|Status : Published||Published On : Jul, 2021||Report Code : VRSME9044||Industry : Semiconductor & Electronics||Available Format :||Page : 200|
The global flexible AC transmission system market is anticipated to reach USD 1.7 billion by 2027 from USD 1.22 billion in 2020, thus expected to grow at a CAGR of 5.6% during the forecast period 2021-2027.
Flexible AC Transmission System (FACTS) is a power electronics-based system composed of static equipment used to transmit AC power. It aims to improve the controllability and increase the power transmission capacity of the network. The global flexible AC transmission system (FACTS) market is anticipated to grow significantly owing to an increase in demand for modern energy systems and an increase in investments for energy transmission systems. Flexible AC transmission systems support dynamic reactive or inductive power, improves system stability, and controls real and reactive power to the grid. This ensures efficient machine operation and increases system utilization. Nevertheless, an increase in penetration of FACTS as a lucrative electric transmission technology will meet the demand for a reliable supply of power, supports environmental sustainability, and brings cost and financial advantage.
The global FACTS market has a negative impact due to the COVID-19 pandemic. The major sector affected by this coronavirus is the railways. The railway operations were halted across the globe to restrict the movement of people and reduce the infection rate of the COVID-19 disease. Nevertheless, governments of various countries are taking initiatives to modernize and ramp up the railway sector. For example, in July 2020, the Indian government launched about 200 railway maintenance projects to improve railway safety and increase train speeds by modernizing existing railway infrastructure.
Insight by Compensation Type
On the basis of compensation type, the global flexible AC transmission system market is segmented into shunt compensation, series compensation, combined series-shunt compensation. Among these segments, the series compensation will hold the largest share in the global FACTS markets by 2027 due to the rising utilization of series systems in enhancing the power transfer capabilities of novel transmission lines and existing infrastructure. The emergence of series compensation systems can play a major role in augmenting the stability and quality of the energy transmissions lines, which will propel the growth of the FACTS market globally.
Insight by Controller
On the basis of the controller, the global flexible AC transmission system market is categorized into STATCOM (static synchronous compensator), SVC (static var compensator), UPFC (unified power flow controller), TCSC (thyristor-controlled series compensator), and others. Among these categories, the SVC controller segment is projected to have a lucrative growth, owing to its capability to limit voltage functions, power oscillations, resonance for unbalanced loads to fine-tune the active and reactive supply, thus infusing a positive outlook for using SVC in industries.
Insight by Application
On the basis of application, the global flexible AC transmission system market is bifurcated into voltage control and power control. Voltage control dominates the market Shunt compensation is used for voltage control applications. Static VAR compensator and STATCOM are adopted to stabilize the network voltage. Companies like GE, American Superconductor, and NR Electric are focused on voltage control applications. Therefore, the utility of shunt compensation in voltage control applications and the rising interest of major players in the FACTS of voltage control applications are driving the market.
Insight by Voltage
Based on voltage, the flexible AC transmission system market is divided into 132kV to 220 kV, more than 220 kV to 660KV, and more than 660 kV. More than 220 kV to 660 kV are gaining significant impetus in retrofitting of small-scale industrial platforms and large-scale commercial facilities in developing countries. Moreover, migration to the suburbs also leads to the growth of large housing estates and high-rise apartments which promotes product penetration. Thus, driving the demand for the FACTS market.
Insight by Vertical
On the basis of vertical, the global flexible AC transmission system market is divided into oil & gas, utilities, renewables, railways, and industrial. The use of FACTS in electrical utilities will dominate the market as it provides a cost-effective solution to reduce the pressure on existing transmission lines and saves the high investment costs required to build a new network. Companies like ABB, GE, and Siemens offer FACTS to utilities due to the high demand for electricity generation worldwide.
The rise in investment for the development of power transmission systems and the increasing demand for advanced controllability of energy systems are the trends that will propel the growth of the global flexible AC transmission system market. Furthermore, consumer tendencies toward a safer living environment coupled with longer lifespans in energy infrastructure further stimulate the industry's prospects.
The global flexible Ac transmission system market is experiencing rapid growth owing to increasing investment for modernization of transmission lines and rising demand for advanced controllability of energy systems. These two factors have played a substantial role in system stability and reactive power support, which augments the demand for FACTS devices. Harmonic minimization, rapid voltage regulation, improved energy supply, and short-term amortization are estimated to drive the growth of the flexible AC transmission system market during the forecast period.
The high initial investment for the incorporation and installation of FACTS devices will hamper the market growth. There is a lack of awareness regarding the advantages and capabilities of FACTS in emerging economies that act as a restraint for the growth of the flexible AC transmission systems market.
The rising trend for the generation of electricity from renewable sources owing to government regulations along with an increase in awareness regarding the environmental population is anticipated to create many opportunities for the growth of the flexible AC transmission systems market during the forecast period.
Europe accounts for the largest share of the flexible AC transmission systems market in 2020 owing to increasing industrial production, expanding population resulting in an increase in demand for electricity, and government regulations for carbon-free power transmission and grid code in Europe thus will boost the FACTS market in this region. North America will have a steady growth during the forecast period owing to increasing investment in the advancement of smart-grid networks and refurbishments of old electric infrastructure. Asia-Pacific is estimated to have healthy growth and provide huge opportunities to investors to grow in the projected period.
Key players in the flexible AC transmission systems market are focusing on organic and inorganic strategies such as mergers & acquisitions, product development, R&D, tie-ups & collaborations to have a competitive edge in the global market.
GE Renewable Energy's grid solutions business has fueled the Dynamic Reactive Compensator (DRC) project for the UK's National Grid. The project is part of Europe's largest utility-level STATCOM initiative.
Some of the key players operating in the flexible AC transmission system market: Siemens, ABB, NR Electric Co., Ltd., General Electric, Mitsubishi Electric Corporation, HYOSUNG HEAVY INDUSTRIES, Adani Group, Alstom, CG Power and Industrial Solutions Limited, and Infineon Technologies AG.