Flexible AC Transmission Systems (FACTS) Market, by Compensation Type (Series Compensation, Shunt Compensation, and Combined Series-Shunt Compensation), Controller (Static Synchronous Compensator (STATCOM), Static Var Compensator (SVC), Unified Power Flow Controllers (UPFC), Thyristor Controlled Series Compensator (TCSC), and Others), and Industry Vertical (Oil & Gas, Electric Utility, Railways, and Others) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Flexible AC Transmission Systems (FACTS) Market size is projected to reach a CAGR of 8.5% from 2023-2030.
A flexible AC transmission system or FACTS consists of static equipment. This system is utilized for the AC transmission of electrical energy. The system is designed for improving controllability and enhances the capacity of power transfer of the network. This system is usually power-electronic based. The use of a flexible AC transmission system helps in increasing the reliability of the AC grids. It also helps in cutting down the cost of delivery. The use of these systems helps in improving the quality of transmission and the overall efficacy of power transmission by providing reactive or inductive power to the grid.
The aging transmission and other power system networks result in lots of power losses and lesser system usability. The rise in demand for electrification across developed and developing nations drives the demand for the flexible AC transmission system market. The controlled, regulated, and uninterrupted power supply increases system efficiency and boosts the production process. This results in lesser wear and tear to the equipment installed in the industrial plant.
On the other hand, the high initial cost of FACTS is one of the most significant factors acting as a restraint to its market growth.
The covid pandemic hit industries and businesses globally, and the FACTS industry is no exception. The manufacturers suffered a huge setback in dispatches and order bookings. The restrictions in international markets and stringent travel curtailments resulted in considerable loss of order bookings and aftersales services.
The market for Flexible AC Transmission networks (FACTS) is a developing sector that provides goods and technology intended to increase the reliability, flexibility, and efficiency of electric power transmission networks. Growing renewable energy installations, the necessity for dependable and efficient power transmission, and the requirement for grid modernization and expansion are some of the reasons that are driving the market. ABB Ltd., Siemens AG, General Electric Company, Mitsubishi Electric Corporation, and Eaton Corporation are important market participants. Players are focused on innovation, product development, and strategic alliances to maintain their market share and competitive position in this highly competitive industry. The FACTS market is anticipated to expand over the next several years because of the rising use of renewable energy sources and the demand for more dependable and efficient transmission networks.
Europe to Dominate the Market