Capacitor bank Market Expected to Reach $6.0 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, "Capacitor bank market by Voltage, type, installation, connection type, application, and region: global opportunity analysis and industry forecast, 2022–2031," The global capacitor bank market was valued at $3.9 billion in 2021, and is projected to reach $6.0 billion by 2031, growing at a CAGR of 4.3% from 2022 to 2031. A capacitor bank is a collection of capacitors connected in either series or parallelly with the same rating. Other specifications such as power output and load are also required to manufacture a customized capacitor bank depending on the needed rating. Its major uses include storage of electrical energy in and regulate the energy flow, across the system.

These capacitor banks have proved to be very useful in industrial sectors, which, in turn, gives traction to the capacitor bank market growth globally. There are two major advantages associated with capacitor banks, including improved quality of the electrical supply and increased effectiveness of power systems. Hence, to improve global sales, manufacturers of capacitor banks are expanding their distribution channels by growing strategic partnerships, investment, and other activities.

Rise in demand for capacitor banks for power factor correction, rapid growth of industrialization, and rise in investment by major key players are the key factors that significantly contribute toward the growth of the global capacitor bank market.

Moreover, another factor fuelling the global market demand is increasing use of capacitor banks in the electric power industry as power saver widely utilized in the electric motors and transmission lines. Other applications include steel, cement, petrochemical refineries, pulp &paper industry. These industries use capacitor banks to reduce cost of electricity bills and improve the efficiency of electric energy. These are some factors driving the global market growth during the forecast period.

Moreover, the expansion of electric power industry, along with growing number of power stations in China and the U.S., electric power transmission, and distribution of electricity also act as driving factors for the global capacitor bank market. In 2021, U.S. contributed $424.3 million in retail sales of electricity, with a year-on-year growth of 8% in 2021and $401 million revenue in 2019, followed by $406.4 million in 2018.

However, volatile prices of raw materials are anticipated to hamper the growth of the capacitor bank market, globally. On the basis of voltage, the medium voltage ranging between 10 KV–69 KV segment registered the highest market share of about 47% in 2021 and is expected to maintain its dominance during the forecast period. This is attributed to increase demand for capacitor bank from various end user applications, including power factor correction, harmonic filter, industrial, and others. For the consumers with continuous demand for energy power, capacitor bank is the best option since it is used as a power saver in the industrial sector, which in turn is anticipated to fuel the market growth in the coming years.

On the basis of application, the power factor correction segment holds the largest share in terms of revenue and is expected to expand at a CAGR of 4.6%. Increasing industrialization with growing various industries including cement, steel, and sugar industries, refineries and other sectors are expected to fuel the growth of the capacitor bank market during the forecast period due to increasing electricity demand across the globe.

On the basis of region, the market is analysed across four major regions, namely North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific garnered a dominant share in 2021, and is anticipated to maintain this dominance in the capacitor bank market during the forecast period. This is attributed to presence of key players and huge consumer base in the region.

The market analysis covers in-depth information of the major capacitor bank industry participants. The key players that operate in the market are profiled in the report, which 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., EPCOS, and others.

Other players that operate in the value chain of the global capacitor bank market include Yuhchang, Treffer Power System Solution Private Limited, R J Enterprises, Laxmi Electronics, ABPS Solution Private Limited, Clantech Solutions and Services Private Limited, Amp Volt Control, and other tier-2 players.

COVID-19 analysis

The Capacitor bank market was negatively impacted due to the COVID-19 pandemic. However, Europe is the prominent market which was impacted the most in 2020, with a loss of 7% year on year. This slowed down the growth of global market in 2020. But, at the end of third quarter of 2022, the global market is estimated to be fully recover, and is projected to grow with a CAGR of 4.3% by the end of 2031.

Key findings of the study

• In 2021, the medium voltage segment accounted for about 47% of the share in the global capacitor bank market, and is expected to maintain its dominance till the end of the forecast period.
• In 2021, the industrial segment accounted for 26.9% of the capacitor bank market share in the year 2021, and is anticipated to grow at a rate of 4.9% in terms of revenue, increasing its share in the global capacitor bank market.
• Industrial sector is also the fastest-growing application segment in the global capacitor bank market, expected to grow at a CAGR of 4.9% during 2022–2031.
• North America is expected to grow at the fastest rate, registering a CAGR of 4.7%, throughout the forecast period.
• In 2021, Asia-Pacific dominated the global capacitor bank market, with more than 31.0% of the share in terms of revenue.