The global Flexible AC Transmission System (FACTS) market is predicted to expand at a CAGR of 8.5% during the forecast period 2023 to 2030. FACTS' expanding benefits, the expansion of transmission lines, the growing emphasis on renewable energy sources, and the rising demand for STATCOM devices to manage voltage are all driving the market's growth. Growing investments in transmission networks and APAC offer chances for FACTS producers. Flexible AC transmission boosts system stability, provides dynamic reactive power assistance, and controls real and reactive power. This increases machine operation and system use. Due to the improvement of electric power transmission systems in North America, Europe, and Asia-Pacific, the global market for flexible AC transmission systems is expected to rise rapidly in the future years. Oil and gas, trains, and electric utilities need more controllable power systems, driving demand for flexible AC transmission systems. Demand drives the global market.
As governments throughout the world announce targets for reducing emissions and neutralising carbon, the shift to renewable energy is accelerating. Falling costs of distributed energy supplies are driving the global energy revolution (DERs). According to IRENA's World Energy Transformation Outlook 2023, the global energy transition is off schedule. To fulfil global goals, renewable energy sources must increase from 14% of total energy to 40% in 2030. According to the Intergovernmental Panel on Climate Change, renewable electricity additions will triple by 2030. (IPCC). The COP 26 climate targets will likely accelerate the deployment of renewable capacity during the next five years. This will account for 95% of worldwide power capacity growth until 2026. Solar and wind capacity expansions accounted for most of the overall renewable capacity growth by 2021. In all major regions of the world, new solar capacity installations have overtaken total wind energy capacity. Wind farm installations grew in 2021, albeit at a slower rate (+93 GW vs. +111 GW). Renewable electricity capacity is expected to grow by 60% between 2020 and 2026, reaching 4800 GW. This is the world's fossil fuel and nuclear power capacity. Expanding renewable energy use and integrating it into the system would make grid stability and reliability more difficult. Because FACTS is the best answer, demand is expected to remain high.
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The global market for flexible AC transmission systems is predicted to expand in the next years due to increased demand for sophisticated energy system controllability and investment in power transmission systems. These considerations should boost demand for FACTS devices, which support reactive power and contribute to system stability. FACTS transmission technologies can help meet the growing global demand for bulk electrical energy transmission systems. This demand should drive market growth in the review period. FACTS can help with transmission solutions. Minimizing harmonics, rapid voltage regulation, higher energy supply, and rapid amortisation are expected to fuel flexible AC transmission system market growth over the predicted period.
The high cost of implementing flexible AC transmission systems is a major factor inhibiting the market growth. FACTS' high initial cost is a barrier to its global implementation. The financial benefits and return on investment far outweigh the initial investment cost. FACTS' improved electricity transfer capability can increase annual sales. This constraint is now minimal, but it should become less of an issue as FACTS devices continue to shrink and get cheaper. Manufacturers are also having trouble installing FACTS devices on a big scale, which could hinder market growth in the near future. Growing demand for renewable energy sources may create investment opportunities in the flexible AC transmission system market. FACTS devices have more advantages than conventional ones. Higher stability, dependability, power quality, environmental benefits, flexibility, and economic benefits. To successfully roll out FACTS devices on a large scale, several hurdles must be overcome. FACTS device size and configuration affect total cost. The size of FACTS affects the cost and performance of the entire system.
Series controller units are expected to expand at a CAGR of 6% during the forecast period of 2023 to 2030. Increasing transmission capacity, lower installation time, and improved system stability drive series FACTS market growth. Consumers' need for a safer living environment and the longer life expectancy of energy infrastructure will boost the industry outlook. This preponderance is due to the extensive usage of series compensation to improve new and existing transmission lines' power transfer capacity. Modern series compensation systems can improve the quality and stability of energy transmission lines. This element should boost future market expansion. Shunt systems are in demand due to their lower installation costs, better efficiency, and higher ratings across distribution circuits. These are important traits. The lack of an effective electric network in emerging nations and a paradigm shift toward infrastructure renovation have also created a favourable economic environment.
STATCOM held the greatest revenue share in 2021 due to the power factor and system stability. Capacitive reactive power during anomalous voltage drops and faults and a speedier response time due to thyristor firing are driving the product's market share. SVC units can manage voltage changes, power oscillations, and resonance for unbalanced loads over varying active or reactive supplies. Modern, energy-efficient, reliable, secure, and fire-resistant electronic gadgets are boosting the flexible AC transmission systems market.
Sustainable energy infrastructure has utilities and installers refurbishing the current electrical network. Sustainable energy infrastructure is needed. Conventional systems rely on resonant frequencies and bandwidth to survive network volatility. Consumer and regulatory support for renewable electricity networks will encourage industry expansion. Small-scale industrial platforms and large commercial enterprises in growing regions have boosted 220 kV to 660 kV units. Suburban migration occurs in large residential complexes and multi-story apartment buildings, which boosts product market share. Increasing reliance on industrial facilities and electricity generation has fuelled FACTS market growth.
Thermal loading, power flow and loop flow regulation, short circuit level reduction, and post-contingency voltage management are influencing the expansion of the FACTS controller in steady state applications. Rapid switching responsiveness, improved voltage stability, decreased losses, and better power system dependability will benefit the global FACTS market. The dynamic application market is predicted to grow during the forecast period due to its efficient use in voltage control, transient stability augmentation, SSR elimination, and oscillation damping. Variations, uneven load, and harmonic volatility prohibit emerging nations' power systems from being sustainable and from generating money. Increasing peak load demand and a shift toward an efficient grid network will enhance technology adoption.
The transportation segment held the largest revenue share among the end-use category in 2021. The necessity for a secure and reliable electricity supply along transport peripherals has increased. Rapid technical developments and industry move toward electric transportation units, yards, and premises will help the business's growth. Oil and gas was the second-largest flexible AC transmission market in 2021. This industry vertical is expected to grow by 8% from 2023 to 2030. Increased use of FACTS devices to maintain voltages during changeable load should boost the market growth in the near future. The oil and gas industry is adopting FACTS for voltage stabilisation since these systems are highly advanced and save time and money. This element should boost the market growth in the coming years.
Europe led in terms of market revenues in 2021. Higher industrial productivity and rising populations in Europe are boosting the energy demand. FACTS is spreading as a result. In Europe, carbon-free power transmission and grid coding are expected to drive the FACTS market. The UK is one of Europe's biggest FACTS buyers. Increasing power demand and rapid technological advancement require a dependable electrical grid. This boosts the UK FACTS market. The second version of FACTS, called STATCOM, is employed by many firms in the UK due to its cost-effectiveness and voltage regulation. The U.S. FACTS market is expected to reach $268 million by 2025. Increased funding for a long-distance grid network and local electric infrastructure has increased demand, improving the sector's status.
The Asia-Pacific flexible AC transmission system market is predicted to have the highest CAGR due to government spending on smart grids and renewable energy. The Asia-Pacific flexible AC transmission system market is predicted to have the largest revenue by end of the forecast year. Developing countries like China, India, and Japan are investing more in high-speed trains, which could boost the market.
ABB, Adani Group, Alstom, cgglobal.com, Eaton, General Electric, HYOSUNG, Mitsubishi Electric Corporation, NR Electric Co., Ltd., and Siemens have considerable market presence and share. These key competitors are focused on organic and inorganic growth tactics, such as product development and mergers and acquisitions, to improve their position as market leaders in the global flexible AC transmission system business.
