Global Low Voltage AC Drives Market Size, Share and Forecasts 2031

KEY FINDINGS

• Low voltage AC drives (LVAC drives) are essential for controlling the speed, torque, and energy efficiency of electric motors in industrial and commercial settings.
• The shift toward energy-efficient systems is driving widespread adoption across multiple industries including HVAC, water treatment, and manufacturing.
• Integration with IoT and digital control platforms enhances monitoring, predictive maintenance, and system optimization.
• Emerging markets such as Asia-Pacific are rapidly expanding demand due to industrialization and infrastructure projects.
• Sustainability mandates and carbon footprint reduction policies boost reliance on LVAC drives for energy savings.
• Compact designs and modular systems make drives suitable for both retrofitting and new installations.
• Adoption of variable frequency drives (VFDs) contributes significantly to operational cost reduction.
• Manufacturers are focusing on high-performance, robust drives with improved fault tolerance.
• Automation and Industry 4.0 initiatives accelerate integration of intelligent drive systems in industrial processes.
• Competitive market dynamics are influenced by technological innovation, service networks, and cost competitiveness.
  

INTRODUCTION

The industry situation will be driven by a growing focus on energy efficiency and increased infrastructure spending. Continuous technical improvements, such as battery-operated motion control devices that assist prompt problem diagnosis and provide efficient work at varying loads and speeds, will increase the use of Low Voltage drives in a wide range of applications.

The regenerative Low Voltage drive demand will be augmented by network reliability, reduced total maintenance, energy consumption, equipment longevity, energy generation, and supply costs.

LOW VOLTAGE AC DRIVES MARKETSIZE AND FORECAST

The global low voltage AC drives market was valued at USD 14.5 billion in 2024 and is projected to reach USD 29.7 billion by 2031, growing at a CAGR of 10.5% during the forecast period. The expansion is driven by demand for energy efficiency, modernization of industrial infrastructure, and the rapid adoption of automation across all major end-use industries.

LOW VOLTAGE AC DRIVES MARKET NEW PRODUCT LAUNCH

ABB  extensive line of low voltage AC drives to increase the productivity of  processes, enhance energy efficiency, and reduce maintenance costs.

The range of drives covered by the portfolio is extensive. From micro and machinery drives for machine construction to industrial drives for regulating processing lines, industry-specific drives with purpose-built features and capabilities are available.

ABB drives are available from stock or can be custom designed to fulfil specific requirements. Our life cycle services ensure that your systems continue to run smoothly year after year.

Discover Schneider Electric's variable speed drives, which are tailored to the needs of our customers in certain industries. Altair is a prominent brand of variable speed drives, including models such as the Altair 61 Plus, Altair 312, Altair 312 Solar, and others. They all have a wide range of applications. We also provide great services to help our customers reduce operational costs and extend the life of their installed base.

LOW VOLTAGE AC DRIVES MARKET NEW ACQUISITION

Danfoss A/S of Denmark has made an offer for the purchase of Flacon Oyo of Finland, which would bring together two of the top ten global suppliers of variable frequency drives. The two businesses' combined low-voltage drive sales account for almost 10% of the total market value; this is just a little less than the anticipated market shares for ABB and Siemens, the two biggest manufacturers of low-voltage drives worldwide.

Both businesses have a large market share in the EMEA and Asia Pacific areas, as seen by the above graph. In these locations, where only ABB and Siemens have historically contended for the top market share, the combination of the Vachon and Danfoss VFD companies will compete fiercely. The Danfoss press release also praises Vachon's accomplishments in China, Finland, India, Italy, and the United States.

An AC drives business with the clear objective to establish a leadership position in the AC drives market is anticipated to be created through the merger of the Vachon and Danfoss drive companies, according to a Danfoss. 

The acquisition will provide the Danfoss and Vachon drive products a stronger market position, and the newly created drives business that results from the acquisition of Vachon by Danfoss will not resemble its rivals. 

ABB and Siemens are able to provide comprehensive system solutions across all power ranges because they develop a significant portion of their drives business along with their sizable share of the integral AC motor industry.

Danfoss, on the other hand, has a very modest market share for standalone motors. However, the new Danfoss and Vacon integration will probably have an impact on the competitive environment in lower power ranges—below 50 kW—due to their large market share in drives combined with motors and end equipment.

LOW VOLTAGE AC DRIVERS MARKET RECENT DEVELOPMENT

• ABB Ltd. launched a new range of energy-efficient LVAC drives optimized for water and wastewater industries.

• Siemens AG introduced IoT-enabled drives for smart factory applications with enhanced connectivity.

• Schneider Electric expanded its EcoStruxure platform with integrated LVAC drive solutions.

• Danfoss Group unveiled compact modular drives designed for HVAC and building automation.

• Rockwell Automation partnered with digital solution providers to integrate predictive analytics in LVAC drives.

