The global synchronous condenser market estimated to expand at a CAGR of 3.2% during the forecast period of 2024 to 2032. The synchronous condenser is a synchronous device that generates reactive power that is 90 degrees out of phase with real power. The shaft of a synchronous condenser can freely rotate, comparable to a synchronous motor. It is used to regulate electric power grids by supplying or absorbing reactive power to the voltage of the regulated grid. It is operable with the assistance of starting methods including a static frequency converter and pony motor. The synchronous condensers use air cooling, hydrogen cooling, and water cooling, depending on the kind of load, reactive power rating, and client requirements. The high maintenance and equipment costs of the synchronous condenser are the primary market restraint. However, power factor correction, the expansion of high-voltage direct current (HVDC) networks, advances in condenser technology, and the progressive move toward renewable energy resources are among the primary reasons driving the growth of the synchronous condenser market.
Technology Transition Toward Renewable and Sustainable Energy Resources Remains as A Strong Driver
The worrisome rate of depletion of fossil fuels is causing governments across the globe to seek out alternative energy sources that may not only meet energy demands but also assist reduce environmental degradation. This has led to the growth of renewable energy infrastructure, including solar and wind power plants. However, these power plants frequently encounter difficulty in supplying high-quality power and maintaining stable grid voltage. In order to address this issue, more and more synchronous condensers are being built in these power production plants to ensure steady operations and preserve voltage stability with weak grids. This is stimulating the market for synchronous condensers.
Increasing government investments in the development of new HVDC networks are also contributing to the expansion of the synchronous condenser market, a trend that is expected to continue over the projected period. Countries are launching numerous new HVDC projects to provide electricity to their citizens. Synchronous condensers aid in the regulation of reactive power in electrical power transmission networks. Future growth opportunities for the worldwide synchronous condenser market are predicted to be created by the rising use of synchronous condensers in HVDC systems.
Mining Industry Promises Market Potential During the Forecast Period
Due to their remote locations, mining industries frequently operate with poor network power quality and low short-circuit capacity. To address this issue, mining sector operators are adding power-quality equipment, such as synchronous condensers. These products enhance power factor correction and hence regulate voltage. In addition, they guarantee a steady supply of electricity without fluctuations that could otherwise damage mining equipment. Thus, the expansion of the mining sector and the rising trend of installing synchronous condensers to meet the problems of power systems in the mining industry are projected to drive the market for synchronous condensers over the forecast period.
New Segment to Dominate the Market by Type
Due to the rising demand for reactive power compensation from electric utilities such as transmission systems, power plants, and other industrial applications, the new segment held the greatest market share by type in 2021. In addition, the advantages of synchronous condensers, such as power factor correction, reactive power compensation, grid stability, and voltage regulation, are predicted to fuel the expansion of the worldwide synchronous condenser market over the forecast period. The global increase in the number of power projects and vehicle charging stations is a significant element in the escalation of new synchronous condenser sales. Future sales of new synchronous condensers are predicted to be boosted by a rise in government spending on the development and expansion of the infrastructure for power generation and transmission.
Air-Cooled Segment to Dominate the Colling Type Market
Due to an increase in demand for synchronous condensers from high-voltage DC systems, wind/solar power generation, synchronous condenser upgrading, and other reactive power compensation applications in electric utilities, the air-cooled segment dominated the global market in terms of mobility in 2021. Utilizing an air-cooled system in a synchronous condenser facilitates easy operation and maintenance. This is anticipated to boost the growth of this market segment in the future years.
Static Frequency Converter Segment to Dominate the Market by Starting Method
In terms of cooling methods, the static frequency converter segment held the largest proportion of the worldwide synchronous condenser market in 2021. This is due to the increasing growth of heavy industries and projects, including dams, power plants, power networks, refineries, and mills. In addition, the global increase in hydropower projects will be the primary driver of the static frequency converter-based synchronous condenser in the coming years. For initiating synchronous condensers, static frequency converters offer superior control, greater precision, and excellent dependability. They are insensitive to fluctuations in supply voltage and load. In addition, these products produce less noise and have cheap installation expenses. Increasing usage of static frequency converter-based synchronous condensers across various end-use industries is expected to drive the growth of the synchronous condensers market over the forecast period.
