Static Synchronous Compensator (STATCOM) Market Size By Type (Low Voltage, Medium Voltage, High Voltage), By Application (Electricity Networks, Photovoltaic Generation, Others), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Mar

Static Synchronous Compensator (STATCOM) Market Size By Type (Low Voltage, Medium Voltage, High Voltage), By Application (Electricity Networks, Photovoltaic Generation, Others), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2030

The static synchronous compensator (STATCOM) market is set to register significant growth through 2030 owing to widespread product adoption to fulfill the increasing demand for power in smart homes as well as manufacturing and healthcare industries. In addition, rapid industrialization and urbanization are slated to create more business opportunities for STATCOM service providers.

Key industry players have been engaging in strategic partnerships, technological innovation, and product launches to enhance their business presence, thereby improving the overall dynamics of the static synchronous compensator (STATCOM) market. For instance, in September 2021, energy giant Siemens Energy declared that it would provide four STATCOM installations for the substation projects of LS Power Grid in California to strengthen the energy grid’s reliability. LS Power’s substation in Fresno County hosted two STATCOM systems, while the remaining two were installed at LS Power’s newly constructed Fern Road substation.

In another development, in May 2021, Terna S.p.A., an Italian transmission system operator, ordered two STATCOM systems for the stabilization of grids from Siemens Energy. This move was set to help Italy tackle emerging power grid challenges posed by its energy transition. These new STATCOM systems were purposed to reduce the execution time of the project by avoiding approval procedures of buildings as well as help Terna manage the challenges related to intermittency and volatility of wind and solar energy by stabilizing voltage fluctuations. These STATCOMs were based on Siemens Energy's SVC PLUS technology and substantially decreased the risk of blackouts and voltage drops.

The static synchronous compensator (STATCOM) market has been bifurcated in terms of application, type, and region.

On the basis of application, the market has been divided into photovoltaic generation, energy network, and others. The others segment is poised to gain substantial traction in the upcoming time period owing to escalating demand for STATCOMs in industries viz., electric arc furnaces, steel manufacturing, automotive, and rolling mills.

Based on type, the static synchronous compensator (STATCOM) market has been segmented into medium voltage, low voltage, and high voltage. Among these, the high voltage segment is primed to exhibit notable growth through 2030. High voltage STATCOMs offer various advantages, such as power factor correction and voltage support, which is likely to boost their uptake in a wide range of applications.

In the regional context, the STATCOM market in North America was valued at more than $250 million in 2021. This is primarily due to the burgeoning need for a new energy mix and rising demand for electricity. Meanwhile, the Middle East & Africa static synchronous compensator (STATCOM) industry is expected to grow at around 8% CAGR through 2030 due to supportive government initiatives in developing countries across MEA.