LOW VOLATE AC DRIVERS MARKET DYNAMICS

Intelligent AC drives with cutting-edge features monitor operating performance, maximize productivity, and improve efficiency. Predictive status monitoring, incorporated sophisticated control algorithms, and sensor instrumentation innovations are essential for linked infrastructure. Since connectivity has become essential, AC drives are developing into intelligent sensors that can provide real-time drive data as well as data from other connected machines. 

This gives operators more insight into the state of the equipment at any given time and makes condition-based monitoring and predictive maintenance possible, both of which will eventually improve plant operations. Products for AC drives are being updated with new features to meet the needs of various markets and improve their value proposition. One such market is the growing desire for smart, connected products.

Alternating current motor torque and speed are managed by low voltage drives in low and high power applications. The business situation will spread due to its low cost, rapid availability, smaller size, and capacity to increase process productivity across industrial processes. Large energy savings and high-efficiency system requirements will also quicken the pace of product development.

The COVID-19 pandemic has had only a little effect on the low voltage drive market because of the disruptions in supply chain logistics and the temporary closure of manufacturing facilities. Product demand has suffered as a result of the stringent measures implemented by regional governments to impose national lockdowns and limit international trade.

The low voltage drive market for the micro drives segment is also expected to increase significantly due to the increasing use of energy-efficient electrical equipment in the commercial and industrial sectors.

The growing application of these systems for integrated/machinery applications, fans, conveyors, mixers, pumps, and other applications will have a favorable effect on product penetration. 

Other key advantages of these systems include a range of smooth and stepless speed and torque control features. Growing industrialization and urbanization in developing countries, increasing industrial automation, and the growing demand for energy-efficient motors are the main drivers of market growth.

 Furthermore, the market for low voltage drives is greatly boosted by a number of features, such as high safety standards, enhanced quality and productivity, positive energy balance, and lower energy consumption.

Future Outlook

The future of the LVAC drives market lies in digital integration, predictive analytics, and eco-friendly design innovations. Advanced drives will increasingly feature cloud connectivity, real-time monitoring, and AI-driven optimization tools. Manufacturers will invest in modular platforms compatible with multiple industrial standards to enhance flexibility and scalability. Sustainability goals and regulatory pressures will further expand the scope of applications in renewable energy projects, water treatment, and green buildings.

Low Voltage AC Drives Market Trends

• Integration with IoT and Smart Factories
  IoT-enabled drives provide real-time operational data, predictive maintenance insights, and seamless integration with smart factory ecosystems. Connectivity with SCADA and cloud-based platforms enhances visibility and remote control capabilities. Smart drives optimize motor performance to minimize downtime and energy costs. This digital transformation allows operators to make informed decisions quickly and efficiently. The rise of Industry 4.0 has made IoT-enabled AC drives a critical component in modern industrial setups.

• Focus on Energy Efficiency and Sustainability
  Governments and industries emphasize reducing energy consumption through adoption of variable frequency drives. LVAC drives contribute significantly to lowering electricity bills and meeting emission reduction targets. Energy-efficient drives also extend equipment lifespan by reducing mechanical stress. Policy frameworks such as EU EcoDesign and U.S. DOE standards drive market adoption further. Sustainability-driven innovation makes energy efficiency a top priority for both suppliers and end users.

• Adoption in Renewable Energy and Green Buildings
  Low voltage AC drives support renewable energy integration by optimizing motor control in solar tracking systems, wind turbines, and water treatment plants. In green buildings, they regulate HVAC operations for maximum efficiency and reduced emissions. Construction projects increasingly mandate energy-saving technologies, further boosting demand. Drives play a pivotal role in aligning with LEED and other green certification standards. This trend solidifies their importance in future sustainable infrastructure projects.

• Miniaturization and Compact Design Developments
  Manufacturers are designing compact, lightweight LVAC drives suitable for smaller spaces and retrofitting applications. Modular drives with plug-and-play functionality enhance system scalability. Compact solutions also reduce cooling requirements and improve installation flexibility. These innovations meet the growing demand for space-saving solutions in both industrial and commercial environments. As industries prioritize flexibility, compact drive adoption is set to accelerate.

• Growth in HVAC and Water Treatment Applications
  HVAC systems rely on LVAC drives for variable speed control, reducing energy consumption in heating and cooling applications. In water treatment plants, drives regulate pump operations for efficient water distribution and wastewater management. Both sectors are experiencing strong demand driven by urbanization and infrastructure investments. Energy savings and improved system reliability make LVAC drives indispensable in these applications. This trend underlines their role in essential service sectors globally.

Market Growth Drivers

• Increasing Demand for Energy-Efficient Motor Control Systems
  Rising electricity costs and sustainability regulations push industries to adopt AC drives for efficient energy use. Drives reduce power consumption by optimizing motor speed in line with process requirements. Organizations achieve cost savings while contributing to emission reduction goals. Governments incentivize adoption of efficient drives through subsidies and policy frameworks. Energy efficiency remains the core driver for market growth.

