Capacitor Bank Market Size, Share, Competitive Landscape and Trend Analysis Report, by Voltage, by Type, by Installation, by Connection Type, by Application : Global Opportunity Analysis and Industry Forecast, 2024-2031

Market Introduction and Definition

A capacitor bank is an assembly of multiple capacitors connected in series or parallel to store electrical energy and provide a specified capacitance in an electrical circuit. Capacitors, the fundamental components of these banks, consist of two conductive plates separated by an insulating material called the dielectric.

In power distribution networks, capacitor banks play a crucial role in power factor correction. Power factor, the ratio of real power to apparent power, measures how effectively electrical power is being used. Inductive loads such as motors and transformers cause a lagging power factor, leading to inefficient power consumption and increased energy costs. Industries with heavy electrical equipment, such as manufacturing plants, petrochemical facilities, and steel mills, benefit significantly from capacitor banks. These environments often have large inductive loads that necessitate substantial reactive power, leading to poor power factor. By integrating capacitor banks, industries can optimize their power usage, lower electricity bills, and avoid penalties from utility companies for low power factor. Furthermore, improved voltage stability ensures smoother operation of machinery, reducing wear and tear and minimizing downtime caused by voltage sags or surges.

In the burgeoning field of electric vehicles (EVs) and energy storage systems, capacitor banks are utilized to manage power distribution and enhance performance. EVs require efficient power management to ensure optimal battery usage and extend driving range. Capacitor banks help in smoothing out the power supply, providing quick bursts of energy during acceleration and regenerative braking.

Key Takeaways

• The capacitor bank industry covers 20 countries. The research includes a segment analysis of each country in terms of value ($billion) for the projected period (2024-2031) .

• The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of the global capacitor bank market overview and to assist stakeholders in making educated decisions to achieve their growth objectives.

• Over 3, 700 product literature, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the capacitor bank market size.

• The capacitor bank market share is highly fragmented, with several players including Eaton, Comar Condensatori S.p.A, ABB Ltd., Enerlux Power s.r.l., Hitachi Ltd. (Hitachi) , Circutor, Siemens, Toshiba Corporation (Toshiba) , Vishay Intertechnology Inc., EPCOS. Also tracked are key strategies such as acquisitions, product launches, mergers, and expansion of the players operating in the capacitor bank market growth.

Segment Overview

The capacitor bank market is segmented on the basis of voltage, type, installation, connection type, application, and region. Depending on voltage type, the market is segmented into Low [<10 kV], Medium [10 kV - 69 kV], and High [>69 kV]. On the basis of type, the market is categorized into externally fused, internally fused, and fuseless. On the basis of installation, the market is divided into pole mounted, open air substation, metal enclosed substation, and other. Moreover, as per connection type, the market is categorized into star connection and delta connection. On the basis of application, the market is divided into power factor correction, industrial, harmonic filter, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key Market Dynamics

Enhancing energy efficiency is expected to drive the growth of capacitor bank market. Capacitor banks serve as indispensable tools for enhancing energy efficiency and reducing utility costs through power factor correction. Their ability to optimize power factor not only benefits individual businesses but also contributes to a more sustainable and resilient electrical infrastructure. However, ensuring optimal performance and longevity is expected to restraint the growth of capacitor bank market during the forecast period. Increase in demand for power quality improvement drives the growth of capacitor bank market during the forecast period. Power quality is a critical aspect of electrical systems, impacting the efficiency, reliability, and safety of power delivery. Capacitor banks consist of multiple capacitors connected in parallel or series, designed to store and release electrical energy as needed. By introducing capacitive reactance into the system, capacitor banks effectively counteract the inductive reactance associated with loads, balancing the power factor and reducing reactive power flow. This process is known as power factor correction and is essential for optimizing the efficiency and performance of electrical systems.

