Global Flexible AC Transmission System (FACTS) Market - Growth, Trends, and Forecast (Outlook to 2028)

Global Flexible AC Transmission System (FACTS) Market - Growth, Trends, and Forecast (Outlook to 2028)

Regulation of voltage throughout the power transmission systems is crucial to ensure stable and reliable operations, as well as to maximize equipment life. The exchange of reactive power within the transmission system is crucial for this role. Conventional means of voltage regulation, such as mechanically switched reactors and capacitor banks, are being replaced by FACTS (Flexible AC Transmission System) devices, which have the capability to rapidly and dynamically respond to the present system conditions.

Consequently, existing transmission lines are used near thermal stability limits under heavy loads, and the system stability becomes a power transfer limiting factor. Substantial expansion of generation and transmission systems to accommodate the increased demand is restricted by environmental, political, social, and regulatory constraints. In this situation, Flexible Alternating Current Transmission System (FACTS) controllers open the door towards the advanced control of the power system, at least for transmission lines. FACTS technology helps explore new flow control possibilities and improves the existing and new transmission line's operational capability.

What is Flexible AC Transmission System (FACTS)?

A Flexible AC Transmission System (FACTS) is a combination of power electronic devices and power system devices used to enhance the controllability and stability of the AC transmission system and increase the power transfer capabilities.

The flexible ac transmission system supplies the transmission network with inductive or capacitive reactive power as quickly as possible that is adapted to its particular requirements while also improving transmission quality and the efficiency of the power transmission system.

Advantages of Flexible AC Transmission System

The FACTS is used to improve the power transfer capability of the power transmission line. Hence, it saves the cost of developing an entirely new transmission line.

It helps to follow the guidelines and contract of utility and ensure the optimum flow of electric power.

It increases the quality of electric power, voltage stability, transient stability, and thermal stability of the transmission system.

It improves the flexibility and reliability of the transmission network.

It enhances the power factor of the power system network.

As it reduces the transmission cost, the power price also decreases.

Drivers

Rising Integration of Renewable Energy Sources with the Grid

Governments around the world have declared their emission reduction and carbon neutrality targets, owing to which the transition to clean energy is occurring at a rapid pace globally. The declining price of DERs (distributed energy resources) is also one of the major factors driving the global energy transition.

According to IRENA’s World Energy Transition Outlook 2022, the global energy transition is far from being on track. In order to reach the global targets, renewable would have to scale up massively across all the sectors, from 14% of total energy today to around 40% in 2030. Global annual additions of renewable power would triple by 2030, as recommended by the Intergovernmental Panel on Climate Change (IPCC).

Due to the ambitious climate targets announced in the COP 26, renewable capacity growth is expected to accelerate in the next five years, accounting for almost 95% of the increase in global power capacity through 2026.

By the end of 2021, the stock of renewable power increased by 9.1% compared to the 2020 levels, with the solar and wind dominating the global renewable capacity additions.

The solar new capacity installations registered an increase in all the major regions of the world outgrowing the total wind energy capacity globally. The wind installations continued to expand at a lower pace in 2021 relative to 2020 (+93 GW compared to +111 GW last year).

Globally, renewable electricity capacity is forecast to increase by over 60% between 2020 and 2026, reaching more than 4800 GW. This is equivalent to the current global power capacity of fossil fuels and nuclear combined.

The increasing deployment of renewable energy sources and their integration with the grid would make it much more difficult to ensure the stability and reliability of the grid. As FACTS offer the perfect solution, the demand for FACTS is expected to be robust in the future.

Some of the Other Drivers

The increase in the up-gradation and expansion of existing transmission lines for rural and remote areas electrification are some of the other significant drivers of the FACTS market.

Restraints

The high initial cost of FACTS is one of the most significant factors acting as a restraint to its market growth.

Regional Analysis

EU has committed to a well-functional trans-European electricity market to attain a sustainable low-carbon economy. There is a surge in adopting efficient transmission systems for power transmission between European countries, which is reflected in the number of upcoming and ongoing projects (including HVDC and FACTS, both technologies).

