Global Low Harmonic Drives Market Size, Share, Analysis Report - Forecast 2032

Low Harmonic Drives Market Insights

According to Market Research Store, the global low harmonic drives market size was valued at around USD 2.74 billion in 2023 and is estimated to reach USD 4.95 billion by 2032, to register a CAGR of approximately 6.8% in terms of revenue during the forecast period 2024-2032.

The low harmonic drives report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

To Get more Insights, Request a Free Sample

Global Low Harmonic Drives Market: Overview

Low harmonic drives are advanced electrical drive systems designed to minimize the generation of harmonic distortions in the power supply. Harmonics are unwanted, high-frequency currents or voltages that can cause a range of problems in electrical systems, such as reduced efficiency, overheating, equipment damage, and interference with other electronic devices. Low harmonic drives are engineered to reduce these distortions, ensuring a cleaner and more efficient operation of electric motors and other connected systems.

The market for low harmonic drives is growing due to the increasing adoption of variable frequency drives (VFDs) and energy-efficient systems across industries. Additionally, stricter environmental regulations and rising awareness about power quality are driving the demand for these drives. Industries like manufacturing, oil and gas, water treatment, and renewable energy are particularly focused on reducing harmonic distortions to enhance system longevity, improve power quality, and ensure compliance with regulatory standards. As industries continue to invest in smarter and more efficient electrical solutions, the demand for low harmonic drives is expected to rise steadily, particularly as the global push for energy efficiency and sustainability intensifies.

Key Highlights

• The low harmonic drives market is anticipated to grow at a CAGR of 6.8% during the forecast period.
• The global low harmonic drives market was estimated to be worth approximately USD 2.74 billion in 2023 and is projected to reach a value of USD 4.95 billion by 2032.
• The growth of the low harmonic drives market is being driven by increasing emphasis on energy efficiency and power quality across various industries.
• Based on the product, the low voltage drives segment is growing at a high rate and is projected to dominate the market.
• On the basis of application, the oil and gas segment is projected to swipe the largest market share.
• By region, North America is expected to dominate the global market during the forecast period.

Low Harmonic Drives Market: Dynamics

Key Growth Drivers:

• Increasing Awareness of Power Quality Issues: End-users and utilities are becoming more aware of the detrimental effects of harmonic distortion on electrical systems, including equipment damage, reduced efficiency, and increased energy costs. This awareness drives the demand for solutions like LHDs.
• Stricter Regulations and Standards: Regulatory bodies and industry standards (e.g., IEEE 519) are increasingly mandating limits on harmonic current emissions from electrical equipment, including VFDs. This regulatory push necessitates the use of LHDs to comply.
• Growing Adoption of Variable Frequency Drives (VFDs): As industries increasingly adopt VFDs to improve motor control, energy efficiency, and process automation, the overall potential for harmonic generation increases, consequently driving the need for LHDs to mitigate these effects.
• Demand for Energy Efficiency and Reduced Losses: Harmonics contribute to energy losses in electrical systems. LHDs, by minimizing harmonics, help improve overall energy efficiency and reduce operational costs.
• Protection of Sensitive Electronic Equipment: Harmonics can interfere with the operation of sensitive electronic equipment, such as PLCs, computers, and communication systems. LHDs are used to ensure a cleaner power supply and protect these devices.
• Penalties from Utilities for Poor Power Quality: Some utility companies impose penalties on customers who inject excessive harmonic currents into the grid. This financial incentive encourages the adoption of LHDs.

Restraints:

• Higher Initial Cost Compared to Standard VFDs: LHDs typically have a higher upfront cost compared to conventional VFDs without advanced harmonic mitigation features, which can be a barrier for budget-conscious users, especially in less regulated regions.
• Complexity of Installation and Configuration: Implementing and configuring LHDs can be more complex than standard VFDs, requiring skilled personnel and careful system integration.
• Limited Awareness and Understanding in Some Regions: In certain regions or among smaller businesses, the awareness and understanding of power quality issues and the benefits of LHDs may still be limited.
• Availability of Alternative Harmonic Mitigation Solutions: While LHDs are effective, other harmonic mitigation techniques, such as passive harmonic filters, active harmonic filters, and multi-pulse VFDs, offer alternative solutions that may be preferred in specific applications based on cost or performance requirements.
• Space Requirements: Some LHD solutions, particularly those with integrated filters, can have a larger physical footprint compared to standard VFDs, which may be a concern in space-constrained installations.

