Volt/VAR Management Market Size was valued at USD 0.4 Billion in 2022. The Volt/VAR Management market industry is projected to grow from USD 0.42 Billion in 2023 to USD 0.70 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.50% during the forecast period (2023 - 2032). The adoption of renewable energy sources and an increase in the need for dependable electricity are the main factors boosting market expansion.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising use of smart grids drives Market CAGR for Volt/VAR management. Volt/VAr management market expansion will be driven by a significant need for skilled operations to minimize power distribution loss and maximize energy factor throughout the anticipated timeframe. In addition, there will be a considerable need for volt management services over the next years because of the continuous need for electricity from industry and houses. The importance of load flow and load shedding in the power sector has increased the demand for skilled voltage management operations, which will likely fuel the expansion of the volt/VAr management market in future years. Modernizing the electrical grid must include smart grid integration for utilities to improve sustainability, dependability, and efficiency. Demand response programs are made possible by smart grid integration, allowing utilities to communicate with customers directly. Utility companies can instruct smart metres to transmit messages to customers to temporarily cut their power use during high demand or grid problems. Demand-side management lessens the need for expensive infrastructure investments while assisting in grid balancing. Volt/VAR management seeks to keep the grid's voltage and reactive power at ideal levels. Using smart grid technology, utilities may optimize dynamic Volt/VAR using the real-time data gathered from smart meters and sensors. This entails dynamically altering voltage levels and reactive power settings to reduce energy losses and enhance power quality. Smart grid technologies use cutting-edge communication, control, and information technology to develop a more intelligent and interactive power system. Smart meter and sensor deployment across the distribution network is a component of smart grid systems. These gadgets provide real-time information on electricity use, voltage levels, and power quality.
With thorough monitoring, utilities may learn much about how the grid behaves and spot inefficiencies or possible issues. DERs are frequently situated close to customers, generally smaller-scale, and dispersed across the distribution network. Due to DERs' decentralized nature, energy generation is more unpredictable and intermittent, which can cause voltage fluctuations, power imbalances, and other operational challenges for grid operators. Volt/VAR management systems have become vital to answering these problems and the best way to integrate DERs into the grid. These systems control voltage (Volt) levels and reactive power (VAR) to maintain grid stability and boost energy efficiency.DERs can provide electricity to the grid or take it away, dependent on the local energy supply and demand. Volt/VAR management systems support grid balancing by dynamically modifying reactive power and voltage settings to ensure energy flows smoothly between DERs and consumers without overloading or underutilizing grid resources. Thus, driving the Volt/VAR Management market revenue.
Based on application, the Volt/VAR Management market segmentation includes distribution & transmission. The distribution segment dominated the market, accounting for 67% of market revenue. The distribution sector of the volt/VAr management market is growing because of the expansion of smart grid implementation and the requirement to minimize power outages & faults in distribution feeders. The distribution volt/VAr management market is anticipated to be the largest and one with the quickest growth rates in North America.
The Volt/VAR Management market segmentation, based on components, includes hardware, software & services. The hardware segment dominated the market. Due to the demand for effective power generation and flow operations by combining volt/VAr optimization, substation automation, sophisticated distribution management, and fault detection, this market sector is anticipated to rise steadily. The demand for hardware components is anticipated to increase throughout the projected period due to upcoming power-generating projects in the non-renewable and renewable power sectors and transmission and distribution projects in nations like the US, the UK, Ireland, France, Norway, India, and China.
Based on End Use, the Volt/VAR Management market segmentation includes utilities and industrial. The utilities category generated the most income (70.4%). Volt/VAr management is a service that aids utilities in giving end-users the proper voltage at the best power factor possible to reduce losses. In nations like China, India, and the US, the need for electricity is anticipated to rise dramatically during the projection period, which is anticipated to raise the demand for volt/VAr management.
Figure 1: Volt/VAR Management Market, by End Use, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Volt/VAR Management market area will dominate this market, with growth in Volt/VAR management market demand during the course of the projection. Reducing power losses would increase volt/VAR management investments, increasing North American demand for volt/VAR management.
Hence, the major countries studied in the market report are The US, Canada, Spain, China, German, France, the UK, Australia, South Korea, Italy, Japan, India, and Brazil.
