Flexible AC Transmission System (FACTS) Global Market Opportunities and Strategies to 2033

This report describes and explains the flexible AC transmission systems (FACTS) market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global flexible AC transmission systems (FACTS) market reached a value of nearly $1.3 billion in 2023, having grown at a compound annual growth rate (CAGR) of 3.7% since 2018. The market is expected to grow from $1.3 billion in 2023 to $1.7 billion in 2028 at a rate of 6.2%. The market is then expected to grow at a CAGR of 6.7% from 2028 and reach $2.4 billion in 2033.

Growth in the historic period resulted from the strong economic growth in emerging markets, initiatives aimed at modernizing aging power grid infrastructure and power quality issues such as voltage fluctuations and power surges. Factors that negatively affected growth in the historic period were complexity in integrating facts technologies into existing grid systems.

Going forward, the rise in demand for electricity, growing adoption of renewable energy sources, increased population density and urbanization and increasing industrialization across various sectors will drive the growth. Factor that could hinder the growth of the flexible AC transmission systems (FACTS) market in the future include shortage of skilled personnel proficient in facts technology.

The flexible AC transmission systems (FACTS) market is segmented by devices into static synchronous compensator (STATCOM), static var compensator (SVC), unified power flow controllers (UPFC), thyristor controlled series compensator (TCSC) and other devices. The static synchronous compensator (STATCOM) market was the largest segment of the flexible AC transmission systems (FACTS) market segmented by devices, accounting for 33.1% or $431.7 million of the total in 2023. Going forward, the other devices segment is expected to be the fastest growing segment in the flexible AC transmission systems (FACTS) market segmented by devices, at a CAGR of 7.8% during 2023-2028.

The flexible AC transmission systems (FACTS) market is segmented by controllers into shunt controllers, series controllers and combined controllers. The shunt controllers market was the largest segment of the flexible AC transmission systems (FACTS) market segmented by controllers, accounting for 63.3% or $824.5 million of the total in 2023. Going forward, the series controllers segment is expected to be the fastest growing segment in the flexible AC transmission systems (FACTS) market segmented by controllers, at a CAGR of 7.5% during 2023-2028.

The flexible AC transmission systems (FACTS) market is segmented by functionality into voltage control, network stabilization, transmission capacity and harmonic suppression. The voltage control market was the largest segment of the flexible AC transmission systems (FACTS) market segmented by functionality, accounting for 35.9% or $468.3 million of the total in 2023. Going forward, the voltage control segment is expected to be the fastest growing segment in the flexible AC transmission systems (FACTS) market segmented by functionality, at a CAGR of 6.8% during 2023-2028.

The flexible AC transmission systems (FACTS) market is segmented by application into utilities, renewables, industrial, railways and other applications. The utilities market was the largest segment of the flexible AC transmission systems (FACTS) market segmented by application, accounting for 66.1% or $860.9 million of the total in 2023. Going forward, the renewables segment is expected to be the fastest growing segment in the flexible AC transmission systems (FACTS) market segmented by application, at a CAGR of 8% during 2023-2028.

Asia Pacific was the largest region in the flexible AC transmission systems (FACTS) market, accounting for 36.3% or $473.1 million of the total in 2023. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the flexible AC transmission systems (FACTS) market will be Asia Pacific and North America where growth will be at CAGRs of 7.2% and 6.3% respectively. These will be followed by Western Europe and South America where the markets are expected to grow at CAGRs of 5.8% and 5.3% respectively.

The global flexible AC transmission systems (FACTS) market is highly concentrated, with a few large players dominating the market. The top ten competitors in the market made up to 78% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with other companies to consolidate their market positions across the globe, while others are distributing products. Hitachi was the largest competitor with a 22.2% share of the market, followed by General Electric Company with 15.7%, Mitsubishi Electric Corporation with 15%, Siemens AG with 9.5%, Bharat Heavy Electricals Limited with 6.6%, Infineon Technologies AG with 5.2%, NR Electric Co., Ltd. with 2.3%, Hyosung Heavy Industries with 0.6%, American Superconductor with 0.6% and Alstom SA with 0.3%.

The top opportunities in the flexible AC transmission systems (FACTS) market segmented by devices will arise in the static synchronous compensator (STATCOM) segment, which will gain $152.5 million of global annual sales by 2028. The top opportunities in the flexible AC transmission systems (FACTS) market segmented by functionality will arise in the voltage control segment, which will gain $182.4 million of global annual sales by 2028. The top opportunities in the flexible AC transmission systems (FACTS) market segmented by controller will arise in the shunt controllers segment, which will gain $259.5 million of global annual sales by 2028. The top opportunities in the flexible AC transmission systems (FACTS) market segmented by application will arise in the utilities segment, which will gain $290.1 million of global annual sales by 2028. The flexible AC transmission systems (FACTS) market size will gain the most in China at $127.7 million.

Market-trend-based strategies for the flexible AC transmission systems (FACTS) market include focus on integration of smart grid technologies in FACTS, focus on strategic partnerships and collaborations among market players, focus on integration of high voltage integrated circuit (HVIC) in FACTS and focus on product launches to increase the efficiency.

Player-adopted strategies in the flexible AC transmission systems (FACTS) market include focus on partnerships with major electricity companies to design and develop regional transmission systems, focus on strengthening its business capabilities through revamp projects and focus on strengthening its business capabilities by supplying HVDC equipment.

To take advantage of the opportunities, the analyst recommends the flexible AC transmission systems (FACTS) companies to focus on integrating smart grid technologies, focus on high voltage integrated circuit (HVIC) integration, focus on new product launches, focus on STATCOM and UPFC segments, focus on voltage control and harmonic suppression segments, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships, provide competitively priced offerings, focus on strategic pricing strategies for market leadership, participate in trade shows and events, continue to use B2B promotions and focus on renewables and utilities segments.