Flexible AC Transmission System (FACTS) Market Report 2026

The flexible ac transmission system (facts) market size has grown strongly in recent years. It will grow from $1.45 billion in 2025 to $1.54 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to increasing demand for stable power transmission, adoption of early shunt and series compensators, expansion of industrial and utility power networks, need for voltage regulation and oscillation damping, growing integration of high-capacity transmission lines.

The flexible ac transmission system (facts) market size is expected to see strong growth in the next few years. It will grow to $2.01 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to rising adoption of renewable energy integration, growth in smart grid deployments, increasing need for dynamic power flow control, expansion of industrial and railway electrification, advancements in real-time monitoring and voltage stabilization technologies. Major trends in the forecast period include deployment of statcom and svc solutions for voltage regulation, adoption of upfc and tcsc for transmission capacity enhancement, integration of advanced power flow control and stabilization tools, implementation of real-time monitoring and control systems, expansion of facts solutions for industrial and renewable applications.

The expansion of grid infrastructure is expected to drive the growth of the flexible AC transmission systems market in the future. Grid infrastructure comprises power plants, power lines, and substations. Flexible AC Transmission Systems (FACTS) are implemented within this infrastructure to enhance transmission line capacity and improve system stability by reducing the transfer reactance of power lines. For example, in September 2024, the International Energy Agency, a France-based intergovernmental organization, reported an approximate 8% increase in electricity grid investment in 2022. It also noted that investment in smart grids must more than double by 2030 to meet the target of achieving Net Zero Emissions by 2050. Thus, the expansion of grid infrastructure is propelling the growth of the flexible AC transmission systems market moving forward.

The integration of renewable energy is poised to further drive the growth of the flexible AC transmission systems market. Renewable energy is derived from sources that are naturally replenished and considered sustainable over the long term. Flexible AC Transmission Systems (FACTS), including technologies such as Static Vary Compensators (SVCs) and Static Synchronous Compensators (STATCOMs), plays a pivotal role in enhancing grid stability by dynamically controlling voltage and reactive power. This is particularly beneficial for accommodating fluctuations from renewable sources. In 2023, the Energy Information Administration reported that renewable energy sources supplied 25% of the United States' electrical generation in the first half of the year, with solar power contributing 5.77%. The integration of renewable energy into the electrical grid is facilitated by FACTS technologies, optimizing power flow and improving system reliability. This integration enhances grid flexibility and maximizes the utilization of renewable resources, thereby driving the flexible AC transmission systems market.

Major players in the flexible AC transmission systems market are strategically forming partnerships to sustain their market positions. Collaborations in the field of FACTS can accelerate technological advancements, reduce costs, mitigate risks, and foster a more efficient implementation of these systems in power grid infrastructure, benefiting both the industry and consumers. For instance, in September 2023, Hitachi, a Japan-based company with diverse business sectors, including power systems and electronic systems, collaborated with TenneT, a Europe-based transmission system operator. This partnership aims to expedite the development of Germany's transmission grid as part of the broader objective to facilitate the energy transition. The collaboration leverages sustainable and high-performing equipment to modernize and enhance the capacity and stability of the power grid.

Major companies operating in the flexible ac transmission system (facts) market are ABB Ltd., Alstom SA, Mitsubishi Electric Corporation, CG Power and Industrial Solutions Limited, General Electric Company, Siemens AG, Eaton Corporation plc, NR Electric Co Ltd, Liaoning Rongxin Xingye Power Technology Co Ltd, Toshiba Corporation, S&C Electric Company, Arteche Group, Rongxin Power Electronic Co Ltd, Sieyuan Electric Co Ltd, Fuji Electric Co Ltd, LSIS Co Ltd, Bharat Heavy Electricals Limited, Schneider Electric SE, Hyosung Heavy Industries Corporation, Hitachi ABB Power Grids Ltd., Crompton Greaves Limited.

North America was the largest region in the flexible AC transmission systems (FACTS) market in 2025. Europe is expected to be the fastest-growing region in the global flexible AC transmission systems market during the forecast period. The regions covered in the flexible ac transmission system (facts) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the flexible ac transmission system (facts) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The flexible AC transmission systems market consists of revenues earned by entities by providing services such as power flow control, voltage control, power conditioning, power quality improvement, and stability improvement. The market value includes the value of related goods sold by the service provider or included within the service offering. The flexible AC transmission systems market also includes sales of shunt controllers, series controllers, and phase angle controllers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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