Global Flexible AC Transmission System Facts Market Overview
The Flexible AC Transmission System Facts Market Size was estimated at 17.3 (USD Billion) in 2022. The Flexible AC Transmission System Facts Industry is expected to grow from 20.56(USD Billion) in 2023 to 97.4 (USD Billion) by 2032. The Flexible AC Transmission System Facts Market CAGR (growth rate) is expected to be around 18.87% during the forecast period (2024 - 2032).
Key Flexible AC Transmission System Facts Market Trends Highlighted
The Flexible AC Transmission System (FACTS) market is expected to witness steady growth in the coming years due to increasing demand for reliable and efficient power transmission. Key market drivers include rising electricity demand, growing integration of renewable energy sources, and increasing focus on grid modernization. Additionally, advancements in FACTS technology, such as the development of more compact and cost-effective devices, are further driving market growth.Opportunities in the FACTS market lie in the expansion of smart grids, the deployment of FACTS devices in developing economies, and the integration of FACTS with renewable energy systems. Recent trends include the adoption of advanced control algorithms, the use of FACTS devices for voltage regulation and stability enhancement, and the development of hybrid FACTS systems that combine multiple functionalities. These trends are expected to shape the future of the FACTS market and provide opportunities for growth and innovation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Flexible AC Transmission System Facts Market Drivers
Increasing Demand for Renewable Energy Integration
The integration of renewable energy sources, such as solar and wind power, into the electrical grid is driving the demand for FACTS devices. These devices help to regulate voltage and power flow, ensuring the stability and reliability of the grid. As the adoption of renewable energy continues to grow, the demand for FACTS devices is expected to increase significantly. FACTS devices play a crucial role in managing the intermittent nature of renewable energy sources.They help to smooth out fluctuations in power output, ensuring a reliable and stable power supply. Additionally, FACTS devices can help to reduce transmission losses and improve the overall efficiency of the grid. The increasing demand for renewable energy integration is a major factor driving the growth of the Flexible AC Transmission System Facts Market Industry. As governments and utilities around the world continue to invest in renewable energy projects, the demand for FACTS devices is expected to continue to grow in the coming years.
Growing Need for Grid Modernization
Electrical grid infrastructure is aging around the world, and modernization is required. The FACTS devices could improve the efficiency, reliability and capacity of the grid. Because of that, the FACTS technology is very useful and helps to reduce congestion and enhances power quality. The demand for FACTS devices is increasing since utility providers are involved in grid modernization projects. The FACTS devices helps to improve the efficiency of the grid by reducing the transmission losses, and the capacity of the grid because a greater amount of power is transmitted over existing lines.On the other hand, the FACTS devices could also reduce the congestion by managing the flow of the power and avoiding the overloads, which would be helpful. Otherwise, the grid modernization is another major driver for growth in the Flexible AC Transmission System Facts Market Industry. Utility providers continue to invest money into the modernization of the grid around the world, and the FACTS devices help to make the modernization success.Because of the trend, the increasing demand for the FACTS devices is expected to continue for the time being.
Rising Environmental Concerns
The growing understanding of the impact on the environment by conventional energy sources is leading to the demand for FACTS devices. FACTS devices are used to make the grid more efficient and to reduce power loss during the transmission process which helps to reduce the emission of greenhouse gases. In addition, using FACTS devices can decrease the necessity of new power plants as they enable more power to be transmitted through existing lines meaning less environmental impact from electricity generation and transmission.
