Power Magnetics for MV AC Drive Market Size, Share & Covid-19 Impact Analysis, By Type (Transformers, Inductors, Filters, Chokes, and Current Sensors), By Application (Pumps, Conveyors, Compressors, Electric Fans, Extruders, and Others), By End-user (Oil & Gas, Power Generation, Food & Beverages, Building Automation, Metal & Mining, Water & Wastewater, Chemicals & Petrochemicals, and Others), and Regional Forecast, 2020-2032

The global power magnetics for MV AC drive market size was USD 1.07 billion in 2019 and is projected to grow USD 1.98 billion in 2032, at a CAGR of 5.69% during the 2020-2032 forecast period.  

The global impact of the COVID-19 has been unprecedented and staggering, with power magnetics for medium voltage AC drives witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a decline of -4.38% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Power magnetics consists of various components such as transformers, inductors, current sensors, chokes, reactors, and other magnetic products. These power magnetics products are widely used in the designing and manufacturing medium voltage AC drives. These drives are easy-to-use and are well-suited for variable torque applications such as simple, standalone centrifugal fans and pumps.

Medium voltage AC drives are intended to optimize energy by enabling variable-speed control and soft starting in normal duty and heavy-duty applications. It is generally used in applications that require motors from 500 to 20,000 hp, where the difference in the current draw between low voltage and medium voltage becomes substantial. Motors in this range are often used to operate large compressors pumps and fans in power stations, chemical & petrochemical plants, water & wastewater treatment facilities, cement, mining and minerals, marine, and oil and gas industries.

Unavailability of Financial Assistance for Industries During COVID-19 to Impact Growth

The global health emergency caused by the sudden outbreak of the COVID-19 pandemic has significantly affected numerous verticals. The pandemic has put a halt on global productions and trades. Nearly, all the countries worldwide have witnessed a huge rise in the number of affected cases since the starting of 2020. Furthermore, the implications of the pandemic crisis have influenced different industries in various ways such as shortage of operating staff, capital investment deficits, the shutdown of industrial operations, and limited international transactions to market the products, among others. Besides, the unavailability of any cure or vaccine for the infection has led many industry players to introduce combat measures to mitigate its impact on businesses continuously. The aftermath of this global pandemic has been observed considerably across developing and developed countries with the development of ample medical infrastructures. The market has been intermediately affected by the outbreak of the novel coronavirus.

Power magnetics product line includes custom dry type transformer, inductor, filter, chokes, and sensors. These products are widely deployed at different locations to safeguard the equipment operation and provide insights regarding the strength potential of tools. The limitations in the investments caused by the halted operations of different industrial procedures such as exploration and production of hydrocarbons, setup & expansion of manufacturing facilities, and dwindling sea-borne trades are likely to affect the market growth for power magnetics for MV AC drives.

LATEST TRENDS

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Increasing Rate of Industrialization & Urbanization to Propel Market Growth

The increasing pace of urbanization and industrialization are the major factors responsible for the growth of the global market for power magnetics for MV AC drive.  According to the United Nations Conference on Trade and Development (UNCTAD), in 2019, the urban population increased to 55.7% from 51.1% in 2011. For the past few years, rapid urbanization in developing economies, especially in Asia Pacific and the Middle East & Pacific, saw the urbanization rate increase from 42.3% in 2009 to 49.1% in 2019. The growing urbanization and industrialization surged energy consumption at a rapid pace. This is likely to drive the market during the forecast period.

DRIVING FACTORS

Increasing Clean Energy Demand to Propel Product Demand

The rising population, coupled with rapid urbanization, has led to increased power demand, leading to the rising installation of renewable energy sources and construction of new power plants. These factors have propelled the demand for power magnetics for MV AC drives. Renewable energy sources require numerous equipment, which plays a significant role in its efficient functioning. For instance, the solar water pump consists of the PV panels, the pump, a motor, and an MV AC drive to ensure that it runs on the correct voltage and at the desired speed. Therefore, the increasing demand for clean energy in recent years has undoubtedly propelled the integration of rex power magnetics for MV AC drives in the field of clean energy generation.

