Flexible AC Transmission Systems Market by Component, Compensation Type, Function, Vertical

Description

List of Tables

[194 Pages Report] The Flexible AC Transmission Systems Market size was estimated at USD 1.67 billion in 2023 and expected to reach USD 1.77 billion in 2024, at a CAGR 5.90% to reach USD 2.50 billion by 2030.

Flexible AC Transmission Systems (FACTS) refer to advanced technologies implemented within electric power transmission systems to enhance their controllability, flexibility, and efficiency. FACTS leverage high-speed switching and power electronics to regulate electrical parameters, including voltage, phase angle, and impedance of high-voltage AC lines. As a result, these systems can remarkably improve the power transfer capabilities of transmission networks, manage power flow, reduce losses, stabilize voltage under varying load conditions, and increase the power grid's reliability. By implementing FACTS, utilities can better accommodate dynamic and fluctuating energy demands, integrate renewable energy sources, and adapt to ever-evolving power system challenges. The Flexible AC Transmission Systems (FACTS) market comprises the sales, installation, maintenance, and innovation of technologies designed to enhance controllability, increase power transfer capability, and improve the stability of AC transmission networks. FACTS technologies find applications across various segments, including utility companies, renewable energy generation, industrial manufacturing, and infrastructure projects. Their primary end-use is ensuring reliable and efficient transport of electrical power within grid networks, mitigating the impacts of power fluctuations, improving system utilization, and promoting the incorporation of renewable energy sources. The growth of the FACTS market is influenced by several factors, including a continuous increase in demand for electricity and increasing overload issues, the growing integration of renewable energy sources worldwide, and rising government incentives and regulations promoting the usage of grid technologies. However, the FACTS market faces certain challenges, such as the high cost of developing flexible AC transmission systems and interoperability issues with flexible AC transmission systems. On the other hand, the growing introduction of novel flexible AC transmission systems and the rising transition toward smart grids and adaptive systems present significant opportunities for the FACTS market to grow in the coming years.

KEY MARKET STATISTICS
Base Year [2023]	USD 1.67 billion
Estimated Year [2024]	USD 1.77 billion
Forecast Year [2030]	USD 2.50 billion
CAGR (%)	5.90%

Regional Insights

In the Americas, the United States and Canada are prominent consumers of Flexible AC Transmission Systems (FACTS) due to aging power infrastructure and the need to optimize power networks. The US has been leading with several patents filed in the FACTS domain, signifying innovation and technological advancement. In South America, Argentina focuses on revitalizing its energy infrastructure to support its growing economy. Brazil has a vast power network and is investing heavily in renewable energies, necessitating FACTS to manage transmission stability. EU countries have been early adopters of FACTS technology, mainly due to the strong emphasis on renewable energy and energy efficiency. The EU's commitment to reducing carbon emissions has resulted in increased investments in cleaner and more efficient power transmission systems, including FACTS. In the Middle East, the rising demand for electricity and considerable investments in grid infrastructure are driving the FACTS market. One of the key initiatives is the Gulf Cooperation Council Interconnection Grid, which presents opportunities for FACTS integration. On the other hand, Africa presents a different landscape with a need for electrification and reliable power supply. However, due to financial constraints, the rate of FACTS implementation is slower despite the significant potential. The APAC region has witnessed a rise in demand for FACTS due to growing urbanization and industrialization, particularly in countries such as China, Japan, and India. The expanding focus on renewable energy integration and the need for efficient power transmission systems are key drivers for the FACTS market. In China, efforts to modernize the electricity grid and improve energy security have resulted in significant research and investment. Initiatives in India, including the Green Energy Corridor, aimed to enhance the transmission network for renewable energy, creating demand for FACTS.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Flexible AC Transmission Systems Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers
- Continuous increase in demand for electricity and increasing overload issues
- Growing integration of renewable energy sources worldwide
- Rising government incentives and regulations promoting the usage of grid technologies

Market Restraints
- High cost of development of flexible AC transmission systems

Market Opportunities
- Growing introduction of novel flexible AC transmission systems
- Rising transition toward smart grids and adaptive systems

Market Challenges
- Interoperability issues with flexible AC transmission systems

Market Segmentation Analysis
- Component: Growing usage of phase shifting transformers for power flow distribution among transmission lines
- Compensation Type: Growing usage of combined compensation to enhance the control capability of the power system
- Function: Increasing usage of flexible AC transmission for network stabilization that maintains stable operation
- Vertical: Rising potential of flexible AC transmission across the renewable sector to manage the intermittency and volatility

Market Disruption Analysis
Porter's Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Flexible AC Transmission Systems Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Flexible AC Transmission Systems Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

