Capacitor Bank Global Market Report 2025

The capacitor bank market size has grown strongly in recent years. It will grow from $3.77 billion in 2024 to $3.98 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth during the historic period can be attributed to increasing demand for power quality improvement, accelerating industrialization, expansion of transmission and distribution networks, integration of renewable energy sources, growing emphasis on energy efficiency, supportive government regulations, and the rise of smart grid infrastructure.

The capacitor bank market size is expected to see strong growth in the next few years. It will grow to $4.92 billion in 2029 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to the increasing integration of renewable energy sources, rising demand for efficient voltage regulation in electric vehicle charging infrastructure, ongoing industrial automation, deployment of energy storage systems, government incentives promoting power quality improvements, and the expansion of high-voltage transmission networks. Major trends during this period include the integration of smart grid technologies, widespread adoption of renewable energy systems, development of remote monitoring and diagnostic capabilities, use of environmentally friendly dielectric materials, miniaturization and more compact designs, incorporation of AI for predictive maintenance, and enhanced energy efficiency.

The rising adoption of renewable energy sources is expected to drive the growth of the capacitor bank market. Renewable energy refers to naturally replenished sources such as solar, wind, hydro, geothermal, and biomass. The increasing reliance on these sources is largely driven by government incentives and policies promoting clean energy solutions. Capacitor banks play a crucial role in renewable energy systems by stabilizing voltage, improving power factor, and managing reactive power fluctuations to ensure efficient energy transmission. For example, in February 2025, the World Resources Institute, a US-based nonprofit organization, reported that solar energy set a new annual record by adding approximately 39.6 gigawatts (GW) of capacity in 2024, surpassing the 27.4 GW installed in 2023. As a result, the expanding renewable energy sector is significantly boosting demand for capacitor banks.

Leading companies in the capacitor bank market are introducing advanced technologies such as medium-voltage tuned-filter capacitor banks to improve electrical power quality and reduce harmonic distortion. These systems integrate capacitors and reactors designed to target specific harmonic frequencies, enhance voltage stability, and correct power factor in medium-voltage networks (typically between 1 kV and 36 kV). For instance, in February 2024, Powerside Corporation, a US-based manufacturer of electrical equipment, launched the Pole-MVar, a compact, pole-mounted tuned-filter capacitor bank. Designed to address issues of harmonic resonance and distortion, the Pole-MVar features a modular design for scalable deployment and simplified integration with existing infrastructure. It also includes advanced monitoring and control capabilities that provide real-time data and adaptive system responses to dynamic load conditions, improving grid efficiency and reliability.

In June 2023, Zap Energy, a US-based fusion energy technology developer, acquired the assets of ICAR S.p.A., which were previously liquidated, for an undisclosed sum. This strategic move aims to enhance Zap Energy’s capabilities in power supply manufacturing and accelerate its progress in commercializing fusion energy solutions. ICAR S.p.A., an Italy-based company, was known for producing high-performance capacitors and power supply systems, which are critical components in advanced energy technologies, including fusion power development.

Major players in the capacitor bank market are Hitachi Energy Ltd., Siemens AG, General Electric Company, Schneider Electric SE, Mitsubishi Electric Corporation, ABB Ltd., Toshiba Corporation, Larsen And Toubro Limited, Eaton Corporation plc, Alstom SA, Vishay Intertechnology Inc., Nissin Electric Co. Ltd., Crompton Greaves Limited, Arteche Group, American Superconductor Corporation, Shreem Electric Ltd., Zez Silko Ltd., Aener Energía S.L., Energe Capacitors Pvt. Ltd., and Lifasa S.A.

Asia-Pacific was the largest region in the capacitor bank market in 2024. The regions covered in capacitor bank report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the capacitor bank market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A capacitor bank is a collection of multiple capacitors connected together to store and release electrical energy as required. They are utilized to improve power factor, stabilize voltage, and support the efficient functioning of electrical grids or industrial systems.

The main types of capacitor banks include fixed capacitor banks, automatic capacitor banks, synchronous capacitor banks, and static capacitor banks. Fixed capacitor banks are designed to supply reactive power, thereby enhancing the efficiency and stability of electrical power systems. Capacitor banks come in various voltage ranges low, medium, and highand can be configured as floor-mounted, pole-mounted, wall-mounted, and other types. They find applications in power factor correction, harmonic filtering, voltage regulation, renewable energy integration, industrial operations, data centers, and more. These systems are widely deployed across sectors such as utilities, industrial, commercial, renewable energy, and transportation.

The capacitor bank market research report is one of a series of new reports that provides capacitor bank market statistics, including the capacitor bank industry global market size, regional shares, competitors with the capacitor bank market share, detailed capacitor bank market segments, market trends, and opportunities, and any further data you may need to thrive in the capacitor bank industry. This capacitor bank 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 capacitor bank market consists of sales of detuned capacitor banks, filter capacitor banks and enclosures, and mounting structures. 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 and 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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