Marine VFD Market Research Report Information By Type (N AC Drive and DC Drive), By Voltage (Low Voltage (Up to 1kV)and Medium Voltage (Above 1kV)), By Voltage Classes (400Vac, 690Vac, and 1000Vac), By Power Classes (<100kW, <500kW, and <1MW), By Application (Pump, Fan, Compressor, Propulsion/Thruster, Crane & Hoist, Winch, HVAC, Scrubber, and Others), By Voltage Classes in Application (400Vac, 690Vac, and 1000Vac), By Region -Global Forecast to 2032

Global Marine VFD Market Overview

Marine VFD Market Size was valued at USD 1,459.7 Million in 2023. The Marine VFD Market industry is projected to grow from USD 1,574.7 Million in 2024 to USD 2,803.4 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.48% during the forecast period (2024 - 2032).

A Marine Variable Frequency Drive is an essential component in modern marine industry, seamlessly combining power control and efficiency. Designed to regulate the speed and torque of electric motors, the VFD ensures optimal performance and energy utilization for marine vessels. Its ability to vary the frequency and voltage of the power supplied to the motor allows for precise control, enabling the vessel to operate at different speeds and power levels efficiently.

The VFD's flexibility and adaptability make it an invaluable tool in marine applications, from propelling ships and controlling auxiliary systems to managing power distribution onboard. With its advanced technology and seamless integration, the Marine VFD not only enhances vessel performance but also contributes to a greener and more sustainable maritime industry. Moreover, VFDs find application in a variety of marine applications such as pumps, fans, compressors, propulsion, cranes, and hoists.  

 Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

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  Marine VFD Market Trends

  
  

Rise In Need for Energy Efficiency

The growing emphasis on energy efficiency is a major factor driving the growth of the marine variable frequency drive market. In order to achieve the marine industry's target of reducing energy consumption while improving operational efficiency, marine VFDs have emerged as a critical solution. These devices optimize the performance of electric motors and minimize energy wastage.

By regulating the frequency and voltage of the power supplied to the motor, marine VFDs enable precise control over motor speed and torque. This control allows vessels to operate at different speeds and power levels, ensuring that energy is utilized efficiently. Moreover, a significant portion of power generated on board ships, around 60%, is consumed by motor pumps. The traditional control methods, such as turbines, control valves,  and hydraulics, are commonly used to manage the pumping systems in marine applications. However, the average pumping efficiency of these systems is typically below 40%.

This presents a significant opportunity to enhance energy efficiency in marine pumping systems. Moreover, a 10% reduction in pump speed can lead to 27% decrease in power consumption. Thus, variable frequency drives play a key role in achieving these energy savings by adjusting the frequency of power supplied to the motor, thereby altering its speed.

Variable Frequency Drives offer precise control over speed, pressure, and flow, allowing for substantial energy savings of up to 50%. The energy saving potential of VFDs varies depending on their specific application. In case of variable torque applications like pumps fans simply reducing the speed can result in significant energy consumption reduction. Fans and pumps fall under the category of variable torque applications, where torque increases exponentially with speed. By operating motors at reduced speeds, the torque requirement decreases, leading to lower current and energy consumption. It is common for fans and pumps on ships to be over-capacity, which provides an opportunity to operate them at reduced speeds. As a result, the demand for VFDs in such applications is driven by the potential for energy savings and improved efficiency.

Moreover, the demand for energy efficiency in the maritime industry is driven by various factors. Firstly, reducing energy consumption leads to cost savings for ship owners and operators. By optimizing the usage of energy, VFDs help lower fuel consumption, resulting in reduction in operational expenses. Additionally, variable frequency drives can extend the lifespan of equipment by reducing wear and tear, leading to lower maintenance and replacement costs.

In addition, the need for energy efficiency in the marine industry is also influenced by the environmental concerns. With a strong emphasis on minimizing the marine industry's ecological footprint and reducing its carbon emissions there is a growing need for the adoption of sustainable practices. One of the major technical measures adopted in this regard is the Energy Efficiency Design Index. It promotes the use of energy efficient equipment and engines in the design of new ships. By establishing minimum energy efficiency standards based on the capacity mile requirements of different types and sizes of ships, the EEDI aims to reduce pollution and enhance overall energy efficiency.

Furthermore, in 2021, the International Maritime Organization (IMO) announced its commitment to adopting energy efficiency measures to decrease the carbon intensity of international shipping by 40% in 2030 compared to 2008 levels. This highlights the industry's determination to address climate change and achieve significant reductions in greenhouse gas emissions.

