Static VAR Compensator Market Size - By Product, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Static VAR Compensator Market Size

The global static VAR compensator market was valued at USD 28.1 billion in 2024. The market is expected to reach USD 45.8 billion in 2034, at a CAGR of 5.1%. These technologies improve the accuracy and responsiveness of SVCs which improves their efficiency in voltage regulation.
 

A static VAR compensator balances reactive power as well as stabilizes voltages in an electric power system. The compensators consist of numerous bits of equipment such as thyristor controlled reactors, thyristor switched capacitors, fixed capacitors, and reactors. Moreover, the system has step down transformers to adjust voltages, circuit breakers and disconnect switches for maintenance safety, protective relays and control and monitor systems for operation during the processes of monitoring.
 

These units are deployed alongside renewable energy systems to stabilize voltage levels and ensure compatibility with the power grid. For citation, in 2023, India achieved the maximum increase in renewable energy capacity with over 8% growth rate. These machines in the electric power industry provide active reactive power control and voltage regulation services in power systems.
 

The increasing incorporation of renewable energy sources and the growing need for reactive power control management for grid stability will contribute to the growth in the industry. SVCs are designed for advanced energy efficiency which optimizes losses, decreases operating costs, and enhances industry potential.
 

For illustration, in July 2024, the Canadian Government has outlined a significant investment of about CAD 7.1 million toward grid modernization in Antigonish, Nova Scotia. The goal is to improve the operation of the existing system, incorporate higher use of wind and solar power, reduce emissions and help the community shift to a clean energy system.
 

Increasing demand for grid stability and precise voltage regulation will augment the business outlook for these compensators. Rapid expansion of renewable energy installations, including wind and solar will intensify the need for reactive power support. Additionally, rising investments in smart grid infrastructure will continue to accelerate product development.
 

The rising need for superior power quality and grid dependability coupled with the widespread deployment of distributed energy resources will amplifying the business outlook. The increasing complexity of voltage control systems along with changing progressive electricity tariff reforms are incentivizing utilities to implement newer reactive power compensation technologies that improve grid performance.
 

For reference, in 2025, The European Commission issued a funding call for cross-border energy infrastructure initiatives cumulatively estimated at USD 650 million. The initiative aims at projects of common and mutual interest to deepen strategic energy integration while improving regional grid interconnections.
 

Static VAR Compensator Market Trends

The static VAR compensators market is poised for substantial growth due to the rising emphasis on power quality across a broad range of applications. Industries and utilities are actively seeking solutions to stabilize voltage and enhance power factor objectives that can be effectively met with SVCs.
 

The development of new smart grids which include communication and control technologies, has created a greater need for flexible power systems, which in turn increases the adoption of these systems. These devices are installed to maximize performance and efficiency.
 

For citation, the U.S. department of energy has allocated USD 3.5 billion in 2023 toward power projects spanning 44 states in attempt to fortify the power grid. The strategic funding intends to augment aging systems and modernize the infrastructure into a more dependable and efficient smart electricity network.
 

The continuous attention on industrial automation and optimized process execution will promote the demand for these compensators. Their economic advantages, relative to traditional grid solutions strengthens their market position. Furthermore, the increasing use of hybrid energy systems will hasten the use of advanced technologies.
 

Increase in voltage fluctuations will motivate utilities to shift towards more modern reactive power compensation technologies. The developing economies are focused on effectiveness of transmission to cater to the ever-increasing energy needs, and the proliferation of public-private partnerships in infrastructural augmentation drives the widespread adoption of these technologies across the world.
 

For instance, in 2025, the European Commission launched the Clean Industrial Deal to increase industrial competitiveness and accelerate decarbonization. It Moreover, supports the supercharged production of clean-tech alongside high-efficiency energy consumption facilities through more than USD 100 billion funding. It also ensures access to clean energy, circular strategy, and critical raw materials necessary for the EU industry.
 

The growing emphasis on reduction in carbon footprint will accelerate the adoption of sustainable grid technologies. Furthermore, the increasing integration of battery storage systems into the grid infrastructure and rising demand for advanced reactive power support will boost product deployment.
 

For reference, in 2024, the U.S. expanded its grid capabilities by adding nearly 14 GWh of energy storage capacity. This enhancement intends to improve grid reliability, manage peak demand more effectively, and adopt low-carbon energy advancements more rapidly through advanced storage technology deployments.
 

The trade changes made during Trump’s presidency with the introduction of tariffs have interactively changed the order of trade, increasing costs for manufacturers producing static VAR compensators. This will result in tighter margins and postponed timelines which will compel companies to devise new strategies and investigate local supply alternatives. The tariffs on trade created an unpredictable business environment which hindered the growth of the SVC market and decreased its competitiveness on a global scale.
 

