Report Code: A00672 | Pages: 275 | ||
Tables: 123 | Charts: 76 |
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Flexible alternating current transmission system (FACTS) devices refer to a set of power electronic devices and systems used in electrical power transmission networks to enhance the control and flexibility of alternating current (AC) power flows. These devices are designed to improve the overall performance and efficiency of power transmission systems by regulating voltage, maintaining power flow stability, and increasing the transfer capability of transmission lines.
FACTS devices are typically installed at key points within the power grid, such as substations or along transmission lines, where they can actively control the voltage, impedance, and phase angle of the electrical signals. By manipulating these parameters, FACTS devices can mitigate problems such as voltage fluctuations, line congestion, and power factor issues. This enables utilities to achieve better utilization of existing transmission infrastructure, enhance system stability, and optimize power flow in real time.
Some common types of FACTS devices include:
The flexible AC transmission systems (FACTS) market is expected to witness notable growth during the forecast period, owing to advancement of electric power transmission system, increase in demand for controllability of power systems, and need of high reliability under contingencies across the globe. In addition, the Flexible AC Transmission Systems (FACTS) Market is anticipated to benefit from the emergence of smart grids and an increase in dependency on renewable energy resources during the forecast period. On the contrary, high initial cost of installation is anticipated to limit the growth of the flexible AC transmission systems (FACTS) market during the forecast period.
The pandemic has presented both challenges and opportunities for the flexible AC transmission systems (FACTS) market. Many power transmission projects faced delays or cancellations due to logistical challenges, labor shortages, and financial constraints during the pandemic. This impacted the adoption and deployment of FACTS technologies. The pandemic accelerated the transition toward clean energy sources. FACTS technologies play a crucial role in integrating renewable energy into the grid by addressing the intermittent and voltage stability challenges associated with renewable sources such as wind and solar power.
The flexible AC transmission system market is segmented into Compensation Type, Controller and Industry Vertical.
On the basis of compensation type, the flexible AC transmission system market outlook is divided into series compensation, shunt compensation, and combined series-shunt compensation. In 2022, the series compensation segment dominated the market, in terms of revenue, and combined series-shunt compensation segment is projected to acquire the highest CAGR from 2023 to 2032.
On the basis of controller, the flexible AC transmission system market forecast is segregated into synchronous compensator (STATCOM), static VAR compensator (SVC), unified power flow controller (UPFC), thyristor controlled series compensator (TCSC), and others. The others segment acquired the largest share in 2022 and synchronous compensator (STATCOM) is expected to grow at a significant CAGR from 2023 to 2032.
On the basis of industry vertical, the flexible AC transmission system market growth is bifurcated into oil and gas, electric utility, railways, and others. The others segment acquired the largest share in 2022 and electric utility segment is expected to grow at a significant CAGR from 2023 to 2032.
Region-wise, the flexible AC transmission systems market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, Australia, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Region Analysis
Region-wise, the U.S. acquired a prime share in the flexible AC transmission systems (FACTS) market in the North American region and is expected to grow at a significant CAGR during the forecast period of 2023-2032.
In Europe, Germany, dominated the flexible AC transmission system market share, in terms of revenue, in 2022 and is expected to follow the same trend during the forecast period. However, the France is expected to emerge as the fastest-growing country in Europe's flexible AC transmission system market share with a CAGR of 7.61%.
In Asia-Pacific, China is expected to emerge as a significant market for the flexible AC transmission system industry, owing to a significant rise in investment by prime players due to rise in investment in renewable energy resources for rural and urban electrification in the region.
By LAMEA region, the Latin America held significant market share in 2022. The LAMEA flexible AC transmission system market size has been witnessing improvement, owing to the surge in inclination of companies toward research and development and expansion of manufacturing units of various compensation types and industry verticals across this region. Moreover, the Middle East region is expected to grow at a high CAGR of 6.16% from 2023 to 2032.
Historical Data & Information
The global flexible AC transmission systems (FACTS) market is highly competitive, owing to the strong presence of existing vendors. Vendors of the flexible AC transmission systems (FACTS) market with extensive technical and financial resources are expected to gain a competitive advantage over their competitors because they can cater to market demands. The competitive environment in this market is expected to worsen as technological innovations, product extensions, and different strategies adopted by key vendors increase.
Key Developments/ Strategies
ABB Ltd, Adani Power Ltd, ALSTOM SA, CG Power and Industrial Solutions Limited, Eaton Corporation, General Electric, Hyosung Corporation, Mitsubishi Electric Corporation, NR Electric Co. Ltd, and Siemens AG are the top companies holding a prime share in the flexible AC transmission systems (FACTS) market. Top market players have adopted various strategies, such as product development, acquisition, innovation, partnership, and others to expand their foothold in the flexible AC transmission systems (FACTS) market.
