Active Harmonic Filter Market Forecasts to 2030 - Global Analysis By Type (Low-voltage, Middle-voltage and High-voltage), By Application (Residential and Commercial) and By Geography

According to Stratistics MRC, the Global Active Harmonic Filter Market is growing at a CAGR of 8.65% during the forecast period. Electronic devices called active harmonic filters are used to reduce harmonic distortion in electrical systems. For the load that needs to be compensated, they are connected in parallel. They gauge the distortion caused by harmonics and then introduce a countercurrent into the system to remove it. IGBT and a CPU are used to manage the filtering process.

Market Dynamics:

Driver:

Rising use of nonlinear loads and stringent regulations

The proliferation of nonlinear loads in various industries, such as manufacturing, data centers, and commercial buildings, is a significant driver. These nonlinear loads, including variable frequency drives (VFDs), LED lighting, and IT equipment, generate harmonic currents that AHFs can mitigate. Additionally, governments and regulatory bodies worldwide have imposed stricter limits on harmonic distortion levels. Compliance with these standards is essential for organizations to avoid fines and penalties. AHFs help industries meet these regulatory requirements. Such aspects are accelerating market growth.

Restraint:

High initial costs

The upfront costs associated with purchasing and installing AHFs can be significant. This cost factor may deter some potential customers, particularly smaller businesses and organizations with limited budgets. Moreover, installing AHFs can be a complex process, requiring careful integration with existing electrical systems. This complexity can lead to longer installation times and potentially higher installation costs which limits the market growth.

Opportunity:

Growing industrialization and increasing adoption of renewable energy sources

The expansion of industries, commercial buildings, and infrastructure projects worldwide creates a significant demand for AHFs. These facilities often incorporate a wide range of nonlinear loads, making AHFs essential for maintaining power quality and compliance with regulatory standards. Moreover, the increasing adoption of renewable energy sources like solar and wind power presents an opportunity for AHFs. These sources can introduce harmonic issues into the grid due to their variable output, making AHFs crucial for mitigating harmonics and ensuring grid stability.

Threat:

Lack of awareness and education

Many potential customers may have limited knowledge about harmonic distortion and the benefits of active harmonic filters. A lack of awareness can hinder market growth as potential customers may not fully understand the value of these devices. Moreover, small organizations, especially in sectors with tight budgets, may prioritize other capital expenditures over AHFs, considering them as non-essential investments.

COVID-19 Impact:

The COVID-19 pandemic disrupted the active harmonic filter market with supply chain disruptions, project delays, and economic uncertainty. Some industries, like data centers and healthcare, increased AHF demand, emphasizing power quality. However, postponed projects and budget constraints affected AHF installations. Organizations also refocused on energy efficiency. AHF manufacturers adapted by diversifying supply chains. As economies recover, the AHF market remains important for maintaining power quality, but the pandemic's impact varied by region and sector.

The commercial segment is expected to be the largest during the forecast period

Over the projection period, it is predicted that the commercial segment will experience a larger market size. Many commercial facilities, such as HVAC systems, escalators, and conveyor belts, use VFDs to control motor speed. VFDs are known for generating harmonic currents. Active harmonic filters are employed to counteract these harmonics, ensuring that the power quality remains within acceptable limits and preventing damage to other electrical equipment. These filters play a crucial role in ensuring that commercial operations run smoothly and efficiently while reducing the risk of costly equipment failures and downtime.

The high-voltage segment is expected to have the highest CAGR during the forecast period

During the forecast period, it is expected that the high-voltage segment will experience lucrative growth. High-voltage AHFs are utilized in larger industrial operations, utility-scale power systems, and infrastructure projects where voltage levels can exceed several kilovolts. These AHFs are designed to handle high-power loads and are often used to mitigate harmonics generated by large motors, heavy industrial equipment, and other high-power electrical machinery which is fueling the growth of the market.

Region with largest share:

The North America region is expected to witness largest market share. Industries, including manufacturing, petrochemical, and automotive sectors, often employ AHFs to counteract the adverse effects of harmonic distortion. The data center industry in North America is booming due to the increasing demand for cloud computing and data storage services. Moreover, energy efficiency is a key focus in North America. Their usage continues to grow as power systems become more complex, and the demand for clean and stable power increases.

Region with highest CAGR:

During the forecast period, a rapid growth rate is anticipated in the Asia-Pacific region. Asia Pacific is home to a wide range of industries, including automotive, electronics, steel, and petrochemicals. These industries often employ AHFs to counteract the harmful effects of harmonic distortion generated by non-linear loads like variable frequency drives (VFDs) and rectifiers. Major cities in Asia Pacific have seen rapid urbanization and the construction of large commercial complexes, office buildings, and shopping malls. These facilities rely on AHFs to protect elevators, escalators, lighting systems, HVAC equipment, and other critical electrical loads from harmonic issues which is fueling the region's growth.

Key players in the market:

Some of the key players in Active Harmonic Filter market include: ABB, DELTA, Eaton, Schaffner, Schneider Electric, Sinexcel, Staco Energy Products and Transcoil.

Key Developments:

In September 2023, ABB announced an investment of $280 million to expand its manufacturing footprint in Europe and build a new state-of-the-art ABB Robotics European Campus in Vasteras, Sweden. The Campus will serve as the hub for ABB Robotics' offering in Europe, providing customers with AI-enabled collaborative and industrial robots, as well as digital solutions to support flexible automation as part of the company's "local for local" production strategy. Replacing the existing robotics facilities at the site, the new Campus is planned to open in late 2026.

In September 2023, intelligent power management company Eaton announced the investment of an additional $150 million to increase the supply of its electrical power distribution solutions for customers across North America. As part this investment, Eaton is committing $80 million to significantly expand its manufacturing footprint in El Paso, Texas-creating more than 600 new skilled manufacturing jobs, opening a new facility and increasing capacity at its existing manufacturing plant.

Types Covered:

• Low-voltage
• Middle-voltage
• High-voltage

Applications Covered:

• Residential
• Commercial

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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