposed to two housings with interconnecting wire harnesses is attractive to original equipment manufacturers (OEMs) of products such as automobiles and home appliances, who can simplify their manufacturing process by incorporating IMDs. Such attractive benefits will create opportunities for the market for electric drives.

Regional Analysis

Asia-Pacific is the most significant global electric drives market shareholder and is anticipated to exhibit a CAGR of 5.27% during the forecast period. Due to the presence of leading manufacturing firms, a swiftly expanding industrial sector, and significant developments in emerging countries, Asia-Pacific dominates the global electric drives market as a result of the continued adoption of industrial automation in several Asia-Pacific nations, manufacturing, construction, electricity generation, and mining are gaining prominence. In addition, the urbanization and industrialization of developing nations such as India, China, and Southeast Asian nations are fueling the demand for automobiles. This is bolstering the automotive industry's demand for electric drives. Moreover, the investments and expansions of several vendors in emerging Asia-Pacific nations are crucial strategies. Therefore, sales of electric drives will increase in the region during the forecast period.

Europe is estimated to exhibit a CAGR of 3.87% over the forecast period. Strict government regulations and energy conservation are primarily responsible for the second-highest demand for electric drives. Europe is the leading importer of industrial motors, and over a third of the motors sold in Europe are imported. This indicates that despite a decline in regional motor production, there is still a substantial demand from industries. In addition, electric actuators are typically sold in tandem with motors. Electric vehicles are in high need due to the region's strict regulations. The European electric drives market is expected to grow slowly over the next few years, despite the region's large current share of the global market. This results from European industries reaching maturity and investments transferring to emerging nations due to low labor costs and increased raw material availability.

Key Highlights

• The global electric drives market was valued at USD 98 billion in 2022. It is estimated to reach USD 35.39 billion by 2031, growing at a CAGR of 4.42% during the forecast period (2023–2031).
• Based on product type, the global electric drive market is bifurcated into AC and DC drives. The AC drives segment dominates the global market and is projected to exhibit a CAGR of 4.68% over the forecast period.
• Based on sales channels, the global electric drives market is divided into indirect and direct sales channels. The direct sales channel segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 4.75% over the forecast period.
• Based on voltage, the global electric drive market is divided into medium and low-voltage electric drives. The low-voltage electric drive segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.75% over the forecast period.
• Based on end-user, the global electric drives market is segmented into F&B, metal and mining, chemicals, oil and gas, power generation, packaging, cement, textile, water and wastewater, paper and pulp, rubber and plastic, forestry and woodwork, and others. The metal and mining segment owns the highest market share and is estimated to exhibit a CAGR of 4.94% during the forecast period.
• Asia-Pacific is the most significant global electric drives market shareholder and is anticipated to exhibit a CAGR of 5.27% during the forecast period.

Competitive Players

1. ABB Ltd.
2. Siemens AG
3. Schneider Electric SE
4. Rockwell Automation Inc.
5. Baldor Electric Company
6. Nidec Corporation
7. Yaskawa Electric Corporation
8. Danfoss A/S
9. WEG S.A.
10. Crompton Greaves Limited

Recent Developments

• May 2024- Vitesco Technologies' electric drive system was selected for use in the Honda CR-V Plug-in FCEV. This collaboration highlights the growing adoption of electric drives in the automotive industry, contributing to the growth of the Global Electric Drives Market.
• May 2024- Ex-Tesla member, Faradion partnered with Indian EV maker Ola Electric to produce 98.5% efficient e-motors. This collaboration highlights the growing demand for high-efficiency electric drives in the Global Electric Drives Market, driven by the increasing adoption of electric vehicles and the need for sustainable energy solutions.

Segmentation

1. By Product Type
   1. AC 
   2. DC 
2. By Sales Channel
   1. Direct 
   2. Indirect
3. By Voltage
   1. Low
   2. Medium
4. By App
   1. F&B
   2. Metal and Mining 
   3. Chemicals
   4. Oil and Gas
   5. Power Generation
   6. Packaging
   7. Cement
   8. Textile 
   9. Water and Wastewater
   10. Paper and Pulp
   11. Rubber and Plastic
   12. Forestry and Woodwork
   13. Others