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STATCOM Market Size, Share, and Analysis, By Type (Low Voltage, Medium Voltage, and High Voltage), By Application (Electricity Network, Renewable Energy, Industrial, and Commercial), By Region (North America, Europe, Asia-Pacific, and Rest of the World), And Regional Forecast 2024-2034
STATCOM Market is anticipated to grow at a CAGR of 9.0% in the forecast period (2024-2034), with the market size valued at USD 0.86 billion in 2023 and projected to reach USD 2.23 billion by 2034.
STATCOM or static synchronous compensator, is an important component in modern power systems, that offers voltage regulation, along with improved power quality and stability in the system. STATCOMs use voltage source converters to inject or absorb reactive power into the grid and balance the levels of voltage. This capability provides a fast response to voltage fluctuations that are caused by changes in load or disturbances in the grid. Thus, by maintaining stable voltage levels, STATCOMs reduce voltage instability issues such as sags or swells and improve the efficiency of power transmission. Furthermore, it simplifies integrating renewable energy sources by ensuring smooth and reliable operation. Therefore, STATCOMs are essential in modernizing power systems by offering precise control over reactive power compensation.
STATCOM Market is anticipated to reach USD 2.23 billion, growing at a CAGR of 9.0% during the forecast period, owing to the growing demand for efficient power transmission and distribution infrastructure. This surge in demand is attributed to high investments in renewable energy integration and the pressing increasing need for better power quality. Moreover, key players in the market are focusing on innovations and modular designs to improve the performance and reliability of products. In addition, industry leaders are frequently using strategic alliances and acquisitions to expand their market reach and profit. Therefore, the STATCOM industry will witness long-term growth, which is driven by growing power requirements and the essential need for grid stability.
Source: Fatpos Global
STATCOM market is segmented based on Application into Electricity Networks, Renewable Energy, Industrial, and Commercial. The electricity network segment is projected to lead the STATCOM market due to its importance in ensuring the stability and efficiency of power transmission and distribution systems. The increasing global demand for electricity has resulted in networks facing major challenges in maintaining voltage stability. Thus, STATCOMs play a primary role in addressing these challenges by providing reactive power compensation and grid stabilization capabilities. This is crucial in electricity networks where fluctuations in demand or grid disturbances can cause voltage instabilities and power disruptions. Thus, to improve the stability and efficiency of power networks, utilities, and grid operators are investing in STATCOM solutions and highlighting the significance of STATCOM in electricity networks.
STATCOM Market is segmented based on Type into High Voltage, Medium Voltage, and Low Voltage. The high voltage segment is expected to dominate the STATCOM market as high voltage STATCOMs are crucial for large-scale power transmission networks, where voltage stability is extremely important. These systems manage voltage fluctuations and reactive power demands across large transmission distances, along with ensuring grid stability. Additionally, the increasing adoption of renewable energy sources requires high-voltage STATCOMs to integrate irregular power supply into the grid. The high-voltage STATCOMs offer superior power handling capacities, which makes them suitable for managing high loads and stabilizing voltage levels in heavily industrialized regions. Therefore, this segment is expected to maintain its lead in the STATCOM market due to its important role in improving power systems and grid infrastructure.
Source: Fatpos Global
Integration of Renewable Energy Sources With STATCOM is Essential for Growth
Integration of renewable energy sources such as wind and solar is expanding swiftly, which has created a major challenge for the stability of the power grid due to its irregular nature. STATCOMs are essential for reducing these challenges by providing dynamic control over voltage and reactive power, that ensures the stability of the grid, despite major fluctuations in the generation of renewable energy. This capability provides smooth integration and boosts the dependability and efficiency of the power grid. In addition, as governments across the world are setting ambitious renewable energy targets, the demand for STATCOMs is expected to rise and propel the growth of the STATCOM market during the forecasted period.
Grid Modernization Initiatives Will Provide a High Rate of STATCOM Adoption
Several grid modernization efforts are being made to improve the outdated electricity infrastructure and accommodate new technology. STATCOMs are significant for these efforts, as they provide advanced voltage control and capabilities to compensate for reactive power. Furthermore, by adopting STATCOMs, utilities can improve power quality, along with reducing voltage fluctuations and enhancing grid reliability. Additionally, STATCOMs allow utilities to make the most of existing grid assets, which further reduces the need for costly infrastructure expansions. Consequently, with high investments in grid modernization projects around the world, demand for STATCOMs is expected to skyrocket in the near future.
High Initial Installation Costs Can Impact the Growth of the STATCOM Market
High initial investment costs are a major limitation for the high adoption of statcoms, despite their numerous benefits. The deployment of STATCOMs in high-voltage systems for large-scale applications requires significant upfront capital expenditure that covers procurement, installation, and continuous maintenance. In addition, for companies facing budget constraints, these high costs can present a substantial barrier to the adoption of STACOMs. However, the long-term benefits of grid stability, combined with better power quality and grid operations often outweigh the initial expenditure. Furthermore, constant advancements in STATCOM technology and manufacturing operations may help eliminate these cost concerns over time.
STATCOM Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region is anticipated to dominate the STATCOM market due to various industrialization and urbanization efforts across nations like China and India, which fuels the demand for advanced power infrastructure to ensure grid stability. Additionally, high investments in the integration of renewable energy further increase the demand for modern grid-stabilizing solutions. Moreover, several laws aimed at improving the power sector contribute to the growth of the STATCOM market throughout the Asia Pacific area.
Simultaneously, Europe is expected to match Asia Pacific's success in the STATCOM market due to the high demand for integrating renewable energy sources and upgrading aging power infrastructure. In addition, the European Union's ambitious energy transition goals and growing adoption of renewable energy will significantly propel the adoption of STATCOMs across the European region.
Source: Fatpos Global
COVID-19 pandemic resulted in a major impact on the STATCOM market. Initially, several disruptions in manufacturing and project timelines occurred due to lockdowns and movement restrictions. However, the pandemic highlighted the importance of reliable power infrastructure for essential services and remote work setups. This encouraged governments and businesses to prioritize grid improvement efforts. Thus, there was a revival in demand for STATCOMs in the latter stages of the pandemic, due to high investments in renewable energy integration and power systems. Moreover, the increasing adoption of digital technologies due to remote working models further increased the demand for STATCOMs to support grid optimization. Therefore, while COVID-19 initially presented several challenges, it also created long-term growth prospects for the STATCOM market.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 9.0% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Application |
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By Region |
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STATCOM Market size was valued at USD 0.86 billion in 2023 and is projected to reach the value of USD 2.23 billion in 2034, exhibiting a CAGR of 9.0% during the forecast period.
STATCOM, also known as Static Synchronous Compensator, is a power electronic device that is used in power systems, to provide stability and control to the grid.
The High Voltage segment and Electricity Network segment accounted for the largest STATCOM Market share.
Key players in the STATCOM Market include ABB, GE, Siemens, Mitsubishi Electric, Toshiba, Eaton, Schneider Electric, WEG, NR Electric, T&D India, NR Electric, Hitachi ABB Power Grids, Hyundai Heavy Industries, Power Electronics International, and Other Prominent Players.
The STATCOM market is influenced due to factors such as grid modernization initiatives and the integration of renewable energy sources.
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