GE's industry Flexible AC Transmission System (FACTS) Portfolio Helps Customers Meet Complex Grid Challenges

GE Renewable Energy's Grid Solutions secured a series of contracts for its Flexible AC Transmission Systems (FACTS), underlining the trust in GE's innovative technologies, which enhance AC grid power transfer capabilities and control. Notably, these contracts encompass a pivotal Fixed Series Compensation (FSC) bank reconfiguration for the Public Service Company of New Mexico (PNM) in the USA and a crucial Static Synchronous Compensator (STATCOM) installation for the Saudi Electricity Company, a major electricity provider in the Middle East and North Africa region. [Published On: 2023-04-27]

Equinor and Hitachi Energy to Develop High-tech HVDC/AC Grid Connectors

Equinor and Hitachi Energy joined forces to pioneer high-tech connectors for high-voltage direct current (HVDC) and flexible alternating current (AC) systems aimed at seamlessly integrating renewable energy into main power grids. This strategic venture focuses on crafting standardized base designs, marking a significant stride towards global electrification, the proliferation of renewable energy, and the reduction of carbon footprints. The partnership emphasizes connecting remote offshore wind farms and Equinor's production facilities to continental grids. With this agreement encompassing Hitachi Energy's extensive range of state-of-the-art power grid innovations, both companies reinforce their commitment to catapulting the energy sector toward a more resilient, adaptable, and sustainable future. [Published On: 2022-11-10]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Flexible AC Transmission Systems Market. This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Flexible AC Transmission Systems Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Amazon Web Services, Inc., American Superconductor Corporation, Beijing Power Equipment Group Co. Limited, Bharat Heavy Electricals Limited, Clariant Power System Limited, Comsys Holdings Corporation, Freqcon GmbH, General Electric Company, Hyosung Heavy Industries, Infineon Technologies AG, Ingeteam Power Technology, S.A., JEMA Energy S.A., Merus Power Plc, Mitsubishi Electric Corporation, and NR Electric Co., Ltd..

Market Segmentation & Coverage

This research report categorizes the Flexible AC Transmission Systems Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
- Phase shifting transformers
- Power electronics devices
- Protection and control systems

Compensation Type
- Combined compensation
- Series compensation
- Shunt compensation

Function
- Harmonic Suppression
- Network Stabilization
- Transmission Capacity
- Voltage Control

Vertical
- Industrial
- Renewable
- Utilities

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

Product Code: MRR-374DB5A06027

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Continuous increase in demand for electricity and increasing overload issues
  - 5.1.1.2. Growing integration of renewable energy sources worldwide
  - 5.1.1.3. Rising government incentives and regulations promoting the usage of grid technologies
- 5.1.2. Restraints
  - 5.1.2.1. High cost of development of flexible AC transmission systems
- 5.1.3. Opportunities
  - 5.1.3.1. Growing introduction of novel flexible AC transmission systems
  - 5.1.3.2. Rising transition toward smart grids and adaptive systems
- 5.1.4. Challenges
  - 5.1.4.1. Interoperability issues with flexible AC transmission systems
5.2. Market Segmentation Analysis
- 5.2.1. Component: Growing usage of phase shifting transformers for power flow distribution among transmission lines
- 5.2.2. Compensation Type: Growing usage of combined compensation to enhance the control capability of the power system
- 5.2.3. Function: Increasing usage of flexible AC transmission for network stabilization that maintains stable operation
- 5.2.4. Vertical: Rising potential of flexible AC transmission across the renewable sector to manage the intermittency and volatility
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Flexible AC Transmission Systems Market, by Component

6.1. Introduction
6.2. Phase shifting transformers
6.3. Power electronics devices
6.4. Protection and control systems

7. Flexible AC Transmission Systems Market, by Compensation Type

7.1. Introduction
7.2. Combined compensation
7.3. Series compensation
7.4. Shunt compensation

8. Flexible AC Transmission Systems Market, by Function

8.1. Introduction
8.2. Harmonic Suppression
8.3. Network Stabilization
8.4. Transmission Capacity
8.5. Voltage Control

9. Flexible AC Transmission Systems Market, by Vertical

9.1. Introduction
9.2. Industrial
9.3. Renewable
9.4. Utilities

10. Americas Flexible AC Transmission Systems Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Flexible AC Transmission Systems Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Flexible AC Transmission Systems Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. GE's industry Flexible AC Transmission System (FACTS) Portfolio Helps Customers Meet Complex Grid Challenges
- 13.3.2. Equinor and Hitachi Energy to Develop High-tech HVDC/AC Grid Connectors
13.4. Strategy Analysis & Recommendation

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio