PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1836242
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1836242
Synchronous Condenser Market size was valued at US$ 1,234.56 Million in 2024, expanding at a CAGR of 4.1% from 2025 to 2032.
A synchronous condenser, also known as a synchronous compensator, is a DC-excited synchronous machine that runs without driving any mechanical load. It operates by varying its field excitation to either generate or absorb reactive power, thereby assisting in voltage regulation and improving power factor in electrical power systems. These condensers provide essential services such as dynamic reactive power support and inertia, which are crucial for maintaining voltage stability and overall grid reliability in renewable-heavy energy systems. The global shift towards sustainable energy and the modernization of aging power infrastructure present significant opportunities for the deployment of synchronous condensers. Their ability to offer continuous and adjustable reactive power support makes them suitable for various applications, including integration with battery energy storage systems, thereby enhancing grid resilience and reliability. Despite their benefits, the adoption of synchronous condensers is hindered by high initial costs associated with installation and maintenance.
Synchronous Condenser Market- Market Dynamics
The rising adoption of renewable and sustainable energy sources, coupled with increased investments in expanding generation capacity
Renewables often produce variable and intermittent power, causing voltage fluctuations and grid instability. Synchronous condensers supply instant reactive power and inertia, helping regulate voltage and stabilize the grid as renewables are added in greater volumes. As governments and utilities invest heavily in expanding renewable energy capacity, new grid infrastructure projects increasingly specify synchronous condensers as critical components. Countries like India and China are investing billions to support higher shares of renewables, often incorporating synchronous condensers to future-proof and stabilize their grids. According to the data published in December 2024, by Press Information Bureau, Government of India, India achieved a key milestone by surpassing 200 GW of total installed renewable energy capacity. By November 2024, the country's total installed non-fossil fuel capacity had grown to 214 GW, marking a year-on-year increase of over 14% from 187.05 GW in November 2023. Between April and November 2024 alone, India added nearly 15 GW of renewable energy capacity almost twice the 7.57 GW added during the same period in the previous year.
Synchronous Condenser 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 4.1% over the forecast period (2025-2032)
Based on product type segmentation, New Synchronous Condenser is predicted to show maximum market share in the year 2024
Based on Cooling Method segmentation, Air-Cooled is the leading Cooling Method in 2024
Based on Reactive Power Rating segmentation, Above 200 MVAR is the leading Reactive Power Rating in 2024
Based on Starting Method segmentation, Static Frequency Converter (SFC) is the leading Starting Method in 2024
Based on end user segmentation, Transmission System Operators (TSOs) / Utilities is the leading end user in 2024
On the basis of region, North America is the leading revenue generator in 2024
The Global Synchronous Condenser Market is segmented on the basis of Product Type, Cooling Method, Reactive Power Rating, Starting Method, End User, and Region.
The market is divided into two categories based on product type: New Synchronous Condenser, and Refurbished Synchronous Condenser. New synchronous condensers are newly manufactured machines with modern controls and efficiency, while refurbished synchronous condensers are older units converted or upgraded for extended use at lower costs.
The market is divided into three categories based on Cooling Method: Air-Cooled, Water-Cooled, and Hydrogen-Cooled. Air-cooled uses ambient air with fans, water-cooled circulates water to dissipate heat via radiators, and hydrogen-cooled uses hydrogen gas for superior heat transfer efficiency.
Synchronous Condenser Market- Geographical Insights
North America is anticipated to dominate the market due to extensive power infrastructure, growing investments in renewable energy, and a high rate of power plant retrofits to synchronous condenser technology. Asia Pacific holds a significant share of the market, led by countries like China and India. These countries are rapidly expanding their renewable energy capacity and upgrading grid infrastructure to accommodate increasing volumes of intermittent power. Europe is another key market due to stringent grid codes, ambitious decarbonization targets, and extensive renewable deployments. Germany, the UK, and other Western European countries are investing in synchronous condensers to manage grid stability challenges caused by high renewable shares and the decommissioning of conventional fossil-fuel plants. Middle East & Africa, Latin America, the regions are emerging markets showing steady adoption of synchronous condensers. Rising energy demands and renewable projects incentivize grid modernization, supporting market growth in utility segments.
The synchronous condenser market features a competitive landscape dominated by several global industry leaders actively driving innovation and growth. The market players leverage their strong technological expertise and global presence to meet increasing demand driven by renewable energy integration and grid modernization. They offer a mix of new synchronous condensers with advanced control systems and refurbished units for cost-effective grid support solutions. Many invest in R&D to enhance product efficiency, incorporate digital technologies like AI for predictive maintenance, and provide grid stability services. The market is characterized by strategic partnerships, long-term contracts with utilities, and infrastructure upgrade projects worldwide. For instance, GE Vernova Inc., in June 2024, announced plans to build two 115 kV synchronous condenser facilities to enhance grid stability in New York. The project was awarded by National Grid's Upstate New York division. Through this initiative, GE Vernova would help National Grid advance New York State's target of cutting carbon emissions by 85% by 2050.
In April 2024, Hitachi Energy has partnered with SP Energy Networks to deliver an advanced power quality solution in the UK. The project included the installation of synchronous condensers as a key component of the system. This initiative is designed to balance electricity supply and demand more effectively.
In June 2025, Eaton converted three retired coal-fired generators into synchronous condensers to enhance voltage stabilization and ensure reliable power transmission in the U.S. These conversions involved comprehensive electrical and mechanical system upgrades, including advanced control systems to support real-time voltage regulation.