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Capacitor Bank Market Size
Capacitor Bank Market size was valued at USD 3 billion in 2023 and is estimated to grow at a CAGR of 4% between 2024 and 2032. Rapid economic growth has led to an upsurge in the energy demand coupled with integration of smart networking technologies will propel the industry landscape. For instance, in 2023, the electricity demand across the U.S. has just doubled when compared to last year.
Capacitor banks are electrical devices designed to store electric charge temporarily. They are composed of multiple capacitors connected in parallel or series within an enclosure that can be installed either indoors or outdoors. The primary function of this device is to improve the power factor of electrical systems by supplying reactive power to compensate for the inductive reactance of loads such as motors and transformers. This helps in reducing energy losses, improving voltage stability, and increasing the overall efficiency of the electrical network. Capacitor banks are widely used in industrial, commercial, and utility applications to optimize energy usage and maintain a stable power supply.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 3 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR: | 4% |
| 2032 Value Projection: | USD 4.3 Billion |
| Historical Data for: | 2021 to 2023 |
| No. of Pages: | 150 |
| Tables, Charts & Figures: | 54 |
| Segments covered: | Voltage, Type, Application & Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Capacitor Bank Market Trends
The capacitor banks are extensively used in smart grid systems to reduce carbon emissions associated with power generation for electrical grids. These units enhance system voltages and energy efficiency in the distribution network, thereby delivering a higher percentage of energy to consumers and boosting the business outlook. The growing energy demands, along with large-scale urbanization, are significantly driving the need to integrate renewable energy sources into the overall energy mix, thereby increasing the industry potential.
Capacitor Bank Market Analysis
The open-air substation segment will exceed over USD 2 billion by 2032. The widespread use of these units in industrial and utility facilities to enhance power quality and reduce losses will positively impact the business landscape. Increasing investments in the development of transmission and distribution lines along with the advancement of smart energy infrastructure, will promote product penetration. Furthermore, the growing demand for open-air substations in the renewable sector will invigorate the industry dynamics.
The high voltage capacitor bank market size will witness a growth rate of over 3.5% through 2032. The increasing demand for efficient power factor correction equipment to improve the efficiency of electricity supply networks will drive industry growth. Additionally, the expanding power infrastructure in developing nations will boost the deployment of these systems. Growing investments in the development of transmission and distribution lines, along with the advancement of smart energy infrastructure will further enhance the business landscape.
The Asia Pacific capacitor bank market is set to surpass USD 2 billion by 2032. Rising investments in the development of industrial establishments and a shifting government focus toward the implementation of electrification programs will foster business dynamics. Changing power consumption patterns in residential buildings and commercial areas coupled with increasing integration of clean energy resources, will boost product deployment.
The paradigm shift toward offshore & onshore wind farms along with growing investments toward solar power plants will fuel the U.S. market. The widespread integration of renewable systems to reduce reliance on conventional units coupled with increasing refurbishment activities, will enhance the business outlook. Continuous technological advancements in line with surging focus on minimizing energy losses within systems will further drive industry expansion.
Capacitor Bank Market Share
Eaton is a global power management company specializing in energy-efficient solutions that help customers manage electrical, mechanical and hydraulic power more effectively. The company offers a comprehensive range of products designed to improve power factor, reduce energy costs, and enhance the efficiency and reliability of electrical systems. Its banks are equipped with advanced features including automatic switching, monitoring, and protection systems, ensuring optimal performance and longevity.
They cater to various applications across commercial, industrial, and utility sectors, providing scalable solutions that meet diverse power quality and energy management needs. Eaton's commitment to innovation and sustainability underscores their approach, delivering high-quality, reliable products that support a more sustainable energy infrastructure.
Capacitor Bank Market Companies
The key industry players include:
- ABB
- Aener Energía
- Alpes Technologies
- ARTECHE
- Bharat Heavy Electricals Limited
- CIRCUTOR
- Eaton
- Enerlux Power
- General Electric
- Hitachi Energy
- Larsen & Toubro
- Powerside
- Schneider Electric
- Siemens
- The Legrand Group
- ZEZ SILKO
Capacitor Bank Industry News
- In June 2023, Arteche has inaugurated its latest plant in Turkey, situated in Dilovasi, marking a significant achievement in its expansion and global strategy. Spanning 19,000 square meters, the new facility positions the Basque firm to meet rising demand in the Asia-Pacific region. The total investment has surpassed USD 2 million, with plans to further increase by an additional million euros over the next 2-3 years.
- In September 2022, Hitachi Energy Bulgaria, a subsidiary of Hitachi Energy Ltd., has enhanced and expanded its manufacturing facility for high-voltage equipment in Sevlievo, northern Bulgaria, in response to increasing global demand. Covering approximately 74,000 square meters and employing over 800 personnel, the plant manufactures high-voltage components including generator circuit breakers, gas-insulated switchgear, control cabinets, and capacitor bank systems. The company has implemented advanced production processes, integrating the latest equipment and automation technology to streamline production and enhance the delivery efficiency.
The capacitor bank market research report includes in-depth coverage of the industry with estimates & forecast in terms of “000 Units” & “USD Million” from 2021 to 2032, 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 country:
- 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
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