Flexible AC Transmission System Market Report
RA00405
Flexible AC Transmission System Market by Compensation Type (Series Compensation, Shunt Compensation, and Combined Series-Shunt Compensation), Controller (STATCOM, SVC, UPFC, TCSC, Others), Industry Vertical (Oil and Gas, Electric Utility, Railways, Others), Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027
According to a new study conducted by Research Dive, the global flexible AC transmission system (FACTS) market forecast will be $1,229.6 million by 2027, at a CAGR of 8.0%, and is increasing from $641.3 million in 2019. North America has dominated the global market size in 2019 and is predicted to generate a revenue of $715.5 million till 2027.
COVID-19 Impact on Global Flexible AC Transmission System Market:
The emergency of COVID-19 has had a considerable negative effect on the growth of the flexible AC transmission systems market. This is majorly owing to railway sector continuously experiencing new challenges in the global pandemic because all railway operations were on a halt since April 2020 across the globe to stop the virus spread. This factor has negatively affected the FACTS market, railway being the major end use sector. However, during this pandemic, some of the government bodies are taking various initiatives to modernize the railway infrastructure. For instance in July, Indian government has started 200 railway maintenance projects to improve train speeds and rail safety through modernizing existing railway infrastructure. These aspects are ultimately impacting the global flexible AC transmission system market growth in the lockdown period.
Development in power transmission systems and power system controllability is the major driving factor for the growth of the flexible AC transmission system market
Global flexible AC transmission system market will experience a remarkable growth owing to increasing demand for advanced controllability of energy systems and increasing investments on the development of power transmission systems. These factors are projected to impel the demand for FACTS devices since they play a significant role in reactive power support and help in system stability. Furthermore, FACTS transmission solutions can support to fulfill the rising global demand for transmission systems to transfer, accommodate and carry bulk electrical energy, which is anticipated to propel the market growth in the review time. Furthermore, minimization in harmonics, quick voltage regulation, enhanced energy supply and short amortization are estimated to drive the flexible AC transmission system market growth during the prediction time.
To know more about flexible AC transmission system market drivers, get in touch with our analysts here.
High initial investments are a major restraint for the growth of the flexible AC transmission system market
High investments required for the incorporation of flexible AC transmission systems as compared to is a major limiting factor for the growth of the market. Also, manufacturers are facing issues with large scale installation of FACTS devices, which is predicted to hamper the growth of the market in the forecast time.
Rising demand for renewable energy sources is expected to be a major investment opportunity for the growth of the flexible AC transmission system market
Increasing trend for generation of electricity from renewable sources due to government regulation as well as awareness about environmental pollution because fossil fuels among people are projected to create huge opportunities for the growth of the flexible AC transmission system market in the coming years. This expected growth is majorly attributed to FACTS devices playing a key role to maintain system quality, reliability and stability of the energy generation systems.
To know more about flexible AC transmission system market opportunities, get in touch with our analysts here.
Flexible AC Transmission System Market, Based on Compensation Type:
Series compensation type accounted for major market share in 2019
Source: Research Dive Analysis
In the previous years, series compensation type sub-segment accounted for majority of the flexible AC transmission system market share, which of about 39.9% and is expected to reach up to $454.8 million by 2027. This dominance is mainly owing to wide utilization of series compensation type to enhance power transfer capabilities of new transmission lines as well as existing infrastructure. In addition, innovative series compensation systems can play a key role in the improvement of quality and stability of energy transmission lines. This factor is predicted to fuel the market growth in the forecast time.
Flexible AC Transmission System Market, Based on Controller:
SVC controller registered for evident market share in the previous years
Source: Research Dive Analysis
SVC controller sub-segment generated evident market size in 2019; it was about $165.9 million and is expected to generate a revenue of $283.9 million till 2027. This growth is majorly attributed to wide usage of SVC controllers in the industries since it has an ability of fine-tuning reactive power over a limitless range. In addition, increasing trend for advancements in the transient stability of system along with rise in the power transmission & distribution capability of the power lines are significantly driving demand for SVC controllers. This factor is estimated to impel the market growth in the analysis time.
