The power quality equipment market is expected to grow at a CAGR of more than 6.26% during 2020 - 2025. Increasing power consumption is the core driving factor for the power quality equipment market. Moreover, stringent government regulations regarding reactive power and penalties implied on the end-users coupled with energy efficiency policies in various nations across the globe are expected to drive the market further. However, the effect of COVID-19 and the high cost of deployment and installation of power quality equipment are some of the factors which are expected to restrain the power quality equipment market during the forecast period.
- The industrial and manufacturing segment is expected to hold the largest share of the power quality equipment market, by end-user, during the forecast period.
- To tackle the challenge of harmonic currents in data centers, companies are developing physical data center infrastructure supported by different types of devices that generate harmonics. This presents a major business opportunity for power quality equipment providers operating across the globe in the near future.
- North America is expected to dominate the overall power quality equipment market owing to the increasing digitization of several industries and utility infrastructure.
Key Market Trends
Industrial and Manufacturing Segment is to Dominate the Market
- The industrial and manufacturing segment accounted for the major share in the power quality equipment market in 2019 and is projected to dominate the market during the forecast period. The Industry 4.0 initiative is being applied to vehicles and electrical machinery to facilitate remote diagnostics, remote maintenance, and remote data capture.
- These initiatives have increased the need for data centers, servers, and communication systems. With the increasing use of electronic equipment, the need for protection systems for such critical equipment has also been increasing.
- This is driving the market for power quality equipment in the industrial and manufacturing segment, which is expected to create new revenue pockets for the power quality equipment market during the forecast period.
- Therefore, based on the above-mentioned factors, the industrial and manufacturing segment is expected to dominate the market over the forecast period.
North America to Dominate the Market
- The North American market is expected to dominate the global power quality equipment market during the forecast period. The United States is investing in various protection systems for urbanized infrastructure development.
- The North American region has an aging T&D infrastructure, depending on which the region is more prone to power outages.* According to an estimate, approximately 6% of the total electricity generated is usually lost during transmission and distribution from the grid to the consumer.
- The United States government is focusing on grid restructuring to overcome this issue. In addition to this, multibillion-dollar investments in data centers and urban infrastructure for the telecom industry have paved a way for the demand for power quality equipment to grow phenomenally during the forecast period.
The power quality equipment market is moderately fragmented. Some of the key players in this market include ABB Ltd., Siemens AG, EATON Corporation Plc, Emerson Electric Company, and Schneider Electric SE.
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