“FACTS market to grow at CAGR of 6.0% from 2019 to 2024”
The global flexible AC transmission systems (FACTS) market size is projected to reach USD 1.7 billion by 2024 from USD 1.2 billion in 2019, at a CAGR of 6.0%. Major drivers for the market’s growth are increasing benefits offered by FACTS, growth in transmission line, rising focus on energy generation using renewable sources, and surging demand for STATCOM devices for voltage control. Further, rising investment in transmission networks and potential opportunities in APAC are the opportunities for FACTS manufacturers. The major restraint for the market is high installation costs. Size and communication limitations in FACTS pose a major challenge to this market.
Shunt compensation type to hold largest share of FACTS market during forecast period
In shunt compensation, FACTS are connected in parallel with the power system transmission line. 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 ratings across distribution circuits are a few factors that are expected to increase the demand for shunt systems.
Among all vertical, utilities to hold largest share of FACTS market from 2019 to 2024
FACTS is used in electric utilities for the generation, transmission, and distribution of electricity. The applications of FACTS in electrical utilities include voltage control, network stabilization, power oscillation damping, and power flow control, as well as help in increasing the 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. This is expected to increase the demand for FACTS in utilities. Companies such as ABB, GE, and Siemens provide FACTS devices for the electric utilities market because of growing demands for the generation of electricity.
APAC to hold largest share of FACTS market during forecast period
APAC is the fastest-developing region for most verticals, such as utilities, railways, and industrial. The market in APAC is segmented into China, India, South Korea, and the Rest of APAC. The region has emerged as a global focal point for large investments and business expansion opportunities. The region represents the fastest-growing market worldwide, and the market in this region is expected to grow at the highest CAGR during the forecast period. 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.
Breakdown of primary participants’ profile:
- By Company Type: Tier 1 = 50%, Tier 2 = 30%, and Tier 3 = 20%
- By Designation: C-Level Executives = 35%, Directors = 30%, and Others = 35%
- By Region: Americas = 40%, Europe = 25%, APAC = 20%, and RoW = 15%
ABB (ABB, Switzerland), General Electric Company (GE, US), Siemens AG (Siemens, Germany), Mitsubishi Electric Corporation (Mitsubishi Electric, Japan), Infineon Technologies AG (Infineon, Germany), American Superconductor (AMSC, US), NR Electric Co., Ltd. (NR Electric, China), Hyosung Heavy Industries (Hyosung, South Korea), and Rongxin Power Ltd. (RXPE, UK) are a few major players in the FACTS market.
Compensation type, functions, components, generation type, application, vertical, and geography are the segments covered in this report. The report gives a detailed view of the market across 4 main regions: Americas, Europe, APAC, and RoW.
Reasons To Buy the Report:
- This report includes statistics pertaining to the FACTS market in terms of compensation type, functions, components, generation type, application, vertical and geography, along with their respective market sizes.
- Major drivers, restraints, opportunities, and challenges for the FACTS market have been provided in detail in this report.
- The report includes illustrative segmentation, analysis, and forecast for the FACTS market based on its segments and subsegments.