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Low voltage AC drive shipments exceed 20m in 2023

Chloe Starks

Account Manager

With a wealth of sales and marketing experience, Chloe has built relationships with the industry's leading media outlets, making sure she gets clients noticed and securing coverage in top publications such as the Financial Times and the Wall Street Journal.


  • Market to expand at a CAGR of 4% through to 2028
  • Pace of growth slows in 2023 and 2024, with steady growth returning in 2025
  • Volatility affecting prices eases in 2023, leading to contraction

London, 1st February 2024 – The low voltage (LV) AC drive market saw unit shipments surpass 20 million in 2023 as the market continues to expand, new data from Interact Analysis shows. According to the market intelligence specialist, the pace of growth slowed last year and is expected to continue to do so in 2024, with steady growth returning to the global drives market in 2025. A CAGR of 4% is predicted through the forecast period to 2028, in line with expectations for the manufacturing economy as a whole.

Revenues in the LV AC drive market reached more than $14 billion in 2023, but strong backlogs fueled growth during the first half of 2023 and drives vendors reported these had fallen substantially in the second half of the year. Following several years of higher average sale prices and unprecedented demand, a shift was evident in a slowdown in the market, which recorded growth of just 2.7% for 2023.

Revenues in the LV AC drives market reached $14 billion in 2023.

The trend is forecast to continue into 2024, with softer demand and downward price pressure pushing markets into a period of contraction and a global revenue growth rate of 0.3% predicted. This applies to every tri-region except for Asia-Pacific (APAC), where Chinese manufacturing economy growth is expected to outstrip many other major regions – China is anticipated to account for 28% of total drive market revenues in 2024.

Volatility in the market during 2021 and 2022 has largely subsided, affecting price performance. Global average selling price contracted by -0.3% in 2023, driven by price falls in APAC.

Brianna Jackson, Research Analyst at Interact Analysis, explains, “The inflated price levels of many commodities, which led to an increase in selling price for drives in 2021 and 2022, have fallen substantially from their peaks in 2022. This has resulted in pressure from customers to decrease prices and we expect prices to erode further in 2024, shrinking by an estimated -1.5% during the year.”

About the Report:

Interact Analysis has established itself as the leading market intelligence provider to the motor & drive markets. Our research has guided companies as they benchmark against their competition and plan for future trends.

About Interact Analysis

With over 200 years of combined experience, Interact Analysis is the market intelligence authority for global supply chain automation. Our research covers the entire automation value chain – from the technology used to automate factory production, through inventory storage and distribution channels, to the transportation of the finished goods. The world’s leading companies trust us to surface robust insights and opportunities for technology-driven growth. To learn more, visit

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