Furthermore, capacitor banks contribute to cost savings for utility companies and end-users by avoiding penalties for poor power factor. Improved power factor leads to a reduction in the apparent power drawn from the source. This reduction decreases the losses in the electrical distribution system, enhancing overall energy efficiency. Capacitor banks help in maintaining voltage levels within acceptable limits by providing reactive power support. This stability is essential for the proper functioning of sensitive electrical equipment and for avoiding voltage sags and surges. In March 2022, Mexico's state-owned electric utility, Comisión Federal de Electricidad (CFE) , awarded contracts for five gas-based power generation projects totaling 2.26 GW in capacity. Wärtsilä received contracts to construct two internal combustion engine power plants: the 429 MW CCI Mexicali Oriente plant in Baja California and the 202 MW CCI Parque Industrial in Sonora. Mitsubishi Power was selected to build two combined cycle plants: the 442 MW CCC San Luis Potosí in San Luis Potosí and the 932 MW CCC Salamanca plant in Guanajuato. Additionally, TSK and Siemens Energy were contracted for the 256 MW CCC El Sauz II plant in Querétaro.

However, space constraints pose challenges for capacitor bank installation in facilities and substations. The space constraints within existing facilities or substations may pose challenges for the installation of capacitor banks. For example, older substations or industrial plants may have limited available space due to the layout of equipment, the presence of other critical infrastructure, or restrictions imposed by surrounding structures or environmental factors. This can make it difficult to find suitable locations for capacitor bank installations without compromising operational efficiency or safety. Moreover, the size of capacitor banks is influenced by factors such as the desired power factor correction capacity, the voltage level of the electrical system, and the specific requirements of the application. Larger capacitor banks with higher power ratings generally require more space for installation, making it essential to carefully assess available space and consider alternative configurations or placement options to accommodate the equipment effectively.

Patent Analysis of Global Capacitor Bank Market

• The U.S. leads the charge in patent filings, constituting 62.1% of the total. This dominance likely stems from the robust innovation ecosystem and strong legal protection for intellectual property in the U.S.

• Following closely behind is the PCT (Patent Cooperation Treaty) , representing 16.2% of filings. The PCT serves as a gateway to seek patent protection simultaneously in multiple countries, facilitating global patenting strategies for inventors and companies seeking international reach and protection.

• The European Patent Office (EPO) holds a notable share of 7.5% in patent filings. This can be attributed to the streamlined process it offers for securing patent protection across multiple European countries through a single application.

• Canada and Australia contribute significantly with 5.6% and 4.2%, respectively. These countries are attractive destinations for patent filings due to their stable legal systems, strong research institutions, and vibrant innovation landscapes.

• India, the UK, Israel, New Zealand, and South Africa make up the remaining percentages, collectively representing 4.1% of patent filings. While comparatively smaller in numbers, these countries still play crucial roles in fostering innovation and providing avenues for patent protection in various sectors and technologies.

Capacitor Banks: Advantages, Uses, and How They Work

In transformers and electric motors, capacitor banks are used to correct power-factor lag or phase shift in alternating-current (AC) power supplies. The power factor of an AC power system is a comparison of the power used by the load, called the “real power, ” divided by the power supplied to the load, known as “apparent power.”

In the radio-frequency (RF) and wireless spaces, tiny micro-electro-mechanical systems (MEMS) , tunable capacitor banks are used to augment or replace full-size electromechanical tunable capacitors. Hundreds of tiny MEMS capacitors of various values are controlled and tuned digitally via a serial peripheral interface (SPI) . These switched-capacitor banks combined into one package, thus increasing the tunable range of the overall system.

Capacitor banks with a high energy density (more than 1 J/cm3) and modern semiconductor switches can be used to create compact energy amounting to several hundreds of kilo-Joules (kJ) and generating high-amplitude, pulse currents.

Regional Market Outlook

Based on region the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In North America, particularly in the U.S. and Canada, capacitor banks are widely deployed in both transmission and distribution networks to improve power factor correction, reduce line losses, and enhance voltage stability. With the increasing focus on grid modernization and renewable energy integration, the demand for capacitor banks is expected to continue growing in this region.

In Europe, capacitor banks are extensively utilized to optimize power quality and reliability in electricity networks. Countries like Germany, France, and the United Kingdom have robust infrastructure for power distribution, where capacitor banks are employed to mitigate voltage fluctuations and improve system efficiency. Moreover, with the European Union's ambitious targets for renewable energy deployment, capacitor banks are being deployed to address the intermittency challenges associated with renewable generation sources.

Competitive Analysis

Key market players in the capacitor bank market include Eaton, Comar Condensatori S.p.A, ABB Ltd., Enerlux Power s.r.l., Hitachi Ltd. (Hitachi) , Circutor, Siemens, Toshiba Corporation (Toshiba) , Vishay Intertechnology Inc., and EPCOS.

