Market Overview:

The Global Marine Variable Frequency Drive (VFD) Market Was Valued At USD 767.6 Million By 2022 And USD 1299.2 Million, Is Projected To Grow At A CAGR Of 6.8% During The Forecast Period 2022 To 2030.

A variable frequency drive (VFD) is a type of motor controller that changes the frequency and voltage of an electric motor's power supply to make it run. They are used to control the speed and torque of motors so they can run exactly as needed. The VFD can also control the ramp-up and ramp-down of the motor when it starts up or shuts down. VFDs can be put in a ship's cranes, compressors, fans, pumps, and other motorized systems.

Marine variable frequency drives (VFDs) are cost-effective electrical equipment used to regulate the speed and torque of VFD electric motors. Utilized in a variety of marine applications such as pumps, fans, compressors, propulsion units, cranes and hoists. There are two categories of marine VFDs: AC drives and DC drives. Key advantages of marine VFDs include energy savings combined with speed control, improved efficiency of motor drive units, and ease of installation to provide benefits of network communication, factors that are estimated to supplement the growth of the marine VFD market during the forecast period. no see. Growing demand for energy efficiency and the rise of the shipbuilding industry will further contribute to the growth of the marine VFD market in the future. Prominent manufacturers in developed countries are contracting and contracting to provide marine propulsion services for ships worldwide.

Also, the introduction of IoTs is expected to give market players promising growth opportunities in the near future. But the cost of installing VFDs is pretty high compared to other methods. Because of this, the gray market, which sells low-quality items for cheap, may slow the growth of the Marine VFD Market. Also, more hybrid and all-electric systems are being used in the shipping industry, which is making new opportunities for the Global Marine VFD Market. As seaborne trade has grown, the need for ships to move manufactured goods around the world has also grown. This has helped the Marine VFD Market grow even more.

Market Dynamics:

Market Trends:

• Remote Monitoring in VFDs Creates Opportunities to Increase the Efficiency of Systems

Drives can be hurt by many things outside of them, such as damage from the environment, poor power quality, improper use, and others. This factor can cause a shutdown, which may cause the end user to lose money. Companies are looking for solutions that include remote monitoring so they can keep an eye on these outside factors and keep downtime to a minimum. Ship VFDs must be tracked from a distance in order to figure out how bad they are. End users can also fix minor ship VFD problems remotely, which cuts down on unplanned downtime and improves efficiency. The performance of the marine variable frequency drive can be seen and analyzed by collecting and sending data to the cloud in real time. The drive's past performance is shown in real time through a standard dashboard, trend charts, and reports that are already set up. So, problems can be predicted with more accuracy, which saves a lot of money.

Driving Factors:

• Surge in Demand for Energy-efficient Systems for Maritime Vessels Propels Market Growth

Technology has been changing all the time to make it more efficient. This is because energy efficiency has been one of the most important things for many different industries. For example, the International Energy Agency (IEA) says that about 2% of the world's carbon dioxide (CO2) emissions are caused by the shipping industry. The International Maritime Organization (IMO) has set a goal for ships to become carbon neutral in the next few years. In the short term, energy-efficiency measures and slow steaming are given priority to cut CO2 emissions.

To meet the carbon neutral goal, the International Maritime Organization (IMO) has put in place the Ship Energy Efficiency Management Plan (SEEMP). This plan focuses on energy-efficient criteria for new ships, while the Energy Efficiency Design Index (EEDI) rules mostly focus on making shipping more efficient. Also, the EEDI says it will improve the efficiency of the new marine fleet by 1.5% per year from 2015 to 2025. Multiple regulations and growing concerns about CO2 emissions are giving energy-efficient systems a lot of attention. This, in turn, will increase the demand for variable frequency drives for marine vessels, which help cut energy use by 60%.

• Increased Maritime Trade and Focus on Efficient Ships Operation to Drive Growth

According to the International Chamber of Shipping, about 90% of world trade would not be possible without the international shipping industry. This includes trade between continents, bulk transportation of commodities, and the import and export of affordable food and manufactured goods. As maritime trade continues to grow, freight rates are getting cheaper, which is good for consumers all over the world. Ships are high-tech, high-value assets. High-tech ships can cost more than USD 200 million to build, and freight rates from merchant vessel operations bring in an estimated annual income of over USD 500 billion. Since maritime trade is growing, more ships are needed to move industrial goods around the world. This is expected to continue to fuel the growth of the marine variable frequency drive market.