Thus, marine variable frequency drives play a vital role in these efforts by enabling ships to operate more efficiently and consume less fuel. By reducing the energy consumption, variable frequency drives contribute to reduced greenhouse gas emission supporting the transition towards a greener and more sustainable maritime industry. Consequently, the increasing demand for CO2 reduction and energy efficiency in the maritime sector is expected to drive the demand for variable frequency drives used in marine vessels in the foreseeable future.

Growing Shipbuilding Industry

Marine transportation is an essential component of the global trade accounting for 90% of the total trade worldwide. With the growing trade activities worldwide the demand for energy efficient ships is also anticipated to witness growth over the forecast period. Thus, the growing shipbuilding industry is a significant driver behind the increasing demand for Variable Frequency Drives (VFDs) in the marine sector.

Additionally, the expansion of the shipbuilding industry is fueled by factors such as lower energy costs, longer equipment life, and lower maintenance requirements. This growth is particularly prominent in the Asia-Pacific region, where strong economic expansion and government policies supporting the shipbuilding industry, especially in countries like China, contribute to the market expansion.

The Government of India has implemented a Financial Assistance Policy for Indian shipyards, amounting to USD 483.5 million, over a period of 10 years, specifically for contracts awarded between April 1, 2016, and March 31, 2026 which is further extended to 2047. Under this policy, Indian shipyards will receive financial assistance equivalent to 20% of the lower value between the Contract Price and the Fair Price for each vessel constructed by them. However, the assistance rate of 20% will gradually decrease by 3% every three years. Additionally, in 2021 the parliament of Japan passed several laws aimed at improving the competitiveness of local shipbuilders against those in South Korea and China.

Under the laws the government announced to provide subsidies, tax incentives, and loans at low rate of interest to shipbuilders provided the ministry of infrastructure, land, and transportation approves their business plans. Moreover, the government will also provide financial assistance to the local companies ordering ships built by firms with government approved business plans. Thus, the favorable policies for the shipbuilding industry are anticipated to drive the growth of shipbuilding which in turn will result into driving the demand for VFDs used in these ships. Furthermore, the stringent regulations for the reduction of greenhouse gas emissions and more efficient fuel utilization have fueled the growth in demand for VFDs. These regulations are pushing shipbuilders and vessel owners to build and adopt technologies that can help meet these requirements.

According to the United Nations Conference on Trade and Development, China accounts for 44.2% of the total ship builds globally in the year 2021. China, being the most populous country globally possessing the largest economy based on the purchasing power parity, boasts a growing shipbuilding industry. This shipbuilding industry is responsible for the production of various types of tankers, vessels, including gas carriers, and container vessels. However, the largest shipbuilding facilities in China such as China State Shipbuilding Corporation and China Shipbuilding Industry Corporation are government-owned resulting into increased government support to the industry.

Moreover, Japan and South Korea are other major shipbuilding countries. This growth in the shipbuilding industry is due to the presence of major shipbuilding players such as Hyundai Heavy Industry, Daewoo Shipbuilding, Marine Engineering, Samsung Heavy Industry, Mitsubishi Heavy Industries Ltd, and Sumitomo Heavy Industries in these countries. Thus, the advancing demand for shipbuilding is anticipated to drive the demand for VFDs used to control and manage the speed and power supply to electric motors used for propulsion purposes in almost all machinery systems in ships.

Marine VFD Market Insights

Marine VFD Market by Type Insights

The Marine VFD Market segmentation, based on type has been segmented as AC Drive and DC drive. In 2023, the AC drive segment generated the market revenue share of 65.5% in the and is expected to experience a CAGR of 7.61% in the forecast period. VFDs optimize motor speed based on load requirements, reducing energy consumption and operational costs for marine vessels. As sustainability becomes a key factor for the maritime industry, the demand for energy-efficient solutions like AC drives is expected to rise significantly.

The integration of advanced technologies such as IoT, AI, and predictive maintenance in marine VFD systems is driving their adoption in vessels and ships. AC drives offer enhanced automation capabilities, remote monitoring, and predictive maintenance features that improve operational efficiency and reduce downtime. The increasing shift towards smart and connected systems in the maritime industry is also fueling the demand for AC drives as part of modern vessel propulsion systems.

The rising popularity of electric propulsion systems in marine applications is driving the demand for VFDs, particularly AC drives. Electric propulsion offers advantages such as reduced noise levels, lower maintenance requirements, and improved maneuverability. AC drives play a crucial role in optimizing the performance of electric propulsion systems by providing variable speed control and efficient power management.

