Synchronous Condenser Market Outlook - 2030
The global synchronous condenser market size was valued at $568.9 million in 2020, and is projected to reach $751.0 million by 2030, growing at a CAGR of 2.8% from 2021 to 2030. Synchronous condenser is a synchronous device that generates reactive power, which leads real power by 90 degrees in phase. Synchronous condenser can operate similar to synchronous motor, and its shaft rotates freely. It is used to regulate situations on electric power grids by adding or absorbing reactive power to regulated grid voltage. It can be operational with the help of starting methods such as static frequency converter and pony motor. Cooling systems used in the synchronous condensers include air cooling, hydrogen cooling, and water cooling, which depend on the type of load, reactive power rating, and customer needs.
For the purpose of analysis, the global synchronous condenser market is segmented into type, cooling type, starting method, end user, reactive power rating, and region. The study highlights various types of synchronous condensers available in the market such as new and refurbished. On the basis of cooling type, the report includes revenue generated through air-cooled, water-cooled, and hydrogen-cooled synchronous condenser. Furthermore, it focuses on various initiation methods of synchronous condensers, which include static frequency converter, pony motor, and others. The reactive power rating covered in the study include up to 100 MVAR, 100–200 MVAR and above 200 MVAR. The key end users of synchronous condensers are electric utilities and industrial. The report covers the generated by synchronous condensers across various regions such as North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the global synchronous condenser industry are ABB, Ltd., Andritz, Eaton Corporation Plc, Fuji Electric, General Electric, Ideal Electric Power Co., Mitsubishi Electric Corporation, Siemens Energy, Voith GmbH & Co. KGaA, and WEG Group.
Other players operating in the synchronous condenser market are Toshiba Corporation, Brush Group, Sustainable Power Systems, Inc., Power Systems & Controls, Inc., Ansaldo Energia, and Modern Power Systems.
These players are adopting numerous strategies such as agreement and collaboration to stay competitive in the market of synchronous condenser.
For instance, in December 2020, Siemens Energy signed an agreement with Elering AS (Estonian transmission system operator). This agreement aimed at building three synchronous condenser plants in Estonia. Through this, Siemens Energy will design, supply, and installation of the three 330 kilovolt (kV) synchronous condenser plants, that will be located at Püssi, Viru, and Kiisa in the north of Estonia.
The synchronous condenser market is analyzed in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021–2030. The report includes the study of the market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
Synchronous condenser market, by type
By type, the new segment held the largest market share in 2020, owing to rise in demand for reactive power compensation from electric utilities such as transmission system, power plants, and other industrial applications. In addition, advantages associated with synchronous condenser such as power factor correction, reactive power compensation, grid stability, and voltage regulation are anticipated to fuel the growth of the global synchronous condenser market in the coming years.
By Type
New is projected as the most lucrative segment.
Synchronous condenser market, by cooling type
On the basis of mobility, the air-cooled segment dominated the global market in 2020, in terms of share, owing to rise in demand for synchronous condensers from high-voltage DC system, wind/solar power generations, synchronous condenser upgrading, and other reactive power compensation applications in electric utilities. One of the major advantages with using air cooled system in synchronous condenser is simple operation and maintenance. This is further expected to fuel the market growth of this segment in the upcoming years.
By Cooling Type
Air-Cooled is projected as the most lucrative segment.
Synchronous condenser market, by starting method
By cooling system, the static frequency converter segment garnered the highest global synchronous condenser market share in 2020. This is attributed to rapid expansion of heavy industries & projects such as dams, power plants, power grids, refineries, and mills. In addition, rise in the hydropower projects across the globe act as the key driving force of the static frequency converter-based synchronous condenser in the coming years.
By Starting Method
Static Frequency Converter is projected as the most lucrative segment.
Synchronous condenser market, by reactive power coating
On the basis of application, the up to 100 MVAR segment exhibited the highest market share in 2020. This is attributed to rise in demand for power factor correction and reactive power compensation, owing to multiple inductive loads equipped in the industrial applications. In addition, increased short circuit mega volt ampere (MVA), high response excitation system, high overload capability, prolonged service life, and enhanced reliability are the key advantages of using synchronous condenser in utility applications, which are expected to drive the growth of the market during the forecast period.
By Reactive Power Rating
Up to 100 MVAR is projected as the most lucrative segment.
Synchronous condenser market, by end user
By end-use industry, in 2020, the electrical utilities segment acquired the largest market share, owing to rise in demand for electricity and related products that fuel the demand for grid infrastructure. Moreover, rapid penetration of electric vehicles led to increase in charging stations, which acts as a key growth factor and creates the new opportunities for renewable power integration in charging station. In these stations, synchronous condenser can be used to improve power factor by absorbing or generating reactive power as per requirement in this station. This is further anticipated to propel the demand for synchronous condensers in upcoming years.
By End User
Electrical Utilities is projected as the most lucrative segment.
