Power Factor Correction Market: Current Analysis and Forecast (2024-2032)

Various factors like the enhanced global energy consumption brought about by the advancement of industrialization besides urbanization, are putting pressure on the power grids. This makes PFC one of the most essential systems for industries since it mainly deals with the optimization of energy and reduction of power loss and the cost of electricity. Moreover, greater regulatory measures on energy effectiveness also depict that due to the increase of global sustainable pressures, companies must use PFC technologies to enrich their energy administration and correspond to the required environmental standards.

The Power Factor Correction Market is expected to grow at a significant rate of around 5.2% during the forecast period (2024-2032). The factors that help in the growth of this market is the potential demand for correct power supply from the end user sectors like data centers, manufacturing, and other sectors in the past couple of years the spending on IoT has increased exponentially, the number of lots connected devices and other computer systems also have increased. The projected spending on lots by the end of 2024 is expected to reach around USD 1 Trillion. Moreover, in the year 2021, the spending on IT data centers was estimated to be close to USD 240 Billion.

Based on the reactive power, the market has been segmented into 0-200 KVAR, 200-500 KVAR, 500-1500 KVAR, and Above 1500 KVAR. The 0-200 KVAR segment accounted for the largest share of the market because this type can be generally applied to practically any low-medium voltage industrial, commercial, and household applications. Specifically, these are the facilities that have lower to midterm power requirements ranges and may be ideal for the firms to adapt towards their increased energy efficiency levels without having to undergo fundamental changes in such a setup. Furthermore, for the PFC systems within this range, there will be a steady demand thanks to conjunction facts regarding the cost of energy-cutting and corresponding stipulations in raising concern with the industries for efficient energy in systems.

Based on type, the market has been segmented into fixed and automatic. The fixed segment dominated the overall market in 2023. The Power Factor Correction (PFC) Market in the automatic segment is expected to hold the largest market share due to its real-time efficiency. According to this type, the independent automatic PFC system to various load conditions is changed without the operator, so it needs to be well suited to industries and commercial facilities with occasionally fluctuating power needs. It does this while at the same time slashing energy consumption, total running expenses, and the likelihood of penalties arising out of the low power factor. Therefore, this demand is increased because business operators are starting to attach importance to the reliability and efficiency of energy usage.

Based on sales channel, the market has been segmented into distributors, and OEM direct. The distributors segment dominated the overall market in 2023. The increasing numbers of businesses require efficient energy management in combination with cost optimization, the role and position of the distributor in making the PFC products that are to be developed will be thus very pivotal. The fact that they continue to be capable of extending their support in different markets in terms of technical aspects, and other products puts them up. Moreover, heightened activity in the industrial and commerce sectors is putting pressure on achieving effective distribution networks that in turn are fostering growth in the PFC market segment of distributors

For a better understanding of the market adoption of the power factor correction market, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia Pacific is expected to grow with a significant CAGR during the forecast period. Fast-growing industrialization and urbanization in countries like China, India Southeast Asia, and other Asian countries puts higher demand for energy consumption and therefore a need for efficient energy management solutions. Thus, practices such as government incentives encouraging advanced energy efficiency and certified low-carbon products in the region are also factors contributing to the adoption of PFC systems. Further, the advancement of the infrastructure and investment in grid modernization are also creating opportunities for the PFC technologies market growth in the Asia Pacific region which will let it lead the overall market growth.

Some of the major players operating in the market include Schneider Electric, Eaton, GE Vernova, AB, Hitachi Group, Gentec-eo, TCI, Powerside, Cos Phi, and Controliix.