01

CHAPTER

MVD market study – Competitor profiles

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 Danfoss – Company snapshot

MARKET SHARE Company overview Manufacturing locations

Global MVD revenue MV ACD newcomer Regionwide spread facilities
Loves Park, IL (U.S)
Danfoss being amongst the first company in Vaasa (Finland)

$1 – 1.5 Billion producing AC drives, entered the MV drives

business in 2016 after acquiring Vacon. It follows
a 'Two brand strategy', wherein Danfoss provides
LV drive products and Vacon serves the markets
through the MV drives products rated up to 11MW North Carolina

GEOGRAPHIC PRESENCE power ratings. (U.S.)

Medium voltage drives Panevezys

(Lithuana)

NORTH AMERICA
> 20% MV ACD drives Future Focus
Aiming to grow horizontally
EUROPE
Danfoss, through an inorganic growth strategy,
< 5% entered the MV drives market and has been able
to capitalize on Vacon’s expertise in MV products.
APAC Over the past few years, Danfoss has expanded
its product line, improved facilities, and welcomed
< 5% new leadership. As part of its ongoing efforts,
Danfoss aims to further expand its presence in
the MV drives segment and secure a position on
the list of top competitors in this space.
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MVD key facts & figures
Limited product portfolio
Vacon 1000 manufacturing time – 14 weeks from
factory acceptance test
Installation supervision, commissioning, and start-
up time – 2 days
Danfoss Drives’ Application Development Center
(ADC) – It is equipped with a range of testing and demo
units, used to help and facilitate complete panel testing
on load and customer FAT. It helps OEMs and system
integrators in 50% reduction in commissioning time.
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 Danfoss – MV ACD product initiatives

Retrofit conversion tool for a discontinued product Cloud connected MVDs

MyDrive® Assistant helps to find information, answer
common questions, or troubleshoot your VLT® and VACON®
motor drives and power converters (USA and Canada only).
It can also find the right software tools for your task.
Danfoss intelligence drives enable condition monitoring
features through advanced analytics and cloud connectivity.
In a few case studies, customers state that these features
have helped them to manage a host of control tasks in
HVAC, make water pumping stations smarter, and increase
production line uptime in bottling plant.

Custom made solutions Motor & system independent drives

Danfoss MVD's modular design allow system Danfoss drives are independent of control systems
integrators and OEMs to integrate MV drives and motor technology giving customers freedom to
deeper into their systems, to install drives into choose motor technology and motor manufacturer
customer-specific cabinets, optimize the use of as per their applications. This saves commissioning
space, and to add more value to projects. time, reduce training costs, simplify maintenance
activities, and save potential energy savings of up
to 60%.

Individual drives selling In-house power electronics manufacturing

Unlike many other MV drives suppliers which While most of the competitors rely on external
bundle their systems with motors, Danfoss suppliers, Danfoss also has its own in-house PE
supplies only drives and focusing on developing, manufacturing capability through Semikron. This
manufacturing and supplying AC drives. potentially gives Danfoss earlier access to new
technologies and ensure a reliable supply.

