PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1628879
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1628879
Power Quality Equipment Market size was valued at USD 33,567 million in 2023, expanding at a CAGR of 7.5% from 2024 to 2032.
The power quality equipment market involves products designed to ensure a stable and reliable supply of electrical power. These products are used to mitigate disruptions like voltage fluctuations, harmonics, and power surges that can damage electrical equipment. Key devices include voltage stabilizers, surge protectors, uninterruptible power supplies (UPS), power filters, and harmonic filters. The growing demand for uninterrupted power supply across sectors such as IT, healthcare, manufacturing, and telecommunications drives the market. Additionally, the increasing adoption of renewable energy sources like solar and wind power, which may cause instability in power grids, also supports the need for power-quality equipment. With the rise of industrial automation and the Internet of Things (IoT), the demand for consistent and high-quality power continues to increase. The market is driven by factors such as energy efficiency regulations, advancements in smart grid technology, and rising concerns about equipment protection and energy loss reduction.
Power Quality Equipment Market- Market Dynamics
Increasing integration of renewable energy sources requires stable power quality.
The increasing integration of renewable energy sources, such as wind and solar, is driving the demand for power-quality equipment. Renewable energy can introduce instability into power grids due to its intermittent nature, requiring robust solutions to maintain voltage stability, reduce harmonics, and prevent power surges. Power quality equipment helps mitigate these disruptions, ensuring the reliability of electrical systems.
According to the U.S. Department of Energy, the share of renewable energy in the U.S. power grid has steadily increased, with renewable sources accounting for 22% of the total energy generation in 2023. This surge in renewable energy adoption emphasizes the need for power quality solutions to maintain grid stability and prevent damage to sensitive equipment.
Power Quality Equipment 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 7.5% over the forecast period (2024-2032)
Based on Equipment segmentation, Uninterruptible Power Supply (UPS) was predicted to show maximum market share in the year 2023
Based on Phase segmentation, Three-phase was the leading type in 2023
based on region, North America was the leading revenue generator in 2023
The Global Power Quality Equipment Market is segmented based on Equipment, Phase, End-User, and Region.
The market is divided into Six categories based on Equipment: Power Quality Meters, Surge Protection Devices, Harmonic Filters, Voltage Regulators, Uninterruptable Power Supply (UPS), and Others. The Uninterruptible Power Supply (UPS) segment is the most prominent and significant in the power quality equipment market. UPS systems provide critical backup power during electrical outages, ensuring continuous operations in industries like healthcare, telecommunications, and IT. The growing dependence on technology and the need for uninterrupted power supply have made UPS systems essential for safeguarding sensitive equipment from power disruptions. With the increasing adoption of automation, data centers, and renewable energy sources, the demand for reliable power backup systems is on the rise. Moreover, advancements in UPS technologies, such as lithium-ion batteries and smarter energy management features, have contributed to the segment's prominence. This trend is expected to continue, driving the growth of the UPS market within the broader power quality equipment sector.
The market is divided into two categories based on Phase: Single Phase and Three Phase. The Three-phase segment is the most prominent and significant in the power quality equipment market. Three-phase power systems are widely used in industrial, commercial, and large-scale residential applications due to their ability to deliver higher and more stable power output compared to single-phase systems. This makes them essential for operating heavy machinery, industrial equipment, and large data centers, where power reliability is critical. The demand for three-phase power quality equipment is particularly strong in sectors such as manufacturing, energy, and telecommunications, where continuous and efficient power is necessary for optimal performance. The rise of automation, smart grids, and renewable energy integration further drives the need for reliable three-phase power solutions, contributing to its dominance in the market.
Power Quality Equipment Market- Geographical Insights
The North American region holds a dominant position in the power quality equipment market, primarily due to its advanced infrastructure, technological advancements, and robust industrial sectors. The U.S. and Canada are the key markets, with strong demand for power quality solutions driven by the increasing reliance on renewable energy sources, such as wind and solar, which can create power grid instability. The growing need for uninterrupted power supply in industries like telecommunications, healthcare, and manufacturing further supports market growth. Regulatory standards in North America, such as energy efficiency mandates and grid reliability requirements, drive the adoption of power-quality equipment. Additionally, the ongoing development of smart grid technologies and advancements in energy storage solutions are expected to boost demand for power-quality products. Companies in the region are focusing on product innovation and offering customized solutions to cater to diverse industrial needs, further intensifying competition. Government initiatives, like those promoting energy efficiency and green energy adoption, are expected to sustain the region's market leadership.
The power quality equipment market is highly competitive, with several key players dominating the landscape. Companies like Schneider Electric, Eaton, and Siemens hold significant market shares due to their broad product portfolios and strong brand presence across various industries. The market is also characterized by the presence of regional players such as Vertiv and Powertech Systems, who focus on niche solutions tailored to specific geographic areas or industries. Innovation and technological advancements, such as smart grid integration and energy-efficient solutions, are key strategies adopted by companies to stay competitive. Collaborations and acquisitions are common, allowing companies to expand their product offerings and enter new markets. Moreover, the growing adoption of renewable energy sources has increased the demand for power-quality equipment, leading to heightened competition among players. Companies are also focusing on after-sales services and providing customized solutions to attract and retain customers.
In June 2023, the German government unveiled plans to digitalize its grid, focusing on the low-voltage or distribution level, under a new "smart grids" legal framework. The Metering Point Operation Act sets targets for the roll-out of smart meters, aiming for 20% installation by the end of 2025 and 50% by the end of 2028.