STATCOM Market Size to Hit USD 941.2 Million, at a CAGR 5.8% by 2029 | Fortune Business Insights
Fortune Business Insights
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Fortune Business Insights
Global STATCOM Market to Reach USD 941.2 Million by 2029 | Rising Product Demand in Utility Sector Due to Growing Adoption for Voltage Stability: Fortune Business Insights™
Pune, India, Aug. 31, 2023 (GLOBE NEWSWIRE) -- The global STATCOM market size was USD 603.3 million in 2021 and is expected to reach USD 941.2 million by 2029, exhibiting a CAGR of 5.8% from 2022 to 2029. The growth can be attributed to a substantial increase in the development of smart grid infrastructure and smart meter roll-outs. This information is cited by Fortune Business Insights™ in its research report, titled “STATCOM Market, 2022-2029”.
Market Drivers and Restraints:
Industry Revenue to Surge Driven by Increasing Adoption of Flexible AC Transmission System (FACTS) Devices
The global STATCOM market growth can be attributed to the escalating adoption of FACTS devices for maintaining voltage stability in power systems. The devices are being made from technologies that are capable of altering phase angle, impedance, and voltage at specific points in power systems.
However, the industry expansion is likely to be hindered by the surging usage of Static Var Compensator, a substitute product. STATCOM has greater effectiveness in the improvement of transmission limit and transient stability and damping low-frequency oscillation.
Increased Focus on Voltage Stability to Drive the STATCOM Market Growth
Promising Transmission & Distribution Network Expansions to Boost Market Growth
COVID-19 Impact:
Frozen Steel Production and Decreasing Railway Electrification During the Pandemic Impacted the Market
The global impact of COVID-19 on the market is moderate, as it hampered the growth rate of STATCOM and power grid installation due to supply chain disruption of raw materials and hindrance in activities due to social distancing norms. The imposition of travel restrictions hampered the rail sector, affecting the progress of electrification projects. The slowdown of industrial activity hampered steel demand, affecting steel production, affecting the market for STATCOMs in the steel manufacturing sector. Amid increasing efforts for renewable energy development over the COVID-19 period, the requirement for robust power grids became evident.
Medium Voltage Segment to Record Substantial Adoption Due to Rising Demand for Voltage Stabilization
On the basis of type, the market is segmented into low voltage (less than 20 Mvar), medium voltage (20-100 Mvar), and high voltage (greater than 100 Mvar). The medium voltage segment is poised to register commendable expansion over the forecast period. The rise can be attributed to the growing support for poor power factor in utility transmission and distribution and the soaring demand for voltage stabilization.
Utility Segment to Register Notable Growth Owing to Surging Product Adoption for Voltage Stability
Based on end-user, the market is fragmented into steel manufacturing, renewable energy, railway, utility, and others. The utility segment is estimated to hold a substantial share in the market. The surge can be credited to the increasing product adoption for voltage stability.
On the basis of region, the market can be divided into Asia Pacific, Latin America, the Middle East & Africa, North America, and Europe.
Regional Insights:
Asia Pacific to Register Lucrative Growth Driven by Rising Consumption & Electricity Production
The Asia Pacific STATCOM market share held substantial expansion over the estimated period. This is attributed to the fact that the region accounted for a commendable share in the production and consumption of electricity. Besides, the region has the largest capacity for the generation of renewable energy and is home to several global and regional steel manufacturers.
The European region held an appreciable share in the global market. The surge can be credited to the escalating demand for renewable electricity and a rise in the development of smart grid infrastructure.
Industry Players Enter into Collaborations & Partnership Agreements to Strengthen Market Position
Major market participants are entering into partnership agreements and collaborations for strengthening their industry presence. Further, many companies are focusing on a series of initiatives including mergers, acquisitions, and product developments for consolidating their market position. Some of the additional steps comprise surging participation in trade conferences.
Key Industry Development:
September 2021 – Siemens Energy announced plans for the provision of four STATCOM installations for LS Power Grid California’s substation projects. The step would be vital toward ensuring the reliability of the power grid as renewable sources get online.
September 2021 – Siemens Energy announced plans for the provision of four STATCOM installations for LS Power Grid California’s substation projects. The step would be vital toward ensuring the reliability of the power grid as renewable sources get online.
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