Australia VSD Market is projected to grow at a CAGR of 5.2% in revenue and 3.7% in volume from 2025 to 2031

Compressors segment by Application held the highest revenue share in Australia VSD Market -6Wresearch

In 2024, Compressors held the largest revenue share in the Australian VSD market in 2024, driven by their extensive use in industries such as manufacturing, and oil & gas. Furthermore, Australia's focus on reducing carbon emissions and improving energy efficiency further boosted VSD adoption in compressor applications due to their significant energy-saving benefits.

According to 6Wresearch, Australia VSD Market is projected to grow at a CAGR of 5.2% in revenue and 3.7% in volume from 2025 to 2031. The Australian VSD market saw significant growth between 2021 and 2024, primarily driven by rising demand for energy-efficient solutions and the increasing adoption of automation technologies across key industries. Manufacturing, mining, and water treatment sectors significantly contributed to this growth, as businesses sought to reduce operational costs and enhance energy efficiency. Government initiatives, such as Equipment Energy Efficiency (E3) program and Nationwide House Energy Rating Scheme, further accelerated the uptake of VSDs, which play a critical role in improving motor control and reducing energy consumption. The market was also supported by funding from agencies such as the Australian Renewable Energy Agency (ARENA) and Clean Energy Finance Corporation (CEFC) for enhancing energy efficiency across various sectors, including industrial automation, and rising government initiatives such as Industry 4.0 – Smart Manufacturing Programs, Australian Government's Modern Manufacturing Initiative, among others which enabled industries to modernize infrastructure, reinvigorate manufacturing sector and integrate energy-efficient technologies.

According to Bhawna, Senior Research Analyst, 6Wresearch, Low voltage (LV) VSDs dominated both revenue and volume shares in Australia due to their widespread use in sectors such as commercial buildings, HVAC systems, agriculture, and small-to-medium manufacturing industries. These industries focus on energy efficiency and cost-effectiveness, driving the high adoption of LV VSDs. Additionally, the relatively lower cost of LV drives makes them highly accessible for a large number of smaller applications, contributing to both higher volume and significant revenue share in 2024.

Australia VSD Market (2025-2031) report provides an in-depth analysis with 24 figures and 12 tables, covered in 80 pages. The report thoroughly covers market by Type, Voltage, End-User and Application.. Australia VSD Market outlook report provides an unbiased and detailed analysis of the on-going Australia VSD Market trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.