Rising demand for low-harmonic motor drives from data centers boom
Data centers have undoubtedly been one of the most interesting and fastest-growing end market for low voltage AC drives over the past few years. Low voltage AC drive revenues sold to the data center sector exceeded $200 million in 2025, a year-on-year growth of 12.5%. We predict that the market will grow annually at a pace of 8.3% between 2025 and 2030, indicating solid potential for sustained expansion. If including indirect sales to HVAC OEMs whose equipment is ultimately deployed within data centers, the overall market opportunity is considerably larger.
Growing adoption of low harmonic drives in data centers is driven by dual requirements for power quality and energy efficiency:
- High reliability requirements drive the need for upfront harmonic mitigation: Data centers widely deploy switch-mode power supplies and drives. These typical nonlinear loads inject significant harmonic currents into the power system, leading to voltage distortion, equipment overheating, and additional losses. In environments where power supply continuity is critical, such issues are magnified and can directly compromise system stability.
- Demand for energy efficiency and operating cost optimization: Harmonics not only reduce overall system efficiency but also introduce additional energy consumption and hidden costs (e.g. increased losses and higher equipment loading). Compared with conventional solutions, low harmonic drives improve overall energy utilization efficiency and help optimize the long-term operating cost structure.
It should be noted that while data centers have become a key driver of demand growth for low harmonic drives, their applications are not limited to this sector. They are already widely used in environments with stringent power quality requirements, such as water treatment and hospitals.
From optional to preferred: Rapid increase in market penetration
Today, low-harmonic drives have not yet been widely adopted, even in data centers. However, multiple factors are accelerating their adoption.
Tightening standards – represented by IEEE 519 – impose explicit limits on harmonic currents and voltage distortion, making harmonic mitigation a prerequisite for system design in certain applications. Meanwhile, the total cost of ownership (TCO) paradigm is being redefined, as, although low-harmonic drives require higher upfront investment, they reduce system losses and minimize redundant design, thereby improving lifecycle cost efficiency. In addition, the ongoing evolution of power system architectures is also generating demand. In applications such as data centers, power supply and distribution systems are evolving toward higher density and greater controllability. Power quality is becoming a core consideration in system design, further increasing the importance of low-harmonic capabilities. According to our estimates, the global penetration rate of low-harmonic drives was approximately 5.6% in 2025 and is expected to increase to 7.5% by 2030. Among regions, the Americas market showed the highest penetration, reaching about 11.0% in 2025.
It is worth noting that the core value of low-harmonic drives lies in applications with stringent power quality requirements; they are not a general-purpose solution, and their adoption still faces practical constraints. Cost remains the primary barrier, as the relatively high initial capital investment continues to influence user decisions. In addition, there are significant differences in regional grid conditions. Taking the Americas as an example, aging power infrastructure in certain areas makes the grid more sensitive to harmonics, resulting in more rigid demand for low-harmonic solutions. In contrast, in markets with stronger grid support capacity, harmonic issues are generally treated as an optimization consideration, with stronger demand emerging only in high-standard scenarios.
Mainstream vendors have established multi-path technology portfolios
At present, harmonic mitigation in drive systems is primarily achieved through multiple technical approaches, including active front end (AFE) rectification, multi-pulse rectification (such as 18-pulse), and external filtering solutions. These different technology paths result in varying levels of total harmonic distortion of input current (THDi). In engineering practice, 5% is commonly used as a reference control target, while some ultra-low harmonic drive systems can reduce THDi to 3% or even lower under appropriate operating conditions. For new projects with higher standards, AFE technology is often more attractive. However, in retrofit scenarios or cost-sensitive applications, filter-based or multi-pulse solutions still offer practical advantages.
Mainstream vendors have already developed relatively comprehensive product portfolios. On the AFE technology path, certain models in the ABB ACS880 series from ABB and the VLT Low Harmonic Drive from Danfoss are examples of integrated low-harmonic drives, and many major vendors have established modular solution architectures based on AFE. In addition to ABB and Danfoss, companies such as Siemens, Schneider Electric, Rockwell Automation, and SEW-Eurodrive; have incorporated AFE-based solutions into their product portfolios, as well as Chinese manufacturers, including Inovance Technology and INVT.
On the non-AFE technology path, solutions such as multi-pulse rectification, passive filters, and active power filters (APF) are also widely adopted by mainstream vendors, forming complementary product ecosystems alongside drive systems.
Final thoughts
The rapid expansion of data centers is driving a systematic increase in power quality requirements, thereby creating growth opportunities for low-harmonic drives.
From the perspective of industry evolution, in sectors sensitive to power quality, low voltage AC drives are transitioning from a purely drive performance-oriented approach to one that increasingly incorporates ‘grid friendliness’ and system-level energy efficiency coordination. In this process, the focus of competition is also shifting: the importance of system architecture capabilities continues to rise, while the marginal advantage of standalone hardware performance is gradually diminishing.
Overall, low-harmonic capability is more accurately characterized as a scenario-driven critical capability. Its evolution from an additional feature to a core system capability will depend on regional grid conditions and industry-specific application characteristics. Vendors with a deep understanding of industry scenarios will be better positioned to establish competitive advantages in these segments.
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Our LV drives market data and forecasts are built through direct conversations and surveys with manufacturers, as well as granular data, research, and analysis. If you’re interested in a demo of the dataset or would like to speak with an analyst about this market, please contact us.
