Flexible AC Transmission Systems Market Size, Share, Trends, Growth 2032

Flexible AC Transmission Systems Market Insights

According to a report from Zion Market Research, the global Flexible AC Transmission Systems Market was valued at USD 1463.88 Million in 2023 and is projected to hit USD 2657.51 Million by 2032, with a compound annual growth rate (CAGR) of 6.85% during the forecast period 2024-2032.

This report explores market strengths, weakness, opportunities, and threats. It also provides valuable insights into the market's growth drivers, challenges, and the future prospects that may emerge in the Flexible AC Transmission Systems industry over the next decade.

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Flexible AC Transmission Systems Market: Overview

A flexible alternating current transmission system (FACTS) is a system composed of static equipment used for the AC transmission of electrical energy. It is meant to enhance controllability and increase the power transfer capability of the network. It is generally a power electronics-based system. In conventional AC transmission, the power transfer capability has been limited by various dynamic and static limits such as transient stability, voltage stability, thermal limits, etc. These inherent power system limits led to the underutilization of existing transmission sources.

Traditional methods of solving these problems use fixed and mechanically switched series and shunt capacitors, reactors, and synchronous generators. However, the desired response has not been effective due to slow response, and wear and tear of mechanical components. With the invention of thyristor devices, power electronic converters are developed which led to the implementation of FACTS controllers. These power electronic-based controllers can provide smooth, continuous, rapid, and repeatable operations for power system control. FACTS is an acronym for Flexible AC Transmission System and it is an application of power electronic devices to an electrical transmission system.

Global Flexible AC Transmission Systems Market: Growth Factors

Renewable energy is energy that is collected from renewable resources, which are naturally replenished on a human timescale, such as sunlight, wind, rain, tides, waves, and geothermal heat. There is widespread popular support for using renewable energy, particularly solar and wind energy, which provides electricity without giving rise to any carbon dioxide emissions. With the rapid growth of large-scale renewable energy projects, which often supply intermittent power, demand is driving the need for FACTS. Globally, the world produced approximately 5.9 TWh of modern renewable energy in 2016. This represents a 5 to 6-fold increase since the 1960s.

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The increasing burden laid on the existing power transmission lines in order to fulfill the ever-growing electricity demand is another factor that drives the growth of FACTS devices. The electricity transmission market is currently undergoing a major change with countries in pursuit of better efficiencies and more suitability for wheeling renewable energy. Several countries are upgrading their transmission lines to higher voltages in order to reduce transmission losses. Technological changes and upgrades are also being made to make the transmission systems more stable against the intermittent nature of renewable energy sources.

Besides, the advent of net metering for solar homes and coordinated charging of electric vehicles is pushing utilities to align their new infrastructure with the possibility of a bi-directional flow of electricity. Increasing renewable power capacity has also increased the need for countries to interconnect their transmission systems in order to balance generation and demand through the export and import of electricity. This in turn has pushed the construction of higher-capacity interconnection lines.

Global Flexible AC Transmission Systems Market: Segmentation

The flexible AC transmission systems market is segmented based on compensation type, industry vertical, voltage, function, and region.

The compensation type segment is further bifurcated into static var compensation (SVC), static compensator (STATCOM), series compensation, and combined compensation.

The industry vertical segment is further split into utilities, renewables, railways, and industrial.

Based on voltage, the market is segregated into 132 kV to 220 kV, > 220 kV to 660 kV, and > 660 kV.  

By function, the market is divided into voltage control, network stabilization, transmission capacity, harmonic suppression, and others.

Flexible AC Transmission Systems Market: Report Scope

Global Flexible AC Transmission Systems Market: Regional Analysis

Based on regions, the global flexible AC transmission systems market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The Asia Pacific flexible AC transmission system market is expected to register the highest CAGR during the forecast period, owing to an increase in government expenditure to build smart grids and an increase in investment in electricity generation by renewable energy resources. In addition, a rise in investments in high-speed trains from developing countries such as China, India, and Japan is expected to offer lucrative opportunities for market expansion. The growing demand for superior quality power supply and network reliability in electric utilities and industrial applications has created numerous opportunities for advanced power electronics-based systems.

The North American flexible AC transmission systems market is slated to experience appreciable growth in the near future, owing to massive expenses for bringing an advancement of long-route grid network and renewing the local power system in the region. On other hand, the authorities in the U.S. are planning to set up an electric substructure that will lead to a reduction in the cost rates across the western T&D network, thereby spurring the regional market growth. North America relies on FACTS primarily to tame the unruly output from wind turbines that could otherwise destabilize their congested grids.

Global Flexible AC Transmission Systems Market: Competitive Players

Some of the key players in the flexible AC transmission systems market are

• Hyosung
• GE Grid Solutions
• NR Electric
• ABB
• Adani Power
• American Electric Power
• Alstom
• Mitsubishi Electric
• Siemens
• Eaton 

The global flexible ac transmission systems market is segmented as follows:

By Compensation Type

• Static Var Compensation (SVC)
• Static Compensator (STATCOM)
• Series Compensation
• Combined Compensation

By Industry Vertical

• Utilities
• Renewables
• Railways
• Industrial

By Voltage

• 132 kV to 220 kV
• > 220 kV to 660 kV
• > 660 kV

By Function

• Voltage Control
• Network Stabilization
• Transmission Capacity
• Harmonic Suppression
• Others

Global Flexible AC Transmission Systems Market: Regional Segment Analysis

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of The Middle East & Africa