Flexible AC Transmission System Facts Market Segment Insights
Flexible AC Transmission System Facts Market Application Insights
The FACTS market is segmented into three major applications namely, transmission network expansion, grid reliability enhancement, and renewable energy integration. The first segment is expected to dominate the market over the forecast period. It drives relatively large traffic, as electricity is required to support lighting, heating, and cooling, as well as more sophisticated equipment and machinery. Therefore, transmission networks need to be expanded and upgraded to meet growing demand. The grid reliability enhancement segment is second in the forecast list.It is primarily driven by the ever-increasing need to enhance grid reliability and stability. The renewable energy integration segment is third over the forecast period. Its main driver is the rapidly increasing application and use of renewable sources of energy, such as solar and wind power. Transmission Network Expansion The first segment is expected to drive the highest traffic during the forecast period. Its share of the total market revenue amounted to 12.236 billion USD four years ago. It will continue holding this position in the future. The expansion of the segment can be attributed to the ever-increasing demand for electricity.Therefore, the development and expansion of transmission networks will be a priority for all electricity providers. Transmission networks are needed for the delivery of energy from the source of generation to the place of consumption and vice versa. In case there is no efficient tool for the transmission of electricity to large distances, purchase and consumption will be solved locally, which will not be efficient. Grid Reliability Enhancement This list segment is expected to record the highest rate of growth during the forecast period. Given the current trends, it is likely to grow at a 3.835 billion USD rate and will become the second largest segment of the FACTS market by the end of the period under consideration.The expansion of the segment will be facilitated by the advancing need for enhanced grid reliability and stability. The issue is that modern grids are becoming highly complicated and complex. Renewable sources of energy and distributed-generation attacks or arrays are playing an increasingly prominent role. Thus, the grid is being exposed to higher risks and threats of outages and blackouts. FACTS devices can boast of a wide range of uses, such as voltage support, Power Var compensation or Reactive compensation, and system damping. These are merely a few example of the application of FACTS devices in modern grid design and use.Renewable Energy Integration This segment will hold the third position in the market over the forecast period. Modern grids are becoming increasingly dependent on and submitted to renewable sources of energy, such as solar and wind power. Overall, the primary market drivers include the ever-increasing demand for electricity, protection from growing risks, such as cascading blackout, and the growing use of renewable sources of energy. Its value is expected to grow from 4.489 billion USD in 2023 to 19.613 billion USD by 2032.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Flexible AC Transmission System Facts Market Technology Insights
There are three technologies by which the Flexible AC Transmission System Facts Market is segmented. These include Voltage Sourced Converter, Line Commutated Converter, and Hybrid Systems. It is expected that VSC technology will have the largest revenue share in the market in 2024 since it has many benefits advantage such as fast controllability, black start capability, and voltage regulation. According to the Flexible AC Transmission System Facts Market data, the CAGR of VSC technology will be at the level of 19.5% by the end of the forecast period.It is also anticipated that a substantial market share will be held by LCC technology because of its cost-effectiveness and reliability. Furthermore, hybrid systems are becoming more and more popular since they can combine the benefits of both VSC and LCC technologies. Overall, the flexible AC transmission system facts’ market is expected to grow since there is an increased demand for such technologies to improve the grid’s stability and reliability.
Flexible AC Transmission System Facts Market Voltage Level Insights
The Flexible AC Transmission Systems (FACTS) market is segmented by voltage level into extra high voltage (EHV), high voltage (HV), and medium voltage (MV). The EHV segment is expected to account for the largest share of the market in 2023 and is projected to continue to grow at the highest CAGR during the forecast period. This growth is attributed to the increasing demand for EHV transmission lines to transmit power over long distances with minimal losses. The HV segment is expected to be the second-largest segment in 2023 and is projected to grow at a steady CAGR during the forecast period.The growth of this segment is attributed to the increasing demand for HV transmission lines to connect renewable energy sources to the grid. The MV segment is expected to be the smallest segment in 2023 but is projected to grow at the fastest CAGR during the forecast period. This growth is attributed to the increasing demand for MV FACTS devices to improve the efficiency and reliability of distribution networks.
Flexible AC Transmission System Facts Market End-User Insights
The end-user segment of the Flexible AC Transmission System (FACTS) Market is broadly classified into electric utilities, transmission grid operators, and renewable energy developers. Electric utilities accounted for the largest revenue share in 2023, owing to their increasing investments in grid modernization and expansion projects to enhance the efficiency and reliability of power transmission networks. Transmission grid operators are also significant contributors to the market, as they are responsible for managing and controlling the flow of electricity across the grid.With the growing integration of renewable energy sources, renewable energy developers are expected to drive market growth in the coming years as they seek solutions to integrate intermittent renewable energy into the grid. The Flexible AC Transmission System Facts Market is projected to witness significant growth in the coming years, driven by the increasing demand for efficient and reliable power transmission solutions.
Flexible AC Transmission System Facts Market Regional Insights
The regional segmentation of the Flexible AC Transmission System (FACTS) Market offers valuable insights into the geographical distribution of market growth. North America is anticipated to hold a significant market share in 2023, driven by the increasing adoption of FACTS devices in the region's aging power grid infrastructure. Europe is another key market, with a growing focus on grid stability and renewable energy integration. The APAC region is expected to witness substantial growth in the coming years, attributed to the rapidly expanding power generation and transmission sectors in countries like China and India.South America and MEA are also expected to contribute to the overall market growth, albeit at a slower pace compared to other regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Flexible AC Transmission System Facts Market Key Players And Competitive Insights
New entrants are also gaining traction in the market, challenging the established players. The development of the market is being driven by the increasing demand for flexible systems. Key market players in the Flexible AC Transmission System Facts are investing heavily in research and development to develop advanced products and gain a competitive edge. The Flexible AC Transmission System Facts Market has presence of few dominant players including Siemens, ABB, GE. These companies have a considerable market share and focus on expanding their product portfolio and venturing in new geographies.Leading players in the Flexible AC Transmission System Facts Market are Siemens, ABB, and GE. Siemens is a leading manufacturer of various types of products and services in the field of technology, power, and transportation. The company’s FACTS solutions are employed by utilities to improve the efficiency and stability of grid operations. Siemens has a solid presence across the globe and focuses on innovation. It has produced several technologies and solutions in the Flexible AC Transmission System Facts Market. Siemens FACTS technology is used by utilities across more than 150 countries to improve the performance of the grids.ABB is a Swiss-Swedish multinational company that focuses majorly on the field of electrification and automation. ABB’s Flexible AC transmission system solution is used to improve grid efficiency and flexible power transmission. The company is present across the globe and has a strong profile and market presence in the power system and industrial automation. Its FACTS systems are used by utilities to improve grid performance. Major players in the market are launching innovative and advanced Flexible AC Transmission System Facts Market solutions. Over recent years these leading players have ventured into a new market and expanded their product line.