Figure 2: Volt/Var Management Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe has the second-largest market share for Volt/VAR Management. European countries have been aggressively updating their electrical infrastructure to enable the integration of energy from renewable sources like wind and solar. Volt/VAR management systems are essential for optimizing reactive power and voltage regulation, which is necessary for the steady and effective integration of these decentralized energy resources. Furthermore, the German Volt/VAR Management market dominated, while the UK Volt/VAR Management market grew fastest in Europe.
From 2023 to 2032, the Asia-Pacific Volt/VAR Management Market will develop quickly. The Asia-Pacific area is seeing a major rise in energy consumption due to its sizable and steadily growing population. Volt/VAR management tools aid utilities in better demand management, peak load reduction, and grid stability. Furthermore, China's Volt/VAR Management market had the highest market share, while India's was the fastest expanding in the Asia-Pacific region.
Leading market companies are extensively spending R&D on increasing their product lines, which will help the Volt/VAR Management market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Volt/VAR Management industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.
Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Volt/VAR Management industry to serve clients and expand the market sector. The Volt/VAR Management industry has provided some of the most important benefits recently. Schneider Electric, and other major competitors in the Volt/VAR Management market are seeking to improve market demand by investing in R&D efforts.
The digital transformation of infrastructure, energy management and automation in homes,data centers, buildings,and industries is driven by Schneider Electric. Schneider is, without a doubt, the market leader in Automation Systems and Power Management - Medium Voltage, Low Voltage, and Secure Power - with a presence in more than 100 countries worldwide. They offer comprehensive efficiency solutions that incorporate energy, automation, and software. They work with the biggest Partner, Integrator, and Developer Community on their Open Platform in our worldwide Ecosystem to provide real-time control and operational efficiency. Their dedication to innovation, diversity, and sustainability guarantees that life is on everywhere, for everyone, and at all times, and they think that great people and partners make Schneider a great business. In May 2019, Upgrade to EcoStruxureTM Power, the digital energy management solution built on industry-leading connected devices, edge control software, and advisor services, was announced today by Schneider Electric, the pioneer in the digital revolution of energy management and automation. The most recent EcoStruxure Power 2.0 design complies with IEC cyber-security requirements and is fully accredited to ISO energy management standards.
ABB solutions link software and technical expertise to optimize objects' power, production, movement, and operation. ABB's 105,000 workers are dedicated to driving breakthroughs that hasten industrial change, building on more than 130 years of excellence.ABB's Electrification division offers a diverse spectrum of products, digital solutions, and services, allowing safe, intelligent, and sustainable electrification from substation to socket. Offerings include modular substations, EV infrastructure, distribution automation, solar inverters, power protection, wire accessories, switchgear, enclosures, cabling, sensors, and low- and medium-voltage control. In June 2019, The State Grid Corporation of China (SGCC) won a power transmission contract with ABB. To protect the grid against disruptive failures, the firm intends to deploy high-voltage equipment like breakers. It also seeks to use capacitor banks to enhance the quality of the energy supply, increase product life, and reduce losses.
August 2020:Larsen & Turbo, an Indian construction engineering company, has sold its electrical and automation business to Schneider Electric. This French company is a pioneer in energy and automation systems, for INR 14,000 crores. This is a significant development that may impact the growth of the Volt/VAr management industry.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 0.4 Billion |
| Market Size 2023 | USD 0.42 Billion |
| Market Size 2032 | USD 0.70 Billion |
| Compound Annual Growth Rate (CAGR) | 6.50% (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 | Type, End Use, 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 | Â ABB, S&C Electric Company, DC Systems, Beckwith Electric, Utilidata, Open Systems International, Landis+Gyr, Advanced Control Systems, Siemens, Schneider Electric, GE, Eaton, and VArentec. |
| Key Market Opportunities | Favorable regulations and incentives to utilities |
| Key Market Dynamics | Focus on reduction in transmission & distribution (T&D) losses Reduction in operational cost |
Volt VAR Management Market Highlights:
Frequently Asked Questions (FAQ) :
The Volt/VAR Management market size was valued at USD 0.4 Billion in 2022.
The market is projected to grow at a CAGR of 6.50% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are ABB, S&C Electric Company, DC Systems, Beckwith Electric, Utilidata, Open Systems International, Landis+Gyr,
The distribution dominated the market in 2022.
The store based had the largest share in the market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
