Flexible AC Transmission Systems Market by Type (Static Var Compensators, Thyristor-Controlled Series Capacitors, Static Synchronous Compensators), by Component (Power Electronics, Capacitors, Reactors, Transformers), by End-User (Power Utilities, Industrial Applications, Commercial Applications), by Application (Grid Stability, Voltage Control, Power Flow Control, System Reliability); Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the Flexible AC Transmission Systems Market was valued at USD 9.5 billion in 2023 and will surpass USD 15.0 billion by 2030; growing at a CAGR of 6.8% during 2024 - 2030.

The Flexible AC Transmission Systems (FACTS) market is an essential segment of the power transmission industry, enabling improved grid stability, voltage control, and power flow regulation. These systems enhance the performance, capacity, and reliability of electrical grids, providing solutions to challenges related to the growing demand for electricity and the integration of renewable energy sources. As electricity demand continues to rise and grids become more complex, FACTS technologies are crucial for ensuring optimal energy distribution and minimizing power losses. The market is forecasted to expand significantly over the next decade, with an increasing focus on grid modernization, renewable energy integration, and power quality improvements.

Static Var Compensators (SVC) Segment is Largest Owing to Wide Adoption in Grid Stability and Voltage Control

The Static Var Compensators (SVC) segment dominates the FACTS market, owing to its extensive adoption in improving grid stability and voltage control. SVCs are used to regulate the voltage level and improve the dynamic response of power systems, which is particularly important for maintaining stable power flow in large electrical grids. The ability of SVCs to provide fast and continuous reactive power compensation makes them a preferred choice for utilities looking to optimize grid performance and mitigate voltage fluctuations.

SVCs are particularly beneficial in applications such as industrial plants, transmission systems, and power stations, where maintaining voltage stability is crucial. As the need for grid stability and reliability grows, especially in the context of integrating renewable energy sources, the demand for SVCs continues to rise. Furthermore, their proven effectiveness in enhancing system reliability and improving the overall efficiency of the power grid ensures that they remain the largest segment in the FACTS market.

Static Synchronous Compensators (STATCOM) Segment is Fastest Growing Owing to Demand for Advanced Power Quality Solutions

The Static Synchronous Compensators (STATCOM) segment is the fastest-growing in the FACTS market, driven by increasing demand for advanced power quality solutions. STATCOMs offer superior performance over traditional compensation devices, as they are capable of providing both reactive power compensation and voltage control with greater speed and efficiency. They are particularly well-suited for applications in renewable energy systems, where rapid and dynamic voltage regulation is necessary to handle the intermittent nature of power generation.

The increasing deployment of STATCOMs in wind and solar power generation, as well as their use in industrial and commercial applications, is driving their market growth. As the shift towards clean and sustainable energy sources accelerates, STATCOMs are being recognized for their ability to improve grid stability and minimize the impact of power fluctuations caused by renewable energy variability. Their role in enhancing power flow control and ensuring optimal voltage regulation positions STATCOMs as the fastest-growing segment within the FACTS market.

Power Utilities End-User Industry is Largest Owing to Grid Modernization and Expansion

The power utilities end-user industry is the largest segment in the FACTS market, primarily driven by the need for grid modernization and the expansion of transmission and distribution networks. Power utilities rely heavily on FACTS technologies to improve grid stability, enhance voltage control, and optimize power flow across long-distance transmission lines. With growing electricity consumption, especially in emerging markets, power utilities are increasingly investing in FACTS solutions to ensure that grids can efficiently handle the increasing load while maintaining high reliability.

Grid modernization initiatives are a significant factor driving the demand for FACTS devices among power utilities. These systems help utilities reduce power losses, manage grid congestion, and improve overall system reliability. As utilities worldwide continue to adopt smart grid technologies and integrate renewable energy sources, the role of FACTS in supporting these efforts becomes even more critical, making power utilities the largest end-user segment in the market.

Grid Stability Application is Largest Owing to Rising Demand for Reliable Energy Supply

The grid stability application is the largest in the FACTS market, as ensuring a stable and reliable energy supply is a top priority for power systems worldwide. FACTS devices such as SVCs, STATCOMs, and TCSC are vital in maintaining grid stability by providing continuous and rapid reactive power compensation. This is especially important in regions with growing electricity demand and where grid congestion can cause disruptions in the supply of electricity.

The increasing integration of renewable energy sources, which are variable and intermittent in nature, further drives the need for solutions that can stabilize the grid. FACTS technologies provide real-time dynamic compensation to smooth out fluctuations in power generation, ensuring that grid stability is maintained even with the added complexities of renewable energy. As the demand for a reliable and resilient electricity supply grows, grid stability applications are expected to remain the largest in the FACTS market.

Asia Pacific is Fastest Growing Region Owing to Increased Infrastructure Investment

Asia Pacific is the fastest-growing region in the FACTS market, fueled by rapid urbanization, industrialization, and significant investments in infrastructure. Countries like China and India are leading the way in the adoption of FACTS technologies to support their growing energy needs and enhance grid stability. The expansion of power grids in these regions, combined with the increasing demand for renewable energy, is driving the deployment of FACTS solutions.

Governments and utilities in the Asia Pacific region are focusing on modernizing their electrical grids and improving their efficiency to meet the needs of a rapidly expanding population and economy. As these countries integrate more renewable energy into their power generation mix, the need for advanced grid stability solutions such as STATCOMs, SVCs, and TCSCs will continue to grow, making Asia Pacific the fastest-growing region in the market.

Competitive Landscape and Leading Companies

The flexible AC transmission systems (FACTS) market is highly competitive, with several key players involved in providing innovative solutions to improve grid performance. Leading companies in the market include ABB Ltd., Siemens AG, General Electric, Schneider Electric, and Mitsubishi Electric. These companies focus on developing advanced FACTS technologies and offering tailored solutions to meet the needs of utilities, industrial clients, and renewable energy projects.

To maintain a competitive edge, these companies are heavily investing in research and development to improve the efficiency and reliability of their products. They are also forming strategic partnerships and collaborations to expand their presence in emerging markets and enhance their product offerings. As the demand for more efficient and reliable power grids increases, these companies are expected to play a significant role in shaping the future of the FACTS market.

Recent Developments:

• Siemens AG announced the successful installation of a STATCOM system in a major U.S. transmission network to improve voltage stability and grid reliability.
• General Electric introduced a new TCSC solution aimed at enhancing power flow and mitigating grid congestion in high-demand regions.
• ABB Ltd. secured a contract to deploy advanced FACTS devices in India to support the country’s growing demand for reliable power and grid stability.
• Mitsubishi Electric unveiled a new synchronous condenser technology that enhances the efficiency of existing power grids by stabilizing voltage and frequency.
• Hitachi Energy partnered with a leading European utility to develop an integrated FACTS solution for enhancing power transmission efficiency across the region.

List of Leading Companies:

• Siemens AG
• General Electric (GE)
• ABB Ltd.
• Schneider Electric
• Mitsubishi Electric
• Hyosung Heavy Industries
• Toshiba Corporation
• BHEL (Bharat Heavy Electricals Limited)
• Crompton Greaves
• Nexans
• NKT Cables
• Hitachi Energy
• American Electric Power (AEP)
• LS Industrial Systems
• Power Grid Corporation of India Limited (PGCIL)

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