United States Low Voltage (LV) Inverters Market in oil & gas market was valued at US$ 719.8 million in 2022 and is projected to reach a valuation of US$ 1,164.1 million by 2031 at a CAGR of 5.5% during the forecast period 2023–2031.
As of 2023, the U.S. Low Voltage (LV) Inverters market in the Oil & Gas industry has undergone significant transformation, with the industry experiencing dynamic shifts in market landscape, recent developments, market dynamics, key trends, and investment opportunities. In recent years, there has been a considerable increase in the demand for LV inverters within the Oil & Gas industry, driven by factors such as the proliferation of renewable energy projects, technological advancements in drilling and extraction technologies, and the emphasis on optimizing power consumption and improving energy efficiency in oil and gas operations.
The adoption of LV inverters has been a game-changer for the Oil & Gas industry, contributing significantly to enhancing power conversion efficiencies, reducing costs associated with energy consumption, and improving the overall reliability of oil and gas operations. In terms of the market landscape, the U.S. has been at the forefront of innovation in LV inverters, with domestic companies leading the way in research and development activities and contributing to the creation of next-generation LV inverters that are more efficient, reliable, and versatile than ever before. Key players in the market, such as ABB, Schneider Electric, Siemens, and Danfoss, have continued to introduce new LV inverter models, incorporating features such as advanced digital controls, remote monitoring capabilities, and higher conversion efficiencies.
Recent developments in the market have been centered around the integration of advanced technologies such as Internet of Things (IoT) and Artificial Intelligence (AI) in LV inverters. This has enabled the creation of intelligent LV inverters that can autonomously adapt to changing operational conditions, thereby increasing the efficiency and reliability of oil and gas operations. In addition, the increased adoption of renewable energy technologies in the Oil & Gas industry has been a key driver of growth in the LV inverters market, with companies increasingly deploying solar panels, wind turbines, and other renewable energy systems to supplement their energy needs. Moreover, the dynamics of the U.S. LV inverters market have been influenced by factors such as the increasing focus on energy efficiency, cost optimization, and sustainability in the oil & gas industry. In particular, the trend towards electrification of oil and gas operations has spurred the demand for LV inverters, which play a key role in converting DC power generated by renewable energy systems into AC power for use in drilling, extraction, and other operational processes. In addition, the growing interest in the exploration of unconventional oil and gas reserves has led to an increase in drilling activities in regions such as the Permian Basin, Marcellus Shale, and Bakken Formation, which has further driven the demand for LV inverters.
To Get more Insights, Request A Free Sample
A prominent trend in the U.S. LV inverters market within the Oil & Gas industry is the increasing integration of advanced technologies such as IoT and AI. The Oil & Gas industry has been undergoing a digital transformation, and LV inverters are at the forefront of this trend. These technologies enable LV inverters to autonomously monitor and adjust their performance based on real-time operational conditions, providing optimal power conversion efficiency and energy savings.
The integration of IoT and AI technologies into LV inverters has enabled the creation of intelligent devices that can adapt to changing operational conditions and optimize energy consumption. These smart inverters can remotely monitor and adjust motor speeds, providing real-time data and analytics to operators, thereby improving overall system efficiency and reliability. As a result, there has been a surge in the adoption of these smart LV inverters in the Oil & Gas industry, with companies seeking to capitalize on the benefits offered by these devices.
Recent market research indicates that the U.S. LV inverters market for the Oil & Gas industry is projected to witness strong growth in the adoption of smart inverters, driven by the increasing emphasis on optimizing energy consumption and improving operational efficiency. In 2022, smart inverters accounted for approximately 30% of the total LV inverters market in the U.S. Oil & Gas industry. This figure is expected to increase to nearly 45% by 2027, with a CAGR of around 12% over the forecast period. The growing interest in the exploration of unconventional reserves, coupled with the increasing adoption of digital technologies, is expected to further fuel the demand for smart LV inverters in the U.S. Oil & Gas industry.