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 Danfoss – Company journey
• With the MV drive expertise from acquired Vacon, Danfoss
Product launch &
• strengthening
In the span of 5 years, Danfoss launched 2 products
within the Vacon MV drive portfolio:
• Vacon 3000: In 2016, Danfoss launched its first MV
drive product designed for industrial applications
between 3,300 and 4,160 Volts.
• Vacon 1000: In July 2021, Danfoss introduced
another product with ratings 2.4 kV up to 11 kV,
offering a small footprint in the MV drive industry
below 215 A for an air-cooled MV drive.
Entry through acquisition
• In 2013, Vacon decided to enter into MV
drive segment and was in the pilot
phase.
• Danfoss acquired Vacon in 2014 aiming
to enter into MV drive business through
Vacon product line and expertise.
Danfoss – In the coming years
is aiming to expand in its presence within the MV drive
space by adding product line, improving MV partner
network, and catering to more customer through new market
• Broad product, application, and service
entry.
• Multiple customer industries – With growth
• Multi-channel sales –
MVP network expansion
• In 2016, the company introduced Medium
Voltage Partner (MVP) program designed to
provide engineering support, partner
certification and training to OEMs and system
integrators implementing the MV drive.
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Growth Strategy
portfolio –
Through Vacon 3000 and Vacon 1000, Danfoss
has improved its presence in the MV drive by
creating a broad product, application and service
portfolio catering to range of customers and
applications across the globe. It has also
introduced Ecosmart and DrivePro solutions as
extended services for AC drives.
potential and technological synergies in emerging
markets, the company has been building new
customer industries in demanding industries like
energy, metal, oil and gas, mining, and marine.
The company has been expanding its customer
reach and industries through channel partner
network that original equipment manufacturers
(OEMs), system integrators, brand label
customers, distributors, and direct sales to end
users.
4
Danfoss – Promotion & Marketing strategy
MARKETING
HOW IS THE COMPANY SELLING ITS PRODUCTS?
Blogs and articles –
Driving conversations
The company’s ‘FocusOnDrives blog’
page is maintained by industry
experts and publishes latest news,
trends, and ongoing developments in
the AC drives space.
Training courses –
Educating customers
The company’s ‘Danfoss Learning’
section provides access to vast library
of courses having face-to-face classes,
convenient instructor-led virtual classes
that educate about its VACON® Drive
products.
Awards and recognition –
Improves team dynamics
Danfoss organizes EnVisioneer of the
Year competition for its North American
partners that have introduced a new
product, opened a new facility, or
invested in a building or system upgrade
using Danfoss products or solutions to
realize significant energy and
environmental savings.
Danfoss Drives knowledge
center – product awareness
Danfoss uploads presentations,
customer case studies, and drives
handbook on this portal that
showcases product information,
benefits, and success stories from
its customers.
Podcasts –
Reaching new audiences
Danfoss hosts EnVisioneering
Exchange – a podcast series where
hot topics such as condition
monitoring in drives, decarbonization
policies, building retrofits market, etc.
are discussed. They are available on
Apple Podcasts and Spotify.
Conferences & expos–
Product marketing & branding
The company attends as well as
conducts conferences/expos such as
DC22 and Workboat 2023 to present
its products directly to the customers.
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SIEMENS’ SALES STRATEGY
WHERE IS THE COMPANY SELLING THEIR PRODUCTS?
Medium Voltage Partner (MVP) Program –
 5,000 drives expert around the globe:
Danfoss launched its (MVP) Program, which is designed to provide engineering
support and training to OEMs and system integrators implementing the medium-
voltage drive. It is a web-based service program that offers tools, resources,
engineering support, and training, as well as partner certification, while the partner
remains responsible for engineering and assembling the cabinets to suit customer
requirements.
 List of partners
The Danfoss MVP Program is available to select value-add partners including
System Integrators and OEMs. It has has 12 authorized partners globally (7 are
from USA) that are mentioned on its website.
Other sales channels (for LV and MV drives) –
 Sales and services offices: Danfoss has 3 service offices in the North America
region.
 Distributors: There are 250 Danfoss distributors in the North America.
 Sales representatives: Out of the global representatives, Danfoss has a
majority of its sales representatives in the U.S. comprising of 65 people in the
country.
 Service partners: The company has 50+ services partners in the US.
 Sales agent: Danfoss has a sales agent named N.O. Holder & Associates, Inc.
in North Carolina that supplies AC drives to OEMs, end users, and system
integrators.
 Service partners: Danfoss has 91 service partners present in the US.
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Danfoss – Promotion & Marketing strategy
DANFOSS MARKETING STRATEGY DANFOSS’ MARKETING STRATEGY
HOW IS THE COMPANY SELLING ITS MV PRODUCTS? HOW IS THE COMPANY SELLING ITS LV PRODUCTS?

Danfoss Drives knowledge Webinars – Blogs and articles – Podcasts –

center – product awareness
Danfoss uploads videos,
presentations, customer case studies,
and drives handbook on this portal
that showcases product information,
benefits, and success stories from its
customers.
Training courses –
Educating customers
The company’s ‘Danfoss Learning’
section provides access to vast library
of courses having face-to-face classes,
convenient instructor-led virtual classes
that educate about its VACON® Drive
products.
Showcasing product info
Danfoss hosts webinars wherein its
senior leadership explain about MV
drives, benefits, and applications in
various end user segments.
Awards and recognition –
Improves team dynamics
Danfoss hosts ‘EnVisioneer of the Year’
competition for its North American
partners who have launched a new
product, inaugurated a new facility, or
invested in upgrading a building or
system with Danfoss products or
solutions, yielding significant energy
and environmental savings.
Driving conversations
The company’s ‘FocusOnDrives blog’
page is maintained by industry
experts and publishes latest news,
trends, and ongoing developments in
the AC drives space.
Conferences & expos–
Product marketing & branding
The company attends as well as
conducts conferences/expos such as
DC22 and AHR Expo to present its
products directly to the customers.
Reaching new audiences
Danfoss hosts EnVisioneering
Exchange – a podcast series where
hot topics such as condition
monitoring in drives, decarbonization
policies, building retrofits market, etc.
are discussed. They are available on
Apple Podcasts and Spotify.
Sustainability goals–
Promoting green initiatives
Danfoss through its AC drives
products promotes its sustainability
initiatives to achieve net zero CO2
emissions and HVACR
decarbonization.

