Medium Voltage Drive Market Size, Share & Industry Analysis, By Drive (AC, DC, and Servo), By Power Range (< 1MW, 1MW to 3MW, 3MW to 7 MW, and > 7MW), By Application (Pumps, Conveyor, Compressor, Fan, Extruders, and Others), By End-User (Oil & Gas, Power Generation, Pulp & Paper, Mining & Metals, Marine, and Others), and Regional Forecast, 2024-2032

The global medium voltage drive market size was valued at USD 4.97 billion in 2023. The market is projected to grow from USD 5.21 billion in 2024 to USD 8.65 billion by 2032, exhibiting a CAGR of 6.54% during the forecast period.

The global market’s growth can be attributed to its wide-scale use at higher voltage levels to control the speed of electric motors in industrial electrical applications. These products play a critical role in enhancing energy consumption by regulating motor speed and power output. Increasing demand for precise control of motor speed, better-quality energy efficiency operations, and cumulative investments across heavy industrial equipment will boost the market. Furthermore, the construction of new infrastructures with advanced pumps, conveyors, rolling mills, compressors, fans, and large-scale HVAC systems featuring low energy consumption will further drive the market growth.

The slowness of the low-voltage drive market was particularly evident in the automotive sector and heavy equipment sector in 2019. The COVID-19 pandemic caused major countries to go into lockdown at different times, impacting industrial manufacturing operations around the globe and affecting investors’ confidence. Despite this, the global market started recovering and will continue to grow.

Medium Voltage Drive Market Trends

Rapid Technology Integration with Renewable Energy will Boost Applications of Medium Voltage Drive

Renewable is a key driver of energy transitions, with wind and solar being the primary sources.  Medium voltage drives are used to ensure a continuous flow of energy to support these systems. The rising trend of adoption of wind and solar sources in different businesses and sectors will drive the medium voltage drive. These drives play an essential role in energy efficiency and are thus deployed in multiple areas where renewable energy is transferred. For instance, in February 2024, The Drives & Motion division of Yaskawa America, Inc. is thrilled to announce the release of the new GA800 Variable Speed Drive, a medium voltage drive for customers and immediate shipment.

Medium Voltage Drive Market Growth Factors

Rising Focus on Energy Efficiency Equipment to Boost Market Growth

Medium voltage drives are beneficial for applications that usually require motors ranging from 500 to 20,000 hp, where there is a massive difference in current consumption between low and medium voltage. Such operations require continuous energy supply, where MV drives play a crucial role. Many businesses are focusing on energy transition, which can be facilitated through the deployment of these drives. Drives mainly control the motors in heavy equipment. It is estimated that 23% of the world's industrial motors are equipped with drives. Such factors can boost the medium voltage drive market growth in the coming years.

Cost Efficiency and Energy Savings Along with Innovative Product Development to Boost Market Growth

The AC devices are one of the dominating equipment in various industrial operations due to their ability to provide regulated voltage, benefiting multiple applications. Furthermore, medium voltage AC drives minimize capital and operating costs compared to alternatives, making them ideal for energy-efficient applications. This trend is expected to boost market growth during the forecast period. In addition, many manufacturers are trying to develop medium-voltage AC drives to enhance operation efficiency. ABB, Toshiba, and Eaton are key contributors to delivering a solid product portfolio. 

RESTRAINING FACTORS

Heavy Investment in Voltage Drive Projects can Act as a Barrier to Market Growth

Medium voltage drives are heavy equipment that comes with lots of responsibilities. Firstly, initial investment required for deploying these drives in projects can be high. In addition, acquiring, installing, and maintaining these drives, precisely for large-scale industrial operations, act as a restraining factor to the growth of the market. Secondly, integration of the Internet of Things into these devices can be costly as it requires regular monitoring. These factors cannot be ignored in the continued operations at the industrial level. All these aspects must be carefully considered while investing in drive projects.

Medium Voltage Drive Market Segmentation Analysis

By Drive Analysis

AC Segment Dominates owing to Multiple Advantages of AC Drive

Based on drive, the market is segmented into AC, DC, and servo. AC is the dominating segment driven by its several advantages. They are well known for their energy-savings capabilities, making them the preferred choice in the MV drive market. In addition, the efficient operation of AC drives enhances the performance of equipment such as motors, further driving adoption.

DC drive also held a significant medium voltage drive market share due to its application of controlling the speed of a DC motor. DC drives are specifically used where DC motors operations are required.

By Power Range Analysis

3MW to 7 MW Segment Leads due to Rising Industrial Operations

Based on power range, the market is segmented into < 1MW, 1MW to 3MW, 3MW to 7 MW, and > 7MW. 3MW to 7 MW is the dominating segment globally, driven by the requirement for power range during operations such as pumps. In addition, the rising deployments of the medium voltage drives across industries are bolstering market growth.