Flexible AC Transmission System Market, Based on Industry Vertical:
Oil & gas industry vertical is predicted to be most lucrative till the end of 2027
Source: Research Dive Analysis
Oil and gas industry vertical accounted for second position in the global flexible AC transmission market share in 2019 and is projected to rise at a highest CAGR of 10.5% throughout the forecast time. Rising utilization of FACTS devices to maintain voltages during fluctuating load conditions is estimated to fuel the market growth in the forecast time. Moreover, FACTS are time & cost effective along with being highly advanced systems to maintain steady electricity; these factors are boosting the incorporation of FACTS in the oil & gas industry for voltage stabilization. This aspect is estimated to fuel the market growth in the coming years.
Flexible AC Transmission System Market, Based on Region:
Asia-Pacific region is expected to have huge opportunities for the investors to grow in the coming years
In 2019, North America region was the largest market for flexible AC transmission systems; it is estimated to continue its growth and reach $715.5 million by 2027. Increasing demand for grid modernization due to continuous developments in energy utility is the major driver for the market growth in the North America region. In addition, growing investments on replacement of existing energy transmission & distribution infrastructures with superior quality integration of renewable sources in the power grids are predicted to boost the market growth in the North America. For example, in 2018, U.S. department of energy has invested about $220 million to modernize the country’s power grid systems infrastructure.
To explore more about flexible AC transmission system market, get in touch with our analysts here.
Key Participants in the Global Flexible AC Transmission System Market:
Product development along with joint ventures are the most frequent strategies followed by the market players
Source: Research Dive Analysis
The top gaining key participants in the global flexible AC transmission system market include ABB, Adani Group, Alstom, cgglobal.com, Eaton, General Electric, HYOSUNG, Mitsubishi Electric Corporation, NR Electric Co., Ltd. and Siemens. These major participants are concentrating on organic and inorganic growth tactics such as mergers & acquisitions and product to increase competitive edge in the global flexible AC transmission system industry.
Porter’s Five Forces Analysis for Flexible AC Transmission System Market:
- Bargaining Power of Suppliers: Significant providers in the flexible AC transmission system market are using bargaining power to achieve huge costs of the systems. The transferring price between the suppliers is predicted to be high. Thereby, the bargaining power of suppliers is MODERATE.
- Bargaining Power of consumers: Increasing requirement of FACTS devices in railway, electric utility and other are generating huge demand for these devices. Implementation & maintenance cost is predicted to be high. These factors are delivering bargaining power of the consumer is MODERATE.
- Threat of New Entrants: The market requires huge initial investments, but government favorable factors to advanced modernize the power grids are creating ample investment opportunities in the global market. The threat of new entrants is MODERATE.
- Threat of Substitutes: The threat of the substitutes products is expected to low because the unavailability of alternative products and key manufacturers are concentration on developing of innovative products. The threat of substitutes is LOW.
- Competitive Rivalry in the Market: This market has high number of key participants and these contributors are emphasizing on new technology introductions to advance the product quality and performance to rise their position in the global market. The competitive rivalry in the industry is HIGH.
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Aspect |
Particulars |
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Historical Market Estimations |
2019-2019 |
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Base Year for Market Estimation |
2019 |
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Forecast timeline for Market Projection |
2019-2027 |
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Geographical Scope |
North America, Europe, Asia-Pacific, LAMEA |
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Segmentation by Compensation Type
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Segmentation by Controller
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Segmentation by Industry Vertical |
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Key Countries covered |
U.S., Canada, Germany, UK, Italy, Spain, Russia, Japan, China, India, South Korea, Australia, Brazil, Argentina, GCC and Saudi Arabia |
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Key Companies Profiled |
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Q1. What is the size of flexible AC transmission system Market?
A. The global flexible AC transmission system market size was over $641.3 million in 2019 and is further anticipated to reach $1,229.6 million by 2027.
Q2. Who are the leading companies in the flexible AC transmission system market?
A. ABB, Alstom, Eaton, General Electric and Siemens are some of the key players in the global flexible AC transmission system market.
