Flexible alternating current (AC) transmission systems are essential for optimizing power grid operations. They enhance grid reliability and efficiency by regulating voltage and controlling power flow. FACTS devices such as Static VAR Compensators (SVCs) and Thyristor-Controlled Series Capacitors (TCSCs) mitigate voltage fluctuations and transmission line congestion. They also enable better utilization of existing infrastructure, support renewable energy integration, and reduce transmission losses, ensuring a stable and resilient electrical grid for reliable power supply.
According to Data Bridge Market Research, the Global Flexible Alternating Current (AC) Transmission System Market is accounted at USD 754.95 million in 2021 and is expected to reach USD 1,449.96 million by 2029. The market is expected to grow with a CAGR of 8.50% in the forecast period of 2022 to 2029.
“Expansion of transmission lines boosts the market’s growth”
The growth of the flexible alternating current (AC) transmission system market is significantly driven by the expansion of transmission lines. As power grids extend to reach remote areas or transfer electricity over long distances, there is a greater need for technologies such as flexible AC transmission systems (FACTS) that enhance grid stability, increase power transfer capacity, and improve overall system efficiency. FACTS devices play a crucial role in optimizing power flow, reducing line losses, and ensuring reliable electricity supply across extended transmission networks, contributing to the market's growth.
What restraints the growth of the global flexible alternating current (AC) transmission system market?
“High costs restraints the market’s growth”
The growth of the flexible alternating current (AC) transmission system market faces a significant restraint in the form of high costs. Developing and implementing FACTS technologies, such as SVCs (Static Var Compensators) or STATCOMs (Static Synchronous Compensators), involves substantial capital investments. These advanced systems require specialized components, control systems, and maintenance, which contribute to their high price tags. This cost factor can deter some utilities and grid operators from adopting FACTS solutions, thereby restraining market growth, particularly in regions with budget constraints or limited funding for grid upgrades.
Segmentation: Global Flexible Alternating Current (AC) Transmission System Market
The global flexible alternating current (AC) transmission system market is segmented on the basis of compensation type, generation type, functions, components, application, and end user.
- On the basis of compensation type, the flexible alternating current (AC) transmission system market is segmented into shunt compensation, series compensation, and combined compensation.
- On the basis of generation type, the flexible alternating current (AC) transmission system market is segmented into first generation, and second generation.
- On the basis of functions, the flexible alternating current (AC) transmission system market is segmented into voltage control, network stabilization, transmission capacity, and harmonic suppression.
- On the basis of components, the flexible alternating current (AC) transmission system market is segmented into power electronics devices, phase shifting transformers, and protection and control systems.
- On the basis of application, the flexible alternating current (AC) transmission system market is segmented into voltage control, and power control.
- On the basis of end user, the flexible alternating current (AC) transmission system market is segmented into utilities, renewables, industrial, and railways.
Regional Insights: North America dominates the Global Flexible Alternating Current (AC) Transmission System Market
North America dominates the flexible alternating current (AC) transmission system market from 2022 to 2029 due to the growing number of railway line extension projects in countries such as the United States and Canada. This surge in railway infrastructure development drives the demand for flexible AC transmission systems, enhancing grid stability and efficiency in the region.
Asia-Pacific is expected to witness significant growth during the forecast period of 2022 to 2029 because of the increasing number of substations and broadcast channels. This expansion in infrastructure drives the demand for flexible AC transmission systems, enabling efficient electricity transfer and improved network reliability for substations and broadcasting facilities.
Recent Developments
- In May 2020, GE Renewable Energy's Grid Solutions company has successfully powered the Dynamic Reactive Compensator (DRC) project for the UK's National Grid. This project, featuring a 975 Mvar power range, stands as the largest utility-grade Static Synchronous Compensator (STATCOM) scheme in Europe. It serves the transmission network in the southeast of the UK, operating across three distinct substations with distribution and coordination.
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The Prominent Key Players Operating in the Global Flexible Alternating Current (AC) Transmission System Market Include:
- ABB (Switzerland)
- Cisco Systems, Inc., (U.S.)
- Eaton (U.S.)
- SIEMENS (Germany)
- LARSEN & TOUBRO LIMITED (India)
- Hyundai Motors (South Korea)
- Mitsubishi Electric Corporation (Japan)
- Toshiba Corporation (Japan)
- C&S Electric Limited (India)
- Hitachi Ltd., (Japan)
- Schneider Electric (France)
- Tavrida Electric (Russia)
- Fuji Electric Co. Ltd., (Japan)
- Powell Industries (U.S.)
- Sensata Technologies Inc., (U.S.)
- ENTEC Electric and Electronic (South Korea)
Above are the key players covered in the report, to know about more and exhaustive list of global flexible alternating current (AC) transmission system market companies contact, https://www.databridgemarketresearch.com/jp/contact
Research Methodology: Global Flexible Alternating Current (AC) Transmission System Market
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, Global vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.