For instance, Germany aims to cater to 80% of its energy needs from renewable sources by 2050, owing to which the country’s energy mix is undergoing rapid changes. To ensure the stability of the power grid, Germany decided to install FACTS across its power transmission system. Within that context, in 2021, German transmission system operator Amprion has commissioned Siemens Energy with the construction of two SVC PLUS series STATCOM (static synchronous compensator systems) to further stabilize the German transmission power grid.

The Asia-Pacific region is also deploying renewables on a large scale, with China and India leading in renewable additions. China already has the lion's share in global renewable capacity additions.

Improving competitiveness, policy support, and ambitious targets are driving the renewable power additions in the region. Relative to existing capacity, renewable power is growing faster in India than any other key market in the world. Solar PV is expected to lead the way, driven by competitive auctions aimed at achieving the government’s ambitious renewable power target of 500 GW by 2030.

Over the 2021-26 period, the expansion of renewable capacity in the United States is expected to be 65% greater than in the previous five years. This is the combined result of the economic attractiveness of wind and solar PV, increased ambition at the federal level, the extension of federal tax credits in December 2020, a growing market for corporate power purchase agreements, and growing support for offshore wind.

The new report from Blackridge Research on the Global FACTS Market comprehensively analyses the FACTS Market and provides deep insight into the current and future state of the industry.

The study examines the drivers, restraints, and regional trends influencing Global FACTS Market demand and growth.

The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the FACTS Market, important commercial developments, trends, regions, and segments poised for fastest growth, competitive landscape, and market share of key players.

Further, the report will also provide the FACTS Market size, demand forecast, and growth rates.

Impact of COVID 19

The covid pandemic hit industries and businesses globally, and the FACTS industry is no exception. The manufacturers suffered a huge setback in dispatches and order bookings. The restrictions in international markets and stringent travel curtailments resulted in considerable loss of order bookings and aftersales services.

According to the IMF World Economic Outlook published in April 2022, global growth is projected at 4.4% in 2022. The growth indicates the additional financial support in a few large economies, anticipated vaccine-powered recovery, and continued adaptation of economic activity to sombre mobility.

High uncertainty looms over this outlook due to the probable third wave and the evolution of financial conditions. Depending upon the path of the pandemic, capital availability, and financial conditions, utilities might postpone some of their generation investments, in turn affecting the FACTS market demand.

What we cover in the report?

FACTS Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.

FACTS Market Analysis

This report discusses the overview of the market, latest updates, important commercial developments and structural trends, and government policies and regulations.

This section provides an assessment of COVID-19 impact on FACTS Market demand.

FACTS Market Size and Demand Forecast

The report provides Global FACTS Market size and demand forecast until 2027, including year-on-year (YoY) growth rates and CAGR.

FACTS Market Industry Analysis

The report examines the critical elements of the FACTS industry supply chain, its structure, and the participants

Using Porter's five forces framework, the report covers the assessment of the FACTS industry's state of competition and profitability.

FACTS Market Segmentation & Forecast

The report dissects the Global FACTS Market into various segments. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for a "bespoke" market segmentation to better align the research report with your requirements.

Regional Market Analysis

The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.

In addition, market size, demand forecast, and growth rates will be provided for all regions.

Following are the notable countries covered under each region.

North America - United States, Canada, Mexico, and Rest of North America

Europe - Germany, France, United Kingdom (UK), Russia, and the Rest of Europe

Asia-Pacific - China, India, Japan, South Korea, Australia, Rest of APAC

Rest of the world - Saudi Arabia, Brazil, Nigeria, South Africa, and other countries

Key Company Profiles

This report presents detailed profiles of Key companies in the FACTS industry, such as NR Electric Co., Ltd, American Superconductor, Mitsubishi Electric Corporation, etc. In general, each company profile includes - an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.
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