Q3. Which region possess greater investment opportunities in the coming future?
A. Asia-Pacific possess great investment opportunities for the investors to witness the most promising growth in the coming years.
Q4. What is the growth rate of the Asia-Pacific market?
A. The Asia-Pacific market flexible AC transmission system market is anticipated to grow at 9.4% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Product development and joint ventures are the key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. ABB, General Electric and Siemens are investing more on R&D activities for developing new products and technologies.
1. Research Methodology
1.1. Desk Research
1.2. Real time insights and validation
1.3. Forecast model
1.4. Assumptions and forecast parameters
1.4.1. Assumptions
1.4.2. Forecast parameters
1.5. Data sources
1.5.1. Primary
1.5.2. Secondary
2. Executive Summary
2.1. 360° summary
2.2. Compensation type trends
2.3. Controller trends
2.4. Industry vertical trends
3. Market Overview
3.1. Market segmentation & definitions
3.2. Key takeaways
3.2.1. Top investment pockets
3.2.2. Top winning strategies
3.3. Porter’s five forces analysis
3.3.1. Bargaining power of consumers
3.3.2. Bargaining power of suppliers
3.3.3. Threat of new entrants
3.3.4. Threat of substitutes
3.3.5. Competitive rivalry in the market
3.4. Market dynamics
3.4.1. Drivers
3.4.2. Restraints
3.4.3. Opportunities
3.5. Technology landscape
3.6. Regulatory landscape
3.7. Patent landscape
3.8. Pricing overview
3.8.1. By compensation type
3.8.2. By controller
3.8.3. By industry vertical
3.8.4. By region
3.9. Market value chain analysis
3.9.1. Stress point analysis
3.9.2. Raw material analysis
3.9.3. Manufacturing process
3.9.4. Distribution channel analysis
3.9.5. Operating vendors
3.9.5.1. Raw material suppliers
3.9.5.2. Product manufacturers
3.9.5.3. Product distributors
3.10. Strategic overview
4. Flexible AC Transmission System Market, by Compensation Type
4.1. Series Compensation
4.1.1. Market size and forecast, by region, 2019-2027
4.1.2. Comparative market share analysis, 2019 & 2027
4.2. Shunt Compensation
4.2.1. Market size and forecast, by region, 2019-2027
4.2.2. Comparative market share analysis, 2019 & 2027
4.3. Combines Series-Shunt Compensation
4.3.1. Market size and forecast, by region, 2019-2027
4.3.2. Comparative market share analysis, 2019 & 2027
5. Flexible AC Transmission System Market, by Controller
5.1. STATCOM
5.1.1. Market size and forecast, by region, 2019-2027
5.1.2. Comparative market share analysis, 2019 & 2027
5.2. SVC
5.2.1. Market size and forecast, by region, 2019-2027
5.2.2. Comparative market share analysis, 2019 & 2027
5.3. UPFC
5.3.1. Market size and forecast, by region, 2019-2027
5.3.2. Comparative market share analysis, 2019 & 2027
5.4. TCSC
5.4.1. Market size and forecast, by region, 2019-2027
5.4.2. Comparative market share analysis, 2019 & 2027
5.5. Others
5.5.1. Market size and forecast, by region, 2019-2027
5.5.2. Comparative market share analysis, 2019 & 2027
6. Flexible AC Transmission System Market, by Industry Vertical
6.1. Oil and Gas
6.1.1. Market size and forecast, by region, 2019-2027
6.1.2. Comparative market share analysis, 2019 & 2027
6.2. Electric Utility
6.2.1. Market size and forecast, by region, 2019-2027
6.2.2. Comparative market share analysis, 2019 & 2027
6.3. Railways
6.3.1. Market size and forecast, by region, 2019-2027
6.3.2. Comparative market share analysis, 2019 & 2027
6.4. Others
6.4.1. Market size and forecast, by region, 2019-2027
6.4.2. Comparative market share analysis, 2019 & 2027
7. Flexible AC Transmission System Market, by Region
7.1. North America
7.1.1. Market size and forecast, by compensation type, 2019-2027
7.1.2. Market size and forecast, by controller, 2019-2027
7.1.3. Market size and forecast, by industry vertical, 2019-2027
