Global circularity has alarmingly slipped to 6.9%, a stark indicator that industries worldwide are consuming finite resources at a pace significantly exceeding their ability to be recuperated or reintroduced into economic cycles. This precipitous decline, highlighted by the most recent Circularity Gap Report, underscores a profound environmental crisis and presents formidable structural challenges for businesses navigating the demands of the 21st century. In this context, the role of efficient motor drives, particularly Variable Frequency Drives (VFDs), emerges as a critical enabler in bridging this widening resource gap and fostering a more sustainable industrial paradigm. As Anne Franzas, Global Product Manager for Circularity at ABB, asserts, the strategic deployment of these technologies is no longer merely an option but an urgent necessity.
The Alarming Decline in Global Circularity
The concept of circularity measures the proportion of materials that are reused, recycled, or otherwise kept in circulation within the economy, rather than being discarded as waste. The figure of 6.9% represents a significant drop from previous years, illustrating a regression from the principles of a circular economy. When the first Circularity Gap Report was published in 2018, global circularity stood at 9.1%. This downward trend reveals a pervasive "take-make-dispose" linear economic model that continues to dominate industrial practices, despite increasing awareness of its unsustainability. The implications are far-reaching: accelerated depletion of natural resources, increased greenhouse gas emissions from extraction and manufacturing, heightened geopolitical risks associated with critical raw material (CRM) supply chains, and a growing burden of waste. For industries, particularly those reliant on energy-intensive processes, long-term competitiveness is now inextricably linked to their capacity to design, operate, and maintain industrial assets that consume fewer resources, boast extended operational lifespans, and facilitate the preservation and recovery of CRMs. These materials, including rare earth elements, cobalt, and lithium, are indispensable for modern technologies, ranging from renewable energy systems to advanced electronics and, crucially, high-performance industrial equipment.
Industrial Drives: The Unsung Heroes of Resource Efficiency
Within the vast landscape of industrial automation, Variable Frequency Drives (VFDs) stand out as long-life infrastructure assets. These sophisticated electronic devices control the speed and torque of AC electric motors by varying the frequency and voltage of their power supply. Their inherent design and operational characteristics directly influence energy consumption, operational uptime, and waste generation over decades of continuous use. The prevailing definition of "premium" in the context of industrial VFDs, therefore, must evolve dramatically. It can no longer be solely predicated on initial purchase price or basic energy efficiency ratings. Instead, a truly premium VFD must embody superior durability, unwavering reliability, material-efficient design, and an inherent capacity to retain value across multiple life cycles. This expanded definition aligns with the overarching goals of a circular economy, where value is preserved, and resources are utilized optimally.

Circularity: A Design Principle, Not Just End-of-Life Management
A common misconception is that circularity primarily pertains to end-of-life considerations – recycling or disposal. However, for industrial drives, the journey towards circularity commences much earlier, at the fundamental stages of design, material selection, and planned operating life. The strategic importance of preserving and efficiently utilizing Critical Raw Materials (CRMs) has become a central priority for manufacturers and policymakers alike. The European Union, for instance, has established a list of CRMs and implemented policies to secure their supply and promote their efficient use and recycling. For drive manufacturers, this translates into a mandate for designing equipment with fewer dependencies on scarce materials, ensuring significantly longer product lifetimes, facilitating higher recoverability of components and materials, and establishing clearer traceability pathways for all constituents. This paradigm shift means that reliability transcends its traditional role as merely an engineering target; it becomes a fundamental resource-conservation strategy. A drive that performs reliably for decades postpones the need for replacement, thereby conserving the raw materials and energy that would otherwise be required for manufacturing a new unit.
Design Innovations for a Circular Future
The move towards circularity in industrial drives necessitates innovative design approaches. A key aspect of this is the reduction of overall material usage. Every kilogram of material avoided in manufacturing and every kilowatt-hour saved over a drive’s operational life directly contributes to the preservation of non-renewable resources and the achievement of critical climate goals. Recent redesign efforts by leading suppliers demonstrate how principles of modularity and lightweight construction can significantly reduce overall material demand while simultaneously boosting installation flexibility and ease of maintenance. Modular designs allow for individual components or sub-assemblies to be upgraded, repaired, or replaced, rather than necessitating the replacement of the entire unit. This approach minimizes waste and extends the useful life of the core drive system. Lightweighting, achieved through advanced materials and optimized structural designs, not only reduces material consumption but can also lower transportation emissions and simplify handling.
Furthermore, the rigorous testing and validation processes employed by manufacturers like ABB (e.g., at its Helsinki laboratory) are crucial. These facilities investigate the intricate mechanisms of component degradation through advanced techniques such as electron microscopy, accelerated aging simulations, and exposure to extreme vibration and corrosive environments. This deep understanding informs design work, ensuring that VFDs are engineered to endure the most demanding industrial conditions for as long as possible, thereby maximizing the preservation of CRMs embedded within them.
Energy Efficiency: The Greatest Circularity Lever

