PUBLISHER: The Business Research Company | PRODUCT CODE: 1966472
PUBLISHER: The Business Research Company | PRODUCT CODE: 1966472
A Static Synchronous Compensator (STATCOM) is a power electronic device utilized in electrical power systems to control voltage and enhance stability by quickly injecting or absorbing reactive power. It connects in parallel (shunt) with the power system and employs voltage-source converters to produce a controllable AC voltage. This process helps maintain the desired voltage level, improve power factor, and increase overall system reliability. STATCOMs react rapidly and efficiently to grid changes, making them crucial for modern voltage control and power quality management.
The primary types of Static Synchronous Compensators (STATCOM) include low voltage STATCOM and high voltage STATCOM. A low voltage STATCOM regulates voltage and manages reactive power in low-voltage electrical systems, improving power quality and system stability. Its key components consist of power electronics, control systems, transformers, filters, and protection devices. The technology variants include voltage source converter (VSC) STATCOM, current source converter (CSC) STATCOM, and hybrid STATCOM. These systems are distributed through channels like original equipment manufacturers (OEMs) and aftermarket suppliers. They serve various end-users such as utility companies, industrial sectors, renewable energy developers, transportation, and commercial establishments.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are influencing the static synchronous compensator market by increasing costs of imported power electronics, semiconductors, converters, transformers, and control systems used in low- and high-voltage STATCOM installations. Utility providers and renewable energy developers in North America and Europe are most affected due to dependence on imported high-value components, while Asia-Pacific faces higher manufacturing input costs. These tariffs are increasing project costs and slowing installation timelines. However, they are also driving domestic manufacturing of power electronics, regional assembly of STATCOM systems, and localized engineering capabilities.
The static synchronous compensator (statcom) market research report is one of a series of new reports from The Business Research Company that provides static synchronous compensator (statcom) market statistics, including static synchronous compensator (statcom) industry global market size, regional shares, competitors with a static synchronous compensator (statcom) market share, detailed static synchronous compensator (statcom) market segments, market trends and opportunities, and any further data you may need to thrive in the static synchronous compensator (statcom) industry. This static synchronous compensator (statcom) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The static synchronous compensator (statcom) market size has grown strongly in recent years. It will grow from $1.18 billion in 2025 to $1.29 billion in 2026 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to expansion of power transmission networks, increasing grid instability issues, early adoption of power electronic compensation devices, growth of utility-scale renewable projects, demand for improved power quality.
The static synchronous compensator (statcom) market size is expected to see strong growth in the next few years. It will grow to $1.81 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to increasing renewable energy penetration, rising investments in smart grid infrastructure, growing demand for dynamic reactive power support, expansion of electric vehicle charging networks, increasing focus on grid resilience and reliability. Major trends in the forecast period include increasing deployment of grid-stabilization solutions, rising integration with renewable energy systems, growing adoption of modular statcom designs, expansion of high-voltage compensation installations, enhanced focus on fast-response voltage control.
The increasing demand for renewable energy is expected to drive the growth of the static synchronous compensator (STATCOM) market in the future. Renewable energy comes from natural sources or processes that are continuously replenished and cannot be exhausted. This demand is largely fueled by growing concerns about climate change, prompting governments, businesses, and consumers to adopt cleaner energy alternatives to lower greenhouse gas emissions and combat global warming. STATCOM supports renewable energy integration by delivering fast and dynamic voltage regulation, which improves grid stability and power quality despite the fluctuating nature of renewable sources. For example, in December 2024, Eurostat, a Luxembourg-based government agency, reported that the share of energy from renewable sources in the European Union's transport sector rose to 10.8% in 2023, up from 9.6% in 2022. Consequently, the rising demand for renewable energy is propelling the growth of the STATCOM market.
Leading companies in the static synchronous compensator (STATCOM) market are developing innovative solutions, such as alternating current transmission systems, to boost grid stability and power quality. Alternating current (AC) transmission systems transfer electricity over long distances using AC, creating a stable grid environment where STATCOMs can regulate voltage and enhance power quality through rapid reactive power compensation. For instance, in August 2024, GE Vernova Inc., a US-based energy equipment manufacturer and service provider, introduced the FACTSFLEX GFMe, an advanced STATCOM system that incorporates supercapacitor-based energy storage to improve grid stability and facilitate renewable energy integration. This solution tackles voltage fluctuations and frequency disturbances caused by the intermittent output of solar and wind power. By offering virtual inertia and grid-forming capabilities, the FACTSFLEX GFMe ensures reliable and efficient grid performance, especially in areas with weaker infrastructure or high levels of renewable energy penetration.
In March 2024, Renewable Energy Systems, a UK-based renewable energy firm, acquired Ingeteam's renewable service division for an undisclosed sum. This acquisition aims to establish Renewable Energy Systems as the world's largest independent, technology-neutral renewable energy services provider by broadening its operational reach, enhancing service capabilities across diverse renewable technologies, and accelerating the shift toward a zero-carbon energy future. Ingeteam Power Technology, S.A., based in Spain, manufactures electrical control equipment and supplies static synchronous compensators.
Major companies operating in the static synchronous compensator (statcom) market are Mitsubishi Electric Corporation, Hitachi Energy Ltd., Siemens AG, General Electric Company, ABB Ltd., Toshiba Corporation, Eaton Corporation plc, Bharat Heavy Electricals Limited BHEL, Hyosung Heavy Industries Corporation, Sieyuan Electric Co. Ltd., CG Power and Industrial Solutions Limited, American Superconductor Corporation, LS Electric Co. Ltd., JEMA Energy S.A., Merus Power Plc, NR Electric Co. Ltd., Comsys AB, ZDDQ Electric Co. Ltd., Hyundai Electric Co. Ltd., Alstom Grid
Asia-Pacific was the largest region in the static synchronous compensator (STATCOM) market in 2025. The regions covered in the static synchronous compensator (statcom) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the static synchronous compensator (statcom) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The static synchronous compensator (STATCOM) market consists of revenues earned by entities by providing services such as reactive power compensation, voltage regulation, grid stability support, harmonic filtering, renewable energy integration support, transmission and distribution support, industrial power quality improvement, system design and engineering, installation and commissioning, and monitoring and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The static synchronous compensator (STATCOM) market also includes sales of voltage source converters, control systems, digital controllers, transformers, harmonic filters, and spare parts. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Static Synchronous Compensator (STATCOM) Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses static synchronous compensator (statcom) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for static synchronous compensator (statcom) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The static synchronous compensator (statcom) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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