Synchronous condenser market, by region
Europe garnered the highest share in the synchronous condenser market in 2020, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period. This is attributed to the presence of huge consumer base, rapid development of the renewable energy sector, high voltage direct current (HVDC) systems, and the existence of key players in the region. Moreover, presence of the countries such as Germany, the UK, France, and Spain is anticipated to contribute toward the growth of the market in Europe.
By Region
Europe holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
COVID-19 impact on the market
Lockdown imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries and electrical utilities, which decreased the demand for synchronous condenser from these consumers. In addition, halt in building & construction of new electric utility infrastructures, renewable power plants, grid network, and other power plants, owing to unavailability of workers and increase in demand–supply gap are projected to hamper the market growth during the pandemic period. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the synchronous condenser market is expected to recover by the first quarter of 2021, as COVID-19 vaccination has begun in various economies across the globe, which is expected to improve the global economy.
Key Benefits For Stakeholders
- The report provides an extensive qualitative and quantitative analysis of the current synchronous condenser market trends and future estimations of the global market from 2021 to 2030 to determine the prevailing synchronous condenser market opportunities.
- A comprehensive synchronous condenser market analysis of the factors that drive and restrict the market growth is provided.
- Estimations and synchronous condenser market forecast are based on factors impacting the growth, in terms of value.
- Profiles of leading players operating in the market are provided to understand the global competitive scenario.
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable synchronous condenser market growth.
Key Market Segments
By Type
- New
- Refurbished
By Cooling Type
- Air-cooled
- Water-cooled
- Hydrogen-cooled
By Starting Method
- Static Frequency Converter
- Pony Motors
- Others
By Reactive Power Rating
- Up to 100 MVAR
- 100–200 MVAR
- Above 200 MVAR
By End User
- Electrical Utilities
- Industrial
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Synchronous Condenser Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By COOLING TYPE |
|
 By STARTING METHOD |
|
 By END USER |
|
 By REACTIVE POWER RATING |
|
 By Region |
|
 Key Market Players | GENERAL ELECTRIC, Andritz, Ideal Electric Power Co., Fuji Electric, Eaton Corporation plc, Voith GmbH & Co. KGaA, Mitsubishi Electric Corporation, Siemens Energy, WEG Group, ABB LTD |
Analyst Review
Rapid industrialization and growth of renewable energy sector are the key factors attributed to the leading position of Europe. The huge potential in Europe to set up renewable energy plants & industries and surge in high-voltage direct current (HVDC) transmission networks are expected to provide lucrative opportunities to leading synchronous condenser manufacturers.
Increase in demand for reliable and continuous power supply is the key factor driving the growth of the global synchronous condenser market during the forecast period. In addition, rise in demand for reactive power compensation and power factor correction from electric utilities and industrial applications is anticipated to fuel the growth of the market during the analyzed time frame. However, high cost associated with synchronous condensers and availability of alternatives for reactive power compensation hamper the growth of the market from 2021 to 2030. On the contrary, transition of old/aged synchronous generators to synchronous condensers and rapid growth of HVDC transmission network are anticipated to provide remunerative opportunities for key players to maintain the pace in the synchronous condenser market in the upcoming years.
Renowned global market leaders such as ABB, Ltd., General Electric, Andritz, and Siemens Energy are adopting various key growth strategies to strengthen their market position. Furthermore, these companies are focused on agreement and collaboration to cater to the increasing demand for synchronous condensers and to maintain the position in the global synchronous condenser market.
Among the analyzed regions, Europe is likely to account for the highest revenue in the market throughout the forecast period, followed by North America, Asia-Pacific, and LAMEA.
In terms of revenue growth, the CAGR of the global synchronous condenser market is 2.8% by 2030.
Rise in demand for reactive power compensation & power factor correction and rapid growth in renewable power integration are the key trends in the synchronous condenser market
The potential customers of the synchronous condenser market are electric utilities such as transmission, generation, distribution networks, and industrial customers.
On the basis of type, new segment will drive the synchronous condenser market growth during the forecast period. On the basis of cooling type, air-cooled segment will drive the growth of the synchronous condenser market. By starting method, static frequency converter segment will fuel the growth of the market. On the basis of end user, electric utilities will propel the growth of the market. By reactive power rating, up to 100 MVAR will drive the market growth in the coming years.
The applications of the synchronous condenser market are reactive power compensation, voltage regulation, grid stabilization and power factor correction.
Top players in the synchronous condenser market are ABB, Ltd., Andritz, Eaton Corporation Plc, Fuji Electric, General Electric, Ideal Electric Power Co., Mitsubishi Electric Corporation, Siemens Energy, Voith GmbH & Co. KGaA, and WEG Group.
In terms of revenue, the market size of synchronous condenser market is anticipated to reach $751.0 million by 2030, growing at CAGR of 2.8% from 2021 to 2030.
Europe will provide business opportunities for synchronous condenser market during the forecast period. This is attributed to the huge consumer base, increase in construction activities, high demand for uninterrupted and reliable power supply, rapid growth of renewable sector in the region.
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