While material efficiency and design longevity are paramount, the single biggest circularity impact of VFDs comes from their profound energy efficiency capabilities. Globally, a staggering number of industrial motors continue to operate in a "direct-on-line" (DOL) configuration. This means they run at full speed regardless of the actual load conditions, with any necessary flow or speed adjustments often achieved through inefficient mechanical throttling (e.g., dampers, valves). This operational inefficiency represents one of the largest untapped opportunities for industrial decarbonization and resource savings.
The adoption of VFDs fundamentally transforms this scenario. By precisely controlling the motor’s speed to match the exact requirements of the application, VFDs can reduce a motor’s energy consumption by a remarkable 25% to 70%. This substantial saving is achieved because the power required by many rotating loads (like pumps and fans) is proportional to the cube of their speed. Even a small reduction in speed can lead to significant energy savings. For example, reducing a fan’s speed by just 20% can cut energy consumption by nearly 50%. Beyond energy savings, VFDs offer additional benefits: they boost process yield by enabling more precise control, reduce wear and tear on mechanical systems by eliminating abrupt starts and stops, and mitigate unnecessary electricity use and associated carbon emissions. Therefore, increasing VFD adoption rates across various industrial sectors – from HVAC systems and water treatment plants to manufacturing and mining – is arguably one of the most effective strategies to reduce total lifecycle material and energy consumption across global industries.
Beyond Efficiency Ratings: True Premium Performance
It is crucial to recognize that energy efficiency ratings, while important, only tell part of the story when evaluating a drive’s true "premium" status. A truly premium drive performs with unwavering reliability over the long term, thereby delaying costly replacement cycles and minimizing disruptive downtime. This inherent reliability directly contributes to reducing the pressure on already strained critical raw material supply chains by extending the useful life of existing equipment. This focus on longevity and sustained performance lies at the very core of circular design principles.
Moreover, VFDs must be engineered to remain relevant and functional even as customer requirements evolve, digital ecosystems advance, and regulatory expectations intensify. This necessitates a modular, forward- and backward-compatible architecture. Such a design philosophy allows for selective upgrades of components, software, or communication modules, reducing the need for complete system replacements. By keeping CRM-intensive components, such as power electronics and control boards, in productive use for extended periods, this approach significantly diminishes material consumption and waste. For instance, upgradable electronics, enhanced cooling modules, and firmware-based performance enhancements can extend the usefulness of a drive without consuming new materials for an entirely new unit. Digital diagnostics play a pivotal role in this lifecycle management, enabling predictive maintenance that prevents premature equipment failure and optimizes service schedules. This proactive approach avoids the wasteful spare-parts usage often associated with fixed, time-based maintenance routines, further contributing to resource efficiency.
Closing the Loop: End-of-Life Management and Remanufacturing

Even with extended lifespans, every industrial drive eventually reaches its end-of-life. At this juncture, a truly circular approach ensures that materials and valuable components are not simply discarded into waste streams. Instead, they are systematically reclaimed and reintroduced into the economy through robust take-back and remanufacturing programs. Leading manufacturers are investing in facilities and processes that allow for the dismantling, inspection, refurbishment, and reassembly of components, effectively giving them a second or even third life. This not only preserves the technical and material value embedded within the product but also reduces the demand for virgin raw materials and the energy-intensive processes of primary manufacturing. This commitment to closing the loop is not just environmentally responsible; it also presents new business opportunities for manufacturers and offers cost-effective, high-quality alternatives for end-users.
The Path Forward: A Leaner and Cleaner Industry
The scale of the challenge and the opportunity are immense. Industrial drives and motors are colossal consumers of electricity, converting more than 40% of global electricity into motion. Their collective ability to accelerate the green transition and mitigate climate change is enormous, but this potential can only be fully realized if two critical conditions are met. Firstly, there must be a significant increase in the adoption of VFDs in currently under-automated Direct-on-Line (DOL) applications. This transition represents a monumental shift towards greater energy efficiency. Secondly, the drives themselves must be meticulously engineered for circular material flows, prioritizing longevity, reparability, upgradability, and recyclability from inception.
In a world grappling with constrained materials, escalating energy costs, and the urgent imperative to combat climate change, CRM-efficient and energy-efficient industrial drives are more than just a technological advancement; they are strategically indispensable. By embracing this redefined notion of "premium," end-users can not only boost their operational performance and profitability but also become active participants in creating a leaner, cleaner, and more resilient industrial landscape for generations to come. The journey towards true circularity in industrial drives is a testament to the power of innovation in addressing global environmental and economic challenges, transforming what was once considered a mere component into a cornerstone of sustainable industrial progress.
ABB | abb.com/global/en/areas/motion