One significant challenge in the U.S. LV inverters market for the Oil & Gas industry is the substantial initial investment required for the installation and integration of LV inverters, particularly the advanced smart inverters, into the existing systems. On average, the installation cost of an LV inverter ranges from $20,000 to $50,000, depending on the size and type of the inverter. Furthermore, retrofitting existing infrastructure to accommodate these inverters can escalate costs by an additional 20% to 30%. This high capital expenditure acts as a deterrent for many companies, especially smaller players, from embracing this technology. In addition, the complexity associated with the integration of LV inverters poses another challenge. Integrating LV inverters into existing oil and gas operations often necessitates comprehensive upgrades to current infrastructure, including the deployment of additional equipment like sensors and communication devices for remote monitoring and control. This integration process can be intricate, requiring modifications to existing electrical systems, installation of new hardware and software, and specialized training for personnel to operate and maintain the new equipment. The direct cost of these upgrades can amount to approximately 15% to 25% of the total investment in LV inverters. For small and medium-sized oil and gas companies, this represents a significant hurdle, as they often lack the necessary technical expertise or financial resources for such investments.
Not only high initial cost, the adoption of LV inverters also entails compliance with stringent regulatory requirements concerning the safety and reliability of electrical systems in the oil & gas industry. Ensuring compliance with these regulations can further elevate costs by about 5% to 10% of the overall investment in LV inverters. Despite these challenges, the long-term benefits of incorporating LV inverters, in terms of energy efficiency, cost savings, and operational flexibility, are considerable. The potential for energy savings alone can range from 40% to 60%, which can offset the initial investment within three to five years. Therefore, many companies are actively exploring ways to mitigate these challenges and leverage the advantages offered by LV inverters.
The U.S. LV inverters market in the Oil & Gas industry is poised to benefit from the growing emphasis on decarbonization and renewable energy integration within the sector. The transition towards a low-carbon future offers substantial opportunities for LV inverters to facilitate the integration of renewable energy sources into oil and gas operations. As oil and gas companies pursue efforts to reduce carbon emissions, many are turning to renewable energy sources, such as solar and wind, to power their operations. In 2022, the International Energy Agency (IEA) reported that the global Oil & Gas industry accounted for approximately 15% of total carbon dioxide emissions. In response to this, major oil and gas companies in the U.S. have set ambitious targets to achieve net-zero emissions by 2050. The integration of renewable energy into oil and gas operations is expected to play a crucial role in achieving these targets.
The deployment of renewable energy in oil and gas operations necessitates the use of LV inverters to convert the variable direct current (DC) output from solar panels and wind turbines into a stable alternating current (AC) suitable for industrial use. Moreover, the ability of LV inverters to regulate power output and voltage levels ensures a reliable and stable power supply, critical for maintaining efficient and safe operations. As a result, the growing adoption of renewable energy in the Oil & Gas industry is expected to drive significant demand for LV inverters. According to market research, the U.S. Oil & Gas industry is projected to increase its renewable energy capacity by approximately 40% over the next five years.
Upstream operations are a crucial aspect of the oil and gas industry, and the United States low voltage (LV) inverters market for the sector held a dominant 66.1% share in 2022. The high market share of this application can be attributed to the widespread use of LV inverters in the various processes that constitute upstream operations, including drilling, production, and wellhead automation. LV inverters are indispensable in these processes as they provide a stable power supply and enhance operational efficiency, which is vital for the exploration and production activities.
The demand for LV inverters in upstream operations is anticipated to continue its robust growth trajectory, registering a CAGR of 6.3% over the assessment period. This projected growth is underpinned by factors such as increasing exploration activities, advancements in drilling technologies, and the surge in production volumes necessitating more efficient power solutions. As new exploration sites are discovered and drilling technologies continue to advance, the need for LV inverters will intensify, further driving market growth in this segment.