Opportunities:

• Development of More Cost-Effective LHD Technologies: Ongoing research and development are focused on reducing the cost of LHDs through innovative designs and component optimization, making them more accessible to a wider range of users.
• Integration of Smart Features and IoT Connectivity: Incorporating smart monitoring, diagnostics, and IoT connectivity into LHDs can provide valuable insights into power quality, system performance, and potential maintenance needs.
• Growing Demand in Energy-Intensive Industries: Industries with high energy consumption and numerous motor-driven applications, such as oil & gas, mining, and manufacturing, represent significant growth opportunities for LHD adoption.
• Retrofit and Upgrade of Existing VFD Installations: As awareness and regulations increase, there is a growing opportunity to retrofit existing standard VFD installations with LHD solutions or add-on harmonic filters.
• Demand in Renewable Energy Applications: LHDs can play a role in ensuring power quality in renewable energy systems, such as wind turbines and solar farms, where VFDs are used for grid integration.
• Development of Compact and Modular LHD Designs: Innovations leading to smaller and more modular LHD designs can address space constraints and simplify installation.

Challenges:

• Educating End-Users on the Long-Term Benefits of LHDs: Overcoming the focus on initial cost and highlighting the long-term benefits of LHDs, such as energy savings, equipment protection, and regulatory compliance, requires effective education and awareness campaigns.
• Ensuring Compatibility with Existing Electrical Infrastructure: Integrating LHDs into existing electrical systems without causing compatibility issues or requiring significant infrastructure upgrades can be a challenge.
• Standardization of Harmonic Measurement and Compliance Testing: Lack of complete standardization in harmonic measurement techniques and compliance testing procedures can create inconsistencies and complexities.
• Addressing the Technical Complexity of Harmonic Mitigation: Designing and implementing effective harmonic mitigation solutions requires a deep understanding of power systems and harmonic analysis.
• Keeping Pace with Evolving Regulations and Standards: The regulatory landscape for power quality and harmonic emissions is continuously evolving, requiring manufacturers and users to stay updated.
• Competition from Alternative Harmonic Mitigation Technologies: LHD manufacturers need to differentiate their products based on performance, cost-effectiveness, and ease of use compared to other solutions.

Low Harmonic Drives Market: Report Scope

This report thoroughly analyzes the Low Harmonic Drives Market, exploring its historical trends, current state, and future projections. The market estimates presented result from a robust research methodology, incorporating primary research, secondary sources, and expert opinions. These estimates are influenced by the prevailing market dynamics as well as key economic, social, and political factors. Furthermore, the report considers the impact of regulations, government expenditures, and advancements in research and development on the market. Both positive and negative shifts are evaluated to ensure a comprehensive and accurate market outlook.

Low Harmonic Drives Market: Segmentation Insights

The global low harmonic drives market is divided by product, application, and region.

Segmentation Insights by Product

Based on product, the global low harmonic drives market is divided into low voltage drives and medium voltage drives.

Low Voltage Drives are the dominant product type in the Low Harmonic Drives Market. These drives are commonly used in applications where the voltage is lower, typically below 1 kV, and are essential for controlling the speed and torque of electric motors while minimizing harmonic distortions in the power supply. Low voltage drives are widely used in industries such as manufacturing, HVAC (Heating, Ventilation, and Air Conditioning), water treatment, and material handling, where they help improve energy efficiency, reduce power losses, and extend the lifespan of equipment. The increasing demand for energy-efficient solutions, coupled with stricter environmental regulations regarding power quality, has led to the adoption of low harmonic drives in a variety of industrial sectors. Moreover, the advancements in power electronics and control algorithms have made low voltage drives more reliable and cost-effective, further fueling their dominance in the market.

