Capacitor Bank Market Size - By Voltage, By Type, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Capacitor Bank Market Size

The global capacitor bank market was valued at USD 3.1 billion in 2024 and is expected to reach USD 4.6 billion in 2034, growing at a CAGR of 4% from 2025 to 2034. The development of smart power grids and the adoption of energy-saving equipment are projected to increase in significance which will, in turn, stimulate industry growth.
 

The government is collaborating with multiple stakeholders, both public and private, in the modernization and expansion of the energy infrastructure in order to ensure reliable and secure energy supply. These actions will push for growth within the industry while promoting the transition towards a high efficiency, more sustainable, and resilient energy ecosystem.
 

Ongoing transition toward digitalization and real-time monitoring will optimize grid performance and strengthening reliability augment the product adoption. Furthermore, accelerating renewables across the board will be greatly supported by deepening investment activity in advanced energy storage accompanied by an increased emphasis on automation.
 

The ever-increasing population coupled with continuous development in industrial infrastructure will result in increased consumption of electrical energy. A shift from conventional methods of power generation to more sophisticated and environmentally friendly options, ancillary development activities like construction of metro rail systems, and data processing facilities will enhance the market.
 

Capacitor Bank Market Trends

The increasing energy demand alongside quick urbanization will facilitate the inclusion of renewable energy sources in the general power infrastructure, consequently broadening the scope of industrial growth. These approaches guarantee the improvement of energy efficiency across the whole network of distribution and increase the delivery rate of power to end users, thereby strengthening the market prospects and ensuring a higher level of voltage stability.
 

Seamless integration of renewable energy into power grids along with the continuous expansion of cross-border transmission networks, will drive market expansion and enhance grid resilience. Furthermore, surge in economic growth will positively impact the energy consumption and fuel the industry landscape.
 

The continuous improvement of outdated transmission and distribution systems is likely to increase the adoption of the product. These products are integral to smart grid systems, as they reduce operational carbon emissions of electricity generating plants. The solutions improve the voltage stability and energy efficiency of the distribution system so that a greater proportion of available power is utilized by the consumers.
 

Growing shift toward electrified transportation and smart cities will intensifying the need for enhanced power quality and grid stability. Increasing reliance on renewable energy sources, coupled with the growing adoption of advanced automation technologies will further fuel the demand for efficient energy management solutions.
 

Capacitor Bank Market Analysis

• The capacitor bank industry was estimated at USD 2.8, 3 & 3.1 billion in 2022, 2023 and 2024 respectively. Based on voltage, the industry is segmented into low, medium and high. The growing need for advanced power factor correction solutions to enhance the efficiency and stability of electricity supply networks will further propel industry expansion.
   
• The low voltage capacitor bank market is expected to grow at a CAGR of over 3% through 2034. The combination of insufficient power infrastructure in developing areas and the increasing focus on modernizing and upgrading operational networks in developed economies will influence the business environment profoundly.
   
• The medium voltage capacitor bank market is projected to reach over USD 2.5 billion by 2034. The adoption and integration of transportation units in renewable energy, commercial, industrial, and utility power systems will accelerate business growth. Their widespread use significantly reduces KVAR billing and power factor penalties, increasing efficiency for many sectors.
   
• For instance, as reported by the Association of American Clean Power, the clean energy sector in the U.S. has attracted nearly USD 500 billion in new investments in the past twenty four months alone, and this surge is boosting a manufacturing renaissance as companies plan to build or expand upwards of 160 factories in the US and hire over 100 thousand workers in the manufacturing sector.
   
• The high voltage capacitor bank market is expected to grow at a CAGR of over 3.5% till 2034. The swift growth of power infrastructure within emerging economies is bound to deepen the adoption of these systems. The increasing funding towards transmission and distribution networks along with the development of smart energy technologies will bolster the industry’s environment and stimulate sustained growth.

• Based on type, the industry is segmented into open air substation, metal enclosed substation and pole mounted. The open-air substation capacitor bank market was valued at over USD 1.5 billion in 2024. The increasing spending on transmission and distribution networks coupled with the development of smart energy infrastructure will propel further growth in the entire industry.
   