Marine operators are increasingly prioritizing safety and reliability in vessel operations. AC drives offer precise control over motor speed, torque, and acceleration, enhancing overall system performance and safety. The reliability of AC drives in demanding marine environments makes them a preferred choice for ensuring smooth and efficient operations while minimizing risks associated with mechanical failures.

Marine VFD Market by Voltage

Based on voltage, the Marine VFD Market is segmented as low voltage (Up to 1kV) and medium voltage (Above 1kV). In 2023, the low voltage (Up to 1kV) segment held the largest market revenue share of 60.4% and is expected to grow at a CAGR of 8.11% in the projected period. One of the primary drivers propelling the growth of the low voltage segment in the marine VFD market is the increasing demand for energy-efficient solutions in marine applications.

As sustainability and energy conservation become critical concerns globally, shipbuilders and operators are increasingly turning to VFDs to optimize energy consumption and reduce operational costs. The ability of VFDs to regulate motor speed based on actual demand not only enhances energy efficiency but also prolongs the lifespan of equipment, making them a preferred choice for modern marine vessels. Also, the rising adoption of electric propulsion systems in marine vessels is another significant driver for the low-voltage VFD segment.

Marine VFD Market by Voltage Classes

Based on voltage, the Marine VFD Market is segmented as 400Vac, 690Vac, and 1000Vac. In 2023, the 1000Vac segment held the largest market revenue share of 52.9% and is expected to grow at a CAGR of 6.31% in the projected period. The key driver of the 1000Vac segment is the increasing demand for automation and control systems in marine applications. As ships become more complex and sophisticated, there is a growing need for advanced control systems that can monitor and optimize various ship systems in real time. Variable frequency drives can play a crucial role in this, as they can provide precise control over the speed and torque of electric motors, enabling better performance and efficiency of the ship's systems.

Also, the trend towards electrification and automation in the maritime sector is fueling the demand for advanced VFD solutions like the 1000Vac class. These drives offer enhanced performance, energy efficiency, and precise control over electric motors, making them ideal for a wide range of marine applications such as propulsion systems, thrusters, pumps, and fans. The ability of 1000Vac VFDs to deliver high power output while maintaining operational stability and reliability is a significant factor driving their adoption in modern ship designs.

Marine VFD Market by Power Class

Based on power class, the Marine VFD Market is segmented as <100kW, <500kW, and <1MW. In 2023, the <500kW segment held the largest market revenue share of 64.5% and is expected to grow at a CAGR of 7.88% in the projected period. One of the primary drivers for the <500 kW VFD segment is its ability to optimize energy consumption in marine operations.

By controlling the speed of electric motors based on actual demand, VFDs help vessels operate more efficiently, leading to reduced fuel consumption and lower emissions. The use of <500 kW VFDs enables marine vessels to achieve substantial cost savings through improved energy efficiency. By reducing energy wastage and optimizing power usage, ship operators can lower their operational expenses and enhance overall profitability.

VFDs in the <500 kW power class offer precise control over motor speed and torque, resulting in enhanced performance of various onboard systems such as pumps, fans, and compressors. This improved performance leads to better reliability, increased productivity, and smoother operation of critical equipment. The compact size and scalability of <500 kW VFDs make them ideal for marine applications where space is limited. These drives can be easily integrated into existing systems or installed in new vessels without requiring significant modifications, thereby optimizing onboard space utilization.

Marine VFD Market by Power Class

Based on power class, the Marine VFD Market is segmented as pump, fan, compressor, propulsion/thruster, crane & hoist, winch, HVAC, scrubber, and others. In 2023, the <500kW segment held the largest market revenue share of 33.6% and is expected to grow at a CAGR of 8.68% in the projected period. One of the primary drivers for the pumps segment is the focus on efficiency and energy savings in marine applications. Variable Frequency Drives (VFDs) allow for precise control of pump speed, matching it to the required load, which significantly reduces energy consumption compared to traditional fixed-speed motors.

This efficiency gain is a crucial factor for ship operators looking to optimize fuel consumption and operating costs. Companies are increasingly focusing on manufacturing of energy efficient VFD for pumps applications. For instance, ABB's VFD solution reduces a ship's energy and fuel consumption, bringing savings in operational costs. Based on affinity laws, a linear reduction of pump or fan speed leads to a cubic reduction of electric power. Consequently, a 10% reduction of pump speed can save 27% of the energy cost related to the pump.