Key Companies in the Flexible AC Transmission System Facts Market Include
- S Electric Company
- Siemens
- Eaton
- GE
- Alstom
- Toshiba
- Relay Protection and Automation Consulting
- ABB
- PowerSim
- Schweitzer Engineering Laboratories
- Megger
- Schneider Electric
- Hitachi
- Mitsubishi Electric
- Omicron Electronics
Flexible AC Transmission System Facts Market Industry Developments
The Flexible AC Transmission System (FACTS) Market is projected to witness substantial growth in the coming years, driven by increasing demand for efficient and reliable power transmission systems. In 2023, the market was valued at approximately USD 20.56 billion, and it is expected to reach a valuation of around USD 97.4 billion by 2032, exhibiting a CAGR of 18.87%. The growing emphasis on grid stability and resilience, along with the integration of renewable energy sources, is fueling the adoption of FACTS devices. Moreover, government initiatives and regulations aimed at reducing carbon emissions and improving grid infrastructure are further propelling market expansion. Recent developments include the launch of advanced FACTS technologies such as STATCOM (Static Synchronous Compensator) and SVC Plus (Static Var Compensator Plus), which offer enhanced voltage regulation and stability. Key players in the market are investing in research and development to introduce innovative solutions and expand their product portfolios.
Flexible AC Transmission System Facts Market Segmentation Insights
Flexible AC Transmission System Facts Market Application Outlook
- Transmission Network Expansion
- Grid Reliability Enhancement
- Renewable Energy Integration
Flexible AC Transmission System Facts Market Technology Outlook
- Voltage Sourced Converter (VSC)
- Line Commutated Converter (LCC)
- Hybrid Systems
Flexible AC Transmission System Facts Market Voltage Level Outlook
- Extra High Voltage (EHV)
- High Voltage (HV)
- Medium Voltage (MV)
Flexible AC Transmission System Facts Market End-User Outlook
- Electric Utilities
- Transmission Grid Operators
- Renewable Energy Developers
Flexible AC Transmission System Facts Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.3(USD Billion) |
| Market Size 2023 |
20.56(USD Billion) |
| Market Size 2032 |
97.4(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
18.87% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
S Electric Company, Siemens, Eaton, GE, Alstom, Toshiba, Relay Protection and Automation Consulting, ABB, PowerSim, Schweitzer Engineering Laboratories, Megger, Schneider Electric, Hitachi, Mitsubishi Electric, Omicron Electronics |
| Segments Covered |
Application, Technology, Voltage Level, End-User, Regional |
| Key Market Opportunities |
Increased renewable energy integration Smart grid modernization Growing demand for power transmission capacity Enhanced grid reliability and stability Reduced transmission losses |
| Key Market Dynamics |
Increasing grid complexity Growing demand for renewable energy integration Government initiatives for smart grid development Technological advancements in power electronics Rising focus on grid reliability and efficiency |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
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Frequently Asked Questions (FAQ) :
The FACTS Market is expected to reach USD 20.56 billion in 2023.
The FACTS Market is projected to grow at a CAGR of 18.87% from 2024 to 2032.
North America is expected to hold the largest market share in the FACTS Market in 2023.
FACTS devices are used for a variety of applications, including voltage regulation, power flow control, and stability enhancement.
Some of the key competitors in the FACTS Market include ABB, Siemens, General Electric, and Toshiba.
Some of the growth drivers for the FACTS Market include the increasing demand for electricity, the need for grid stability, and the growing adoption of renewable energy sources.
Some of the challenges facing the FACTS Market include the high cost of FACTS devices and the lack of skilled labor.
The FACTS Market is expected to reach USD 97.4 billion by 2032.
FACTS devices can help to integrate renewable energy sources into the grid by providing voltage regulation and power flow control.
Some of the emerging trends in the FACTS Market include the development of new FACTS devices and the increasing use of FACTS devices in microgrids.
