Static VAR Compensator Market Size (By Type, By Component, By End Use, and By Geography) - Global Industry, Share, Analysis, Trends and Forecast 2024 - 2032

Static VAR Compensator Market Highlights

• Global static VAR compensator market revenue is poised to garner USD 1,316.5 Million by 2032 with a CAGR of 4.7% from 2024 to 2032
• Asia-Pacific static VAR compensator market value occupied around USD 297.2 Million in 2023
• Asia-Pacific static VAR compensator market growth will record a CAGR of more than 5.5% from 2024 to 2032
• Among type, the thyristor-based sub-segment generated 70% of the market share in 2023 due to their efficiency, ability to faster respond and effectiveness
• Based on end-use, the electric utility sub-segment generated around 42% market share in 2023 due to the high volume requirement
• Growing grid infrastructure is a static VAR compensator market trend that fuels the industry demand

A static VAR compensator (SVC) is a power electronics-based device used in electrical power systems to provide fast and dynamic reactive power compensation. It consists of a bank of capacitors and reactors controlled by power electronics devices such as thyristors or insulated-gate bipolar transistors (IGBTs). SVCs are primarily engaged to regulate voltage levels, improve power factor, and enhance the stability and efficiency of the power grid. They are particularly useful in systems with fluctuating loads or where there is a need for rapid voltage control, such as in industrial plants, large-scale commercial facilities, and utility substations. Additionally, SVCs helps to maintain voltage stability, reduce transmission losses, and ensure reliable operation of the electrical network.

Global Static VAR Compensator Market Dynamics

Market Drivers

• Grid integration of renewable energy sources
• Rising upgradation of transmission and distribution systems
• Aging grid infrastructure
• Growing copper mining increases demand for compensators

Market Restraints

• High initial cost of static VAR compensator
• Increasing adoption of STATCOM

Market Opportunities

• Growing global building and industrial activities
• High voltage booster in railway sector

Static VAR Compensator Market Report Coverage

Static VAR Compensator Market Insights

The grid integration of renewable energy sources drives the demand for static VAR compensator market. For instance, for the improvement of grid stability in 44 states, Department of Energy announced an investment of $3.5 billion in October 2023. The growing development in the smart grid infrastructure there is a surge in demand for static VAR compensator market. For instance, “Building a better grid” introduced by the U.S. Department of Energy in January 2022 for the development of new high-capacity electric transmission lines. As more renewable energy sources like wind and solar power are integrated into the electrical grid, they introduce fluctuations in voltage and power factor, which can destabilize the grid. Static VAR compensators are devices used to provide reactive power compensation to stabilize voltage and improve power factor on the grid. Renewable energy sources often generate variable amounts of power depending on factors like weather conditions, which can lead to voltage fluctuations. SVCs can rapidly absorb reactive power to mitigate these fluctuations, ensuring grid stability and power delivery. As the demand for renewable energy continues to grow, so does the need for SVCs to maintain grid stability, driving the demand for these devices in the market.

Increasing adoption of STATCOM may impede the static VAR compensator market growth. STATCOM and SVC are both devices used in power systems for voltage regulation and reactive power compensation. However, STATCOM offers some advantages over SVC, such as faster response times, higher efficiency, and more flexibility in controlling voltage and reactive power. As a result, industry and utilities may prefer STATCOM over SVC for certain applications, especially in modern power systems where fast response and precise control are crucial. For instance, Tohoku Electric Power Network ordered STATCOM installation from Toshiba Energy Systems & Solutions Corporation in March 2023. This preference for STATCOM could lead to slower growth or even a decline in demand for SVC.

Growing global building and industrial activities creates a significant opportunity for the static VAR compensator market. With escalating electricity demand, especially in urbanization and industrialization, SVCs play a crucial role in maintaining voltage stability. For instance, Foreign Direct Investment (FDI) invested 49.7 Billion U.S. dollars invested on China’s manufacturing sector in 2022. Static VAR compensator ensures reliable power supply for buildings and industries, optimizing energy efficiency and safeguarding equipment. Additionally, SVCs facilitate the integration of renewable energy sources into the grid, enhancing overall grid stability and efficiency. This trend becomes an opportunity for the static VAR compensator market in the forecast year.

