Global Volt/VAr Management Market - 2022-2029

Market Overview

The global Volt/VAr management market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).

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.

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

Segment Analysis

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

Hardware to hold the lion's share

In 2020, the hardware sector will dominate 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.

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.

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.

Eaton Company

Overview: It was 1911 when Joseph Eaton, a young entrepreneur, decided to invest in a revolutionary concept in transportation: the first gear-driven truck axle. Eaton is a power management firm with roughly 85,000 people and operations in over 175 countries. Eaton is headquartered in Dublin, Ireland, with a subsidiary administrative base in Beachwood, Ohio. Energy-efficient products and services provide more reliable, efficient, safe, long-term electrical, hydraulic and mechanical power management.

Product Portfolio: Eaton manufactures various goods and services, including fuel-efficient systems, power chain management tools and commercial aviation components. The company complies with international product-related legislation such as the EU WEEE, REACH and Prop 65 as a global company. Eaton's Volt/Var management software solution monitors real-time voltages, watts and VARs from LTCs, regulators, capacitors, medium voltage sensors and customer meters, enhancing distribution system efficiency and reducing operating difficulties.

Key Development: Eaton, a power management business, announced the acquisition of Royal Power Solutions, a U.S.-based maker of high-precision electrical connector components used in the electric vehicle, energy management, industrial and mobility markets, in 2022. Eaton paid $600 million for Royal Power Solutions under the terms of the agreement, which is almost 13.6 times the company's expected EBITDA in 2022. Royal Power Solutions employs approximately 450 people and operates manufacturing plants in Carol Stream, Illinois and Queretaro, Mexico and a sales and engineering office in Canton, Michigan. Eaton's objective is to use power management technologies and services to improve people's lives and the environment.

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

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

Target Audience 2022

Volt/VAr Management Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

Volt/VAr Management Manufacturers