7.1.4. Market size and forecast, by country, 2019-2027
7.1.5. Comparative market share analysis, 2019 & 2027
7.1.6. U.S.
7.1.6.1. Market size and forecast, by compensation type, 2019-2027
7.1.6.2. Market size and forecast, by controller, 2019-2027
7.1.6.3. Market size and forecast, by industry vertical, 2019-2027
7.1.6.4. Comparative market share analysis, 2019 & 2027
7.1.7. Canada
7.1.7.1. Market size and forecast, by compensation type, 2019-2027
7.1.7.2. Market size and forecast, by controller, 2019-2027
7.1.7.3. Market size and forecast, by industry vertical, 2019-2027
7.1.7.4. Comparative market share analysis, 2019 & 2027
7.1.8. Mexico
7.1.8.1. Market size and forecast, by compensation type, 2019-2027
7.1.8.2. Market size and forecast, by controller, 2019-2027
7.1.8.3. Market size and forecast, by industry vertical, 2019-2027
7.1.8.4. Comparative market share analysis, 2019 & 2027
7.2. Europe
7.2.1. Market size and forecast, by compensation type, 2019-2027
7.2.2. Market size and forecast, by controller, 2019-2027
7.2.3. Market size and forecast, by industry vertical, 2019-2027
7.2.4. Market size and forecast, by country, 2019-2027
7.2.5. Comparative market share analysis, 2019 & 2027
7.2.6. Germany
7.2.6.1. Market size and forecast, by compensation type, 2019-2027
7.2.6.2. Market size and forecast, by controller, 2019-2027
7.2.6.3. Market size and forecast, by industry vertical, 2019-2027
7.2.6.4. Comparative market share analysis, 2019 & 2027
7.2.7. UK
7.2.7.1. Market size and forecast, by compensation type, 2019-2027
7.2.7.2. Market size and forecast, by controller, 2019-2027
7.2.7.3. Market size and forecast, by industry vertical, 2019-2027
7.2.7.4. Comparative market share analysis, 2019 & 2027
7.2.8. France
7.2.8.1. Market size and forecast, by compensation type, 2019-2027
7.2.8.2. Market size and forecast, by controller, 2019-2027
7.2.8.3. Market size and forecast, by industry vertical, 2019-2027
7.2.8.4. Comparative market share analysis, 2019 & 2027
7.2.9. Spain
7.2.9.1. Market size and forecast, by compensation type, 2019-2027
7.2.9.2. Market size and forecast, by controller, 2019-2027
7.2.9.3. Market size and forecast, by industry vertical, 2019-2027
7.2.9.4. Comparative market share analysis, 2019 & 2027
7.2.10. Italy
7.2.10.1. Market size and forecast, by compensation type, 2019-2027
7.2.10.2. Market size and forecast, by controller, 2019-2027
7.2.10.3. Market size and forecast, by industry vertical, 2019-2027
7.2.10.4. Comparative market share analysis, 2019 & 2027
7.2.11. Rest of Europe
7.2.11.1. Market size and forecast, by compensation type, 2019-2027
7.2.11.2. Market size and forecast, by controller, 2019-2027
7.2.11.3. Market size and forecast, by industry vertical, 2019-2027
7.2.11.4. Comparative market share analysis, 2019 & 2027
7.3. Asia Pacific
7.3.1. Market size and forecast, by compensation type, 2019-2027
7.3.2. Market size and forecast, by controller, 2019-2027
7.3.3. Market size and forecast, by industry vertical, 2019-2027
7.3.4. Market size and forecast, by country, 2019-2027
7.3.5. Comparative market share analysis, 2019 & 2027
7.3.6. China
7.3.6.1. Market size and forecast, by compensation type, 2019-2027
7.3.6.2. Market size and forecast, by controller, 2019-2027
7.3.6.3. Market size and forecast, by industry vertical, 2019-2027
7.3.6.4. Comparative market share analysis, 2019 & 2027
7.3.7. India
7.3.7.1. Market size and forecast, by compensation type, 2019-2027
7.3.7.2. Market size and forecast, by controller, 2019-2027
7.3.7.3. Market size and forecast, by industry vertical, 2019-2027
7.3.7.4. Comparative market share analysis, 2019 & 2027
7.3.8. Japan
7.3.8.1. Market size and forecast, by compensation type, 2019-2027
7.3.8.2. Market size and forecast, by controller, 2019-2027