Marine VFD Market by Voltage Classes in Application

Based on voltage classes in application, the Marine VFD Market is segmented as 00Vac, 690Vac, and 1000Vac. In 2023, the 1000Vac segment held the largest market revenue share of 37.2% and is expected to grow at a CAGR of 6.31% in the projected period. The marine industry is increasingly adopting high-power applications, such as propulsion systems, pumps, and compressors, which require robust and efficient power management solutions.

The 1000Vac VFDs are well-suited for these applications, providing the necessary power handling capabilities. Stricter energy efficiency regulations and standards in the marine sector are pushing operators to adopt advanced technologies that minimize energy consumption. 1000Vac VFDs offer enhanced efficiency and reduced energy losses, making them a preferred choice for compliance with these regulations.

Marine VFD Market Regional Insights

Based on Region, the Marine VFD Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2023, the Asia Pacific region held the largest market revenue share of 41.7%, which is expected to grow at a CAGR of 7.98% in the forecast period 2024-2032. The primary driver for the growth of the market in the Asia Pacific region is the strong marine industry in emerging economies such as China, India, Japan, and South Korea. China has the largest inland waterway network in the world, and by the end of 2022, 109,500 carriers were operating on China's inland waterways. The growing demand for transportation of goods and passengers on inland waterways is driving the market for marine VFDs in China.

India is also a significant contributor to the marine VFD market in the Asia Pacific region. As of year 2022, there were 1,520 vessels registered under the Indian flag. The growth of the marine industry in India is driven by the increasing demand for transportation of goods and passengers and the need for energy-efficient and cost-effective solutions. Japan is another major player in the marine VFD market in the Asia Pacific region. In 2021, Japan recorded 1313 ordinary cargo ships of 100 gross tons or over in use under its flag.

The marine industry in Japan is driven by the need for high-performance and reliable equipment to operate in harsh environments, and marine VFDs are an essential component of these systems. South Korea is also a significant contributor to the marine VFD market in the Asia Pacific region. In 2022, there were 1,034 cargo ships registered in South Korea. The marine industry in South Korea is driven by the need for energy-efficient and cost-effective solutions, and the growing demand for transportation of goods and passengers.

Marine VFD Market Key Market Players & Competitive Insights

The global marine Variable Frequency Drive (VFD) market is characterized by a highly competitive landscape, driven by key players striving for innovation, technological advancements, and strategic collaborations to gain a competitive edge in the market. Leading companies such as ABB Ltd., Siemens AG, Schneider Electric SE, Danfoss Group, and Rockwell Automation, Inc. dominate the market with their extensive product portfolios and strong global presence.

These industry giants focus on continuous research and development efforts to introduce cutting-edge VFD solutions tailored specifically for marine applications. In the critical competitive landscape, companies are increasingly investing in expanding their product offerings to cater to the diverse needs of the marine industry. Customized VFD solutions designed for various marine applications such as propulsion systems, pumps, fans, compressors, and other onboard equipment are gaining traction among end-users.

General Electric: General Electric Company, commonly known as GE is an American multinational conglomerate incorporated in New York and has its global headquarters in Boston. It is present in more than 160 countries along all the major regions of the world. The company operates in many sectors like aerospace, power, renewable energy, additive manufacturing, digital industry & venture capital, and finance. In 2011, the firm decided to divide the overall firm into 3 divisions, GE Aerospace, GE HealthCare, and GE Vernova.

The companies will focus on aerospace, healthcare & energy. The Aerospace division produces jet & turboprop engines as products for commercial, military, business & general aviation products. The Vernova division produces products like boilers, turbines for energy reactors & wind power plants, and novel technologies like H2 production for the widespread energy sector. The HealthCare division provides healthcare products like pharmaceutical diagnostics technology for the healthcare sector. The company has a strong presence in North America, Europe, and the Asia Pacific region.

Siemens AG: Siemens AG is a German multinational technology-based conglomerate, established by the engineers Werner von Siemens & Johann Halske. It has operations in about 190 countries and approximately 285 production & manufacturing facilities present in all geographical regions across the globe. Siemens is a leading technology company that offers products, systems, and services for various industries and markets. Siemens operates in four main business segments: Digital Industries, Smart Infrastructure, Mobility, and Siemens Healthineers. Digital Industries provides solutions for automation, industrial software, and digitalization for discrete and process industries. Smart Infrastructure enables the intelligent and efficient use of energy and resources in buildings, grids, and distributed energy systems.

