Australia VSD Market (2025-2031) | Revenue, Outlook, Value, Industry, Forecast, Analysis, Growth, Share, Companies, Size & Trends

Topics Covered in Australia VSD Market Report

Australia VSD Market Report thoroughly covers the market by Type, Voltage, End-User and Application. Australia VSD Market Outlook report provides an unbiased and detailed analysis of the ongoing Australia VSD Market trends, opportunities/high growth areas, and market drivers. This would help stakeholders devise and align their market strategies according to the current and future market dynamics.

Australia VSD Market Synopsis

The Australian VSD market experienced growth from 2021 to 2024 due to rising demand for energy-efficient solutions and advancements in industrial automation. Key industries, such as manufacturing, mining, and HVAC, increasingly adopted VSDs to enhance operational efficiency and reduce energy consumption. The Australian government's focus on sustainability, including initiatives such as the Energy Efficiency Council's programs and funding through the Australian Renewable Energy Agency (ARENA) supported the adoption of VSD technologies. Additionally, the rapid industrial growth, coupled with Australia's efforts to improve energy management and reduce carbon emissions, further contributed to the market's expansion during this period.

According to 6Wresearch, the Australia VSD Market is projected to grow at a CAGR of 5.2% in revenue and 3.7% in volume from 2025 to 2031. This growth is driven by a combination of government sustainability initiatives, increased industrial automation, and rising demand for energy-efficient technologies. The Australian government has committed to achieving net-zero emissions by 2050. According to Nov 2024 media reports, achieving the 82% national renewable electricity target by 2030 is crucial for Australia to meet its 43% emissions reduction goal based on 2005 levels. This is encouraging the adoption of energy-efficient solutions such as VSDs across industries, especially in manufacturing, mining, and utilities. The ARENA and Clean Energy Finance Corporation (CEFC) have been allocating funds to support energy-efficient projects, including motor systems and automation upgrades.

For instance, in May 2024 Federal Budget, the Australian Government allocated $22.7 billion to support renewable hydrogen, critical minerals processing, green metals, low-carbon liquid fuels, and cleaner manufacturing initiatives. Additionally, the mining sector, which contributes significantly to Australia's GDP with 13.6% share in 2023 GDP, is increasingly adopting VSDs to reduce energy consumption and improve operational efficiency. The construction and manufacturing industries, which are also embracing automation, are expected to further propel demand for VSD technologies, as these sectors rely on precise control of motor speeds for processes such as HVAC, water treatment, and conveyor systems.

Market Segmentation By Type

By 2031, DC drives are projected to lead in revenue growth due to their high efficiency and suitability for applications requiring precise control of speed and torque, such as industrial machinery and heavy-duty equipment.

Moreover, AC drive segment is expected to maintain the highest market share due to ongoing advancements in energy efficiency and their seamless integration with renewable energy systems. Their ability to support high automation levels in industries such as manufacturing and transport, along with their cost-effectiveness over time, would contribute to continued growth.

Market Segmentation By Voltage

Low-voltage VSDs are expected to dominate the market, accounting for the largest share in both revenue and volume. Their affordability, versatility, and widespread use across smaller industries, commercial buildings, and residential applications make them the most accessible and in-demand option. Their focus on energy efficiency further drives significant volume growth.

However, medium-voltage VSDs are anticipated to experience the highest growth rates in both revenue and volume. This is fueled by their increasing adoption in large-scale industrial applications such as mining, utilities, and manufacturing. The growing focus on energy-efficient solutions and automation across industries is further boosting demand for higher-capacity and more advanced VSDs.

Market Segmentation By End-User

By 2031, the industrial segment is expected to lead in both revenue share and growth, driven by the increasing adoption of automation and sustainability initiatives across sectors such as manufacturing, mining, and infrastructure, which heavily rely on energy-efficient VSDs.

Meanwhile, the automotive segment is projected to rank second in growth, fueled by the rising production and adoption of EVs in Australia. This surge drives demand for VSDs, which play a crucial role in optimizing energy usage in manufacturing processes such as assembly lines and robotic operations.

Market Segmentation By Application

In 2031, the HVAC sector is expected to have the maximum revenue growth rate, driven by increasing demand for energy-efficient and smart building technologies, as well as stricter environmental regulations. The adoption of VSDs in HVAC systems would continue to rise as industries and residential sectors focus on reducing energy consumption and carbon footprints.

Compressors, on the other hand, are projected to account for the largest revenue share as they are essential in various industrial processes, including pneumatic tools, material handling, and cooling systems, making them a cornerstone in industries like manufacturing, food & beverage, and oil & gas.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Australia VSD Market Overview
• Australia VSD Market Outlook
• Australia VSD Market Forecast
• Historical Data and Forecast of Australia VSD Market Revenues and Volume for the Period 2021-2031F
• Historical Data and Forecast of Market Revenues, By Type, for the Period 2021-2031F
• Historical Data and Forecast of Market Revenues and Volume, By Voltage, for the Period 2021-2031F
• Historical Data and Forecast of Market Revenues, By End-User, for the Period 2021-2031F
• Historical Data and Forecast of Market Revenues, By Application, for the Period 2021-2031F
• Australia VSD Market Drivers and Restraints
• Industry Life Cycle
• Porter’s Five Force Analysis
• Australia VSD Market Evolution & Trends
• Market Opportunity Assessment
• Australia VSD Market Revenue Ranking, By Companies
• Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Type

• AC Drive
• DC Drive
• Servo Drive

By Voltage

• Compressors
• Pumps
• Fans
• HVAC
• Conveyors
• Others

By End-User

• Automotive
• Industrial
• Infrastructure
• Power Generation
• Oil & Gas
• Others