Global Power Factor Correction Systems Market Size, Share, Growth Analysis, By Type(Active power factor correction systems, passive power factor correction systems), By Application(residential, commercial) - Industry Forecast 2024-2031

Global Power Factor Correction Systems Market size was valued at USD 2.65 billion in 2022 and is poised to grow from USD 2.83 billion in 2023 to USD 4.83 billion by 2031, growing at a CAGR of 6.9% during the forecast period (2024-2031).

The global power factor correction systems market experiences rapid growth fueled by the imperative for energy efficiency across industrial, commercial, and residential sectors. These systems enhance electrical power utilization efficiency by diminishing reactive power within the electrical framework, aiming to furnish consumers across diverse sectors with effective and dependable solutions. Besides curbing energy consumption, they augment the performance and longevity of electrical equipment. Despite the challenge posed by the substantial initial investment and limited awareness about their benefits in certain regions, the market thrives on the escalating demand for energy-efficient solutions, propelled further by governmental initiatives to curb carbon emissions. Emerging trends such as the increasing integration of renewable energy sources underscore the necessity for power factor correction systems, presenting abundant growth opportunities, especially in burgeoning markets.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Power Factor Correction Systems Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Power Factor Correction Systems Market Segmental Analysis

Global Power Factor Correction Systems Market is segmented on the basis of type, application, and region. By type, the market is segmented into active power factor correction systems, passive power factor correction systems, and hybrid power factor correction systems. By application, the market is segmented into residential, commercial, and industrial. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Power Factor Correction Systems Market

Numerous nations have instituted regulations or policies imposing penalties on firms operating with low power factors, potentially resulting in increased energy expenses. Consequently, companies are compelled to deploy power factor correction systems to mitigate their energy expenditures and circumvent penalties. In the United States, for instance, utility companies reserve the right to levy penalties on industrial and commercial clients exhibiting low power factors.

Restraints in the Global Power Factor Correction Systems Market

Implementing power factor correction systems often proves costly, particularly for small and medium-sized enterprises, as expenses encompass equipment procurement, installation, and ongoing maintenance. This financial burden can dissuade companies, particularly those exempt from penalties tied to low power factor, from committing to such investments.

Market Trends of the Global Power Factor Correction Systems Market

The enhancement of power factor correction systems can be achieved through the incorporation of IoT sensors and cloud-based analytics, facilitating real-time monitoring and control. This integration not only enhances system efficiency and reliability but also enables predictive maintenance. ABB exemplifies this approach with its cloud-based power factor correction solution, enabling remote monitoring and control of systems.