Industry Trends

• The aerospace and defense industry generated $952 billion in combined sales in 2022, a 6.7% increase from the prior year. In addition, the aerospace and defense industry generated $418 billion in economic value, which represented 1.65% of the total nominal GDP in the U.S. Capacitor banks are growing in popularity for stabilizing the power supply in satellites, ensuring that sensitive electronics receive a consistent voltage even when the power generation from solar panels fluctuates.

• In February 2022, Murata Manufacturing Co., Ltd. introduced the NFM15HC435D0E3 MLCC, a multi-layer ceramic capacitor featuring three terminals and offering a capacitance of 4.3 µF. This capacitor is tailored for automotive applications, delivering exceptional noise reduction and superior decoupling needed for high-performance processors used in advanced driver assistance systems (ADAS) and autonomous driving technologies. This launch highlights the increasing demand for ceramic capacitors within the automotive sector.

• In June 2022, Siemens introduced a groundbreaking advancement in capacitor banks. The company unveiled a new line of high-voltage capacitor banks designed to operate at higher power ratings while maintaining a compact size and enhanced efficiency. These upgraded capacitor banks offer superior power factor correction, making them ideal for large-scale power distribution systems and demanding industrial applications.

• In July 2022, Schneider Electric enhanced its PowerLogic PFC low voltage power factor correction solution by expanding its best-in-class low voltage capacitor bank. This upgrade introduced robust, IoT-enabled communication capabilities, further integrating it within the EcoStruxure Power architecture.

• In November 2023, Kyocera AVX introduced two new capacitor series: the KGK series, which meets Class X1/Y2 standards, and the KGH series, which meets Class X2 standards. Both series are rated for 250 VAC and are designed to comply with EN 60384-14, IEC 60384-14, and UL 60384-14 standards. These capacitors provide surge and transient protection as well as EMI filtering, making them ideal for use in a wide range of consumer and industrial devices, including modems and fax machines.

Parent Market Overview

The electric capacitor market is segmented on the basis of type, capacity, application and region. On the basis of type, the market is classified into plastic film capacitor, ceramic capacitor, aluminum electrolytic capacitor, and others. On the basis of capacity, it is bifurcated into low voltage and high voltage; high voltage is further classified into 500-1000V, 1001-7000V, 7001-14000V, and above 14000V. On the basis of application, the market is categorized into power generation, transmission, distribution and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major companies profiled in this report include Siemens AG, ABB Ltd, Schneider Electric, Kemet Corporation, Suzhou Maxwell Technologies Co., Ltd, AVX Corporation, Cornell Dubilier, Murata Manufacturing Co., Ltd, WIMA GmbH, TDK-EPC Corporation, Samsung Electronics Co Ltd, and Panasonic Corp.

In April 2023, ABB introduced CogniEN, an innovative electrical asset monitoring platform tailored for cognitive electrical networks powering renewable energy infrastructure, data centers, and electric vehicle charging systems. Leveraging advanced data intelligence, CogniEN enables operators to swiftly detect and address issues within their electrical installations, ensuring optimal performance and reliability.

In February 2023, KEMET unveiled the AAR80 series, a new line of electrical capacitors tailored specifically for automotive use. These AEC-Q200 compliant aluminum rectangular capacitors boast impressive features such as exceptional ripple current capacity, substantial capacitance, and durable resistance to vibrations. With its launch, the AAR80 series is poised to revolutionize the automotive sector, driving widespread adoption and bolstering market expansion.

Key Sources Referred

• Department of Energy
• U.S. Department of Energy
• U.S. Department of Agriculture
• Utilities and Energy Services Texas A&M University
• California Department of Industrial Relations
• International Journal of Research and Scientific Innovation (IJRSI)

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the capacitor bank market analysis from 2024 to 2031 to identify the prevailing capacitor bank market opportunities.

• The market research is offered along with information related to key drivers, restraints, and opportunities.

• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.

• In-depth analysis of the capacitor bank market segmentation assists to determine the prevailing market opportunities.

• Major countries in each region are mapped according to their revenue contribution to the global market.

• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.

• The report includes the analysis of the regional as well as global capacitor bank market trends, key players, market segments, application areas, and market growth strategies.