Capacitor Banks Market Size was valued at USD 2.5 Billion in 2022. The capacitor banks market industry is projected to grow from USD 2.64 Billion in 2023 to USD 4.082 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.60% during the forecast period (2023 - 2032). The rising demand for power serves as the primary market driver for the worldwide capacitor bank industry. Additionally, there is a rise in the per-person usage of power. Every piece of electrical infrastructure needs to employ a capacitor bank for secure and dependable functioning. The expansion of manufacturing and industrial activities helps the market for capacitors.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The growing integration of sophisticated control and monitoring systems is one major industry trend in the capacitor bank market. Capacitor banks are currently outfitted with intelligent technologies, including IoT (Internet of Things) and powerful data analytics, to enable real-time monitoring, control, and optimization of power factor correction and voltage regulation. These cutting-edge control systems include advantages, including remote operation, proactive maintenance, and better energy management. By utilizing these technologies, companies and utilities can increase the efficiency and dependability of their electrical systems, resulting in optimal energy usage and cost savings.
The growing emphasis on energy efficiency and power quality is one of the main factors driving the capacitor bank market. Because of rising electricity consumption and a growing emphasis on sustainable energy practices, industries and utilities constantly seek ways to improve energy efficiency and reduce power losses. Capacitor banks, which provide voltage support and power factor adjustment, are critical to attaining these goals and boosting the overall efficacy of electrical systems.
The ongoing development of the transmission business, which has accelerated the growth of this market, has created a significant need for electric supplies. The increased investment in the creation of renewable energy is another factor that supports the growth of the market. Infrastructure development by several emerging nations is another factor impacting the market's expansion. Additionally, the supportive government policies for market development in emerging countries offer a wealth of opportunities for growth in the capacitor bank market. Furthermore, rising legislation and initiatives linked to connected electrical grids are anticipated to help the market for capacitor banks through expansion opportunities. Thus, driving the capacitor banks market revenue.
The capacitor banks market segmentation, based on type includes Commercial, Residential and Industrial. The industrial segment dominated the market. Capacitor banks are widely used in industrial settings where there is a strong need for power factor correction and voltage support, such as manufacturing facilities, mining operations, and industrial facilities. Installing capacitor banks helps improve power quality, reduce reactive power losses, and increase energy efficiency in these industries because their electrical systems are frequently complicated and have a wide range of loads.
The capacitor banks market segmentation, based on technology, includes LCC and VSC. The LCC category generated the most income. LCC is the market for large-sized capacitor banks. It's a general word for any bank of capacitors bigger than electrolytic and film capacitors but smaller than power supply units. LCCs are widely utilized in various applications, including industrial controls, data processing, communication systems, storage devices, automobile electronic control units (ECU), security systems, etc.
Figure 1: Capacitor Banks Market, by Technology, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American capacitor banks market will dominate this market because of continued investments in creating High Voltage Direct Current (HVDC) networks to supply the continuously increasing demand for power in the region. The growing industrialization and economic expansion of North America are driving up power demand. The area concentrates on raising electrical system reliability, lowering energy losses, and improving power quality. In order to achieve these goals, capacitor banks must provide voltage support and power factor correction. Additionally, the increased focus on renewable energy sources like solar and wind energy increases the demand for capacitor banks for effective power distribution.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Capacitor Banks Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe capacitor banks market accounts for the second-largest market share. The capacitor bank market will increase as a result of the rehabilitating, modernizing, and upgrading of the electrical infrastructure in these areas. To fulfill the need for electricity, several European nations are abandoning traditional power generation technologies in favor of constructing renewable power plants. Use of capacitor banks is necessary for these projects. Panel boards, used in modern buildings, are required to use capacitor banks for smooth operation. Further, the German capacitor banks market held the largest market share, and the UK capacitor banks market was the fastest growing market in the European region.
The Asia-Pacific Capacitor banks Market is expected to grow at the fastest CAGR from 2023 to 2032. The increasing growth in industrial and manufacturing facilities has increased the demand for capacitor banks. Because of the rise of railroads, metros, bullet trains, IT hubs, commercial centers, and so on, capacitor banks are required for a regular and predictable energy supply. The market for capacitor banks has benefited from efforts to electrify rural areas and the expansion of long-distance, high-tension transmission lines. Moreover, China’s capacitor banks market held the largest market share, and the Indian capacitor banks market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the capacitor banks market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, capacitor banks industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the capacitor banks industry to benefit clients and increase the market sector. In recent years, the capacitor banks industry has offered some of the most significant advantages to market. Major players in the capacitor banks market attempting to increase market demand by investing in research and development operations include Alstom SA (France), BB Ltd. (Switzerland), Siemens Energy (Germany),Toshiba (Japan), and Epcos AG (Germany).
A provider of energy technologies, Siemens Energy AG (Siemens Energy). Multi-megawatt gas turbines, steam turbines, turbines powered by gas engines, and other devices are developed, produced, sold, and installed by this company. The business provides a variety of goods and services for mechanical drives, compression and expansion, automation, smart grid, transmission and distribution of power, renewable energy, and power generation. Additionally, it offers solutions for extracting, processing and moving oil and gas and primary fuels. The integrated hydrogen power plants are run by Siemens Energy as well.
Alstom SA (Alstom) creates and markets transportation systems. It offers tramways, metros, regional and suburban trains, fast and extremely fast trains, locomotives, and parts. The company also offers infrastructure and integrated system solutions, modernization, maintenance, components, and support services for the transportation industry. Alstom provides various signaling options, including trackside signaling, interlocking, digital solutions, passenger information, train control, and security and control systems.
March 2023:Eaton established a strategic partnership with a renewable energy developer for a significant project. Capacitor banks will be installed at numerous solar power plants in a region with many solar resources as part of the agreement. The capacitor banks will help with voltage management and power factor correction, enhancing the efficiency and stability of solar power generation and enabling seamless integration into the electrical grid.
June 2022:In capacitor banks, Siemens announced a revolutionary development. The business unveiled a brand-new line of high-voltage capacitor banks that can run at even greater power ratings while preserving their small size and enhanced efficiency. Large-scale power distribution systems and demanding industrial applications benefit greatly from the upgraded capacitor banks' improved power factor adjustment capabilities.
January 2021:Â ABB announced winning a significant contract in the capacitor bank industry. A major utility provider in North America gave the business a sizeable order to deliver and install capacitor banks throughout their distribution network. The project will assist the utility's dedication to sustainability and dependable electricity delivery by enhancing power factor correction, maximizing energy efficiency, and improving grid stability.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2.5 Billion |
| Market Size 2023 | USD 2.64 Billion |
| Market Size 2032 | USD 4.082 Billion |
| Compound Annual Growth Rate (CAGR) | 5.60% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, Technology, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Alstom SA (France), BB Ltd. (Switzerland), Siemens Energy (Germany),Toshiba (Japan), and Epcos AG (Germany) |
| Key Market Opportunities | Favorable government policies and initiatives to interconnect power grids |
| Key Market Dynamics | Increased usage of capacitors in the transmission industry |
Capacitor Banks Market Highlights:
Frequently Asked Questions (FAQ) :
The capacitor banks market size was valued at USD 2.5 Billion in 2022.
The market is projected to grow at a CAGR of 5.60% during the forecast period, 2023-2032.
North America had the largest share in the market.
The key players in the market are Alstom SA (France), BB Ltd. (Switzerland), Siemens Energy (Germany),Toshiba (Japan), and Epcos AG (Germany).
The industrial category dominated the market in 2022.
The LCC category had the largest share in the market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