7.3.8.3. Market size and forecast, by industry vertical, 2019-2027
7.3.8.4. Comparative market share analysis, 2019 & 2027
7.3.9. Australia
7.3.9.1. Market size and forecast, by compensation type, 2019-2027
7.3.9.2. Market size and forecast, by controller, 2019-2027
7.3.9.3. Market size and forecast, by industry vertical, 2019-2027
7.3.9.4. Comparative market share analysis, 2019 & 2027
7.3.10. Rest of Asia Pacific
7.3.10.1. Market size and forecast, by compensation type, 2019-2027
7.3.10.2. Market size and forecast, by controller, 2019-2027
7.3.10.3. Market size and forecast, by industry vertical, 2019-2027
7.3.10.4. Comparative market share analysis, 2019 & 2027
7.4. LAMEA
7.4.1. Market size and forecast, by compensation type, 2019-2027
7.4.2. Market size and forecast, by controller, 2019-2027
7.4.3. Market size and forecast, by industry vertical, 2019-2027
7.4.4. Market size and forecast, by country, 2019-2027
7.4.5. Comparative market share analysis, 2019 & 2027
7.4.6. Latin America
7.4.6.1. Market size and forecast, by compensation type, 2019-2027
7.4.6.2. Market size and forecast, by controller, 2019-2027
7.4.6.3. Market size and forecast, by industry vertical, 2019-2027
7.4.6.4. Comparative market share analysis, 2019 & 2027
7.4.7. Middle East
7.4.7.1. Market size and forecast, by compensation type, 2019-2027
7.4.7.2. Market size and forecast, by controller, 2019-2027
7.4.7.3. Market size and forecast, by industry vertical, 2019-2027
7.4.7.4. Comparative market share analysis, 2019 & 2027
7.4.8. Africa
7.4.8.1. Market size and forecast, by compensation type, 2019-2027
7.4.8.2. Market size and forecast, by controller, 2019-2027
7.4.8.3. Market size and forecast, by industry vertical, 2019-2027
7.4.8.4. Comparative market share analysis, 2019 & 2027
8. Company Profiles
8.1. ABB LTD.
8.1.1. Business overview
8.1.2. Financial performance
8.1.3. Product portfolio
8.1.4. Recent strategic moves & developments
8.1.5. SWOT analysis
8.2. ADANI POWER LIMITED
8.2.1. Business overview
8.2.2. Financial performance
8.2.3. Product portfolio
8.2.4. Recent strategic moves & developments
8.2.5. SWOT analysis
8.3. ALSTOM SA
8.3.1. Business overview
8.3.2. Financial performance
8.3.3. Product portfolio
8.3.4. Recent strategic moves & developments
8.3.5. SWOT analysis
8.4. CG POWER AND INDUSTRIAL SOLUTIONS LIMITED
8.4.1. Business overview
8.4.2. Financial performance
8.4.3. Product portfolio
8.4.4. Recent strategic moves & developments
8.4.5. SWOT analysis
8.5. EATON CORPORATION PLC
8.5.1. Business overview
8.5.2. Financial performance
8.5.3. Product portfolio
8.5.4. Recent strategic moves & developments
8.5.5. SWOT analysis
8.6. GENERAL ELECTRIC
8.6.1. Business overview
8.6.2. Financial performance
8.6.3. Product portfolio
8.6.4. Recent strategic moves & developments
8.6.5. SWOT analysis
8.7. HYOSUNG CORPORATION
8.7.1. Business overview
8.7.2. Financial performance
8.7.3. Product portfolio
8.7.4. Recent strategic moves & developments
8.7.5. SWOT analysis
8.8. MITSUBISHI ELECTRIC CORPORATION
8.8.1. Business overview
8.8.2. Financial performance
8.8.3. Product portfolio
8.8.4. Recent strategic moves & developments
8.8.5. SWOT analysis
8.9. NR ELECTRIC CO., LTD.
8.9.1. Business overview
8.9.2. Financial performance
8.9.3. Product portfolio
8.9.4. Recent strategic moves & developments
8.9.5. SWOT analysis
8.10. SIEMENS AGF
8.10.1. Business overview
8.10.2. Financial performance
8.10.3. Product portfolio
8.10.4. Recent strategic moves & developments
8.10.5. SWOT analysis
Flexible AC transmission systems or FACTS are power electronic-based system, poised of static equipment, which is used for the electrical energy’s AC transmission. FACTS provide power transfer ability and collective controllability of the network, and also results in reduced power supply costs. However, the complexity in networks has amplified the issues in power supply quality, reliability, and flexibility.
In a flexible AC transmission system, the capability to transfer AC power is limited by various factors such as thermal limits, short circuit current limit, voltage limit, transient stability limit, etc. These limits define the maximum electric power, which can be effectively transmitted through the transmission line devoid of causing any damage to the transmission lines and electrical equipment.
COVID-19 Impact and Key Developments in the Global Market
The COVID-19 pandemic has negatively impacted the global flexible AC transmission systems market owing to the restrictions imposed on passengers on travelling through railways in order to spot the coronavirus spread. However, the prominent players of the market are adopting several strategies such as business and geographical expansion to sustain in the pandemic period.
For instance, in May 2020, GE energized first-of-its-kind and the biggest STATCOM scheme in Europe for National Grid in the UK. The ‘DRC’ (Dynamic Reactive Compensator) scheme is corresponded across three separate sites in the UKs National Grid network. The STATCOM scheme by the company delivers enhanced operator reliability and greater network stability to support the development of interconnectors with Europe
Moreover, the major market players are adopting numerous growth strategies such as partnerships, mergers & acquisitions, collaborations, and business expansion to obtain a robust position in the overall market, which is ultimately supporting the flexible AC transmission market to grow at a swift pace.
For instance, Rongxin Huiko Electric (RXHK), in October 2019 received a contract to deliver 1 set of converter valves: ±400kV 1,100MW VSC HVDC for China’ demonstration project namely Three Gorges’ (CGN)/CTG Rudong Offshore Wind Farm. The equipment and construction installation are anticipated to be scheduled by 2020.
In July 2020, ABB completed the divestment of 80.1% of its Power Grids business to Hitachi. The divestment enables ABB to focus on customer needs and key market trends such as the electrification of transport, digital solutions, automated manufacturing, and enhanced sustainable productivity.
Forecast Analysis of Flexible AC Transmission Systems Market
Global flexible AC transmissions systems market is anticipated to witness a robust growth over the period of forecast owing to the increasing demand for transmission systems across the globe to transfer, accommodate, and carry bulk electrical energy mainly in railway sector. Moreover, the continuous developments in FACTS devices is estimated to create massive growth opportunities in the global market. Conversely, high investments costs are required initially in the incorporation of flexible AC transmission systems is predicted to restrict the market growth over the forecast period.
The rise in demand for advanced energy systems controllability and huge investments in the development of power transmission systems are the main factors anticipated to bolster the growth of the global flexible AC transmission systems market by 2027. Research Dive in its latest published report estimates that the flexible AC transmission market will generate a revenue of $1,229.6 million throughout the forecast period. The North America region is likely to hold a dominant share in the global market in the projected timeframe primarily due to the increasing investments on replacement of existed energy transmission and distribution infrastructures with high-quality integration of energy renewable sources. The major players of the global industry include ABB, Adani Group, Alstom, cgglobal.com, Eaton, General Electric, HYOSUNG, Mitsubishi Electric Corporation, NR Electric Co., Ltd. and Siemens.
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