Mobility provides solutions for passenger and freight transportation, including rail vehicles, signaling, and electrification. Siemens Healthineers focuses on medical technology and healthcare services, such as imaging, diagnostics, and therapy. It is the largest industrial manufacturing company in Europe and holds the position of global market leader in industrial automation and industrial software. It is the second-largest German company based on market capitalization and has held about 43,600 patents worldwide. The company has strong presence in North America, Europe, and Asia Pacific.

Marine VFD Market Industry Developments

January 2024: GE Power Conversion announced the launch of the Ecomagination MV6 Series medium-voltage drive, a new variable frequency drive (VFD) primarily aimed at energy and industrial applications. The ecomagination MV6 Series medium-voltage drive can deliver output power up to 3,000 kW, making it suitable for a wide range of energy and industrial applications.

May 2023: Siemens announced the launch of a new servo drive system, Sinamics S200, specifically designed for the battery and electronics industry. This innovative drive system offers a range of features and benefits tailored to the unique requirements of these industries. The S200 drives provide high performance and energy efficiency, making them ideal for a variety of standard applications in the battery, electronics, and other industries.

Key Companies in the Marine VFD Market include.

• General Electric Company


• Siemens AG


• Danfoss A/S


• Berg Propulsion


• Triol Corporation


• SELMA


• Rockwell Automation


• ABB


• Parker Hannifin


• Invertek Drives


• Johnson Controls


• Schneider Electric


• LS Electric


• CG Power and Industrial Solutions Ltd (CG)

Marine VFD Market Segmentation

Marine VFD Market Type Outlook

• AC Drive


• DC Drive

Marine VFD Market Voltage Outlook

• Low Voltage (Up to 1kV)


• Medium Voltage (Above 1kV)

Marine VFD Market Voltage Classes Outlook

• 400Vac


• 690Vac


• 1000Vac

Marine VFD Market Power Classes Outlook

• <100kW


• <500kW


• <1MW

Marine VFD Market Application Outlook

• Pump


• Fan


• Compressor


• Propulsion/Thruster


• Crane & Hoist


• Winch


• HVAC


• Scrubber


• Others

Marine VFD Market Voltage Classes in Application Outlook

• 400Vac
  
  
  
  • Pump
  
  
  • Fan
  
  
  • Compressor
  
  
  • Propulsion/Thruster
  
  
  • Crane & Hoist
  
  
  • Winch
  
  
  • HVAC
  
  
  • Scrubber
  
  
  • Others
  
  
  
  


• 690Vac
  
  
  
  • Pump
  
  
  • Fan
  
  
  • Compressor
  
  
  • Propulsion/Thruster
  
  
  • Crane & Hoist
  
  
  • Winch
  
  
  • HVAC
  
  
  • Scrubber
  
  
  • Others
  
  
  
  


• 1000Vac
  
  
  
  • Pump
  
  
  • Fan
  
  
  • Compressor
  
  
  • Propulsion/Thruster
  
  
  • Crane & Hoist
  
  
  • Winch
  
  
  • HVAC
  
  
  • Scrubber
  
  
  • Others
  
  
  
  

Marine VFD Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Rest of Asia Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • UAE
  
  
  • Saudi Arabia
  
  
  • South Africa
  
  
  • Rest of the Middle East & Africa
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  

Report Attribute/Metric	Details
Market Size 2023	USD  1,459.7 million
Market Size 2032	USD 2,803.4 million
Compound Annual Growth Rate (CAGR)	7.48% (2024-2032)
Base Year	2023
Forecast Period	2024-2032
Historical Data	2018 & 2022
Forecast Units	Value (USD Million) & Volume (Number of Units)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	Type, Voltage, Voltage Classes, Application, Voltage Classes in Application, and Region
Geographies Covered	North America, Europe, Asia Pacific, Middle East & Africa, and South America
Countries Covered	US, Canada, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, GCC Countries, South Africa
Key Companies Profiled	General Electric Company, Siemens AG, Danfoss A/S, Berg Propulsion, Triol Corporation, SELMA, Rockwell Automation, ABB, Parker Hannifin, Invertek Drives, Johnson Controls, Schneider Electric, LS Electric, CG Power, and Industrial Solutions Ltd (CG).
Key Market Opportunities	·         Environmental regulations and carbon emission reduction
Key Market Dynamics	·         Rise in need for energy efficiency ·         Growing shipbuilding industry