Static VAR Compensator Market Size - By Product (Thyristor-Based, MCR-Based), By Application (Utility, Railway, Industrial, Oil & Gas) & Forecast, 2024 – 2032

Static VAR Compensator Market Size

Static VAR Compensator Market was valued at USD 1.3 billion in 2023 and is anticipated to grow at 4.8% CAGR from 2024 to 2032. The increasing integration of renewable energy sources along with growing need for reactive power control to maintain grid stability will augment the business landscape. SVCs are designed to be more energy-efficient, reducing losses and operating costs, accelerating the industry potential. For instance, in 2022, India experienced the most significant increase in the addition of renewable energy capacity, with a growth rate of 9.8%.

Static VAR compensators are devices used in the electrical power industry to provide dynamic reactive power compensation and voltage control on power grids. These technologies improve the accuracy and responsiveness of SVCs, making them more effective in voltage regulation.

COVID– 19 Impact

The static VAR compensator market has undergone substantial transformations owing to the impact of the COVID- 19. The extent and nature of this influence have been molded by various factors, including the pandemic's duration, the geographic locations of businesses, and the specific subsegments within the voltage regulator industry. Nevertheless, the increasing prevalence of remote work and the ongoing adoption of advanced electrical equipment have acted as driving forces for the growth and expansion of businesses in this sector.

Static VAR Compensator Market Trends

The static VAR compensators industry is set to observe a significant momentum owing to increasing importance of power quality across wide multitude of application areas. Industries and utilities are looking for solutions to stabilize voltage levels and improve power factor, which can be effectively achieved through SVCs. The development of smart grids, which incorporate advanced communication and control systems, has driven the demand for flexible power infrastructure, which in turn will fuel the product penetration.

Static VAR Compensator Market Analysis

Based on product, the thyristor-based static VAR compensator will witness 5.1% growth rate through 2032. These systems will continue to be in demand owing to the increasing need for reactive power control and voltage stability in electrical grids. Utilities and industries rely on these SVCs to manage voltage fluctuations and power factor issues, stimulating the business growth.

Based on application, the utility application holds a market share of over 40% in 2022. Increasing investments toward the upgradation & expansion of electrical grids will positively impact the industry growth. This includes the installation of advanced power electronic devices like SVCs to enhance grid reliability, stability, and overall performance.

The expansion of industrial activities in emerging economies often leads to higher power demands, driving the product deployment. Industries are continually seeking ways to reduce energy costs and improve efficiency. SVCs help in optimizing energy consumption and reducing penalties associated with poor power factor, making them an attractive solution for manufacturing plants.

• The Asia Pacific static VAR compensator industry was valued at USD 496.3 million in 2022. Rapid industrialization and urbanization along with increase in energy consumption across the region will favor the business scenario.

   

• The governments are implementing policies and incentives to encourage the adoption of energy-efficient technologies escalating the industry landscape. Continuous advancements in SVC technology are making these devices more efficient and cost-effective. As the technology evolves, it becomes more attractive to a broader range of industries and grid operators.
   

Static VAR Compensator Market Share

The leading companies in the industry have been consistently enhancing surge protection technology to offer superior safeguarding for delicate electronic equipment. These improvements encompass innovations in surge protection components, voltage clamping mechanisms, and response time. Prominent players in the market comprises of:

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

ABB is a multinational company specializing in power and automation technologies, and they offer a wide range of solutions for power quality and grid stability, including SVCs. Static VAR Compensators are used to control voltage and power factor in electrical systems, helping to stabilize the grid and improve the quality of power distribution. ABB's SVC solutions were widely recognized for their quality and effectiveness.
 

Static VAR Compensator Industry News:

• In March 2023, Toshiba Energy Systems & Solutions Corporation have secured an order for a ± 800 MVA STATCOM system from Tohoku Electric Power NW to bolster grid stability during high-capacity power transmission and ensure reliability during system faults. This project will commence by the end of 2031. This will be one of the world's largest STATCOM deployments and their debut in the backbone grid sector. This system combines high reliability with a compact design.
   
• In September 2022, General Electric announced that their Renewable Energy's Grid Solutions signed a framework agreement with 50Hertz to supply Static Synchronous Compensators for grid stability. The first two hybrid STATCOMs will deliver ± 300 Mvar each to 50Hertz's substation in Bad Lauchstädt, a vital point for transmitting renewable energy. They have patented this technology offers dynamic voltage support and quicker response times, surpassing traditional static VAR compensators. This project is integral to 50Hertz's goal of achieving 100% renewable energy consumption by 2032 and signifies growing demand for GE's grid solutions in a changing energy landscape.
   

This static VAR compensator market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units” & “USD” from 2019 to 2032, for the following segments:

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By Product

• Thyristor-Based
• MCR-Based

By Fuel

• Utility
• Railway
• Industrial
• Oil & Gas
• Others

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

• 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