PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390089
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390089
The global synchronous condenser market was valued at US$548.099 million in 2021 and is expected to grow at a CAGR of 2.93% during the forecast period.
A synchronous condenser is an electrical device utilized in power systems to manage and regulate reactive power. It comprises a synchronous motor that operates without a mechanical load, serving exclusively as a source of reactive power. Instead of converting mechanical energy into electrical power a synchronous condenser consumes electrical power to generate or absorb reactive power. A synchronous condenser is classified as an air-cooled condenser or a water-cooled condenser depending on their cooling type. Increasing the Integration of renewable energy is a key driver responsible for expanding the synchronous condenser market size.
The growing integration of renewable energy drives the synchronous condenser market growth.
The rapid expansion of renewable energy sources, such as wind and solar power, has accelerated the demand for reactive power compensation and voltage regulation. Synchronous condensers have emerged as a critical solution for effectively managing the fluctuating reactive power requirements that come with integrating renewable energy into the grid, as a result, the synchronous condensers market is experiencing significant growth. According to the International Energy Agency, in 2021 renewable electricity generation expanded by almost 8%, reaching upto 8 300 TWh ,
The growing trend of grid interconnection has created a greater demand for effective reactive power management and voltage control. Synchronous condensers are pivotal in meeting these requirements as they provide essential reactive power support and enhance grid stability in interconnected networks. With their ability to improve power system performance and ensure voltage stability, synchronous condensers have become indispensable components in driving the growth of the global synchronous condenser market. According to the report of Renewable Energy World, the grid interconnection request grew by 40% as clean energy surges in 2022, including solar energy storage resources of nearly 2000 GW.
The rise in industrial sectors growth.
The growth of industries like manufacturing, mining, and transportation necessitates a reliable and stable power supply. Synchronous condensers play a crucial role in enhancing power system performance and ensuring voltage stability, making them indispensable for supporting industrial growth. As a result, the growth of the synchronous condensers industry is driven by their significance in meeting the power requirements of rapidly expanding industries. According to the Energy Information Administration, the industrial sector in the United States represented 35% of the country's overall energy consumption in 2021, both in terms of end-use energy consumption and total energy consumption, indicating its significant energy demand and consumption.
Asia Pacific region is expected to dominate the market.
The synchronous condenser market in the Asia-Pacific region is experiencing significant growth due to the increasing integration of renewable energy sources, such as wind and solar power. This surge in renewables has created a higher demand for reactive power compensation and voltage regulation, which synchronous condensers can effectively provide. Additionally, ongoing grid modernization, aimed at improving power system reliability, stability, and efficiency, has further propelled the adoption of synchronous condensers. These factors have led to a remarkable expansion of the synchronous condenser market in the Asia-Pacific region.
The high initial investment is restraining the synchronous condenser industry's growth.
The high initial costs involved in installing and integrating synchronous condensers into power systems can hinder market growth. These costs include purchasing the necessary equipment, hiring engineering services, and developing the required infrastructure. For regions with limited financial resources or tight budgets, these expenses can discourage potential buyers from investing in synchronous condensers. In simpler terms, the upfront investment required can be a barrier for many buyers in adopting synchronous condensers, resulting in a restrain in the synchronous condenser market growth.