• Rising Need for Energy Efficient Systems in Ships

In all fields, new technologies are constantly being made to make things run more smoothly. Every industry cares a lot about how well it uses energy. IEA says that the international shipping industry was responsible for 2% of the world's CO2 emissions related to energy in 2019. To reach the International Maritime Organization's goal of carbon neutrality in the second half of the century, we need strategies that are both ambitious and doable. Short-term, the most important thing is to cut down on carbon intensity by doing things like using less energy and steaming slowly. The Energy Efficiency Design Index (EEDI) and the Ship Energy Efficiency Management Plan (SEEMP) are two rules that are now in place to encourage more efficient shipping. The IMO is in charge of both, with the EEDI focusing on how energy-efficient new ships should be and the SEEMP on how energy-efficient ships should run. From 2015 to 2025, the EEDI wants the new global fleet to get about 1.5% more efficient every year. With all of these rules in place and growing concern about CO2 emissions, systems that use less energy are becoming more popular. Using VFDs can cut the amount of energy used by a system by as much as 60%.

Restraints/Challenges:

• High Cost Associated with Installation & Maintaining the Variable Frequency Drives to Hinder Market Growth

The cost of installing a variable frequency drive is relatively high compared to other ways to save energy, but it can save a lot of energy in the long run. Overall, it costs between USD 200 and USD 500 per horsepower (HP) to add a VFD to a general-purpose system. This is a lot more than other energy-saving systems.

Also, different drives, foundations, wirings, and components are used depending on the need, the industry, and the rising cost of installation. VFDs also need to be installed by skilled technicians, which adds to the cost of installation. High start-up and installation costs could slow the growth of the market.

• Increased Maintenance Cost of Systems after VFD Implementation

Costs range from USD 200 to USD 500 per horsepower to add a VFD to a system that is commonly used. Adding VFD to all systems is much more expensive than other ways to save energy. In the long run, the cost of VFD can be cheaper than other methods, but when it comes to installation, it is more expensive than other methods. Companies might not spend the huge amount of money that is needed to install VFD systems at first. Because different types of drives have different system parts, the foundation, wiring, and cooling costs can also be different, which adds to the total cost of installation. VFDs need to be put in by skilled technicians, which makes the cost of installation go up. Another thing to think about is how much it will cost to replace parts after five or ten years. Due to how quickly technology in solid-state electronics changes, controllers are taken out of use about four to five years after they are first made. Also, a VFD drive usually lasts between 7 and 10 years, but this depends on how it is used and the conditions outside.

• Low Quality Products Related to VFD is Hampering Marine VFD Market

The organized sector mainly sells to businesses and keeps product quality high by following different industrial standards for VFDs. The unorganized sector, on the other hand, offers a cheaper way to get into low-priced and untapped local markets. Most countries' local manufacturers go after the unorganized market and compete hard with global suppliers in their own markets. Leading market players are facing strong competition from new players who are not well organized and sell cheap, low-quality goods. Since the unorganized players aren't required to keep a certain level of quality, they can offer lower prices, which draws a lot of small buyers.

Opportunities:

• Implementation of Remote Monitoring in VFD Creates New Opportunities to Increase Efficiency of Systems  

There are many bad things that can happen to drives from the outside, such as damage from the environment, poor power quality, and misuse by applications. This will cause a shutdown and may cause the end user to lose data. Businesses are looking for solutions that include remote monitoring so they can keep an eye on these outside conditions and cut down on downtime. Remote monitoring of marine VFDs is an important part of figuring out how bad the VFDs are getting. Also, end users can fix minor problems with marine VFDs remotely, which cuts down on unplanned downtime and increases efficiency. By constantly gathering data and sending it to the cloud, the drive's performance can be seen and analyzed. The drive's real-time and historical performance can be seen on a standard dashboard and on trend graphs and reports that have already been set up. So, potential problems can be more accurately predicted, which saves a lot of money.