New targets launched by various governments to promote sustainable power have further positively affected the market size. For instance, in 2019, Germany announced its goal to produce 20 GW of energy by using offshore wind power by the end of 2030. This has led to increasing investment opportunity in the market. Given the increasing energy demand, along to reduce greenhouse gas (GHG) emissions, the installation of renewable energy products is set to grow tremendously in the forthcoming years, which, in turn, will lead to the power magnetics for MV AC drive market growth in the forthcoming years.

Favorable Government Regulations & Policies to Drive Market Growth

The market is mainly driven by the increasing demand from power plants as the power magnetics for MV AC drive systems help reduce carbon emissions. According to the Global Energy Review 2019 (IEA), the energy demand increased by 0.9% in 2019. Power generation plants are developed using magnetics products to achieve a high operational rate, quick start-up, and flexible load efficiency as per the power demand. Furthermore, several governments worldwide are funding clean energy installations that are likely to boost the adoption of power magnetics for MV AC drives.

RESTRAINING FACTORS

Volatility in Crude Oil Prices Coupled with Decreasing Investment in Coal-fired Power Plants to Hamper Growth

The volatility in oil and gas prices is the key factor that can hinder the adoption of the power magnetics for medium voltage AC drives. As the production and price are solely dependent on demand across the globe, a constant demand leads to a stable market, whereas, any shortfall directly affects production. According to the Energy Information Administration (EIA), in March 2020, the Chicago Board Option Exchange (CBOE) Crude Oil Volatility Index (OVX) reached USD 190, which is the highest since its inception in 2007. This is said to be the effect of decreased oil demand due to global health problems. Furthermore, to control the global temperature rise, steps are being taken by various governments across the globe to curb harmful emissions. This has resulted in the decommissioning of various power plants that can obstruct the growth of the market.

In 2018, the U.K. government announced its plan to stop all coal-fired power plants across the country by 2025, to comply with the new pollution standards. Furthermore, the administration ceased operation of 3 power plants in 2016 and is expected to halt operations in most such facilities by 2022, with additional plans to force shut the remaining by the end of October 2025. These factors are likely to hamper the market during the forecast period.

SEGMENTATION

By Type Analysis

Transformer Segment is Likely to Dominate

Based on type, the power magnetics for MV AC drive market is segmented into transformer, inductor, filter and others.

The transformer segment accounted for the major share of the market in 2019. In the power magnetics for MV AC drive system, a transformer is widely used for high voltage step-up and step-down.

The inductor segment is expected to showcase considerable growth due to the inductor being widely adopted to maintain consistency in an electrical circuit that consists of a shifting current or voltage.

The power inductor can filter EMI noise in AC inputs, low filter frequency ripple current noise, and store energy in DC-to-DC converters. Therefore, its growing adoption is expected to bode well for the segment’s growth.

By Application  

Pumps Segment is Expected to Grow at a Considerable Pace

Based on the application, the market is segmented into pumps, conveyors, compressors, electric fans, extruders, and others.

The pumps segment accounted for the major share of the market in 2019 owing to the increasing demand from the end-user industries such as the oil & gas, chemical, water & wastewater, and others.

The conveyors segment is anticipated to showcase significant growth as compressors are widely used in various industries such as semiconductors & electronics, oil & gas, energy, electronics, and manufacturing.

The others segment consists of winches, cement kiln, winders & unwinders, propulsions & thrusters, etc.

By End-User Analysis

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Increasing Power Generation Activities to Augment Industry Growth

Based on end-user, the market is segmented into food & beverage, oil & gas, power generation, building automation, metal & mining, water & wastewater, chemicals & petrochemicals, and others.

The power generation segment accounted for the major share of the market in 2019 and is anticipated to maintain its dominance during the forecast period. The global electricity demand is increasing at a faster rate, which leads to the growth of the power generation industry.

The building automation segment will showcase considerable growth due to the development of smart cities across the globe. Furthermore, the rising energy demand across developing nations such as China and India is likely to accelerate the market demand during the forecast period.

In the food & beverage sector, power magnetics products reduce energy consumption and provide constant pressure regulation. These products also provide optimized motor control, product consistency, minimize waste, and optimize the packaging area. This is likely to boost the segmental growth in the forthcoming years.

