Report : Middle East and Africa Variable Speed Drive Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Voltage (Low Voltage and Medium Voltage), Type (AC Drives, DC Drives, and Servo Drives), Power (Micro-Power Drives, Low-Power Drives, Medium-Power Drives, and High-Power Drives), Application (Pumps, Fans, Compressors, Conveyors, and Others), and End-User [Chemical & Oil and Gas (COG), Industrial, Infrastructure, Power Generation, Water and Wastewater, Marine, District Cooling Plant, and Others]
According to our latest market study on “MEA Variable Speed Drive Market Forecast to 2028 – COVID-19 Impact and Analysis – by Voltage (Low Voltage and Medium Voltage), Type (AC Drives, DC Drives, and Servo Drives), Power (Micro-Power Drives, Low-Power Drives, Medium-Power Drives, and High-Power Drives), Application (Pumps, Fans, Compressors, Conveyors, and Others), and End-User [Chemical & Oil and Gas (COG), Industrial, Infrastructure, Power Generation, Water and Wastewater, Marine, District Cooling Plant, and Others),” the market was valued at US$ 936.5 million in 2021 and is projected to reach US$ 1,433.5 million by 2028; it is expected to grow at a CAGR of 6.3% from 2020 to 2028.
The oil & gas industry relies heavily on motor-driven pumps and pumping systems for production, distribution, and refining application. For efficient performance of motors, technical experts are focusing on variable speed drives to regulate motor speed and minimize energy consumption. Centrifugal loads such as pumps and fans in the oil & gas industry do not require 100% flow or pressure continuously at full speed. Integration of variable speed drives with pumps, fans, and compressors can save a substantial amount of energy. Companies can gain energy savings by controlling the flow and pressure of oil and gases by modulating motor speed. It has been found that a 20% speed reduction of a motor can help save energy use by up to 40%. In recent years, there has been a surge in the adoption of variable speed drives in oil & gas applications in major parts of the Middle East & Africa for controlling the speed of motors in both low and medium voltage configurations.
Increasing investment in infrastructure development and rising use of variable speed drives across major industry verticals, including oil and gas, in the Middle East & Africa region are expected to provide substantial opportunity in the medium term. As old projects have started gaining momentum and new project execution has been picking momentum, the demand for variable speed drives is expected to increase, thereby providing significant opportunities for vendors. Ongoing infrastructure and building automation projects in the UAE and Saudi Arabia are expected to generate significant opportunities for variable drive systems manufacturers in the region. Recently, Saudi Arabia has announced a trillion-dollar pipeline of infrastructure projects aimed at diversifying the economy beyond oil and positioning the region as a global destination for investment in a wide range of areas including smart cities, energy, and tourism. These developments are expected to create opportunities for vendors in the medium to long term.
Recent development in variable speed technology offers expanded communications capabilities, more compact designs, and integrated control features driven by powerful, faster microprocessors. The biggest breakthroughs include advances in medium voltage drives that save cost and space. For example, the simplified design of new transformer less drive technology eliminates the need for a transformer, thereby reducing space and weight requirements, which is an essential consideration in the oil & gas industry. These drives use a pulse width modulated switching patterns and an integrated DC choke as an alternative to heavy and costly transformers that were once the only option for mitigating harmonics and common-mode voltage. By connecting the power supply directly to the drive without an isolation transformer, this technology results in a drive system that is smaller and lighter. Transformer less medium voltage drives are ideal for tightly confined applications such as oil platforms, refineries, and pipeline pump stations.
The MEA variable speed drive market is segmented on the basis of voltage, type, power, application, end user, and country. Based on voltage, the market is bifurcated into low voltage and medium voltage. Based on type, the market is segmented into AC drives, DC drives, and servo drives. By power, the MEA variable speed drive market is segmented into micro-power drives, low-power drives, medium-power drives, and high-power drives. Based on application, the market is segmented into pumps, fans, compressors, conveyors, and others. Based on end-user, the MEA variable speed drive market is segmented into chemical & oil and gas (COG), industrial, infrastructure, power generation, water and wastewater, marine, district cooling plant, and others.
Impact of COVID-19 Pandemic on MEA Variable Speed Drive Market
The MEA has remained broadly resilient in the face of financial pressures resulting from the COVID-19 pandemic. However, the supply chain and small and medium-sized enterprises have been severely impacted due to the pandemic. Most of the vendors witnessed severe impact of the COVID-19 crisis during the first half of 2020, while they also experienced some recovery in the latter half of the year. In August 2021, the variable speed drive market players witnessed strong recovery, and they are expected to grow at a robust growth rate during 2021–2028. The industrial sector has been negatively impacted due to the cancellations and delays of orders and greater price pressures. Logistical and economic hurdles disrupted sales and manufacturing, which hampered the growth of the MEA variable speed drive market. The region’s governments have provided substantial support to businesses in the regional supply chain. They have invested billions of dollars in combating the economic and public-health effects of the COVID-19 outbreak crisis. Government in the MEA are accelerating efforts to build domestic supply chains. Accelerated collaborations, partnerships, and technological innovations are likely to drive the market growth in the coming years.
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