• Technological Advancement

The growth of the market is due to improvements in VFD technology, such as better efficiency, smaller designs, and better control features. Manufacturers of VFDs can take advantage of these changes by making new products that meet the needs of the marine industry.

• Increased Awareness and Adoption

As the benefits of marine variable frequency drives (VFDs) become more widely known, ship operators and owners are becoming more aware of their ability to cut costs and save energy. As more people learn about and understand the benefits of marine VFDs, they are likely to be used more.

Strategic Development:

• In April 2021 - Astilleros Gondán, a Spanish shipbuilder, gave ABB a contract to provide an all-electric power solution for a fleet of fast 40-meter urban passenger ferries that run on Lisbon's Tagus River.
• In December 2021 - MacGregor released a new heavy lift crane (HCE) that is powered by electricity alone. This was done to make products and solutions that are better for the environment.
• In December 2020 - Siemens was chosen by Cochin Shipyard to provide advanced marine solutions for India's first fleet of 23 boats with electric propulsion and battery-integrated technology. This fleet will launch.
• In August 2020 - The Royal Canadian Navy got the first of six Arctic and Offshore Patrol Ships (AOPS). It was called HMCS Harry DeWolf (RCN). The high-voltage electric power system (HV) and electric propulsion drivetrains for the Arctic Offshore Patrol Ship (AOPS) Harry DeWolf class vessels were designed and made by GE's Power Conversion business. These systems were made to work well in multi-year ice.
• In October 2021 - Siemens said that it was getting ready to split off its large drive system unit. The unit is one of Siemens' so-called portfolio businesses. It makes heavy-duty electrical drive systems for ships, mines, and rolling mills. This is the first step toward selling the unit. Other parts of the business that the company wants to improve or sell in the future.
• In April 2021 - The Spanish shipbuilder Astilleros Gondán has given ABB a contract to provide its all-electric power solution for its fleet of fast 40-meter city passenger ferries that run on the Tagus River in Lisbon.
• In January 2021 - Beckhoff Automation's new automation technology includes servo motors and servo drives., the company announced that it would expand its services to MHI's Solutions Community and Conveyor and Sortation Systems (CSS). MHI is one of the most important trade groups in the U.S. for material handling, logistics, and the supply chain. Its goal is to share its expertise in intralogistics and material handling solutions.

Key Vendors:

Top market players are

• ABB (Switzerland)

ABB Ltd. (ABB) is a company that makes and sells technologies and solutions for electric power and automation. The company sells electrification, motion, and industrial automation products, systems, solutions, and services.

• Siemens (Germany)

Siemens AG (Siemens) is a company that makes technology. It works in the fields of electricity, automation, and digitization. The company makes products, installs complex systems and projects, and designs and develops new products. It also offers a wide range of solutions that are tailored to each person's needs.

• Rockwell Automation (US)

Rockwell Automation Inc. (Rockwell) is a company that makes systems for power, control, and information in the industrial automation field. The company offers connected components, midrange architecture systems, asset and consultancy management, engineered packages and panels integration, front-end engineering and design, integration services, manufacturing intelligence, and on-machine solutions.

• Danfoss (Denmark)

Danfoss A/S, or just Danfoss, is a company that makes industrial equipment. It designs, makes, and sells a wide range of products and solutions for refrigeration, heating, air conditioning, motor control, and off-highway machinery.

• CG Power (India)

CG Power and Industrial Solutions Ltd (CG), which used to be called Crompton Greaves Limited, offers different ways to manage and use electricity. The company designs, makes, and sells electrical products and services for utilities, industries, and power generation.

• WEG (Brazil)

WEG SA (WEG) is an electric-electronic equipment company. It makes and sells capital goods like electric motors, generators, transformers, frequency converters, motor starters and maneuvering devices, gear units and geared motors, control and protection of electric circuits, industrial automation, and electric traction solutions for land and sea transportation.

• Mitsubishi Electric (Japan)

Mitsubishi Electric Corp (Mitsubishi Electric) creates, makes, and sells electrical and electronic products. The company sells things like turbine generators, nuclear power plant and power electronics equipment, motors, transformers, circuit breakers, gas-insulated switchgear, switch control and display devices.

