Flexible Alternating Current Transmission Systems Market: Current Analysis and Forecast (2022-2028)

Flexible Alternating Current Transmission Systems Market: Current Analysis and Forecast (2022-2028)

Flexible Alternating Current Transmission Systems (FACTS) refer to a family of power electronic devices and systems that are designed to improve the controllability and stability of AC power transmission networks. FACTS devices use power electronics to modify the voltage, current, or phase angle of AC power flowing in a transmission line in real time, which enables the transmission system operators to control the flow of power and improve the overall stability and efficiency of the network. FACTS devices include a range of equipment such as Static Var Compensators (SVCs), Thyristor Controlled Series Capacitors (TCSCs), and Unified Power Flow Controllers (UPFCs), among others. These devices are installed in transmission lines and substations to enhance power system performance, including reducing power losses, improving voltage regulation, and increasing transmission capacity.

The Flexible Alternating Current Transmission Systems Market is expected to grow at a strong CAGR of 12% during the forecast period owing to the increasing demand from power generation, transportation sector, and industrial sector along with the renewable energy sector to control the flow of electricity. FACTS technology can help improve power quality by controlling voltage and power flows in the transmission system. This can result in a stable and reliable power supply for consumers and reduce transmission losses, which occur due to resistance in power lines, by optimizing the flow of power through the transmission system.

• Based on compensation type, the market is segmented into shunt compensation, combined series shunt compensation and series compensation. The shunt compensation segment is expected to hold a significant market share during the forecast period. Shunt compensation is an effective means of improving the power transfer capability of a transmission system, as it can help to reduce the overall losses in the system, and improve the reliability and quality of the electrical power supply. Also, the increasing adoption of renewable energy resources is expected to support the market growth as shunt compensation is essential for the integration of renewable energy sources such as wind and solar power into the electrical grid. These sources of energy are intermittent and produce variable amounts of power, which can destabilize the power grid. Shunt compensation helps to mitigate these issues and ensure the smooth integration of renewable energy sources.
• By controller, the market is segmented into static var compensator, static synchronous compensator, unified power flow controller, and others. The static synchronous compensator segment is expected to register a significant CAGR during the forecast period. The growing recognition of the importance of grid stability and resilience in the face of natural disasters and other disruptions is leading to increased investment in grid modernization and upgrades, including the deployment of STATCOM. In addition, the growth of electric vehicles and other electrically powered equipment is leading to increased demand for power in many regions, which can strain the existing power infrastructure. STATCOMs can help to maintain system stability and reliability by regulating voltage and providing reactive power support.
• On the basis of industry vertical, the market is segmented into electrical utility, oil & gas, railways, and others. The oil & gas segment is expected to register to dominate CAGR during the forecast period. The oil & gas industry is also starting to recognize the benefits of FACTS technology in improving the efficiency and stability of their electrical networks along with the investment in renewable energy technology which in turn propels the demand for the flexible alternating current transmission system. In addition, ageing infrastructure is one of the factors driving the growth of Flexible Alternating Current Transmission Systems (FACTS) in the oil and gas industry. Many oil and gas facilities have outdated power systems that are prone to failure and can result in downtime and lost production. Upgrading these systems can be expensive and time-consuming, but FACTS systems can help to improve the stability and reliability of these ageing power systems without the need for a complete overhaul.
• For a better understanding of the market adoption of the flexible alternating current transmission systems industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), Rest of World. Asia-Pacific dominated the flexible alternating current transmission systems market in 2021 due to the rapid economic growth in countries like India, China, and Southeast Asia has led to a surge in demand for electricity. This has put pressure on the power transmission infrastructure, making it necessary to improve the efficiency and reliability of the grid. FACTS technology has emerged as an effective solution to address these challenges and enhance the power grid’s capacity. In addition, the increasing penetration of renewable energy sources such as wind and solar has resulted in the integration of a large number of small-scale generators into the grid. This has increased the complexity of the power system, making it more prone to voltage instability and power quality issues. FACTS technology can help to mitigate these challenges by providing dynamic voltage control and power factor correction.
• Some of the major players operating in the market include ABB, CG Power & Industrial Solutions Limited, Adani Group, Alstom, General Electric, EATON, Mitsubishi Electric Corporation, Siemens, NR Electric Co., Ltd, and HYOSUNG.