The low and medium voltage drives market in Australia and New Zealand is set to expand at a 4.9% CAGR between 2023 and 2033, reaching an estimated USD 1,137.1 million in revenue by the end of the forecast period. This growth represents a significant financial opportunity of USD 392.1 million during the decade, highlighting an increasing demand for energy-efficient technologies in industrial applications.
Low and medium voltage drives, commonly referred to as Variable Frequency Drives (VFDs), play a critical role in optimizing energy consumption while enhancing the performance of electric motors used across industries. These drives enable precise control over the speed and torque of electric motors, leading to reduced energy consumption, lower operational costs, and improved machinery performance.
Energy Efficiency as the Key Driver
The surge in demand for low and medium voltage drives is primarily driven by the rising emphasis on energy efficiency and carbon emission reduction. Industries are under increasing pressure to minimize their environmental footprint while maximizing operational efficiency. As a result, businesses are turning to advanced VFD solutions to achieve substantial energy savings and meet stringent sustainability goals.
FMI’s study highlights that energy-intensive sectors, including manufacturing, mining, water treatment, and infrastructure development, are expected to be key adopters of these solutions in the Australia-New Zealand region. Governments in both countries are actively promoting energy-efficient systems and technologies, further boosting demand for low and medium voltage drives.
Technological Advancements and Market Affordability
Rapid advancements in control algorithms, semiconductors, and power electronics have significantly improved the efficiency, performance, and affordability of low and medium voltage drives. Cutting-edge innovations allow manufacturers to design drives that consume less energy while ensuring reliable performance across various operating conditions.
The falling costs of VFD technology have made these systems more accessible to businesses of all scales, including small and medium enterprises (SMEs). FMI’s study indicates that technological progress will remain a crucial driver of adoption, as industries increasingly recognize the long-term cost benefits and operational advantages of upgrading to energy-efficient motor control systems.
Market Potential and Regional Focus
Australia and New Zealand’s robust industrial infrastructure presents significant opportunities for manufacturers and suppliers of low and medium voltage drives. As industries look for ways to improve productivity while adhering to environmental standards, the adoption of energy-efficient solutions will accelerate.
FMI’s projections show that the adoption of low and medium voltage drives will continue to rise steadily, driven by factors such as:
- Growing Industrial Automation: Rising industrial activities across Australia and New Zealand require sophisticated motor control systems.
- Energy Savings and Cost Optimization: Businesses seek advanced systems that deliver long-term cost reductions.
- Government Initiatives: Energy-efficiency policies and carbon reduction programs further encourage VFD adoption.
With the total revenue forecast to surpass USD 1,137.1 million by 2033, this market represents a lucrative opportunity for stakeholders, including manufacturers, distributors, and service providers.
Leading Players in the Industry:
Siemens AG; Delta Power Electronics; Fuji Electric Global; ABB; Yaskawa; Rockwell Automation; Eaton; Nidec; TMEIC; TECO; Schneider Electric; Amtech; GE Power Conversion; Benwshaw Applied Motor Controls; Maschinenfabrik Reinhausen GmbH.
Market Segmentation:
By Voltage Level:
- Medium Voltage Drives
- Low-medium Voltage (1 kV to 3 kV)
- Medium-high voltage (3 kV to 6 kV)
- High voltage (6 kV and above)
- Low Voltage Drives
- Up to 230V
- 230V to 690V
- 690V to 1 KV
By Power Rating:
- Medium Voltage Drives
- <1MW
- 1 MW to 3 MW
- 3 MW to 7 MW
- > 7 MW
- Low Voltage Drives
- Up to 750 W
- 750 to 7500 W
- 7500 to 75000 W
By Drive Type:
- Medium Voltage Drives
- Variable Frequency Drives (VFDs)
- Servo Drives
- Direct Torque Control (DTC) Drives
- Vector Control Drives
- Sensorless Control Drives
- Low Voltage Drives
- Variable Frequency Drives (VFDs)
- Servo Drives
- Direct Torque Control (DTC) Drives
- Vector Control Drives
- Sensorless Control Drives
By Current Type:
- Medium Voltage Drives
- AC
- DC
- Low Voltage Drives
- AC
- DC
By Sales Channel:
- Direct End-User
- Direct Machine Builder
- Direct Systems Integrator
- Distribution/Partner
By End Use Industry:
- Medium Voltage Drives
- Oil and Gas
- Mining and Metals
- Power Generation
- Chemicals and Petrochemicals
- Water and Wastewater
- Marine and Offshore
- Others
- Low Voltage Drives
- Building and Construction
- Manufacturing
- Food and Beverage
- Transportation
- Agriculture
- Pharmaceuticals
- Commercial Facilities
- Others
By Region:
- Australia
- New South Wales (NSW)
- Victoria (VIC)
- Queensland (QLD)
- Western Australia
- South Australia
- Tasmania
- Northern Territory
- New Zealand
Access Report Details for More In-Depth Information!
Author:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
About Future Market Insights (FMI)
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