Danfoss – Promotes both the business differently

Danfoss is marketing its LV and MV drives business using a distinct approach. While MV products are promoted in a
somewhat traditional manner, the successful LV drives business takes a more aggressive approach and enjoys greater
limelight.

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 Danfoss – MV ACD overview
PRODUCT SUMMARY - What are the general product features?
Useful in demanding applications
The drives are compact and modular in size suitable
in heavy-duty usage in mines for applications such
as grinding mills, crushers, conveyor belts and
general areas such as fans, pumps, blenders or
compressors.
Complete customization of enclosure
The Vacon 3000 enables complete customization of
the enclosure to serve variety of applications,
including those with limited space and in harsh
conditions. It is available in motor voltages of 3300 or
4160 volts and power range between 2MW to 6MW.
Condition monitoring
Danfoss intelligent drives connect with cloud or
analytics platform to bring intelligence, as well as
condition-based and predictive maintenance, to the
entire system.

PRODUCT OVERVIEW - What are the types of MVD?

Vacon 1000 Vacon 3000 Drive Kit

• The product has high MTBF with up to 200,000 hours of • It has flexible front end configuration options with
non-stop operation and 100% full-load burn-in tested diode Front End (DFE) based 12-pulse configuration.
before shipping for fast commissioning and start-up. • Other variants are available on request including
• It is available in air-cooled type at 215A and below. This dynamic brake chopper (BCU) unit and Active Front
MV AC drive is preferred for industrial medium-voltage End (AFE) option for regenerative braking and low
general purpose applications, especially for variable harmonics.
torque loads such as pumps and fans in the low and mid-
power range.

Vacon 3000 Enclosed Drive Software

• It is equipped with 3L-NPC topology, AFE (low harmonic) • Danfoss ecoSmart: Danfoss ecoSmartTM uses
or 12-pulse DFE configuration, modularity based on nameplate data to perform the efficiency calculations
single-phase modules, Brake Chopper Unit (BCU) option, and produces a pdf report for documentation.
and other pre-engineered options. • DrivePro® Life Cycle service products: It includes
• Comprises with IP54 ingress protection, liquid cooling various services for the drives that include retrofit,
and full power operation up to 45°C ambient temperature spare parts, upgrades, remote monitoring, preventive
maintenance, and extended warranty, among others.

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 Danfoss – MVD services overview
SERVICE SUMMARY - What are the features within services?
Improves drive durability and efficiency
DrivePro services help in improving the AC drive
lifetime by up to 50% and decreasing operational
downtime by up to 30%. It also helps in improving
operational efficiency, up to 20% annual energy
savings right from the first start-up
Service extension availability Customized service offerings
Technical support is provided for all AC drives for DrivePro services are customized wherein
up to 10 years. Spare part availability is provided customers can choose required packages amongst
for a minimum of 5 years after the product has the available services categories.
been given end-of-life status.

SERVICE OVERVIEW - What are the types of services?
DrivePro site assessment
• It is a service for asset management that includes a complete onsite survey and
risk analysis of whole installed base of AC drives.
DrivePro startup
• It helps in optimizing AC drives during the commissioning process ensures
maximum energy efficiency, lifetime extension, and cost savings for the system
from day one.
DrivePro extended warranty
• It offers a wide range of warranty options and provides coverage up to 72
months
DrivePro spare parts
• It provides spare parts for repair and maintenance of AC drives. There are 3
packages: standard, advanced, and maintenance package tailored as per
customers requirements.
DrivePro preventive maintenance
• It consists of regular inspections and time interval component replacement according to the
product-specific maintenance schedule based on an on-site audit of installation, environment, and
load profile.
DrivePro exchange
• It provides AC drive replacement of equal size, power, performance and software or better for the
best performance match.
DrivePro retrofit
• It provides an optimal product for the replacement of outdated drives and a conversion plan.
DrivePro remote monitoring
• It is a digital service that provides real-time remote monitoring by collecting drives performance
parameter and fault values, storing it in the cloud, and representing analytics
DrivePro remote expert support
• It is a digital service that provides real-time remote monitoring by collecting drives performance
parameter and fault values, storing it in the cloud, and representing analytics to the customer.

