Static Synchronous Compensator (STATCOM) Global Market Report 2025

The static synchronous compensator (STATCOM) market size has grown strongly in recent years. It will grow from $1.08 billion in 2024 to $1.18 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth during the historic period can be credited to the increasing need for voltage regulation, rising investments in smart grid technologies, greater adoption of power electronics, the expansion of government initiatives aimed at grid modernization, and the effects of urbanization and industrial development.

The static synchronous compensator (STATCOM) market size is expected to see strong growth in the next few years. It will grow to $1.66 billion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The growth projected for the forecast period is driven by the increasing demand for voltage stability, rising investments in energy storage integration, a stronger focus on reducing transmission losses, the growing necessity for real-time grid monitoring and control, and continued investments in smart grid technologies. Key trends in the forecast period include the development of modular STATCOM designs, enhanced integration of advanced power electronics, innovations in real-time grid monitoring, incorporation with energy storage systems, and improvements in cooling technologies.

The increasing demand for renewable energy is expected to drive the growth of the static synchronous compensator (STATCOM) market in the future. Renewable energy comes from natural sources or processes that are continuously replenished and cannot be exhausted. This demand is largely fueled by growing concerns about climate change, prompting governments, businesses, and consumers to adopt cleaner energy alternatives to lower greenhouse gas emissions and combat global warming. STATCOM supports renewable energy integration by delivering fast and dynamic voltage regulation, which improves grid stability and power quality despite the fluctuating nature of renewable sources. For example, in December 2024, Eurostat, a Luxembourg-based government agency, reported that the share of energy from renewable sources in the European Union’s transport sector rose to 10.8% in 2023, up from 9.6% in 2022. Consequently, the rising demand for renewable energy is propelling the growth of the STATCOM market.

Leading companies in the static synchronous compensator (STATCOM) market are developing innovative solutions, such as alternating current transmission systems, to boost grid stability and power quality. Alternating current (AC) transmission systems transfer electricity over long distances using AC, creating a stable grid environment where STATCOMs can regulate voltage and enhance power quality through rapid reactive power compensation. For instance, in August 2024, GE Vernova Inc., a US-based energy equipment manufacturer and service provider, introduced the FACTSFLEX GFMe, an advanced STATCOM system that incorporates supercapacitor-based energy storage to improve grid stability and facilitate renewable energy integration. This solution tackles voltage fluctuations and frequency disturbances caused by the intermittent output of solar and wind power. By offering virtual inertia and grid-forming capabilities, the FACTSFLEX GFMe ensures reliable and efficient grid performance, especially in areas with weaker infrastructure or high levels of renewable energy penetration.

In March 2024, Renewable Energy Systems, a UK-based renewable energy firm, acquired Ingeteam’s renewable service division for an undisclosed sum. This acquisition aims to establish Renewable Energy Systems as the world’s largest independent, technology-neutral renewable energy services provider by broadening its operational reach, enhancing service capabilities across diverse renewable technologies, and accelerating the shift toward a zero-carbon energy future. Ingeteam Power Technology, S.A., based in Spain, manufactures electrical control equipment and supplies static synchronous compensators.

Major players in the static synchronous compensator (statcom) market are Mitsubishi Electric Corporation, Hitachi Energy Ltd., Siemens AG, General Electric Company (GE), ABB Ltd., Toshiba Corporation, Chint Group Corporation, Eaton Corporation plc, Bharat Heavy Electricals Limited (BHEL), Hyosung Heavy Industries Corporation, Sieyuan Electric Co. Ltd., CG Power and Industrial Solutions Limited, American Superconductor Corporation, LS Electric Co. Ltd., JEMA Energy S.A., HICO America, Merus Power Plc, NR Electric Co. Ltd., Comsys AB, ZDDQ Electric Co. Ltd.

Asia-Pacific was the largest region in the static synchronous compensator (STATCOM) market in 2024. The regions covered in static synchronous compensator (STATCOM) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the static synchronous compensator (STATCOM) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A Static Synchronous Compensator (STATCOM) is a power electronic device utilized in electrical power systems to control voltage and enhance stability by quickly injecting or absorbing reactive power. It connects in parallel (shunt) with the power system and employs voltage-source converters to produce a controllable AC voltage. This process helps maintain the desired voltage level, improve power factor, and increase overall system reliability. STATCOMs react rapidly and efficiently to grid changes, making them crucial for modern voltage control and power quality management.

The primary types of Static Synchronous Compensators (STATCOM) include low voltage STATCOM and high voltage STATCOM. A low voltage STATCOM regulates voltage and manages reactive power in low-voltage electrical systems, improving power quality and system stability. Its key components consist of power electronics, control systems, transformers, filters, and protection devices. The technology variants include voltage source converter (VSC) STATCOM, current source converter (CSC) STATCOM, and hybrid STATCOM. These systems are distributed through channels like original equipment manufacturers (OEMs) and aftermarket suppliers. They serve various end-users such as utility companies, industrial sectors, renewable energy developers, transportation, and commercial establishments.

The static synchronous compensator (STATCOM) market research report is one of a series of new reports that provides static synchronous compensator (STATCOM) market statistics, including the static synchronous compensator (STATCOM) industry global market size, regional shares, competitors with the static synchronous compensator (STATCOM) market share, detailed static synchronous compensator (STATCOM) market segments, market trends, and opportunities, and any further data you may need to thrive in the static synchronous compensator (STATCOM) industry. This static synchronous compensator (STATCOM) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The static synchronous compensator (STATCOM) market consists of revenues earned by entities by providing services such as reactive power compensation, voltage regulation, grid stability support, harmonic filtering, renewable energy integration support, transmission and distribution support, industrial power quality improvement, system design and engineering, installation and commissioning, and monitoring and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The static synchronous compensator (STATCOM) market also includes sales of voltage source converters, control systems, digital controllers, transformers, harmonic filters, and spare parts. 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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