Market size of VFD

Inverter scale
As the market continues to expand and the demands of users diversify, the functionality of inverter products in the domestic market has been increasingly enhanced. The degree of integration and systematization is continually increasing, making operation even more convenient. In addition, certain industries have seen the emergence of special inverter products. The application field of frequency converters is also expanding, from factory production and processing equipment to central air conditioning, to heavy machinery and the textile industry. Even small power 0.4KW to high-power 20000KW motors are being widely used, resulting in significant economic benefits.

High voltage frequency converter
High-voltage inverter speed regulation has become the mainstream method for regulating the speed of high-voltage AC motors due to its wide range of applications. It has a power-saving effect of between 20%-60%, which is substantial. The current average price of high-voltage inverters is about 600 yuan per kW, and the potential market for high-voltage inverters is estimated to be as high as 80 billion yuan, with around 10 billion yuan for high-performance products. China's installed motor capacity is still increasing, so it's essential to improve efficiency and tap into the motor's energy-saving potential. High-voltage variable frequency speed regulation technology has immense potential and a promising future.

Currently, the market penetration of medium and high voltage inverters paired with medium and high voltage motors for domestic fan pumps in China is relatively low, estimated to be less than 20%. However, there is a continuous need for process improvement and energy-saving measures in the country, which will contribute to the sustained growth of the high voltage inverter market. The increasing focus on environmental protection and the rising demands of industrial production will further drive the demand for high-voltage inverter products, leading to long-term growth prospects.

China's transmission network forecast predicts a strong growth rate for high-voltage inverters in emerging markets such as wind power, rail transit, and photovoltaics, with an average growth rate of 25%. Additionally, the local growth rate in these sectors can reach even higher levels of 30% or more. Industries like petrochemicals and chemicals are expected to experience an average growth rate of 15-25%. However, sectors like steel, building materials, and power may witness a slower growth rate compared to other industries.

Overall, the market outlook for high-voltage inverters in China remains positive, driven by ongoing process improvements, energy-saving requirements, and the increasing significance of environmental considerations.

Medium and low voltage frequency conversion
Currently, domestic users are the main consumers of domestic medium and low voltage inverter products. These users are present in various economic sectors including lifting machinery, municipal services, coal, oil and gas drilling and mining, petrochemicals, electric power, metallurgy, textile and chemical fiber, and the food and beverage industry. Although some exceptional brands do export their products abroad, the overall export ratio of the industry remains limited. In China's high-end market for medium and low voltage inverters, foreign brands such as ABB, Siemens, and Yaskawa still hold a dominant position. These brands mainly serve industries such as steel, cement, lifting, and elevators.

Explosion-proof frequency converter
China's frequency conversion technology has witnessed rapid growth, yet the adoption of explosion-proof frequency conversion speed regulation devices in hazardous environments like coal mines, petroleum, and chemical industries remains low. Currently, just about 10% of motors used in coal mines are equipped with explosion-proof frequency converters. However, in order to comply with the government's energy-saving requirements and reduce coal consumption, it is estimated that over 50% of motors will employ frequency conversion control within the next decade. According to preliminary market research, China's annual demand for such products is projected to range between 1.0 and 15,000 units. Moreover, the existing equipment that needs upgrading or transformation amounts to approximately 0.8 to 15,000 units. Therefore, there is a substantial market demand for these devices.