Static VAR Compensator Market, valued at USD 874.2 Million in 2023, and is projected to surpass USD 1,316.5 Million by 2032, indicating a robust CAGR of 4.7%

A static VAR compensator (SVC) is a power electronics-based device used in electrical power systems to regulate voltage and improve power factor. It consists of capacitors and reactors controlled by thyristors or insulated-gate bipolar transistors (IGBTs). SVCs are primarily used to counter voltage fluctuations and maintain system stability, in systems with variable loads or renewable energy sources. SVCs help to stabilize voltage levels, enhance power quality, and optimize the efficiency of the electrical grid. Moreover, due to the diverse applications of SVC key players vastly install this technology. For instance, in September 2021, Saudi Electricity Company (SEC) granted Alfanar Construction an EPC contract for the installation of SVC technology in the current Qassim power plant. However, high initial cost of static VAR compensator became a restraint for the static VAR compensator market. Furthermore, high voltage booster in railway sector prompted the static VAR compensator market. As a consequence, market participants are looking into new advancements in the static VAR compensator market.

Static VAR Compensator Market Statistics

• The global static VAR compensator market, generating USD 874.2 million in 2023, projects a robust CAGR exceeding 4.7 % from 2024 to 2032
• Asia-Pacific leads with a substantial 34% market share in 2022
• Europe anticipates impressive growth with a projected CAGR of 5.5%
• Based on type , thyristor-based type dominance, holds 70% of market share in 2023
• Based on end-use, electric utility sub-segment accomplished 42% of market share in 2023
• A discernible trend in the static VAR compensator market is growing grid infrastructure

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Static VAR Compensator Market Dynamics

Grid Integration of Renewable Energy Sources Fuels the Static VAR Compensator Market Value

The grid integration of renewable energy sources, such as wind and solar, presents challenges due to their intermittent nature. Static VAR compensators (SVCs) play a crucial role in stabilizing the grid by adjusting reactive power to maintain voltage levels. As the demand for renewable energy integration grows, there is a need for SVCs, driving up their market value. For instance, according to National Renewable Energy Laboratory (NREL), 160 GW of solar and wind capacity can serve 22% of India's power demand. This is because SVCs are efficient and reliable operation of power systems, gives smooth integration of renewable energy while maintaining grid stability. As a result, due to these factors grid integration of renewable energy sources drives the market growth in the forecast year.

Growing Global Building and Industrial Activities offer significant Static VAR Compensator Market Opportunity

Static VAR compensators (SVCs) play a vital role in improving power system stability by regulating voltage levels. With the rise in building construction and industrial activities worldwide, there's a increase in electricity demand and the need for reliable power quality. For instance, U.S construction starts contracted by 4.9% to a value of $917 billion in 2023. There is growing demand for megaprojects of construction in 2023 which further develop an opportunity for static VAR compensator market. Additionally, SVCs help utilities and industries manage voltage fluctuations, reduce transmission losses, and enhance overall grid performance. This growing demand for electricity-intensive activities presenting diverse opportunities for static VAR compensator market.

Static VAR Compensator Market Segmentation

The global market for static VAR compensator has been segmented into type, component, end-users, and region.

• Type is classified into thyristor-based, and MCR-based
• Component are divided into power electronic device, harmonic filter, thyristor, reactor’, capacitor bank, GIS switchgear, control protection system, and others
• End-users categorized into electric utility, railways, industrial, oil and gas, and others
• The static VAR compensator market is geographically split into Europe, North America, Latin America, APAC, and the Middle East and Africa

Static VAR Compensator Market Regional Outlook

In terms of static VAR compensator market analysis, Asia-Pacific dominates the static VAR compensator market. This dominance can be attributed to several factors, including rapid industrialization, growing energy demand, and increasing investments in infrastructure development across countries like China, India, and Japan. For instance, according to National Bureau of Statistics, infrastructural investment in China is increased 5.9% in 2023 as compare to 2022. The substantial presence of key market players and robust government initiatives further enhance power quality and boost Asia-Pacific's position in the SVC market.

Europe is significantly growing in the static VAR compensator market. Countries like Germany and the United Kingdom there is growing industrialization and infrastructural activities further propel the growth of market. Europe is experiencing a surge in demand for SVC solutions driven by the need to modernize power grids, integrate renewable energy sources, and improve grid stability. Additionally, stringent environmental regulations and key players development are fueling investments in advanced grid technologies like SVCs. For instance, in August 2021, Hitachi ABB Power grid announced to launch SVC Light Enhanced at CIGRE. As a result, these developments further maintain the region’s position in the static VAR compensator market.

Static VAR Compensator Market Players

Static VAR compensator companies profiled in the report include Nidec Industrial Solutions, American Superconductor Corporation, NR Electric Co., Ltd., Siemens AG, Eaton, NISSIN ELECTRIC Co., Ltd., Hitachi Energy, General Electric, Rongxin Power Ltd., and Mitsubishi Electric Corporation.

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Static VAR Compensator Market Key Insights

Mr. Richard Johnson

Acumen Research and Consulting

India: +91 8983225533

E-mail: [email protected]