1MW to 3 MW is the fastest growing segment due to the demand for low-capacity drives in small applications and activities. The medium voltage drive market is expected to grow owing to implementation of government regulations and adoption of energy-efficient systems.

By Application Analysis

Rising Demand for Pumps in Remote Areas Make Pumps Segment Dominant

Based on application, the market is segmented into pumps, conveyor, compressor, fan, extruders, and others. The pump is the dominating segment owing to their rising deployments in remote areas where transportation of the fuel is needed such as water. The rising growth of the industrial and commercial sectors is also contributing to the market, as it necessitates a continuous supply of air that drives power AC fans. Moreover, other applications, such as conveyors and compressors, are also significant contributors to the market.

Compressors hold a notable share of the market, owing to the rising adoption of smart HVAC systems to improve energy-efficiency and indoor environment in malls, offices and buildings will increase the requirement for compressors and thereby support growth of the medium voltage drive market.

By End-User Analysis

Oil & Gas Sector Leads Due to Their Higher Dependence on Drives for Operations

Based on end-user, the market is segmented into oil & gas, power generation, pulp & paper, mining & metals, marine, and others. Oil & gas is the dominating segment, driven by rising operations, such as the extraction of crude oil. The sector is highly dependent on drives in order to manage the speed of pumps and blowers. ABB is one of the leading players offering medium voltage drives globally helping a variety of industries including oil & gas to optimize energy consumption and lower CO2 emissions.

Power generation is the fastest growing segment driven by the global adoption of clean energy with medium voltage drive. Medium voltage drive helps to improve productivity and lower operating costs which drives their utilization in power generation sector as cost of producing power plays a crucial role in determining the pricing of power borne by customers.

The marine sector is also boosting the market growth, driven by increasing marine operations expected in upcoming years.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is the dominating region in the global market, driven by rising industrialization in emerging markets such as China, India, and Japan. In addition, heavy investments in sectors such as power generation, mining & metals, and others that demand reliable, robust, and compact drives is driving market growth in the region. Further, the governments in the region are also pushing businesses to implement automated solutions which are also expected to support market growth.

North America is expected to be the fastest growing region owing to the rising application of industrial automation and robotics in the region. Moreover, the availability of the major manufacturers in the U.S. is also one of the key drivers for the market.

Europe also holds a notable share of the market, driven by the ongoing industrial operations, contributing significantly to the global medium voltage drive market share.

Latin America is gradually entering the energy solutions market, with Brazil notably contributing more than 30% to the global market. The region is expected to grow in the coming years, owing to the rising governments sustainable energy initiatives.

The Middle East & Africa are adopting energy-efficient equipment such as voltage drives, with rising deployments in GCC countries boosting market growth. It is expected to grow the market as countries in the Middle East are focusing on many industrial and commercial projects.

KEY INDUSTRY PLAYERS

Leading Players Offer Varied Product Portfolio to Strengthen their Position

The medium voltage drive market is characterized by investments and a strong product portfolio by leading market players such as Eaton, ABB, GE, and others. Eaton is one of the leading global players in the market, with a longstanding presence in energy products and a reputation for delivering quality services across multiple sectors. Similarly, ABB also offers medium voltage drives in the range of 200 kW to more than 100 MW.

LIST OF TOP MEDIUM VOLTAGE DRIVE COMPANIES:

• Eaton (Ireland)


• ABB (Switzerland)


• GE (U.S.)


• Delta Electronics, Inc. (Japan)


• Nidec Corporation (Japan)


• WEG (U.S.)


• Hitachi (Japan)


• TMEIC (U.S.)


• Schneider Electric (France)


• Danfoss (Denmark)

KEY INDUSTRY DEVELOPMENTS:

• June 2022: Inovance, a leading global provider of industrial automation, completed their target of rolling out 10,000 medium voltage drives from its manufacturing plant. These products were delivered to multiple industries.


• December 2021: Mitsubishi Electric Corporation received a 2021 R&D 100 Award from the U.S. publication R&D World for its low-voltage air circuit breaker. This marks Mitsubishi Electric’s 27 R&D 100 Award.


• September 2021: Danfoss, a leader in AC drive technology, extended its medium-voltage solutions portfolio with a fresh product named “VACON 1000” medium-voltage drive. The VACON® 1000 air-cooled MV drive is particularly favored for industrial medium-voltage applications, especially for variable torque loads such as fans and pumps.


• May 2021: Schneider Electric expanded its medium voltage collection by introducing Altivar Process ATV6000. This product delivers tailored solutions across various businesses, including mineral, mining, metals, oil and gas, and power plants.


• April 2019: ABB has expanded its drive options with the new ACS6080 medium voltage (MV) drive for critical applications. This drive features ABB's new control technology, offering high-performance motor control for industries like mining, metals, and marine. It helps plants operate more efficiently and improve output quality.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation