Volt/VAR Management Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Volt/VAR Management Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Volt/VAR Management Market

The Volt/VAR management market size was valued at USD 662.16 million in 2023, and the market is now projected to grow from USD 710.43 million in 2024 to USD 1,143.23 million by 2032, exhibiting a CAGR of 6.13% during the forecast period of 2024-2032.

Volt/VAR management is a technique designed to regulate voltage levels and reactive power, enhancing grid performance. The rising global demand for energy has necessitated the expansion of power grid infrastructures, such as substations and transmission lines, which is favorably impacting the Volt/VAR management market growth. Volt/VAR management offers a strategic solution to control voltage and reactive power flows, effectively reducing losses and preventing transformer overloads. It enhances infrastructure development by optimizing the use of existing assets during ongoing new projects. Therefore, the expected increase in energy demand driven by economic growth is likely to contribute to the further expansion of the Volt/VAR management market in the years ahead.

The rising use of renewable energy sources, including wind and solar power, significantly influences voltage stability and introduces new challenges for managing the power grid. Renewable sources are often characterized by their intermittent and variable nature. This variability can result in voltage fluctuations across the grid as the power factor from renewable sources may change rapidly due to factors such as weather conditions, time of day, or seasonal variations. Moreover, the rapid integration of renewable energy into the power generation mix is being driven by stringent government policies, regulations, and increasing investments. As a result, utility companies are increasingly adopting Volt/VAR management strategies to effectively mitigate these fluctuations and maintain grid stability.

Comprehensive Analysis of Volt/VAR Management Market

By component, the market is segmented into hardware and software & services. The hardware segment captures the largest share of the market due to its essential role in power grids and substations. By application, the market is divided into distribution, transmission, and generation. The distribution segment commands the largest market share as it manages voltage and reactive power in local and regional networks supplying electricity to end-users.

North America commands the largest Volt/VAR management market share. This growth is fueled by ongoing grid modernization initiatives in the U.S. and Canada and stringent grid reliability standards imposed by regulatory bodies such as FERC.

The key players in the global market include GE Vernova (U.S.), ABB (Switzerland), Eaton (Ireland), Hitachi Energy (Japan), Schneider Electric (France), Siemens AG (Germany), S&C Electric Company (U.S.), Survalent Technology Corporation (Canada), Landis+Gyr (Switzerland), and Beckwith Electric (U.S.).

In August 2022, Hitachi Energy opened a new manufacturing plant in Bengaluru, India, investing approximately USD 12.73 million. The plant will manufacture advanced capacitor units, banks, and power electronic compensators for low, medium, and high-voltage systems. It will cater to the needs of power utilities, industrial sectors, renewable energy, and transportation.

Segmentation Table

Global Volt/VAR Management Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate CAGR of 6.13% from 2024 to 2032

Unit Value (USD Million)

Segmentation By Component

Hardware

Software & Services

By Application

Distribution

Transmission

Generation

By Region

North America (By Component, Application, and Country)

U.S. (By Application)

Canada (By Application)

Europe (By Component, Application, and Country)

U.K. (By Application)

Germany (By Application)

France (By Application)

Italy (By Application)

Spain (By Application)

Russia (By Application)

Rest of Europe (By Application)

Asia Pacific (By Component, Application, and Country)

China (By Application)

Japan (By Application)

India (By Application)

Australia (By Application)

Southeast Asia (By Application)

Rest of Asia-Pacific (By Application)

Latin America (By Component, Application, and Country)

Brazil (By Application)

Mexico (By Application)

Rest of Latin America (By Application)

Middle East & Africa (By Component, Application, and Country)

GCC (By Application)

South Africa (By Application)

Rest of the Middle East & Africa (By Application)