What Is The Current and Historic Market Size Analysis Of The Flexible AC Transmission System (FACTS) Market?
The flexible ac transmission system (facts) market has seen considerable growth due to a variety of factors.
•The market size of the flexible AC transmission system (FACTS) has seen robust growth in recent times. The market is projected to rise from $1.38 billion in 2024 to $1.46 billion in 2025, boasting a compound annual growth rate (CAGR) of 5.9%.
The notable increase during the historic period can be credited to concerns about grid reliability, outdated power infrastructure, deregulation of the electricity market, congestion in transmission lines, global expansion of high-voltage networks, and environmental concerns.
What Are The Predictions for The Flexible AC Transmission System (FACTS) Market Size In The Coming Years?
The flexible ac transmission system (facts) market is expected to maintain its strong growth trajectory in upcoming years.
• Growth in the Flexible AC Transmission System (FACTS) market is predicted to be robust in the coming years, with an estimated value of $1.91 billion by 2029 at a CAGR of 7.0%.
Several factors are contributing to this forecasted growth including the widespread use of electric vehicles, strengthening of the grid against natural disasters, a shift towards renewable energy, cybersecurity issues, and a move towards decentralized energy generation. Emerging trends expected over the forecast period encompass multi-terminal HVDC systems, incorporation of energy storage, emphasis on energy efficiency and conservation, the application of Voltage Source Converters (VSC) in FACTS, development of next-gen FACTS technologies, and the inclusion of advanced power electronics.
What Are The Essential Drivers Behind The Growth Of The Flexible AC Transmission System (FACTS) Market?
The growth of the flexible AC transmission systems market is anticipated to be fuelled by the expansion of grid infrastructure. Grid infrastructure encompasses power lines, power plants, and power substations. The application of Flexible AC Transmission Networks (FACTS) in such infrastructure enhances system stability and increases transmission line capacity by decreasing transfer reactance in power lines. As an example, the International Energy Agency, a France-based intergovernmental entity, stated in September 2024 that investments in electricity grids had grown by around 8% in 2022. It also stressed that investments in smart grids should more than double by 2030 to meet the target of achieving Net Zero Emissions by 2050. As such, the growth of the flexible AC transmission systems market is being propelled by the development of grid infrastructure.
How Is The Global Flexible AC Transmission System (FACTS) Market Divided Into Key Segments?
The flexible AC transmission system (FACTS) ) market covered in this report is segmented –
1) By Product: Static Synchronous Compensator (STATCOM), Static Var Compensator (SVC), Unified Power Flow Controllers (UPFC), Thyristor Controlled Series Compensator (TCSC)
2) By Compensation Type: Shunt Compensation, Series Compensation, Combined Series-Shunt Compensation
3) By Functionality: Voltage Control, Network Stabilization, Transmission Capacity
4) By Application: Utilities, Renewables, Industrial, Railways, Other Applications
Subsegments:
1) By Static Synchronous Compensator (STATCOM): Voltage Source Converter (VSC) Based STATCOM, Current Source Converter (CSC) Based STATCOM
2) By Static Var Compensator (SVC): Thyristor Controlled Reactor (TCR), Thyristor Switched Capacitor (TSC)
3) By Unified Power Flow Controllers (UPFC): Series Compensator Component, Shunt Compensator Component
4) By Thyristor Controlled Series Compensator (TCSC): Fixed Series Capacitors with Thyristor Control, Thyristor Controlled Series Reactors
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What Trends Are Reshaping The Future Of The Flexible AC Transmission System (FACTS) Market?
One of the emerging trends in the flexible AC transmission systems market is the implementation of technological advancements. To maintain their market stature, companies within this industry are integrating novel technologies into their operations. This is exemplified by Siemens Energy AG, a Germany-based company that produces gas turbines, steam turbines, generators, and transformers. They have unveiled the UPFC Plus (Unified Power Flow Controller), a merge of STATCOM (Static Synchronous Compensator) and SSSC (Static Synchronous Series Compensator) that employs VSC (Voltage Source Converter) technology. The UPFC PLUS aids system operators in stabilizing the grid by actively controlling the load flow in alternating-current grids. Furthermore, it enhances the ability of grid operators to swiftly react to changes in power demand, facilitating the incorporation of renewable energy and ensuring the resilience and stability of the grid.
Who Are the Key Players in the Flexible AC Transmission System (FACTS) Market?
Major companies operating in the flexible AC transmission system (FACTS) market include:
• ABB Ltd.
• Alstom SA
• Mitsubishi Electric Corporation
• CG Power and Industrial Solutions Limited
• General Electric Company
• Siemens AG
• Eaton Corporation plc
• NR Electric Co. Ltd.
• Liaoning Rongxin Xingye Power Technology Co. Ltd.
• Toshiba Corporation
• American Electric Power Company Inc.
• S&C Electric Company
• Arteche Group
• Rongxin Power Electronic Co. Ltd.
• Sieyuan Electric Co.Ltd.
• Fuji Electric Co. Ltd.
• LSIS Co. Ltd.
• Bharat Heavy Electricals Limited
• Schneider Electric SE
• Hyosung Heavy Industries Corporation
• Infineon Technologies AG
• Hitachi ABB Power Grids Ltd.
• Crompton Greaves Limited
What are the Regional Insights into the Flexible AC Transmission System (FACTS) Market?
North America was the largest region in the flexible AC transmission systems (FACTS) market in 2024. Europe is expected to be the fastest-growing region in the global flexible AC transmission systems market during the forecast period. The regions covered in the flexible ac transmission system (FACTS) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