In 2022, the indoor segment commanded a significant 76% share of the US LV inverters market. Indoor substations are favored within the oil and gas industry due to the advantages they offer, such as protection from extreme weather conditions, enhanced safety, and easier maintenance compared to their outdoor counterparts. The preference for indoor substations is driven by the need for reliable power solutions in the oil and gas sector and the desire to minimize operational risks. The growth in this segment is expected to continue at a strong CAGR of 6% during the assessment period. The adoption of indoor substations reduces downtime due to weather-related disruptions and ensures a more secure operating environment. Consequently, as the oil and gas industry seeks to bolster operational reliability and efficiency, the demand for indoor substations equipped with LV inverters is expected to remain robust.
Centrifugal pumps are the predominant pump type in the US LV inverters market, holding 66.5% of the market share in 2022. These pumps are highly favored in the oil and gas industry due to their capacity to handle large volumes of liquids at high flow rates. Centrifugal pumps are particularly well-suited for the transportation of crude oil, water, and other fluids, making them essential in the oil and gas sector. The demand for centrifugal pumps is projected to grow at a CAGR of 5.7% during the assessment period. This growth is spurred by factors such as the increasing need for efficient fluid transport, the rise in production levels, and the ongoing expansion of oil and gas infrastructure. As oil and gas operations require the transportation of vast quantities of fluids across vast distances, the need for centrifugal pumps equipped with LV inverters is set to increase, further propelling market growth.
In 2022, positive displacement compressors held a substantial 51% share of the US LV inverters market in the oil and gas industry. These compressors function by forcing air or gas into a chamber and subsequently reducing the chamber's volume to increase pressure. Their efficiency, reliability, and capacity to generate high pressure make them suitable for a wide array of applications within the oil and gas industry, including gas compression, injection, and transfer. The segment is projected to maintain its leading position in the market, driven by factors such as the need for efficient compression solutions in oil and gas operations, advancements in compressor technologies, and the growing demand for natural gas. The increasing utilization of natural gas as a cleaner energy alternative is likely to boost the demand for positive displacement compressors equipped with LV inverters.
To Understand More About this Research: Request A Free Sample
The oil and gas end-user segment accounted for a substantial 65.5% of the US LV inverters market in the oil and gas industry in 2022. The high market share of this segment is attributed to the extensive use of inverters in various oil and gas operations, including drilling, production, and transportation. Inverters play a vital role in ensuring a stable power supply and optimizing energy consumption, making them an essential component of the oil and gas industry. The demand for inverters in this segment is expected to continue growing, fueled by factors such as increasing exploration and production activities, the rising demand for energy, and the need for more efficient power solutions. As the global demand for energy continues to climb and exploration activities expand, the oil and gas sector will increasingly rely on inverters to ensure reliable and efficient power supply for its operations.
By Application
By Substations
By Pumps
By Compressors
By End Users
LOOKING FOR COMPREHENSIVE MARKET KNOWLEDGE? ENGAGE OUR EXPERT SPECIALISTS.
SPEAK TO AN ANALYST
.png)
Features | Type of License | |||
 Single User |   Multi User |  Corporate | ||
| e-Access | ✓ | ✓ | ✓ | |
User Sharing | 1 User Only | 2-6 Users | Unlimited within Company/Enterprise | |
⨉ | ⨉ | ✓ | ||
Free Customization | Up To 30 hrs work | Up To 60 hrs work | Up To 80 hrs work | |
Deliverable |
| ✓ | ✓ | ✓ |
| ⨉ | ✓ | ✓ | |
| ⨉ | ⨉ | ✓ | |
Analyst Support | 4 Month Post purchase | 7 Month Post purchase | One Year Post purchase | |
Free Report update in next update cycle | ⨉ | ⨉ | ✓ | |
Free Industry Update (Within 180 days) | ⨉ | ⨉ | ✓ | |
Benefit | Up to 20% off on next purchase | Up to 30% off on next purchase | Up to 40% off on next purchase | |
| Report ID: AA0823581 | Delivery: 2 to 4 Hours 
.svg)
