PUBLISHER: KBV Research | PRODUCT CODE: 1374042
PUBLISHER: KBV Research | PRODUCT CODE: 1374042
The Global Flexible AC Transmission System Market size is expected to reach $1.8 billion by 2030, rising at a market growth of 6.2% CAGR during the forecast period.
FACTS devices, including STATCOMs and SVCs, help maintain stable voltage levels under varying operating conditions, improving grid resilience. STATCOMs are solid-state devices that provide fast-reacting, precise, and continuous voltage regulation in power systems. Consequently, the STATCOMs segment would generate approximately 24.8% share of the market by 2030. They are often used with other FACTS devices and control systems to ensure the reliable and efficient operation of the electrical grid, particularly in areas with high-voltage transmission lines or complex network configurations. Some of the factors affecting the market are the increase in demand for controllability of power systems, the need for high reliability during contingencies, and the high initial cost of facts installation.
Controllability is essential for maintaining grid stability, especially as power systems become more complex and incorporate a higher penetration of renewable energy sources. FACTS devices, such as STATCOMs and SVCs, provide rapid and precise control of reactive power, helping to stabilize voltage and prevent grid instability. Controlling voltage levels is critical for ensuring the reliable operation of power systems. FACTS technologies allow utilities to regulate voltage across the grid, ensuring that it stays within acceptable limits, even during variations in load or disturbances. Furthermore, FACTS devices enhance the fault tolerance of the grid. They can help isolate and mitigate faults by dynamically controlling power flows, reducing the impact of disturbances on the overall grid. By maintaining grid stability during contingencies, FACTS devices help utilities avoid the need for widespread load shedding, which can impact consumers and industries. Renewable energy sources such as solar power and wind have become a more significant part of the energy mix, and maintaining grid reliability during intermittent is crucial. As a result, utilities and grid operators continue to invest in FACTS technologies to enhance grid resilience and ensure reliable electricity delivery, thereby driving the growth of the market.
However, Utility companies and grid operators often have limited budgets for infrastructure upgrades and investments. The high initial cost of FACTS devices can strain these budgets, making it challenging for them to allocate resources for such projects. Decision-makers in utility companies typically assess any grid improvement project's return on investment (ROI). The lengthy payback periods associated with FACTS installations can deter investments, especially compared to other, potentially quicker-to-implement solutions. Securing financing for FACTS projects can be challenging, particularly in regions or countries with limited access to capital markets or where the regulatory environment does not incentivize grid upgrades. Due to such factors, the market growth will decline.
Based on controller, the market is fragmented into static synchronous compensator (STATCOM), static VAR compensator (SVC), unified power flow controller (UPFC), thyristor-controlled series compensator (TCSC), and others. In 2022, the static VAR compensator (SVC) segment held the highest revenue share in the market. A Static VAR Compensator (SVC) is a power electronics-based device used in electric power systems to regulate and control voltage and reactive power. SVCs play a crucial role in maintaining voltage stability and improving the overall performance of electrical grids.
By vertical, the market is classified into oil & gas, electric utility, railways, and others. The oil & gas segment covered a considerable revenue share in the market in 2022. FACTS systems can be controlled remotely, allowing for real-time monitoring and control of electrical parameters at remote oil and gas facilities. This capability enhances operational efficiency and reduces the need for on-site personnel. FACTS devices can mitigate voltage sags and swells, which can damage sensitive electronic equipment commonly used in control systems and instrumentation in the oil and gas industry.
On the basis of compensation type, the market is segmented into series compensation, shunt compensation, and combined series-shunt compensation. The shunt compensation segment acquired a substantial revenue share in the market in 2022. Shunt compensation is used in electric power transmission and distribution systems to improve the grid's efficiency, voltage control, and overall performance. It involves installing reactive components, such as capacitors and reactors, parallel (shunt) with the transmission or distribution system. The primary goal of shunt compensation is to regulate voltage levels, improve power factor, and enhance the overall stability of the power system.
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region acquired a substantial revenue share in the market in 2022. Rising concerns regarding environmental sustainability and growing petroleum-based fuel prices have resulted in a rapid shift towards the production of green energy using renewable sources, especially across China and India. Hence, governments in these countries are undertaking numerous programs and initiatives to increase renewable energy production. In addition, the launch of massive green energy generation plants is expected to bolster the demand for electrical devices such as flexible AC transmission systems across the Asia Pacific market.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include ABB Group, Adani Power Limited, Alstom SA, CG Power and Industrial Solutions Limited, Eaton Corporation PLC, General Electric Company, Hyosung Corporation, Mitsubishi Electric Corporation, NR Electric Co., Ltd., Siemens AG.
Market Segments covered in the Report:
By Compensation Type
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