Static VAR Compensator Market Analysis

• The static VAR compensator industry was valued at USD 25.9, 27 & 28.1 billion in 2022, 2023 and 2024 respectively. Based on product, the market is segmented into thyristor-based and MCR-based.
   
• The thyristor based static VAR compensator market will grow at a CAGR of 5% by 2034. The demand for these systems will persist due to the growing need for reactive power management and voltage stability in electrical grids. Utilities and industries depend on SVCs to address voltage fluctuations and power factor challenges, propelling the industry growth.
   
• The market for MCR-based static VAR compensators was valued at over USD 14 billion in 2024. Their compensators are in demand because of the construction of solar and wind facilities, as well as rural electrification policies – all demanding active capabilities for voltage stabilization.
   
• To illustrate, in 2021, Canada has pledged USD 20.2 million in R&D funding to support a novel floating wind project being developed by Waterford Energy Services Inc. and Saitec Offshore. The mobile offshore drilling units (MODUs) will be converted into working offshore decarbonization installations, decarbonization and energy storage systems will be integrated into the units.
   

• Based on application, the market is segmented into utility, railway, industrial, oil & gas and others. The utility static VAR compensator market holds a share of 42.1% in 2024. Additionally, ongoing advancements in SVC technology are improving the efficiency and cost-effectiveness of these systems.
   
• Rising investments in the modernization and expansion of electrical grids will have a positive influence on industry growth. This involves the deployment of advanced power electronic devices, such as SVCs, to improve grid reliability, stability, and overall efficiency.
   
• For instance, in 2025, the U.S. administration issued an executive order to bolster the reliability and security of the nation’s electric grid in light of surging electricity demand driven by AI data centers and expanding domestic manufacturing. The directive calls for full utilization of power generation assets and streamlined emergency authorizations to prevent grid disruptions.
   
• The market for industrial static VAR compensator market is expected to grow at a CAGR of over 4.5% from 2025 to 2034. The robust increase in the industrial activities usually leads to an upsurge in power consumption and subsequently fosters the adoption of these systems.
   
• With the advancements in technology, many industries as well as grid operators find it appealing. To lower energy costs and boost operational efficiency, industries are increasingly turning to solutions which optimize energy usage and minimize penalties linked to poor power factors, making them a valuable asset for manufacturing facilities.
   
• For reference, in 2023, Ontario proposed a new 10% refundable corporate income tax credit capped at USD 2 million annually to spur investment in local manufacturing. The incentive targets Canadian-controlled private corporations making qualifying investments in buildings, machinery, and equipment, with the initiative expected to unlock over USD 570 million in support over three years.
   

• U.S. static VAR compensator market was estimated at USD 3.1, 3.2 & 3.4 billion in 2022, 2023 and 2024 respectively. The industry will witness significant growth owing to growing investments in grid modernization and the growing deployment of distributed energy resources. These developments will necessitate advanced reactive power compensation technologies to ensure voltage stability and maintain power quality.
   
• North America static VAR compensator market will witness at a CAGR of over 4.5% in 2034. Greater focus on the distribution of sustainable electricity alongside the clean energy technology adoption will improve the business environment. The ongoing modernization of old transmission lines combined with increasing efforts to enhance energy efficiency will improve the industry outlook.
   
• To illustrate, in 2025, the manufacturing sector energy investments are expected to surpass USD 230 billion across the U.S. which will propel the construction or upgrade of over 920 production facilities. These domestic investments are aimed at improving the efficiency of domestic supply chains while also accelerating the transition of the country to a more environmentally friendly energy system.
   
• The Asia Pacific static VAR compensator market is set to reach over USD 18 billion by 2034. The growth of the industry is anticipated with the increase in energy consumption in the region supported by the swift industrial revolution and urban development. Additionally, the government initiatives focused on developing policies and incentives that promote energy-efficient technologies are during even more opportunities in the market.
   
• For instance, China allocated nearly USD 442 billion to modernize and expand its power grid infrastructure, according to the IEA. This multi-million investment is directed towards improving grid reliability, enhancing the integration of renewable energy resources, and satisfying the coming electricity demand associated with growing the economy and industry.
   
• The Europe static VAR compensator market is poised to grow at a CAGR of over 4% from 2025 to 2034. Rapid integration of renewable energy sources including wind and solar will amplify the need for grid stabilization solutions. Supportive energy policies along with the expansion of electric mobility and smart grid innovations, are further accelerating market growth.
   
• For instance, in March 2024, the European Investment Bank (EIB) approved a USD 760 million green loan to advance Iberdrola’s power grid expansion efforts in Spain. An initial disbursement of USD 543 million was signed to accelerate smart grid infrastructure, enabling greater integration of renewable energy into the national power system.
   