Medium Voltage Drives, operating typically in the range of 1 kV to 6 kV, are used in applications that require higher power capacities and are generally found in industries with larger equipment and heavy-duty operations, such as oil and gas, mining, and large-scale manufacturing. While medium voltage drives are crucial for specific high-power applications, their adoption is more specialized compared to low voltage drives. The medium voltage drive market tends to be more niche, with a smaller but growing demand due to the increasing need for precise motor control and reduced harmonic distortion in large industrial processes. The installation and maintenance costs for medium voltage drives are higher compared to low voltage drives, which also limits their widespread use in small to medium-sized operations.

Segmentation Insights by Application

On the basis of application, the global low harmonic drives market is bifurcated into oil and gas, food and beverage, water and wastewater treatment, mining, HVAC sector, and others.

Oil and Gas is the dominant application in the Low Harmonic Drives Market. In this sector, the need for precise motor control and reduced harmonic distortion is paramount, as large-scale operations, including pumping, drilling, and compression, require highly efficient and reliable motor systems. Low harmonic drives are used to minimize energy losses and power quality issues, which is especially important in the oil and gas industry, where operational uptime and energy efficiency directly impact profitability. Additionally, as the oil and gas industry faces growing pressure to reduce energy consumption and comply with environmental regulations, low harmonic drives have become an integral part of modernizing operations, offering better control over energy consumption and extending the lifespan of equipment.

Food and Beverage is another key application for low harmonic drives, driven by the industry's need for precise motor control in production processes. From mixing and blending to packaging and bottling, the food and beverage sector relies on motor-driven systems that demand efficient performance with minimal harmonic interference. Low harmonic drives are used to optimize energy consumption, improve product quality, and reduce operational costs. The increasing focus on sustainability and energy efficiency within the food and beverage industry further supports the adoption of low harmonic drives, which help companies meet their energy-saving goals and adhere to strict regulatory standards for food processing.

Water and Wastewater Treatment applications also play a significant role in the Low Harmonic Drives Market, where reliable and energy-efficient motor control is critical for managing the operations of pumps, compressors, and aeration systems. In water treatment plants and wastewater treatment facilities, minimizing harmonic distortion improves the overall efficiency of equipment, reduces maintenance costs, and extends the life of motors and associated machinery. With growing global concerns over water management and sustainability, the adoption of energy-efficient solutions like low harmonic drives has increased, especially in municipal water systems and large-scale industrial operations.

Mining sector also benefits from low harmonic drives, particularly in large mining operations that involve heavy-duty equipment, such as crushers, conveyors, and pumps. These applications require high power, and the use of low harmonic drives helps to improve energy efficiency and reduce the impact of harmonic distortions that can damage sensitive equipment or reduce the overall system performance. As mining operations become more automated and environmentally conscious, low harmonic drives are increasingly used to optimize motor control and improve operational efficiency.

HVAC Sector (Heating, Ventilation, and Air Conditioning) is another significant application for low harmonic drives. In HVAC systems, low harmonic drives are used to control the speed of motors in fans, pumps, and compressors. By reducing energy consumption and minimizing harmonic distortion, these drives help improve the overall efficiency and reliability of HVAC systems in both residential and commercial buildings. The growing emphasis on energy-efficient buildings, smart homes, and commercial facilities has further driven the adoption of low harmonic drives in this sector.

Low Harmonic Drives Market: Regional Insights

• North America is expected to dominate the global market

North America is a dominant region in the Low Harmonic Drives Market, primarily due to the significant demand for energy-efficient and high-performance drives across various industries. The United States is a key player in this market, with its advanced manufacturing capabilities in automotive, industrial automation, HVAC systems, and renewable energy sectors. The growing emphasis on green technologies and the need to reduce energy consumption and power quality issues in industrial applications have spurred the adoption of low harmonic drives. Additionally, the increase in smart grid development, renewable energy systems, and electric vehicle (EV) charging stations has heightened the need for efficient drive systems that minimize harmonics. The region’s strong technological infrastructure, coupled with government initiatives encouraging energy-efficient solutions, has further contributed to the market’s growth. The presence of major manufacturers such as Rockwell Automation, Siemens, and ABB in the U.S. is also a significant factor driving the market in North America.

