Flexible AC Transmission System (FACTS) Market Report 2026

Flexible AC Transmission System (FACTS) Market Overview

• Flexible AC Transmission System (FACTS) market size has reached to $1.45 billion in 2025 • Expected to grow to $2.01 billion in 2030 at a compound annual growth rate (CAGR) of 6.8% • Growth Driver: The Surge Of Flexible Ac Transmission Systems Market Fueled By Robust Growth In Grid Infrastructure • Market Trend: Strategic Collaborations Shaping The Future Of Flexible Ac Transmission Systems Market • North America was the largest region in 2025 and Europe is the fastest growing region.

What Is Covered Under Flexible AC Transmission System (FACTS) Market?

A flexible AC transmission system (FACTS) refers to a collection of tools that are used to get around certain restrictions on the electrical networks' capability for static and dynamic transmission. They are used to regulate the voltage, oscillation damping, transient stability improvement, and power flow in transmission lines. The main products of the flexible AC transmission systems include static synchronous compensator (STATCOM), static vary compensator (SVC), unified power flow controllers (UPFC), and thyristor-controlled series compensator (TCSC). A static synchronous compensator (STATCOM) refers to a power-quality FACTS device that uses multiple inverters or a VSC connected in series to a transmission line. They are operated through various compensation types such as shunt compensation, series compensation, and combined series-shunt compensation and are categorized based on functionality voltage control, network stabilization, and transmission capacity for applications in utilities, renewables, industrial, railways, and other applications.

What Is The Flexible AC Transmission System (FACTS) Market Growth Forecast?

The flexible ac transmission system (facts) market size is expected to see strong growth in the next few years. It will grow to $2.01 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to rising adoption of renewable energy integration, growth in smart grid deployments, increasing need for dynamic power flow control, expansion of industrial and railway electrification, advancements in real-time monitoring and voltage stabilization technologies. Major trends in the forecast period include deployment of statcom and svc solutions for voltage regulation, adoption of upfc and tcsc for transmission capacity enhancement, integration of advanced power flow control and stabilization tools, implementation of real-time monitoring and control systems, expansion of facts solutions for industrial and renewable applications.

Global Flexible AC Transmission System (FACTS) Market Segmentation

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

What Are The Drivers Of The Flexible AC Transmission System (FACTS) Market?

The expansion of grid infrastructure is expected to propel the growth of the flexible AC transmission systems market going forward. Grid infrastructure refers to a system of power plants, power lines, and power substations. Flexible AC Transmission Networks (FACTS) are used in grid infrastructure to increase transmission line capacity and enhance system stability by decreasing a power line's transfer reactance. For instance, in September 2024, the International Energy Agency, a France-based intergovernmental organization, reported that investment in electricity grids increased by approximately 8% in 2022. Additionally, it emphasized that investment in smart grids needs to more than double through 2030 to align with the goal of achieving Net Zero Emissions by 2050. Therefore, the expansion of the grid infrastructure is driving the growth of the flexible AC transmission systems market going forward. Integration of renewable energy is expected to propel the growth of the flexible AC transmission systems market going forward. Renewable energy refers to energy derived from sources that are naturally replenished on a human timescale and are considered sustainable over the long term. Flexible AC Transmission Systems (FACTS) enhance grid stability by dynamically controlling voltage and reactive power, accommodating fluctuations from renewable sources. FACTS technologies, such as SVCs and STATCOMs, optimize power flow and improve system reliability, enabling efficient integration of renewable energy into the electrical grid. This synergy enhances grid flexibility and helps maximize the utilization of renewable resources. For instance, in 2023, according to the Energy Information Administration, a US-based government agency in the first half of 2023, renewable energy sources supplied 25% of the nation's electrical generation, with solar power contributing 5.77% of all US electrical generation. Therefore, the integration of renewable energy is driving the flexible AC transmission systems market.

Key Players In The Global Flexible AC Transmission System (FACTS) Market

Major companies operating in the flexible ac transmission system (facts) market are 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, 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, Hitachi ABB Power Grids Ltd., Crompton Greaves Limited

Global Flexible AC Transmission System (FACTS) Market Trends and Insights

Major companies operating in the flexible AC transmission systems market are focusing on partnerships to sustain their position in the market. Partnerships in FACTS can expedite technological advancements, reduce costs, mitigate risks, and facilitate a more rapid and efficient implementation of these systems in the power grid infrastructure, benefiting both the industry and consumers. For instance, in September 2023, Hitachi, a Japan-based company, specializing in various business sectors, including power systems, electronic systems and equipment, collaborated with TenneT, a Europe-based transmission system operator, to promote the development of Germany's transmission grid. The objective of this strategic partnership is to expedite the energy transition by utilizing sustainable and high-performing equipment to modernize and enhance the capacity and stability of the power grid.

Regional Outlook

North America was the largest region in the flexible AC transmission systems (FACTS) market in 2025. 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 this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Flexible AC Transmission System (FACTS) Market?

The flexible AC transmission systems market consists of revenues earned by entities by providing services such as power flow control, voltage control, power conditioning, power quality improvement, and stability improvement. The market value includes the value of related goods sold by the service provider or included within the service offering. The flexible AC transmission systems market also includes sales of shunt controllers, series controllers, and phase angle controllers. 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.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Flexible AC Transmission System (FACTS) Market Report 2026?

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