The global marine variable frequency drives market is valued at $1.45 billion in 2024 and is expected to reach $2.09 billion by 2030, at a CAGR of 6.3% during the forecast period, according to Strategist MRC. A marine variable frequency drive (VFD) is a specialized device that changes the frequency and voltage of the electricity supplied to a ship’s electric motors to regulate speed and torque. By facilitating smooth acceleration and deceleration, marine VFDs reduce mechanical stress, extend equipment life, and improve overall performance in challenging marine conditions. This integration is essential to encourage sustainability in the maritime sector and comply with environmental regulations.
According to the IEA, the international shipping industry accounted for 2% of global energy-related CO2 emissions in 2019. According to the United Nations Conference on Trade and Development (UNCTAD), international seaborne trade increased by 4% in 2017 due to the growth of the global economy.
Market dynamics:
Drivers:
Increasing demand for maritime transportation
One of the main factors driving the market is the increasing demand for maritime transportation. As international trade continues to grow, the need for effective and reliable transportation solutions is increasing, resulting in a growing number of merchant and naval vessels that require sophisticated propulsion and control systems. VFDs are essential in these systems because they accurately control the ship’s direction, speed, and maneuvering. The use of VFDs in a variety of marine applications, such as propulsion systems, deck machinery, and cargo handling, is only increasing as the need for maritime transportation grows.
Restraints:
High initial cost
The use of marine variable frequency drives (VFDs) in the marine industry is significantly constrained by their high initial price. The initial cost to purchase and install a VFD system can be high, especially when retrofitting an existing vessel, as it entails additional costs for labor and engineering changes. Integrating VFD technology requires a percentage of the construction budget for a new structure, further increasing costs. The high upfront cost of VFDs is a major barrier to market expansion, despite the long-term energy savings and operational benefits.
Opportunities:
Government regulations and standards
Government regulations and guidelines have a significant impact on the structure of the marine variable frequency drive (VFD) market. Regulatory bodies such as the International Maritime Organization (IMO) have set stringent rules to improve energy efficiency and reduce greenhouse gas emissions. Ship owners are required to implement sophisticated technologies such as VFDs to meet standards such as the Carbon Intensity Index (CII) and the Energy Efficiency Design Index (EEDI). As such, these regulations encourage investment in VFD systems to spur innovation and ensure that ships meet the latest operational and environmental requirements while advancing sustainability in the maritime sector.
Threats:
Installation and maintenance complexity
The installation and maintenance of marine variable frequency drives (VFDs) in the marine industry can be challenging due to their complexity. Because VFDs are complex systems that require precise electrical connections and safety compliance, they require qualified professionals to install them. The process is further complicated by the fact that retrofitting an existing vessel often requires significant changes to the structural and electrical systems. Shipowners may be reluctant to adopt VFD technology due to the need for specific expertise and the potential for downtime during installation or maintenance, which could hinder the expansion of the market as a whole.
COVID-19 impact
The marine variable frequency drive (VFD) business has been significantly impacted by the COVID-19 pandemic. Disruptions to global supply chains and a downturn in economic activity have led to a decline in the market for new ships and marine equipment. However, as the pandemic has spread and recovery efforts have progressed, the need for VFDs has begun to grow. The growing emphasis on energy efficiency and emission reduction, coupled with the need for modernization and retrofitting of existing fleets, has led to a resurgence in the VFD market.
The AC drives segment is expected to be the largest during the forecast period.
The AC drives segment is estimated to be the largest as it is capable of regulating electric motor speed and torque, which is essential for several onboard systems such as propulsion, pumps, and ventilation, and is widely utilized in marine applications. Their use results in significant energy savings, resulting in improved operational efficiency and reduced fuel usage. Increasing regulatory constraints on sustainability and energy efficiency in the marine industry are driving the need for AC drives in modern marine operations.
The naval & defense sector is expected to witness the highest CAGR during the forecast period.
The naval & defense sector is expected to witness the highest CAGR during the forecast period, owing to the growing need for cutting-edge technologies that increase operational safety and efficiency. In marine systems, including propulsion, pumps, and HVAC, VFDs are essential for managing torque and speed. Government regulations and the emphasis on updating ships with electric and hybrid propulsion systems to comply with environmental regulations and enhance mission readiness are further fueling the adoption of VFD technology.
