With the world population projected to reach 1.9 billion by 2040, there will be an increase in energy consumption. Growth in energy consumption can be controlled by the rise in the usage of electric drives in the Middle East region. These drives conserve less energy and improve the process control along with providing optimized operations across varied applications such as power generation, oil & gas, HVAC control system and mining & metal. Owing to ample opportunities, the Middle East Variable Frequency Devices (VFDs) market size is estimated to reach $138.9m by 2023. With rampant energy consumption due to infrastructural developments in the region, the Middle East VFD market is projected to grow with a CAGR of 5.05% throughout the forecast period 2018-2023.
The Middle East Variable Frequency Drives (VFD) Market: Leading Segments
Application of VFD is growing at a faster pace especially in the building automation systems, at a CAGR of 6.99% through to 2023. Growing number of construction projects, particularly villas and apartments in Riyadh are fuelling the adoption of VFDs in a wide range of applications including escalators, lifts, heating, ventilation and cooling equipment. Additionally, government initiatives for energy-efficient smart cities is boosting the use of VFDs. Smart cities initiatives such as Saudi-Arabia plan to build a new city named “NEOM” and inauguration of smart city in Riyadh by Networking Company Cisco is boosting the growth of the smart homes market and positively impact the future of VFD sales in gulf countries. Smart cities with connected lifestyle demand for internet of things, and artificial intelligence along with the new building constructions. Moreover, the necessity for the deployment of VFDs in the existed infrastructure of the building and also in the new constructions, is creating a significant number of opportunities for the growth of the VFDs market.
Now, urban construction sector in Dubai has more than 3,200 projects, which accounts for a value of $425 billion as of 2018.It has triggered the growth in the adoption rate of building automation systems for improving the resilience of energy consumption.
Saudi Arabia has been identified as a leading region with a share of 22.57% in the Middle East VFDs market in 2017. Electric VFDs are more reliable, compared to turbines and hydraulic transmissions for controlling the system’s flow, particularly in oil & gas, food & beverages, and petrochemicals end-use industries. Cost optimization in the oil & gas industry through the replacement of control valves, and guide valves with VFDs is also driving the Saudi Arabia VFDs market. The Saudi Arabia government has announced about its ambitious economic plan “Saudi Vision 2030”, intended to reduce its dependency on oil. Infrastructure development in this country is encouraging building automation, which in turn boosts the usage of VFD’s for heating, ventilation and air conditioning applications in the same. The Kuwait Government has publicized that it is planning to invest nearly $112 billion in the next five years, to enhance crude oil and gas production capabilities under the Vision 2035. The country is also planning to increase its crude oil production from 3.2 billion barrels per day to 4 billion barrels per day by 2020.
Middle East VFDs Market: Driving Factors
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Middle East VFD Market: Competitive Landscape
ABB, Siemens AG, Schneider Electric, Danfoss, Honeywell International, Eaton Corporation, Delta Electronics, Rockwell Automation, Mitsubishi Electric Group, and Toshiba are the foremost players, which are involved in the VFDs market of Middle East.
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