Static VAR Compensator Market Segmentation

The worldwide market for static VAR compensator is split based on type, component, end use, and geography.

Static VAR Compensator (SVC) Market By Type

• Thyristor-Based
  • TCR-FC
  • TCR-TSC
• MCR-Based

According to the static VAR compensator industry analysis, thyristor-based type dominates market due to their efficiency, ability to faster respond and effectiveness in regulating voltage in power systems. These devices utilize thyristor-controlled reactors (TCRs) and thyristor-switched capacitors (TSCs) to quickly adjust reactive power levels, helping to stabilize grid voltage and improve power quality. Thyristor-based SVCs can enhance system stability, mitigate voltage fluctuations, and support optimal power flow. As a result, thyristor-based SVCs are widely used across diverse applications, including transmission and distribution systems, industrial processes, and renewable energy integration, making them the dominant solution in the static VAR compensator market.

Static VAR Compensator (SVC) Market By Component

• Power Electronic Device
• Harmonic Filter
• Thyristor
• Reactor’
• Capacitor Bank
• GIS Switchgear
• Control Protection System
• Others

The thyristor segment is expected to dominate component in the static VAR compensator market ,due to their efficiency and reliability in providing reactive power compensation. Thyristor-based SVCs offers control over voltage levels, making them prefered for stabilizing power grids, improving power quality, and enhancing the efficiency of industrial processes. Their ability to quickly regulate helps to manage voltage fluctuations, reduce transmission losses and maintain grid stability.

Static VAR Compensator (SVC) Market By End Use

• Electric Utility
• Railways
• Industrial
  • Steel and Metal
  • Mining
  • Heavy Industrial
• Oil and Gas
• Others

According to the static VAR compensator industry, electric utilities as a end-users such as power distribution companies and grid operators, heavily rely on SVCs to enhance the stability and efficiency of their electrical networks. SVCs help mitigate voltage fluctuations, improve power factor correction, and maintain grid reliability, all crucial factors in ensuring power supply to consumers. Therefore, due to the high volume requirement for voltage stabilization worldwide electric utilities as end-users dominates the static VAR compensator market in the coming years.

Static VAR Compensator Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of LATAM

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Static VAR Compensator Market Regional Analysis

For several reasons, Asia-Pacific is the largest region in the static VAR compensator market. This prominence can be attributed to several factors including rapid industrialization, urbanization, and infrastructural development across countries like China, India, Japan, and South Korea. As these nations continue to experience significant growth in their energy demand, there arises a need for efficient power transmission and voltage stability. Moreover, government initiatives and manufacturers growing development promoting renewable energy integration and grid modernization further drive the adoption of SVCs in the region. For instance, three latest Large DIPIPM+TM transfer-mold intelligent power modules were launched by Mitsubishi Electric Corporation in 2022. With a growing demand for electricity and a strong focus on enhancing grid reliability, Asia-Pacific remains at the forefront of the global SVC market, and escalating growth in the coming years.

Europe is growing notably in the static VAR compensator market. Firstly, increasing demand for reliable power supply and voltage stability in the region's industrial and commercial sectors has driven the adoption of SVCs to improve grid performance. Moreover, technological advancements and the presence of key market players in Europe have further fueled the expansion of the SVC market in the region. For instance, in January 2022, Siemens and Nova Scotia Power (NSP) join together for a project to develop smart grid technology and to reduce green house gas emission. As a result, Europe emerges a fastest-growing region for the growth and innovation of SVC technology.

Static VAR Compensator Market Players

Some of the top static VAR compensator companies offered in our report includes Hitachi Energy, Nidec Industrial Solutions, American Superconductor Corporation, NR Electric Co., Ltd., Siemens AG, Eaton, NISSIN ELECTRIC Co., Ltd., General Electric, Rongxin Power Ltd., and Mitsubishi Electric Corporation.