© 2024 Eaton. All rights reserved.. 8

 Danfoss – MVD drives Features snapshot
Sr. No Technical specifications VACON® 1000 VACON® 3000 Enclosed Drive VACON® 3000 Drive Kit

1 Feeder - -

2 Rectifier 18, 24, 30, 36, 48, 54 AFE, 12-pulse DFE AFE, 12 and 24-pulse DFE

External pre-charge unit

3 Pre-charge No further details given Optional
(included in kit)

Multilevel IGBT topology (Cascade

4 Power electronics HV-IGBT HV-IGBT
H-Bridge)
Voltage source inverter (VSI), Pulse Inverter unit (INU) with either 3 or
3 or 6 of the same liquid-cooled 1-
5 Inverter Width Modulated (PWM) power 6 liquid-cooled single-phase phase
phase modules
modules modules.

Reactor for synchronous transfer, no output filter, but dU/dt and sine
6 Output Output dU/dt filter, sine filter
dU/dt filter for cable filters are available as options

7 voltage 2.4kV up to 11kV 3.3kV – 4.16kV 3.3kV – 4.16kV

2400-3000 VAC: 150-3530 kVA

3300-4160 VAC: 210-4900 kVA For 3300V: 2.4 - 7 MVA 3300V - 2430-7030 kVA
8 Horsepower
6000-6900 VAC: 375-8130 kVA For 4160V: 2.5 - 7.1 MVA 4160V - 2450-7060 kVA
10000-11000 VAC: 625-12960 kVA

9 Warranty - - -

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Danfoss – What are they doing for MVD?

Danfoss – Long way to go to in the MV drive business

Danfoss is taking a leap in MV AC drive segment and has been working on various business perspective by entering new
markets, collaborating with organizations, and adding expertise in the organization.

01. 02. 03. 04.

LIMITED PRODUCT
FOCUS
Although being a first mover in LV AC
drives, Danfoss has a limited product
focus on MV drives The company
has only 3 product types within its MV
drive segment and cater to certain
application segments due to its limited
product variation. It entered the MV
drive segment in 2016 after
introducing Vacon 1000 product, its
first MVD product.
PARTNERSHIP &
COLLABORATIONS
Danfoss partnered with FREEDM to
share its MV power conversion
expertise for designing extreme fast
chargers for medium & heavy-duty
vehicles. Danfoss’ acquired company
Vacon is a member of the Next
Generation Power Electronics Institute
that is associated with 25 companies,
universities and state and federal
organizations to develop and
manufacture wide band-gap (WGB)
semiconductor–based power
electronics.
ENTERING NEW
SEGMENT
Danfoss Drives has formed a Marine
business unit to provide tailored
solutions, for its customers in the
marine industry. It organized ‘The
Workboat Show 2023’ where it
showcased its electric drives portfolio
in front of 15,000 members of the
commercial marine industry.
ADDING SENIOR
LEADERSHIP
Danfoss is implementing growth
strategies and developing strong
regional sales channels across
different verticals. In the last 3 to 4
years the company has included
people at senior positions including
Head of Danfoss Drives in North
America, Head of Marine Business
Unit, and Head of Sales for Americas.

© 2024 Eaton. All rights reserved..

10
 https://files.danfoss.com/download/Drives/ID478539928786-0
101.pdf
MV AC drive is manufactured at
these locations.

Focus areas, what segments do they cater to?

https://minedocs.com/17/Lucapa_Lulo_PRESS_2017.pdf

Vacon was planning to enter MV Drive in 2013.

https://www.slideshare.net/VaconGroup/vacon-20-yearanniver
Its products were at pilot stage at that time. sary-capital-markets-day-2013

In 2014 it was acquired by Danfoss. https://www.globenewswire.com/news-release/2015/03/18/7

16166/0/en/files/332761/0/Vacons%20annual%20report%202
Danfoss launched the Vacon MV drive in 2016. 014.pdf

Post which it has done two product upgrades. This story – probably as capability building needs to come out in
some slide.
Started the partner program for the MV drive. © 2024 Eaton. All rights reserved.. 11