North America Power Factor Correction Market by Reactive Power, Type, Sales Channel, Application, and Region - Global Trends & Forecast to 2030

The North America power factor correction market is projected to reach USD 999.1 million by 2030 from an estimated USD 734.2 million in 2025, at a CAGR of 6.2% during the forecast period (2025-2030). Rising energy costs and stringent regulations are pushing industries like manufacturing, oil & gas, and HVAC to adopt advanced PFC solutions, such as capacitors and automatic control systems, to minimize reactive power, reduce energy losses, and enhance system reliability.

OEM direct is expected to be the fastest-growing segment during the forecast period.

The OEM direct segment is projected to register the highest growth in the North America power factor correction market due to its role in delivering tailored, energy-efficient solutions directly to manufacturers. With rapid industrial growth in sectors like oil & gas, manufacturing, and water treatment, OEMs are increasingly integrating advanced PFC technologies into their equipment to meet energy efficiency standards, reduce operational costs, and improve power quality, thereby driving segment growth.

Automatic segment to be largest type in North America power factor correction market

The automatic segment is anticipated to lead the overall power factor correction market in the North America due to its ability to dynamically adjust power factor in real-time, ensuring optimal energy efficiency across various industries. Automatic systems, such as capacitor banks with intelligent controllers, are widely adopted in sectors like oil & gas, manufacturing, and HVAC, where they minimize reactive power, reduce energy losses, and enhance system reliability, making them a preferred choice for modern power management.

US to register highest CAGR in North America power factor correction market

The US is projected to be the fastest-growing power factor correction market in the North America region driven by rapid industrialization, infrastructure development, and a strong focus on energy efficiency. The increasing demand for power quality in industries such as manufacturing, mining, and water treatment, along with supportive government initiatives promoting energy conservation, is fueling the adoption of advanced power factor correction solutions across the country.

In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess market prospects. The distribution of primary interviews is as follows:

• By Company Type: Tier 1 - 45%, Tier 2 - 30%, and Tier 3 - 25%
• By Designation: C-Level - 35%, Director Levels - 25%, and Others - 40%
• Note 1: Others include sales managers, engineers, and regional managers.- Note 2: The tiers of the companies are defined based on their total revenues as of 2023. Tier 1: greater than USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: less than USD 500 million.

Eaton Corporation plc (Ireland), GE Vernova (US), Schneider Electric (France), ABB (Switzerland), and Gentec (Canada) are some of the key players in the North America power factor correction market.

The study includes an in-depth competitive analysis of these key players in the North America power factor correction market, with their company profiles, recent developments, and key market strategies.

Research Coverage:

The report defines, describes, and forecasts the North America power factor correction market by type (Automatic, Fixed), by sales channel (Distributors, OEM direct), by reactive power (0-200 KVAr, 200-500 KVAr, 500-1,500 KVAr, Above 1500 KVAr), by application (Industrial, Renewable, Commercial, Data Center, and EV Charging), and by region (North America). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the North America power factor correction market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies such as contracts, investments, partnerships, collaborations, joint ventures, agreements, new product & service launches, and mergers & acquisitions; and recent developments associated with the North America power factor correction market.

Key Benefits of Buying the Report

• Analysis of key drivers (Increasing investments in clear energy projects, Rising deployment of low-voltage PFC systems in industrial facilities), restraints (High initial installation cost of PFC systems), opportunities (Introduction of incentive schemes by governments for adopting energy saving technologies, Growing inclination toward smart grid deployment, Elevating demand for electric vehicles), and challenges (Complexities associated with integrating PFC systems into existing infrastructure) influencing the growth of the power factor correction market.
• Product Development/Innovation: With a focus on energy efficiency and regulatory compliance, manufacturers in North America are advancing power factor correction (PFC) technologies. Companies are innovating by developing high-performance capacitors and control systems designed to meet the specific needs of the region’s industrial and commercial sectors. These advancements aim to enhance power quality, reduce energy losses, and integrate seamlessly with modern infrastructure, driving broader adoption in applications like manufacturing and HVAC systems during the forecast period.
• Market Diversification: In August 2023, Eaton invested over USD 500 million to increase the manufacturing of electrical solutions and meet the surging demand for these solutions from the North American industries. This substantial investment aims to expedite the energy transition and digitalization in utilities, commercial, healthcare, industrial, and residential sectors.
• Market Development: The power factor correction market is driven by increasing emphasis on energy efficiency, regulatory compliance, and sustainable power management. Supportive government policies promoting reduced energy consumption and the rising adoption of PFCs in industrial and commercial applications, such as oil & gas and manufacturing are driving the power factor correction market.
• Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players such as Eaton Corporation plc (Ireland), GE Vernova (US), Schneider Electric (France), ABB (Switzerland), and Gentec (Canada), among others, in the North America power factor correction market.