• Rapid Industrialization in Emerging Economies
  Emerging economies, especially in Asia-Pacific, are undergoing large-scale industrial expansion. Manufacturing, construction, and utilities sectors rely on LVAC drives for operational efficiency. Infrastructure development projects significantly contribute to market demand. Government-led initiatives support industrial automation and energy efficiency adoption. This industrial surge positions emerging markets as key revenue contributors for LVAC drive manufacturers.

• Advancements in Automation and Industry 4.0
  Automation technologies require precise motor control for optimized workflows. Low voltage AC drives integrate with robotics, conveyors, and process equipment, driving efficiency. Industry 4.0 initiatives boost adoption of intelligent, connected drive systems. Predictive analytics and AI integration enhance production uptime. Technological progress ensures LVAC drives remain essential to advanced industrial automation ecosystems.

• Supportive Regulatory Policies and Standards
  Governments implement stringent energy-efficiency standards across major industries. Compliance with frameworks such as ISO 50001 boosts adoption of LVAC drives. Regulations drive modernization of existing infrastructure with efficient motor control systems. Policy support creates long-term opportunities for suppliers in regulated markets. Strong compliance standards accelerate technology penetration worldwide.

• Expansion of HVAC and Infrastructure Projects
  Urbanization and growing construction projects increase demand for advanced HVAC solutions. AC drives enhance operational efficiency of heating, ventilation, and cooling systems. Infrastructure projects also utilize drives in pumps, elevators, and water distribution systems. Green building initiatives emphasize adoption of sustainable motor control technologies. Expanding infrastructure markets provide consistent growth opportunities for LVAC drive vendors.

Challenges in the Market

• High Initial Investment and Installation Costs
  The upfront costs of advanced LVAC drives deter adoption, particularly among small and medium enterprises. Installation expenses and system integration add to financial burdens. Long-term energy savings offset these costs, but short-term budget constraints remain barriers. Rental and financing options are emerging to ease affordability. Market penetration depends heavily on cost optimization strategies.

• Complexity in Retrofitting with Legacy Systems
  Integrating new LVAC drives with older motor and control systems presents technical challenges. Compatibility issues often require additional upgrades or customized solutions. This complexity increases project timelines and costs for operators. Modular, retrofittable designs are being developed to address this challenge. Still, integration complexity limits adoption in certain legacy environments.

• Shortage of Skilled Workforce for Digital Systems
  Advanced LVAC drives require skilled technicians for installation, programming, and maintenance. Many regions lack adequate training programs, creating operational gaps. Workforce limitations delay technology adoption in industrial projects. Manufacturers invest in training and aftersales service support to mitigate this issue. Workforce development remains essential to fully leverage advanced drive technologies.

• Market Competition and Price Pressures
  Numerous global and regional players compete, leading to pricing pressures. Intense competition affects profitability margins for manufacturers. Vendors differentiate through innovation, customer service, and long-term value propositions. Low-cost alternatives from regional suppliers intensify competitive dynamics. Maintaining profitability in a price-sensitive market remains a challenge.

• Cybersecurity Risks in Connected Systems
  IoT-enabled drives connected to industrial networks face potential cybersecurity threats. Unauthorized access risks compromise safety and production continuity. Manufacturers implement advanced encryption and monitoring solutions to mitigate risks. Regulatory frameworks increasingly emphasize cybersecurity compliance in industrial automation. Ensuring secure digital integration remains critical for adoption of connected LVAC drives.

Low Voltage AC Drives Market Segmentation

By Drive Type

• Variable Frequency Drives (VFDs)

• Soft Starters

• Servo Drives

By Application

• Pumps and Compressors

• HVAC Systems

• Conveyors and Material Handling

• Water and Wastewater Treatment

• Industrial Machinery

By End User

• Manufacturing

• Building Automation

• Oil & Gas

• Utilities

• Automotive

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

Leading Key Players

• ABB Ltd.

• Siemens AG

• Schneider Electric

• Danfoss Group

• Rockwell Automation

• Mitsubishi Electric Corporation

• Yaskawa Electric Corporation

• Fuji Electric Co., Ltd.

• Toshiba International Corporation

• Delta Electronics, Inc.

This Market Report will Answer the Following Questions

• How many Low Voltage AC Drives are manufactured per annum globally? Who are the sub-component suppliers in different regions?

• Cost Breakdown of a Global Low Voltage AC Drive and Key Vendor Selection Criteria.

• Where is the Low Voltage AC Drive manufactured? What is the average margin per unit?

• Market share of Global Low Voltage AC Drive manufacturers and their upcoming products.

• Cost advantage for OEMs who manufacture Global Low Voltage AC Drives in-house.

• Key predictions for the next 5 years in the Global Low Voltage AC Drives market.

• Average B2B Low Voltage AC Drives market price in all segments.

• Latest trends in the Low Voltage AC Drives market, by every market segment.

• The market size (both volume and value) of the Low Voltage AC Drives market in 2025–2031 and every year in between.

• Production breakup of the Low Voltage AC Drives market, by suppliers and their OEM relationships.