• The metal enclosed substation capacitor bank market will exceed USD 750 million by 2034. These systems can be manufactured with several step arrangements, making them suitable for outdoor, indoor, or underground installation options, solving numerous operational needs.
   
• For instance, in 2024, the Grid Deployment Office under the U.S. Department of Energy has allocated USD 10 million through the Transmission Acceleration Grants (TAG) Program for transmission deployment assistance at the state, tribal, and regional nonprofit levels. This is expected to facilitate local and regional planning, improve project siting and permitting, reduce project backlogs, and increase siting, all of which will improve grid resilience, reduce energy costs, and facilitate greater amounts of clean energy being incorporated into the national electric grid system.
   
• The pole mounted capacitor bank market projected to register at a CAGR of over 3.5% till 2034. These capacitor banks are mounted directly onto utility poles using a robust frame structure along with seamless installation and simplified maintenance, deliver superior operational efficiency compared to conventional alternatives.

• U.S. capacitor bank market was valued at USD 463.1, 514.7 & 557.8 million in 2022, 2023 and 2024 respectively. The country will reach over USD 70 million by 2034. Growing surge in electric vehicle (EV) charging infrastructure along with rising investments in data centers will further fuel the business expansion.
   
• North America capacitor bank market will witness at a CAGR of over 4.5% till 2034. Rising expenditure on contemporary grid technologies and incorporation of energy from renewable sources is driving investment in these devices for voltage stabilization and improving system efficiency.
   
• For instance, in 2024, the Canadian Ministry of Energy, under the Support Stream of the Smart Renewables and Electrification Pathways (SREPs) program, allotted around US$ 362 million for the development of clean energy infrastructure. This funding falls under the broader scope of US$ 2.1 billion dedicated to upgrading the electric grid, increasing the integration of renewable energy, and improving the transmission and distribution systems.
   
• The Europe capacitor bank market was valued over USD 250 million in 2024. The future of business growth will be fueled by the increasing investments in solar power infrastructure alongside the transition towards offshore and onshore wind farms. Widespread shifts towards these renewable energy systems are expected to lessen dependency on traditional power sources and enhance increasing refurbishment and modernization activities.
   
• For instance, the European Investment Bank (EIB) sanctioned a green loan summing to USD 760 million in March 2024 to aid Iberdrola with the extension of their power grid in Spain. To promote the integration of renewable energy sources and electrification via electric vehicles, an initial USD 543 million was approved towards making advancements to smart grids, contributing to their further development.
   
• The Asia Pacific capacitor bank has a market share of over 50% in 2024. The increased spending on industrial infrastructure along with changes in government policies directed toward electrification will boost adoption of the product. The changing patterns of energy consumption in the residential and commercial sectors along with the rapid adoption of clean energy will boost the expansion of the industry.
   
• For instance, the Australian government has declared new investments in clean energy projects demonstrating their dedication to fostering an environment for net zero growth. They have provided new funding for the Australia-Germany Renewable Energy Industry Hub to further enhance collaboration with Germany on developing renewable energy supply chains, as noted in the mid-year economic and fiscal outlook, 2025.
   
• The Middle East & Africa capacitor bank market is set to reach over USD 900 million by 2034. Growing emphasis on energy efficiency initiatives to reduce reliance on fossil fuels and enhance grid performance along with the expansion of industrial zones and government backed electrification programs will reinforce the industry growth.
   
• For citation, in 2025, Saudi Arabia announced plans for achieving 50% renewable energy generation by 2030. The country is also replacing inefficient oil-fired plants and plans to develop 18 GW of solar photovoltaic capacity by 2035.
   
• The Latin America capacitor bank market is poised to grow at a CAGR of over 4.5% in 2034. Rising electricity demand along with growing concerns over grid stability and energy security will drive the adoption of systems. The large-scale integration of renewable energy investments will further boost the industry scenario.
   
• For illustration, Argentina has secured funding from AFD to support the construction of medium-voltage power lines last year, addressing the national grid’s limited capacity to absorb increasing renewable energy generation. The initiative aligns with the nation’s strategy to harness its vast renewable energy potential and reduce dependence on fossil fuels.
   

