Marine VFD Market Forecasts to 2028 – Global Analysis By Type (AC Drive, DC Drive), Voltage (Low Voltage (Upto 1000 V), Medium Voltage (Above 1000 V )), Technology (Standard, Regenerative,) and By Geography

Marine VFD Market Forecasts to 2028 – Global Analysis By Type (AC Drive, DC Drive), Voltage (Low Voltage (Upto 1000 V), Medium Voltage (Above 1000 V )), Technology (Standard, Regenerative,) and By Geography

According to Stratistics MRC, the Global Marine VFD Market is accounted for $834.62 million in 2021 and is expected to reach $1430.40 million by 2028 growing at a CAGR of 8.0% during the forecast period. Marine variable frequency drives (VFD) are used for regulating the speed and torque of motors so that they run accurately according to the demand. A variable frequency drive (VFD) is a type of motor controller that drives an electric motor by varying the frequency and voltage of its power supply. The VFD also can control ramp-up and ramp-down of the motor during start or stop, respectively.

Market Dynamics:

Driver:

Growing Need for Energy Efficient Systems in Ships

There has been a constant development of technologies across all industries to achieve greater efficiency. Energy efficiency is a major concern for every industry. According to IEA, the international shipping industry accounted for 2% of the global energy-related CO2 emission. To accomplish the International Maritime Organization’s aim of carbon neutrality in the second half of the century, ambitious and tangible strategies are required. The priority is to reduce carbon intensity in the short term, for example through energy-efficient measures and slow steaming. The Energy Efficiency Design Index (EEDI) and the Ship Energy Efficiency Management Plan (SEEMP) are the two rules now in place to encourage increased shipping efficiency. The IMO enforces both, with the EEDI focusing on energy efficiency criteria for new ships and the SEEMP on ship operational efficiency. With all regulations in place and growing concern over CO2 emissions, energy-efficient systems are gaining more momentum. The use of VFDs can reduce the energy consumption of systems.

Restraint:

High Cost & Maintenance

The cost of adding VFD to all systems is much higher than other energy-saving methods the cost of VFD, in the long run, can prove to be economical but at the time of installation, the cost is quite high in comparison to other traditional methods. The companies may refrain from putting a huge amount of money initially required to install VFD systems. Because various drive types have different system components, the foundation, wiring, and the cooling costs can also be different, adding to the overall installation cost. For the installation of VFDs, skilled technicians are required, which adds to the cost of installation. Another consideration is the cost of the replacement of parts five or 10 years after the system is installed. With the rapid technological changes in solid-state electronics, controllers are being retired approximately four to five years after their introduction. Also, the average lifespan of a VFD drive is seven to 10 years, which further depends on the application and external conditions.

Opportunity:

Execution of Remote Monitoring in VFD’s

Drives can be subject to several harmful external effects, including environmental damage, impaired power quality, and application abuse. This will result in a shutdown and may result in loss to the end-user. To keep an eye on these external conditions and minimize downtime, enterprises are looking for solutions that integrate remote monitoring. The remote monitoring of marine VFDs plays an important role in determining the deterioration status of VFDs. In addition, end-users can remotely troubleshoot minor failures of marine VFDs, reducing unplanned downtime and improving efficiency. By continuously collecting data and pushing it into the cloud, the performance of the drive can be viewed and analysed. A standard dashboard and pre-configured trend graphs and reports are available that display the real-time historical performance of the drive. Thus, the potential problems can be predicted more accurately, saving a considerable amount of money.

Threat:

Low Quality Products

Local manufacturers in most countries target the unorganized sector and compete strongly with global suppliers in the respective markets. Leading market players are currently facing strong competition from such unorganized new players in the market, supplying cheap and low-quality products. The organized sector mainly targets industrial buyers and maintains higher product quality by following various industrial standards for VFDs, while the unorganized sector offers a cheaper alternative to entering the low-priced and local untapped markets. The unorganized players are not bound to maintain certain quality and thus offer comparatively lower prices, which attracts several small buyers.

Pump segment is expected to be the largest during the forecast period

The pumps are installed with VFDs to increase energy efficiency, which will likely affect the expansion of the marine VFD market. It is the module which is broadly used for diverse purposes on board a ship and is critical for proper functioning of any ship. Thus, the use of VFD to control the functioning the pumps can save a lot of energy.

The AC drive segment is expected to have the highest CAGR during the forecast period

The AC drive segment is expected to account for a larger market share, due to increasing demand for energy-efficient solutions. AC drives are more ordinarily used VFDs. An AC drive is used to control the speed of an electric motor by changing the frequency and voltage of electric supply to the motor. A VFD controls the speed of the AC motor by changing the frequency supplied to the motor.

Region with highest share:

The Asia Pacific is projected to hold the highest market share; due to the favourable supportive schemes, huge investments in shipbuilding and port development, and rising significance of the province as a major manufacturing hub that has propelled the container trade in Asian countries. Furthermore, the rapid growth of the shipbuilding industry, as well as the rising amount of maritime trading activities, are also some of the major factors influencing the growth trajectory of the area in the market. The region has shown strong demand for marine VFD owing to the rapid growth of the shipbuilding industry. With the shift towards decarburization, there has been a strong demand for more energy-efficient engines with fewer emissions. Technological advancements and less energy consumption would further propel marine VFD deployment and open up opportunities in the emerging markets in APAC. Various countries are adopting new hybrid and electric systems in ships to save energy as well as to meet their goal of reaction in carbon emissions. The market in China is expected to grow mainly because of government initiatives to cut down carbon emissions as well as to become a leader in shipbuilding.

Region with highest CAGR:

Europe is projected to have the highest CAGR, owing to the growing seaborne trade, many advanced technologies being introduced by some key players in Europe, and rapid economic growth. Germany is the largest market in Europe in the shipbuilding industry, due to new marine VFD contracts being signed by ship manufacturers and the government.

Key players in the market:

Some of the key players profiled in the Marine VFD Market include ABB Ltd., Beard Marine Group, CG Power and IndUStrial Solutions, Danfoss A/S, Eaton Corporation, GE Power Conversion, Invertek Drives Ltd., Mitsubishi Electric Corporation, Parker Hannifin Corp, Rockwell Automation, Inc., Siemens AG, WEG Industries, Yaskawa.

Key developments:

In January 2019: Danfoss Editron partnered with Kongsberg Evotec, a part of the Kongsberg Maritime International Technology Group, to develop a fully electric-powered marine winch. Marine winches are components on vessels used in offshore industries such as fishing, research, and seismic.

In April 2021: ABB announced that it secured a contract from the Spanish shipbuilder Astilleros Gondán to supply an all-electric power solution for a fleet of fast 40 m urban passenger ferries operating on Lisbon’s Tagus River.

In January 2019: Danfoss Editron partnered with Kongsberg Evotec, a part of the Kongsberg Maritime International Technology Group, to develop a fully electric-powered marine winch. Marine winches are components on vessels used in offshore industries such as fishing, research, and seismic.

Types Covered:
• AC Drive
• DC Drive

Voltages Covered:
• Low Voltage (Upto 1000 V)
• Medium Voltage (Above 1000 V )

Technology’s Covered:
• Standard
• Regenerative

Applications Covered:
• Pump
• Fan
• Compressor
• Propeller
• With Shaft Generator
• Without Shaft Generator
• Crane & Hoist
• Propulsion/ Thruster

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances