Capacitor Bank Market Size By Voltage (Low, Medium, High), By Type (Open Air Substation, Metal Enclosed Substation, Pole Mounted), By Application (Power Factor Correction, Harmonic Filter, Voltage Regulation, Renewable Integration, Industrial Application,

Capacitor Bank Market Size By Voltage (Low, Medium, High), By Type (Open Air Substation, Metal Enclosed Substation, Pole Mounted), By Application (Power Factor Correction, Harmonic Filter, Voltage Regulation, Renewable Integration, Industrial Application, Data Centers) & Forecast, 2023 - 2032

Capacitor Bank Market will record a positive trajectory through 2032 owing to the budding expansion of smart grid networks. The widespread use of capacitor banks in smart grid systems to reduce carbon emissions for power generation will positively influence the industry outlook. These units enhance the energy efficiency and system voltages in the distribution system, thus delivering more energy to the consumers, escalating the business outlook.

Few major market manufacturers are expanding their global presence and diversifying the product categories to gain a competitive advantage through diverse marketing strategies including acquisitions, mergers, and partnerships. For instance, in March 2022, Sentient Energy acquired Varentec’s grid edge voltage optimization hardware and management software to offer a comprehensive set of solutions in view of assisting utilities in meeting the intricate distribution grid reliability, resilience, and efficiency needs.

Overall, the capacitor bank industry is segmented in terms of voltage, type, application, and region.

Based on voltage, the high [>69 kV] voltage segment will be valued at over USD 1 billion by 2032. Increasing demand for efficient power factor correction equipment to gain enhanced efficiency of electricity supply network will increase the business growth. Furthermore, the expanding power infrastructure across developing nations will enhance the deployment of high-voltage capacitor banks worldwide.

By type, the metal-enclosed substation segment will record high gains during the estimated timeframe. Metal-enclosed capacitor banks are anticipated to gain strong momentum during the estimated timeframe owing to the increasing refurbishment of prevailing electricity infrastructure and constantly surging demand for peak load. The availability of these systems in multiple-step configurations and easy installation across outdoor, indoor, and underground locations will assist the segmental expansion.

In terms of application, the harmonic filter application segment will anchor strong growth during 2023-2032. The application can enhance voltage stability, provide a higher power factor, and reduce network losses at a substation. Constantly surging demand to mitigate the total harmonic distortion in a grid network will amplify the demand for capacitor banks worldwide.

Geographically, the Europe capacitor bank market was valued at over USD 200 million in 2022. The region will foresee immense market growth owing to the paradigm shift toward offshore & onshore wind farms. In addition, increasing focus on investments in solar power plants will fuel the Europe capacitor bank market. Deployment of large-scale renewable systems to reduce the reliance on conventional units and increasing refurbishment activities will escalate the business outlook during the ensuing years.