Europe has a well-established market for Low Harmonic Drives, driven by stringent regulations related to energy efficiency, industrial automation, and the transition towards Industry 4.0. Countries like Germany, France, and the United Kingdom are major contributors to the growth of this market, as they have a strong industrial base in automotive manufacturing, renewable energy, and high-precision machinery. Germany, being a hub for industrial automation, particularly in machine tools, robotics, and automotive manufacturing, significantly drives the demand for low harmonic drives to improve efficiency and reduce electrical interference. Moreover, European Union regulations on power quality and emission reductions further bolster the market for low harmonic drives. The increasing adoption of electric vehicles and sustainable manufacturing practices is expected to drive continued growth in the region.

Asia-Pacific is the fastest-growing region in the Low Harmonic Drives Market, with countries like China, Japan, and South Korea leading the demand for advanced drive systems. China is a key market due to its large-scale manufacturing sector, which includes electronics, automotive, textile, and steel industries, all of which require efficient drive systems to reduce harmonic distortions and improve power quality. Additionally, Japan and South Korea, with their strong technological advancements in robotics, automotive production, and industrial automation, are increasingly adopting low harmonic drives to ensure efficient operation and reduce electrical losses. The rapid industrialization, urbanization, and investments in renewable energy in the region are expected to continue driving the demand for low harmonic drives. Furthermore, government incentives promoting clean energy and the integration of smart grids are expected to support growth in the market.

Latin America, the Low Harmonic Drives Market is still emerging, with countries like Brazil and Mexico showing the most significant demand for such solutions. The region’s industrial sector, particularly in automotive, mining, and manufacturing, is growing steadily, leading to an increased need for energy-efficient and reliable drive systems. Brazil, as the largest economy in South America, is investing in upgrading its industrial infrastructure, especially in automated manufacturing systems and renewable energy. Mexico's proximity to the U.S. and its growing electronics and automotive manufacturing sectors are also contributing to the demand for low harmonic drives. While the market is relatively small compared to other regions, the adoption of more efficient and sustainable manufacturing solutions is expected to drive growth in the coming years.

Middle East and Africa region is seeing gradual growth in the Low Harmonic Drives Market, driven by investments in energy-efficient technologies and automation, particularly in oil and gas, power generation, and manufacturing sectors. Saudi Arabia and the UAE are key markets, with a growing focus on industrial diversification, renewable energy, and the implementation of smart grid technologies. These initiatives, along with the push for sustainable energy practices, are driving the demand for low harmonic drives in the region. South Africa is another notable market, with increasing industrial automation in sectors like mining, automotive, and steel production, where reducing harmonics is essential for improving energy efficiency and operational performance. While the market in MEA is still in the early stages of growth, ongoing investments in infrastructure and sustainability are likely to boost the demand for low harmonic drives.

Low Harmonic Drives Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the low harmonic drives market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global low harmonic drives market include:

• ABB Ltd.
• Cone Drive
• Danfoss AS
• Delta Electronics Inc.
• Eaton Corp plc
• Fuji Electric Co. Ltd.
• Harmonic Drive LLC
• Invertek Drives Ltd
• KEB America Inc.
• Mitsubishi Electric Corp.
• Nidec Corp.
• OJ Electronics AS
• OMRON Corp.
• Rockwell Automation Inc.
• Sango Automation Ltd
• Schneider Electric SE
• Siemens AG
• WEG S.A
• Yaskawa Electric Corp.

The global low harmonic drives market is segmented as follows:

By Product

• Low Voltage Drives
• Medium Voltage Drives

By Application

• Oil And Gas
• Food And Beverage
• Water And Wastewater Treatment
• Mining
• HVAC Sector
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

Frequently Asked Questions