Clean Power VFD Market Projected to Reach $1.52B by 2030

Driven by energy efficiency and industrial automation, the clean power variable frequency drive (VFD) market is projected to grow at a 5.6% CAGR through 2030.
Nov. 11, 2025
3 min read

Key Highlights:

  • The clean power VFD market is expected to grow at a CAGR of 5.6%, reaching $1.52 billion by 2030.
  • Clean power VFDs offer advantages like low harmonic output, energy efficiency, and space savings, making them ideal for industrial and commercial applications.
  • The industrial sector is a primary end-user, leveraging VFDs for improved control and reduced maintenance costs.

The global clean power variable frequency drive (VFD) market is on track to achieve significant growthprojected to reach $1.52 billion by 2030, up from an estimated $1.16 billion in 2025according to a report by MarketsandMarkets. This represents a compound annual growth rate (CAGR) of 5.6% driven by accelerating demand for efficient, compact and reliable motor control solutions across residential, commercial and industrial sectors.

Clean power VFDs deliver low harmonic output and improved energy efficiency compared with traditional drives, minimizing transmission losses and reducing space requirements. These advantages have spurred adoption in a range of high-growth industries fueled by rapid urbanization, the rise of industrial automation and growing integration of renewable energy sources such as solar and wind power.

The report shows a critical market driver is the booming data center industry, powered by cloud computing, artificial intelligence (AI) and global digitization efforts, which all require scalable and reliable VFD technology. Concurrently, government investments in smart grids, emphasis on sustainable infrastructure and stringent energy efficiency regulations worldwide are opening new avenues for clean power VFD applications.

The industrial sector could dominate the end-user market, leveraging the drives’ electrical efficiency, thermal performance and precision control for challenging environments. Despite higher upfront costs, their long-term benefits, including reduced maintenance and power transmission losses, seems to make them the preferred choice.

Low-voltage clean power VFDs (ranging from 380 V to 690 V) are expected to lead the voltage segment, favored for commercial HVAC systems, residential smart homes, small-scale manufacturing and the growing electric vehicle charging infrastructure. Their compact design and integration capabilities contribute to widespread adoption.

Regionally, the report shows Asia-Pacific is emerging as the fastest growing market, driven by large scale urbanization and infrastructure projects in China, India, Japan and South Korea. The region’s leadership in renewable energy generation and rapid expansion of data centers in nations like Singapore further bolster demand. National initiatives that promote smart cities, transport electrification and grid modernization are also key contributors to the robust regional outlook.

Major industry players shaping the clean power VFD landscape include ABB, Schneider Electric, Eaton, Danfoss and Rockwell Automation, according to the report. These companies continue to pursue strategic acquisitions, new product launches and partnerships to expand their market reach and capitalize on emerging opportunities.

About the Author

Sharon Spielman

Technical Editor, Machine Design

As Machine Design’s technical editor, Sharon Spielman produces content for the brand’s focus audience—design and multidisciplinary engineers. Her beat includes 3D printing/CAD; mechanical and motion systems, with an emphasis on pneumatics and linear motion; automation; robotics; and CNC machining.

Spielman has more than three decades of experience as a writer and editor for a range of B2B brands, including those that cover machine design; electrical design and manufacturing; interconnection technology; food and beverage manufacturing; process heating and cooling; finishing; and package converting.

Email: [email protected]

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