Flexible AC Transmission System Market Report Highlights
Aspects | Details |
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Market Size By 2032 | USD 2.3 billion |
Growth Rate | CAGR of 7% |
Forecast period | 2022 - 2032 |
Report Pages | 275 |
By Compensation Type |
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By Controller |
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By Industry Vertical |
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By Region |
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Key Market Players | ABB Ltd., CG Power and Industrial Solutions Limited., Adani Power Ltd, NR Electric Co., Ltd., Alstom SA, General Electric, Hyosung Corporation., Mitsubishi Electric Corporation, Eaton Corporation, Siemens |
Analyst Review
According to the perspectives of CXOs of a leading flexible AC transmission systems (FACTS) market is expected to continue growing in the coming years, owing to increase in demand for electricity, grid modernization initiatives, integration of renewable energy sources, and focus on grid flexibility and reliability.
In addition, the increase in adoption of flexible AC transmission systems (FACTS) in various applications, such as voltage control, power flow management, renewable energy integration, grid stability enhancement, and power quality improvement, is driving the growth of the market. In voltage control, FACTS devices like static VAR compensators (SVC) and static synchronous compensators (STATCOM) regulate voltage levels and maintain grid stability. Power flow management involves devices like unified power flow controllers (UPFC) and thyristor-controlled series capacitors (TCSC) that optimize active and reactive power flow, reducing congestion and improving system efficiency. FACTS technologies also play a vital role in integrating renewable energy sources into the grid by addressing the challenges of intermittency, voltage regulation, and power quality control. Furthermore, FACTS devices enhance grid stability by providing rapid control of reactive power and damping power oscillations. Lastly, FACTS devices contribute to power quality improvement by reducing voltage fluctuations, harmonics, and other disturbances, ensuring reliable and high-quality power supply. The wide range of applications and benefits associated with FACTS devices are fueling their increasing adoption in the market.
There is a rise in demand for electricity, particularly in emerging economies, owing to the growing population and urbanization. This increase in demand for electricity in emerging economies is driving the growth of the flexible AC transmission systems (FACTS) market. The need for reliable and efficient power transmission becomes paramount with growth in population and expansion of urbanizationtransmission. FACTS devices play a crucial role in meeting this demand by optimizing power flow, enhancing grid stability, and maximizing transmission capacity.
In emerging economies, the rapid urbanization and industrialization processes put significant strain on existing power infrastructure. The deployment of FACTS technologies enables utilities to improve the efficiency and reliability of their power transmission networks. FACTS devices help address the challenges associated with increasing electricity demand by regulating voltage, managing power flow, and mitigating grid issues.
Furthermore, emerging economies often face challenges related to integrating renewable energy sources into their power grids. FACTS devices offer solutions for voltage control, power flow management, and stability enhancement, facilitating the smooth integration of renewable energy resources. This is particularly important as many emerging economies seek to reduce their reliance on fossil fuels and transition towards more sustainable energy systems.
The growth of the FACTS market in emerging economies is also supported by government initiatives and investments in infrastructure development. Governments recognize the importance of modernizing their power grids to meet the rise in energy demand and achieve energy security and sustainability goals. Supportive policies, regulatory frameworks, and financial incentives further drive the adoption of FACTS technologies in these markets.
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Flexible AC transmission system is the power electronics based devices used to enhance controllability and stability of the AC system. This is due to the increase in demand for controllability of power systems, advancement of electric power transmission system, and need of high reliability under contingencies. However, high initial cost of installation is expected to hamper the flexible AC transmission system market growth.
Need for effective equipment operation, consistent power supply, and improved power factor are the necessary requirement by the various small & medium enterprise and as well as large enterprise, drives the demand of flexible AC transmission system. This enables the industry vertical to perform the tasks and maintain the production at required level during any contingencies and peak demand.
In 2016, the series was the highest contributor, in terms of revenue, in the global flexible AC transmission system market. In addition, static var compensator (SVC) contributed significant revenue to the market, majorly from North America. Furthermore, the electric utility segment is anticipated to witness the highest growth rate during the forecast period, due to a huge investment in rural electrification and smart grid development by the government.
Key market players have adopted various strategies, such as new product launch, business expansion, and strategic alliances to create more awareness about flexible AC transmission system and increase its adoption across various industries.
A. Growing Demand for Renewable Energy Integration and Expansion of High Voltage Direct Current (HVDC) Systems are the upcoming trends of Flexible AC Transmission System Market in the world.
A. Electric Utility is the leading application of Flexible AC Transmission System Market.
A. Asia-Pacific is the largest regional market for Flexible AC Transmission System.
A. The global flexible ac transmission system market was valued at $1,194.22 million in 2022.
A. ABB Ltd, Adani Power Ltd, ALSTOM SA, CG Power and Industrial Solutions Limited, Eaton Corporation, General Electric, Hyosung Corporation, Mitsubishi Electric Corporation, NR Electric Co. Ltd, and Siemens AG are the top companies to hold the market share in Flexible AC Transmission System.
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