Up to 100 MVAR Dominates the Market by Reactive Power Rating
In terms of application, the category of up to 100 MVAR had the largest market share in 2021. This is a result of the increasing demand for power factor correction and reactive power compensation in industrial applications, where many inductive loads are installed. In addition, increased short circuit megavolt ampere (MVA), high response excitation system, high overload capability, prolonged service life, and improved reliability are the key benefits of using synchronous condensers in utility applications, which are anticipated to drive market growth over the forecast period. Less than 50 and 50 to 80 MVAR synchronous condensers are gaining popularity among end users in a variety of areas due to their inexpensive price, simple installation, and excellent efficiency. Leading manufacturers have also moved their focus to the production of synchronous condensers with defined power ratings, particularly devices in the 50 to 80 MVAR range.
Electric Utilities Segment Dominates the Market by End User
In terms of the end-use industry, the electrical utility sector held the biggest market share in 2021, due to the increasing need for energy and related products, which drives the demand for grid infrastructure. In addition, the fast adoption of electric vehicles has led to an increase in charging stations, which functions as a crucial growth factor and presents the new potential for the integration of renewable electricity in charging stations. The synchronous condenser can be utilized to improve the power factor in these stations by absorbing or creating reactive power as needed. This is predicted to increase demand for synchronous condensers in the years to come. Grid stations are increasingly employing synchronous condensers to improve power factors by absorbing or creating reactive power. They provide greater grid stability and limit electric utility voltage swings. Increasing numbers of electric grids, solar farms, and charging stations for electric vehicles are predicted to increase demand for synchronous condensers over the coming years.
North America to Dominate the Market During the Forecast Period
During the forecast period, North America is anticipated to be the largest market. The aging electricity infrastructures in North America may increase the likelihood of blackouts. Therefore, the governments of several nations in this region are actively focused on upgrading and replacing aging infrastructures in order to enhance grid dependability and resilience and construct intelligent electrical networks. Current issues for the North American power sector include reaching energy-efficiency goals, complying with government carbon restrictions, and integrating diverse dispersed generation sources into the grid. Regionally, North America will continue to be the most lucrative market for synchronous with a share of 28% by the end of the forecast period. Rapid industrialization, dwindling fossil fuels, and rising penetration of electric vehicles have contributed to a large increase in renewable energy consumption in the U.S. over the past few years. According to the International Renewable Energy Agency (IRENA), the United States generated around 63,194.0 GWh of renewable electricity in 2019.
The government of the United States is investing in the increase of renewable energy generation capacity. In 2021, for instance, the United States Agency for International Development (USAID) and the Inter-American Development Bank (IDB) will invest $6.5 million in the development of a new solar power plant in the Caracol Industrial Park. This is offering lucrative growth opportunities for the market for synchronous condensers. In addition, the presence of market leaders and the expansion of the mining industry are anticipated to enhance the U.S. synchronous condenser market.
The Market Remains Fragmented and Competition to Intensify During the Forecast Period
The global market for synchronous condensers market is fragmented due to the presence of several enterprises in both developed and developing nations. The market for synchronous condensers is quite competitive. In order to maintain a competitive advantage, the product portfolio of the key companies is continually being updated. To dominate the market, the key market players adopt organic and inorganic strategies, including mergers, partnerships, new product launches, collaborations, and acquisitions. For example,
Andritz, ABB, Ltd., Eaton Corporation Plc, Fuji Electric, General Electric, Ideal Electric Power Co., Mitsubishi Electric Corporation, Siemens Energy, Voith GmbH & Co. KGaA, and WEG Group are global leaders in the synchronous condenser business. Modern Power Systems, Toshiba Corporation, Brush Group, Sustainable Power Systems, Inc., Power Systems & Controls, Inc., Ansaldo Energia, and Power Systems & Controls, Inc. also remain active in the synchronous condenser sector.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Synchronous Condensers market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Type
| |
Cooling Type
| |
Starting Method
| |
Reactive Power Rating
| |
End User
| |
|
Region Segment (2022-2032; US$ Million)
|
Key questions answered in this report