Capacitor Bank Market Share

• The top 5 players including Eaton, General Electric, Hitachi Energy, Schneider Electric, and ABB together hold a share of about 45% in the capacitor bank industry. Schneider Electric fosters investment into new solutions which drives their market growth through the utilization of innovative power quality systems.
   
• Schneider Electric has now included its IoT-enabled PowerLogic PFC low voltage capacitor bank in the North American offerings, boosting power factor correction capabilities across industries. This cutting-edge solution is already integrated within EcoStruxure Power architecture, adding further advantages for power quality, savings, and smart power supervision and control economic.
   
• ABB is reinforcing its position in the capacitor bank market thereby consolidating its leadership in power quality solutions. In the areas of compensation of reactive power, energy efficiency, and stabilization of the electric grid energy performance, infrastructure, ABB is still innovating. ABB's capacitor bank technology improves voltage control, minimizes transmission waste, and maximizes power factor, thereby assisting industries in energy management in an economical and responsible manner.
   

Capacitor Bank Market Companies

Major players operating in the capacitor bank industry are:

• ABB
• Aener Energía
• ARTECHE
• LAXMI ELECTRONICS
• CIRCUTOR
• Eaton
• Enerlux Power
• General Electric
• Hitachi Energy
• SHARDA Electronics
• Powerside
• Schneider Electric
• LIFASA
• Siemens
• ZEZ SILKO
   

GE achieved a revenue of USD 34.9 billion, reflecting its strong market presence and operational excellence. The company’s orders surged by 7%, reaching USD 44.1 billion, fueled by robust equipment demand in Electrification and Power and exceptional double-digit growth in services across both segments.
 

Siemens recorded USD 15.2 billion in orders, reflecting sustained market demand and strategic growth initiatives. 74% of the company’s revenue was derived from the Europe, C.I.S., Africa, and Middle East region, while the Asia-Australia region contributed 16%, and the Americas accounted for 10%. Additionally, exports from Germany represented 56% of total revenue, underscoring Siemens strong global footprint and competitive positioning.
 

Eaton has reported USD 6.2 billion in net sales in 2024, a 7% increase from last year. Moreover, the electrical segment of the company generated around USD 6.2 billion in net sales, a 2.7% increase as compared to 2023.
 

Capacitor Bank Industry News

• In March 2025, ABB has revealed plans to invest USD 120 million to enhance its U.S. manufacturing, showing their ongoing commitment to key expansion areas. This program is targeted at increasing the production of low voltage electrification components to satisfy the rising demand from data centers, buildings, and utilities, thus deepening its footprint in the foremost global market.
   
• In February 2025, Hitachi initiated its fourth Corporate Venture Capital fund which marks a new achievement in its investment strategy. This initiative focuses on cutting-edge digital technologies, including data centers, distributed energy systems, industrial AI, and the future of work. With a USD 400 million fund size, the HV Fund is the largest CVC fund managed by Hitachi, bringing its total assets under management to USD 1 billion.
   
• In February 2025, Schneider Electric has confirmed that it will build three new plants in India located in Kolkata, Hyderabad, and Ahmednagar, which will aid in the expansion of their existing manufacturing operations. This change in the investment strategy deepens India's role as Schneider’s third largest market and key manufacturing hub. The new facilities are expected to improve the company's power solutions automation and energy management with the growing demand for quality power products in the industrial and utility sectors.
   
• In June 2023, Arteche has opened a new high technology construction plant in Turkey. This modern plant, spanning over 19,000 square meters, increases the company's capacity to meet the growing need in the nation. It plans to make additional contributions of over USD 1 million within the next 2-3 years, strengthening the company's commitment to innovation and market growth after an initial investment of USD 2 million.
   

The capacitor bank market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (‘000 Units) & revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Voltage

• Low [10 kV]
• Medium [10 kV - 69 kV]
• High [>69 kV]

Market, By Type

• Open air substation
• Metal enclosed substation
• Pole mounted
• Others

Market, By Application

• Power factor correction
• Harmonic filter
• Voltage regulation
• Renewable integration
• Industrial application
• Data centers
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Spain
  • Italy
  • UK
  • Netherlands
  • Russia
  • Sweden
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • New Zealand
  • Malaysia
  • Thailand
  • Singapore
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Oman
  • South Africa
• Latin America
  • Brazil
  • Chile
  • Argentina