• Eaton (Ireland)

Eaton Corporation Plc, or Eaton, is a company that deals with power. It designs, develops, and sells energy-efficient products, technologies, and services that help customers manage electrical, aerospace, hydraulic, and mechanical power more reliably, efficiently, safely, and sustainably.

• Invertek Drives (UK)

Invertek Drives Ltd is a company in the business of making electrical and electronic products. It has between 21 and 50 employees and makes between $1M and $5M. The main office of the company is in Welshpool, Wales, in the United Kingdom.

• General Electric (US)

General Electric Company is a technology and financial services company with operations all over the world. Products and services offered by the company include aircraft engines, power generation, water treatment, and home appliances, as well as medical imaging, financing for businesses and consumers, and industrial products.

• Yaskawa (Japan)

Yaskawa Electric Corp. (Yaskawa Electric) makes and sells AC drives, controllers, robots, and servo motors. The company makes system-use AC drives, medium-voltage AC drives, and power regenerative units for cranes, pumps, fans, conveyors, machine tools, metal working machinery, and automated warehouses.

• Parker Hannifin (US.)

Parker is the world leader in motion and control technologies. It makes precise solutions for a wide range of markets, including mobile, industrial, and aerospace. Parker is everywhere and anywhere that moves.

Segmentation Analysis:

The market is segmented on the basis of type, voltage, application, end-user and region.

By Type:

AC Drive and DC Drive are the two main types of the market. An AC Drive changes the frequency and voltage of the electricity going to an electric motor to change its speed. The AC Drive segment had the largest share of the Marine VFD Market in the base year, and it is expected to lead the market during the forecasted period because of the growing demand for energy-efficient solutions.

• AC Drive
• DC Drive

By Voltage:

The market is split into Low Voltage, Medium Voltage, and High Voltage based on the voltage. Low Voltage drives improve the efficiency of many small parts in a system. Since the marine industry is using more low voltage motors, the Low Voltage segment is expected to have the highest market share during the forecasted period.

• Low Voltage
• Medium Voltage
• High Voltage

By Application Outlook:

The market is divided into Pump, Fan, Compressor, Propeller, With Shaft Generator, Without Shaft Generator, and Crane & Hoist based on what it is used for. The Pump is an important part of a ship that is used for many different things. It is essential for the ship to work well. So, using VFD to control how the pumps work can help save a lot of energy. Because of these things, it is expected that the Pump segment will grow a lot over the next few years.

• Pump
• Fan
• Compressor
• Propeller
• With Shaft Generator
• Without Shaft Generator
• Crane & Hoist

End-User:

The marine VFD market is split into marine vessels, offshore oil & gas, and offshore wind power, based on who will use them. There is a huge amount of potential around the world to retrofit existing ships with new technologies that use less fuel. For example, less than 5% of the world's fleet has seawater cooling pumps with variable frequency drives. This means that VFDs have a lot of potential to save a lot of fuel and help the environment.

Offshore oil and gas also uses a lot of motor-driven pumps and pumping systems to move fluids around efficiently. VFDs are used on most offshore oil and gas vessels because they keep electric motors running during critical operations and at peak performance.

• Marine Vessels
• Offshore Oil & Gas
• Offshore Wind Power

Regional Insights:

The global Marine Variable Frequency Drive (VFD) market has been looked at in different parts of the world, like North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa (MEA).

China is expected to grow at a CAGR of 11%, while the US market is thought to be worth USD 209.1 million. In 2020, the US marine variable frequency drive (VFD) market is expected to be worth USD 209.1 million. The second largest economy in the world, China, is expected to have a market size of US$ 266.6 million by 2027, based on CAGR. For the 2020-2027 study period, it was 10.9%. Japan and Canada are also important markets. Between 2020 and 2027, they are expected to grow by 3.8% and 5.5%, respectively. Germany is expected to grow at a CAGR of about 4.8% within Europe.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• The report gives a lot of information about how different things work in the global air filters industry. Some of them are growth drivers, growth restraints, competitive landscape, regional analysis, and challenges.
• It also gives an analysis of the market, current trends, and estimates to show where the best places to invest will be in the future.
• From 2023 to 2030, the market is looked at quantitatively to find out how financially stable it is.
• Detailed information about the companies is provided. In addition, the report details their capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and technological advancements.