Global Volt/VAr Management Market - 2024 - 2031

Report Overview

The Global Volt/VAr Management Market size was worth US$ 484.5 million in 2023 and is estimated to reach US$ 690.2 million by 2031, growing at a CAGR of 4.5% during the forecast period (2024-2031).

The technique regulating voltage levels and reactive power (VAR) throughout power distribution systems is known as Volt-VAR Control or VVC. The two numbers are linked because when reactive power flows through an inductive line (which all lines have some inductance), the voltage drops on that line. VVC comprises devices that purposely inject reactive power into the grid to modify the extent of that voltage drop and equipment that directly controls the voltage.

VVC can improve power lines' ampacity (current-carrying capacity) and maintain a constant voltage profile. Loads with reactive components such as capacitors and inductors (electric motors) could strain the grid. The reactive component of these loads leads them to draw more current than a purely resistive load of equivalent size. The increased current may cause equipment such as transformers, conductors and other components to heat up, necessitating resizing to handle the complete current. An ideal power system must precisely plan the production, absorption and reactive power flow to control current flow at all system levels.

Market Dynamics

The demand for volt/VAr management is being driven by the need for efficient operations to reduce distribution losses and maximize power factor, dispersed energy generation complexity and rising electricity consumption worldwide. The high installation costs of volt/VAr management, on the other hand, may limit market expansion.

Increasing focus on load flow of electricity

The significance of load flow in the electrical industry cannot be overstated and this element has resulted in a necessity for effective voltage management. Furthermore, distribution load forecasting has emerged as a major industrial concept. The trends have aided suppliers in the worldwide Volt/VAr management market in overcoming all barriers to expansion.

Large industrial and commercial units require network connectivity analyses and switching schedules. Because of this, it has become necessary for industrial leaders to implement Volt/VAr management systems. Developing a highly coordinated electrical industry across the G20 has demanded voltage management in various areas. As a result, the existing existence of a wealthy sector for electrical network and voltage monitoring is not a misconception.

Rising demand for efficient distribution and energy management in the electrical sector

The volt/VAr management market is being driven by increased power demand. The electrical industry's demand for effective distributed energy management has driven manufacturers to lift the bar on innovation. Schneider Electric released an architecture tool called EcoStruxure Power in 2019. The solution is designed to give microgrids in the electric industry more resilience, efficiency and stability. Schneider's product launch heightened non-price rivalry across the market, prompting numerous other manufacturers to commit to developing new goods.

Contract awards have been at the forefront of the global Volt/VAr management market in recent years. Landis+Gyr was awarded a contract by the Kerrville Public Power Board to modernize utility grids. Several power transmission contracts have also been signed, lining the market and creating opportunities for key vendors.

High installation costs of Volt/VAr management

VVO expenses and advantages differ depending on the type of procedure. Additional capital expenditures and operating & maintenance costs are required to install voltage control and VAR management equipment and systems. Deferring generation, transmission and distribution capital enhancement projects lowering fuel costs and emissions from reduced fossil-fired generating and boosting the real-power throughput capacity of affected feeders can help offset the costs. High initial installation costs may hamper the Volt/var management market during the projected period.

Market Segment Analysis

By component, the volt/VAr management market is segmented into hardware, software and services.

Hardware to hold the dominating share

In 2024, the hardware sector dominated the market, which is likely to continue throughout the forecast period. Countries such as UK, U.S., France, Ireland, Norway, India and China are developing new renewable and non-renewable power production, transmission and distribution projects projected to drive the market throughout the projection period. The market is growing due to increased substation automation projects in these areas.

Market Geographical Analysis

Increasing investments in Volt/VAr management in North America

The largest volt/VAr management market in North America, followed by Europe. Increased investments in volt/VAr management would result from lower power losses. In addition, this would increase the need for volt/VAr management in North America. During the projected period, U.S. and Canada are expected to rise rapidly.

The overall number of colocation data centers in the region is rapidly increasing, presenting attractive opportunities for enterprises in the power distribution sector in North America. U.S. government announced plans to spend US$10 billion to create new electric networks in 2018 to lower the rate of curtailment on the Western Transmission and Distribution (T&D) Network. The growing emphasis on replacing traditional electrical equipment with new, high-quality systems will drive the market demand.

Market Competitive Landscape

Major global Volt/VAr management market companies include ABB Ltd., Eaton Company, Schneider, Siemens SE, Advanced Control Systems, Open Systems International, Beckwith Electric, DC Systems, S&C Electric Company and Varentec.

COVID-19 Impact Analysis

All electrical and electronics enterprises were severely harmed during the pandemic years. Economic expansion, particularly in emerging markets, necessitates the use of power. SDG 7 (Achieving Sustainable Development Goals), which aims to guarantee that everyone has affordable, dependable, sustainable and contemporary energy, is a prerequisite for achieving many other SDGs, including those linked to health, education, industry and sustainable cities and more.

Emerging markets are particularly susceptible to the changes. Despite having more access to electricity in developing countries, over 789 million people worldwide are still without power. COVID-19 impacted the sector, resulting in decreased demand, financial hardship and power supply chain problems.

Russia-Ukraine War Impact

The continuing dispute between Russia and Ukraine has exerted a significant impact on the global energy market, particularly in the field of Volt/VAr management. This problem has persisted for a considerable duration. As a result of the disturbances in energy supply, including the halt in the transportation of natural gas from Russia, governments are facing mounting demands to stabilize and improve their power grids.

The violence is resulting in disruptions in energy supplies. Volt/VAr management systems are increasingly essential since they enable the regulation of optimal voltage levels and the mitigation of energy losses. The technologies facilitate the regulation of voltage levels to achieve ideal values. The advancement of smart grid technologies, including enhanced Volt/VAr management systems, has been accelerated as a result of the unpredictable and volatile characteristics of the energy markets. This is done to enhance the effectiveness and dependability of the grid in case of power interruptions.

Moreover, the battle has escalated geopolitical tensions, resulting in alterations in energy policies, specifically in Europe. The achievements have been caused by the battle. Several nations are currently engaged in efforts to decrease their dependence on Russian energy by allocating resources to the advancement of renewable energy sources and enhancing their electrical infrastructure. This action is being taken to reduce their reliance on Russian energy. The demand for Volt/VAr management solutions is growing because of this change. This is because these technologies are crucial for integrating variable renewable energy sources into the grid. Due to the adjustment of energy systems to the evolving geopolitical environment, it is anticipated that the Volt/VAr management market will experience increased expansion. This is due to the anticipation of substantial market expansion.

By Component

Hardware

Software

Services

By Application

Generation

Transmission

Distribution

By End-User

Electrical Utility

Industrial

By Region

North America

U.S.

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

Siemens AG made the announcement that they would be releasing Gridscale X in February of 2024. The software is designed to enable utilities to scale grid capacity and boost DER visibility, both of which are crucial for grid decarbonization. In addition, Gridscale X has been introduced as part of the Siemens Xcelerator portfolio, which is designed to supplement the open partner ecosystem that Siemens Xcelerator has established.

Why Purchase the Report?

Visualize the composition of the Volt/VAr management market segmentation by component, application, end-user and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the volt/VAr management market by analyzing trends and co-development deals.

Excel data sheet with thousands of Volt/VAr management market-level 4/5 segmentation points.

Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global Volt/VAr management market report would provide access to an approx. 61 market data tables, 52 figures and 208 pages.

Target Audience 2024

Volt/VAr Management Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

Volt/VAr Management Manufacturers