REGIONAL INSIGHTS

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The market has been analyzed across five key regions, comprising North America, Asia Pacific, the Middle East & Africa, Europe, and Latin America. 

Asia Pacific is expected to lead the global power magnetics for MV AC drive market during the forecast period. This is attributable to the rapid-paced industrialization and urbanization in the region. According to the World investment report 2018, developing economies accounted for USD 671 billion of inflow from foreign direct investment in 2017, which was majorly contributed by China and Singapore. Additionally, the growing consumer demand for transformers resulting from the significant growth of the manufacturing sector, propels the demand for the power magnetics for MV AC drives during the forecast period. The region stood at USD 0.44 billion in 2019.

North America is expected to hold the second position in the market during the forecast period. The increasing demand for oil & gas and the food & beverage industry is expected to favor the market growth in the region.

European countries have a long history of mining, which, consequently, contributes to the region's economic progress. The United Kingdom, Germany, Norway, Italy, and Russia are the major countries involved in sustainable industrialization in Europe.

Latin America holds potential growth opportunities for power magnetics products due to new investment projects and companies implementing investment projects on expansion, construction, and modernization of power generation plants.

The Middle East & Africa is the prominent region that is experiencing high demand for renewable energy. For instance, in April 2020, Abu Dhabi Power Corporation (ADPower) decided to construct a 2GW photovoltaic (PV) plant in the Al-Dhafra area of Abu Dhabi. Gulf countries in the Middle East are the fastest-growing in energy demand due to increasing power and rapid industrial growth.

KEY INDUSTRY PLAYERS

Bourns Inc. Expanding its Product Line and Utilizing its Channels to Market New Products

The market is highly fragmented, with many players providing power magnetic equipment to various end-user industries. Major players such as Schaffner Holding AG, Bourns Inc., Danfoss, Hammond Power Solutions Inc., MGM Transformer Company, Tamura Corporation, and AQ Trafotek Oy constitute around one-fourth of the market, and the remaining market is dominated by a large number of regional and local players for a variety of end-user applications.

Bourns, Inc. is a high-quality supplier of high-quality position, speed sensors, circuit protection solutions, magnetic components, microelectronic modules, panel controls, and resistive products, widely used in applications, including automotive, industrial, consumer, communications, and non-critical life support medical.  These products are high-quality CSA certified. In September 2020, Bourns, Inc., launched a new DR334A Line Filter Series. These current compensated dual choke filter inductors feature higher current capability than typical standard signal line common mode chokes and high stray inductance and differential mode noise rejection. The demand for rex power magnetics products is increasing sharply from the oil & gas, food & beverage, power generation, water & wastewater, and chemical & petrochemical industries leveraged by the market players to gain dominance during the forecast period.

LIST OF KEY COMPANIES PROFILED: 

• Schaffner Holding AG


• Tamura Corporation


• Torytrans


• AQ trafotek Oy


• Hans von Mangoldt GmbH


• mDexx


• Bourns, Inc.


• RoMan Manufacturing, Inc.


• Danfoss


• Hammond Power Solutions


• Controlled Magnetics, Inc.


• TCI, LLC


• Badger Magnetics, Inc.


• MGM Transformer Company


• L/C Magnetics

KEY INDUSTRY DEVELOPMENTS:

• April 2019 –  Hammond Power Solutions Inc. launched a new HPS Sentinel G, K and H, HPS Tribune E, and HPS Millennium G (up to 5 kV), E & C (up to 46 kV) custom dry type transformer reactors, to meet the energy efficiency regulations in Canada.


• March 2020 – Bourns, Inc. launched nine new products in its SRP series power inductor line such as SRP1245C, SRP1265C, SRP3012C, SRP3020C, SRP5020C, and SRP5030C, among others. These inductors are built with a metal alloy powder formulation and round enamel-coated copper wire that makes them AEC-Q200 compliant ideal for many high-temperature environments and high-reliability designs that include LED lighting, DC/DC converters, and power supplies.

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The global power magnetics for MV AC drive market report presents a comprehensive assessment of the industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the market research report. Furthermore, the report covers a detailed analysis and information as per market segments such as types, applications, end-user, and regions, helping our readers to get a comprehensive overview of the global industry.

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