• Middle East & Africa static VAR compensator market will experience notable growth owing to the ongoing efforts to modernize power infrastructure and integration of renewable energy sources. The growing focus on minimizing transmission losses along with continuous advancements in power electronics and control technologies will enhance the performance, efficiency and responsiveness of these systems.
   
• The Latin America static VAR compensator market is poised to grow owing to the growing presence of industrial clusters, especially in mining and heavy manufacturing, will drive the need for high-performance grid stabilization technologies. Moreover, regional interconnection projects and the push for smarter transmission networks will foster the demand for reliable reactive power compensation solutions.
   
• For reference, in 2025, Brazil’s mining sector received a major boost through a USD 815 million government-backed financing initiative aimed at accelerating the development of strategic mineral projects. With funding support from BNDES and Finep, the initiative focuses on expanding domestic mining and processing capacities for lithium, rare earths, nickel, and graphite for critical inputs for clean energy technologies and advanced manufacturing.
   

Static VAR Compensator Market Share

• The top 5 players including GE Vernova, Siemens Energy, ABB, NR Electric and Mitsubishi Electric Power Products together hold a share of about 45% in the static VAR compensator industry. have kept improving surge protection technologies to safeguard delicate electronic devices better.
   
• ABB provides worldwide services regarding automation and power and offers a wide array of solutions to improve the power grade and grid stability. Its SVCs are essential in controlling voltage management and power factor improvements in networks, therefore grid stability and better power distribution is achieved.
   
• NR Electric is renowned as one of the most preeminent providers of power automation and control solutions due to its intense technologies regarding power systems stability and efficiency. Its systems provide swift and dependable voltage control which mitigates power loss and voltage fluctuations by employing thyristor-controlled reactors and capacitors.
   

Static VAR Compensator Market Companies

• GE Vernova delivered robust financial performance, achieving annual revenue of USD 34.9 billion in 2024, reflecting a 5% year-over-year growth. The net income for 2024 was USD 1.6 billion. The adjusted EBITDA reached USD 2 billion, supported by a 5.8% margin, underscoring strong operational discipline and effective strategic execution.
   
• In 2024, Eaton reported impressive financial results, generating USD 24.9 billion in sales representing a 7% year-over-year increase, driven by 8% organic growth. Earnings per share reached USD 9.50, while adjusted EPS excluding impacts from intangible amortization, restructuring, and M&A-related costs climbed to USD 10.80, reflecting a strong 18% annual gain.
   
• In fiscal year 2024, Siemens Energy generated USD 37.2 billion in revenue, reflecting a 12.8% year-over-year growth and outperforming forecasts. This strong performance was supported by a surge in global demand along with an impressive order intake of USD 54.1 billion coupled with a favorable shift in margin dynamics.
   

Major players operating in the static VAR compensator industry are:

• ABB
• American Superconductor
• Clariant Power System
• Delta Electronics
• Eaton
• Elco Power
• GE Vernova
• Hitachi Energy
• JEMA Energy
• Komachine
• Merus Power
• Mitsubishi Electric Power Products
• Nidec Industrial Solutions
• NISSIN ELECTRIC Co.
• NR Electric Co.
• RXPE
• Siemens Energy
• Sieyuan Electric
• Toshiba Energy Systems & Solutions Corporation
• Wärtsilä
   

Static VAR Compensator Industry News

• In March 2025, ABB reported an expansion of its U.S. manufacturing footprint by USD 120 million, intending to bolster the production of electrification products. The construction of new facilities will take place in Tennessee and Mississippi to address growing needs in data centers, utilities, commercial buildings, and other key sectors- all while creating new jobs.
   
• In December 2024, Nidec developed new static synchronous compensator systems for several substations in Germany in partnership with GE Vernova and 50 Hertz. Using this project, the company improves its Germany electric power and renewable energy systems, efficiently reducing rotor angle frequency volatility across Germany and supporting the country's energy transition objectives.
   
• In August 2024, Merus Power obtained a deal with GRK for the provision of two static synchronous compensators together with a complex control system. This compensator automatically optimizes supply and demand, increasing grid reliability while improving power quality for Estonia’s railway infrastructure.
   
• In April 2024, Hitachi Energy recently bagged a deal with SP Energy Networks to provide their revolutionary SVC Light Static Synchronous Compensator (STATCOM) along with synchronous condenser technologies power quality solution. This system will be added at Eccles substation for the fortification of the grid’s stability and also the support of the surge of renewable energy inflow from Scotland to England’s power system.
   

The static VAR compensator market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Product

• Thyristor-based
• MCR-based

Market, By Application

• Utility
• Railway
• Industrial
• Oil & gas
• Others

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

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