The global FACTS market is estimated to be USD 1.5 billion by 2025 (forecast year) from USD 1.2 billion in 2020 (estimated year), at a CAGR of 5.4% between 2020 to 2025.
The growth of the FACTS market is driven by the increasing benefits offered by FACTS, growth in transmission lines, rising focus on energy generation using renewable sources, and rising demand for STATCOM devices for voltage control. Further, rising investments in transmission networks and potential opportunities in APAC are the opportunities for FACTS manufacturers.
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FACTS market for shunt compensation expected to hold the largest market share during the forecast period
Shunt compensation is actively used in power transmission and distribution networks to reduce power losses and voltage drops. Moreover, shunt compensation is used for various applications such as voltage stabilization, dynamic reactive power control, increased transmission capacity, power oscillation damping, higher transient stability, system voltage balance maintenance, reduced transmission losses, and voltage control. Low installation cost when compared with other systems and improved efficiency along with higher rating across distribution circuits are a few factors that are expected to increase the demand for shunt systems.
Voltage control application segment of the FACTS market is expected to grow at higher CAGR during the forecast period
Seeking opportunity in the voltage control application of FACTS, the key market players are involved in extracting more contracts for developing and installing voltage control in developed countries. For instance, ABB offers SVC Light solution to provide more voltage stability and reduce the risk of power interruptions in the Northeastern US. The product enables to deliver more reliable power solution to three million homes in the Northeastern US. Additionally, companies such as GE, American Superconductor, and NR Electric are focusing on voltage control applications. For instance, in 2019, AMSC launched 4 new D-VAR STATCOM systems (3 in the US and 1 in Jordan) worth USD 10 million to serve the renewable energy sector.
Utilities to hold largest market share throughout the forecast period
The growing demand for electricity and rising need to increase power capacity in developing countries such as China and India are among the major factors driving the growth of FACTS in electrical utilities globally. The modification made to existing power infrastructure is further driving the market for FACTS in utilities across the world. The applications of FACTS in electrical utilities include voltage control, network stabilization, power oscillation damping, and power flow control, as well as increase transmission capacity. FACTS devices also provide an economical and efficient solution to ease the pressure on existing transmission lines and save high investment costs required for building new network extensions.
APAC is projected to grow at the highest CAGR during the forecast period
APAC is one of the most important high potential markets for FACTS. It is the fastest-developing region for most verticals, such as utilities, railways, and industrial. The region has emerged as a global focal point for large investments and business expansion opportunities. Growing transmission investment in APAC countries results in the increasing number of substations and transmission lines, which propelled the demand for voltage stability and power flow control solution increased. Moreover, APAC is home to a few key FACTS manufacturers—such as Rongxin, which installed more than 800 STATCOM, and Hyosung. These factors are expected to drive the market for FACTS in this region during the forecast period.
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The report profiles key players, including ABB (HITACHI) (Switzerland), General Electric Company (US), Siemens AG (Germany), Mitsubishi Electric Corporation (Japan), Infineon Technologies AG (Germany), American Superconductor (US), NR Electric Co., Ltd. (China), Hyosung Heavy Industries (South Korea), and Rongxin Power Ltd. (UK). Mergers & acquisitions, partnerships and contracts are among a few major strategies adopted by market players to grow in the FACTS market.
The report details the drivers, restraints, challenges, and opportunities for the FACTS market and forecasts the market until 2025. It also provides qualitative and quantitative descriptions of the different applications considered for the FACTS market. The report gives a detailed overview of the market across four regions—Americas, Europe, APAC and RoW. A detailed analysis of the key industry players has been done to provide insights into their business overviews, product offerings, and organic and inorganic growth strategies associated with the FACTS market.