Highest share by region:
North America is expected to account for the largest market share during the forecast period, owing to stringent environmental regulations enforced by the International Maritime Organization (IMO) and the Environmental Protection Agency (EPA), which are promoting the reduction of emissions and increase in energy efficiency. Energy-efficient propulsion systems are in great demand owing to the region’s thriving marine sector, including offshore oil exploration, naval operations, and commercial vessels. Furthermore, advancements in digitalization and automation in marine technology are encouraging the use of VFDs to improve operational performance and sustainability.
Region with the highest CAGR:
Asia Pacific is expected to register the highest CAGR during the forecast period. The strong shipbuilding industry, especially in countries such as China, South Korea, and Japan, is significantly increasing the need for VFDs to improve energy management and operational efficiency. The increasing emphasis on energy conservation and compliance with strict environmental standards is further encouraging the use of VFD technology in maritime operations. The rise of the offshore oil exploration industry and maritime trade is contributing to the expansion of the market, as shipowners are looking for cutting-edge technologies to maximize the performance of their vessels and reduce fuel consumption.
Key players in the market
Some of the key players profiled in the marine variable frequency drive market include ABB, Siemens, Danfoss, Rockwell Automation, Emerson Electric, Mitsubishi Electric, Yaskawa Electric, Parker Hannifin, Schneider Electric, WEG, Toshiba, Nidec Corporation, Fuji Electric, Roysomer, Inductrol, GE Industrial Solutions, Rexroth Bosch Group, SKF, Omron, and Toshiba Machinery.
Key developments:
In May 2023, ABB unveiled the Dynafin™ propulsion system, inspired by the dynamic movement of a whale’s tail. This innovative system aims to improve efficiency in the marine industry.
In March 2023, Siemens launched the SINAMICS Perfect Harmony GH180, a marine-specific VFD that provides optimized energy efficiency and control for large propulsion systems on commercial vessels.
In July 2022, Rockwell Automation launched a new series of marine-certified Allen-Bradley PowerFlex VFDs focused on durability and energy savings for shipboard propulsion and HVAC systems.
In October 2021, Danfoss launched VACON® NXP liquid cooled drives targeted at the marine sector for energy-efficient control of high-performance propulsion and thruster systems.
In February 2021, Mitsubishi Electric launched the next generation FR-F800 VFD, designed for marine propulsion and pump systems, focusing on energy savings and reliability in harsh marine environments.
Application types
– AC drives
– DC drives
– Servo drives
– Other types
Supported power ratings:
– Low power (up to 100 kW)
– Medium power (100 kW to 500 kW)
– High power (500 kW and above)
Supported technologies
– Silicon carbide (SiC)
– Gallium nitride (GaN)
– Silicon (Si)
– Other technologies
Applications
– Pump systems
– Fans and blowers
– Propulsion systems
– Compressors
– Cranes and hoists
– Deck machinery
– Heating, ventilation, and air conditioning (HVAC)
– Steering
– Scrubbers
– Shaft generators
– Power electronics
– Other applications
For end users:
– Commercial shipping
– Naval and defense
– Offshore vessels
– Fishing vessels
– Recreational boats
– Other end users
Supported Regions
– North America
o United States
o Canada
o Mexico
– Europe
o Germany
o United Kingdom
o Italy
o France
o Spain
o Rest of Europe
– Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Other Asia Pacific
– South America
o Argentina
o Brazil
o Chile
o Other South America
– Middle East and Africa
o Saudi Arabia
o United Arab Emirates
o Qatar
o South Africa
o Rest of Middle East & Africa
Report highlights include
– Market share assessments for regional and country-specific segments
– Strategic recommendations for new entrants
– Covers market data for 2022, 2023, 2024, 2026, and 2030
– Market trends (drivers, restraints, opportunities, threats, challenges, investment opportunities, and recommendations)
– Strategic recommendations for key business segments based on market estimates
– Competitive landscape mapping of key common trends
– Company profiling, including detailed strategic, financial, and recent developments
– Supply chain trends mapping the latest technological advancements