PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485773
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485773
Power Factor Correction Systems Market size was valued at USD 2,842.93 Million in 2023, expanding at a CAGR of 6.92% from 2024 to 2032.
The Power Factor Correction Systems Market involves the implementation of devices and equipment to improve the power factor in electrical systems, enhancing efficiency and reducing energy consumption. Driving factors in the market include the adoption of advanced capacitor banks and static VAR compensators for more precise power factor correction and voltage control. However, challenges such as high initial investment costs and limited awareness among end-users restrain market growth. Opportunities lie in the increasing focus on energy efficiency and sustainability, driving the demand for power factor correction solutions across industries and sectors.
Power Factor Correction Systems Market- Market Dynamics
Rising interest in energy-efficient solutions
The growing interest in energy-efficient solutions is increasingly driving the adoption of power factor correction systems, as reported by organizations and government sources. According to a study by the IEA, power efficiency measures could deliver over 40% of the emission reductions needed to meet worldwide climate goals. Additionally, the U.S. Department of Energy (DOE) emphasizes the importance of power factor correction systems in improving energy efficiency, citing that these systems can reduce energy consumption by up to 20%. Moreover, the European Union (EU) has implemented directives and regulations to promote energy efficiency, driving the adoption of power factor correction systems across industries. This growing focus on energy efficiency is expected to continue driving the utilization of power factor correction systems in the coming years.
Power Factor Correction Systems Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 6.92% over the forecast period (2024-2032)
Based on Type segmentation, Automatic PFC was predicted to show maximum market share in the year 2023
Based on Material segmentation, Silicon-based was the leading type in 2023
Based on Approach segmentation, centralized was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Power Factor Correction Systems Market is segmented on the basis of Type, Material, Approach, Application, and Region.
The market is divided into three categories based on Type: Active power factor correction (PFC) systems actively adjust power factors by injecting reactive power, reducing consumption, and enhancing energy efficiency. Passive systems, using components like capacitors and inductors, correct power factors by absorbing or supplying reactive power. Dynamic PFC, advanced in real-time, adjusts correction based on load variations and power needs.
The market is divided into four categories based on Material: Silicon-based PFC systems utilize efficient silicon-based semiconductor devices for voltage regulation. Silicon Carbide-based systems integrate SiC semiconductor devices for high-temperature tolerance and improved efficiency. Gallium Nitride-based PFCs employ GaN semiconductor devices for high-speed operation and enhanced power density. PFC Devices encompass various components like capacitors, inductors, and semiconductor devices to improve power quality and efficiency.
Power Factor Correction Systems Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
In North America, stringent energy efficiency regulations and increasing industrialization are driving the adoption of power factor correction systems. With its focus on sustainability and renewable energy integration, Europe witnesses significant growth in deploying these systems, particularly in countries like Germany and the UK. In the Asia Pacific region, rapid industrialization, urbanization, and government initiatives to improve power quality contribute to market expansion, with countries like China, Japan, and India leading the way. Meanwhile, the Middle East and Africa region are experiencing a surge in demand for power factor correction systems due to infrastructure development and rising electricity consumption. Latin America also presents growth opportunities, driven by increasing investments in infrastructure and industrial projects.
Established companies such as ABB Ltd., Schneider Electric SE, and Eaton Corporation plc dominate the market with their extensive product portfolios, global presence, and strategic partnerships. These players focus on product innovation, R&D investments, and mergers and acquisitions to maintain their competitive edge. Additionally, emerging companies including Siemens AG, General Electric Company, and Crompton Greaves Consumer Electricals Limited are gaining traction by offering innovative solutions tailored to specific customer needs and expanding their market reach through collaborations and alliances. The competitive landscape is further characterized by the presence of regional players and startups that specialize in niche segments or offer disruptive technologies, contributing to market diversity and fostering healthy competition.
In March 2021, Schneider Electric launched the AccuSine PCSn active harmonic filter tailored for low-voltage applications. This innovative solution aims to assist clients in enhancing power quality, minimizing energy wastage, and cutting down operational expenses.
In May 2021, ABB introduced the PQF800-T reactive power compensation module, planned to enhance power quality and decrease energy consumption in industrial and commercial settings.
GLOBAL POWER FACTOR CORRECTION SYSTEMS MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
ABB Ltd.
Advanced Power Technology Inc.
Crompton Greaves Ltd.
Delta Electronics, Inc.
Eaton Corporation
Emerson Electric Co.
Fuji Electric Co., Ltd.
General Electric Company
Lars Magnus Ericsson Power Electronics AB
Larsen & Toubro Limited
Mitsubishi Electric Corporation
Power Efficiency Corporation
Rockwell Automation, Inc.
Schneider Electric SE
Siemens AG
ZEZ SILKO, s.r.o.
Others