The global capacitor bank market was valued at $4.3 billion in 2023, and is projected to reach $6.8 billion by 2033, growing at a CAGR of 4.8% from 2024 to 2033.
Capacitor banks help maintain voltage stability in electrical systems by compensating for fluctuations caused by inductive loads. Voltage stability is a critical parameter for sensitive equipment, and capacitor banks help in reducing the risks of voltage dips, flickers, or surges that damage devices or interrupt operations. For example, in manufacturing plants with large motors and electric furnaces, maintaining voltage levels within safe limits is vital for continuous production and protection of expensive machinery.
However, availability of alternatives is expected to hamper the growth of the market. Availability of advanced technologies such as Static VAR Compensators (SVCs) and Flexible AC Transmission Systems (FACTS) presents a growing competitive challenge to traditional capacitor banks. While capacitor banks have long been relied upon for power factor correction and reactive power compensation, these newer technologies such as SVCs and FACTS offer similar benefits with added flexibility and advanced capabilities. SVCs, for example, are dynamic devices that provide fast and continuous reactive power compensation, which is particularly useful for handling rapid changes in grid conditions. Similarly, FACTS technologies, which include devices such as STATCOMs (Static Synchronous Compensators) and SVCs, allow for more sophisticated voltage regulation, power flow control, and reactive power management. These systems offer improved grid stability and efficiency, especially in complex, high-demand networks. FACTS help optimize the operation of transmission lines, reduce losses, and enhance the overall reliability of the grid, particularly in high-traffic regions or where renewable energy sources are integrated.
On the basis of voltage, the 10 kV to 69 kV segment dominated the capacitor bank market in 2023. Industrial facilities also utilize capacitor banks in the 10 kV to 69 kV range to optimize their internal power distribution. Large motors, arc furnaces, and other inductive loads generate reactive power, which can cause poor power factor and increased utility charges. By strategically placing capacitor banks, industries can offset this reactive power demand, improving their energy efficiency and reducing electricity bills. Moreover, capacitor banks help prevent voltage instability in critical applications, ensuring smooth operation and prolonging the lifespan of electrical equipment.
On the basis of installation, metal enclosed substation was the fastest growing segment in the market in 2023 and is expected to witness a CAGR of 4.3% during the forecast period. Harmonic filtering is significant function of capacitor banks in metal-enclosed substations. In modern electrical networks, nonlinear loads such as variable frequency drives (VFDs) and power electronic converters generate harmonic distortions that can lead to equipment overheating and reduced efficiency. Specially designed capacitor banks, often used in conjunction with reactors, help filter out unwanted harmonics, thereby improving power quality and preventing potential damage to electrical infrastructure. Metal-enclosed capacitor banks offer a compact and safe solution compared to open-rack designs. These enclosures provide physical protection from environmental factors such as dust, moisture, and extreme temperatures, ensuring long-term reliability. Additionally, metal enclosures enhance safety by reducing the risk of electrical hazards, making them an ideal choice for substations in industrial and urban settings where space constraints and personnel safety are paramount.
Region wise, Asia-Pacific dominated the wind turbine market in 2023. Countries like China, India, Japan, and South Korea have been at the forefront of adopting capacitor banks to optimize energy consumption in industrial, commercial, and residential applications. In China and India, where electricity demand is surging due to economic growth and expanding manufacturing sectors, capacitor banks help in maintaining grid stability by compensating for reactive power. In the industrial sector, capacitor banks are widely used in manufacturing plants, refineries, and mining operations to maintain power quality and avoid penalties associated with low power factor. Countries like Australia, Indonesia, and Malaysia, which have significant mining and oil refining industries, deploy capacitor banks to ensure efficient energy utilization. In Japan and South Korea, where technological advancements drive automation and robotics, capacitor banks are integrated into high-tech manufacturing facilities to enhance energy efficiency.
Introduction
A capacitor bank is a combination of multiple capacitors connected in series or parallel to store electrical energy for reactive power compensation, voltage regulation, and power factor improvement in an electrical system. These systems are crucial in various industries, and applications that require efficient power management and energy optimization. A capacitor bank functions by absorbing the reactive power, which is necessary to sustain the electric and magnetic fields in devices such as motors, transformers, and other inductive loads. This reduces the burden on the power source and enhances overall efficiency.Capacitor banks help maintain voltage stability in electrical systems by compensating for fluctuations caused by inductive loads. Voltage stability is a critical parameter for sensitive equipment, and capacitor banks help in reducing the risks of voltage dips, flickers, or surges that damage devices or interrupt operations. For example, in manufacturing plants with large motors and electric furnaces, maintaining voltage levels within safe limits is vital for continuous production and protection of expensive machinery.
Market Dynamics
Rise in energy demand globally is expected to drive the growth of capacitor bank market. The growing demand for energy has placed significant strain on power grids, underscoring the need for solutions that ensure efficient and consistent energy delivery. Capacitor banks have become crucial in addressing this challenge by improving power quality, enhancing grid efficiency, and supporting the integration of renewable energy sources like solar and wind. These technologies compensate for reactive power, boost power factor, reduce transmission losses, and stabilize voltage, making them vital to modern power infrastructure.However, availability of alternatives is expected to hamper the growth of the market. Availability of advanced technologies such as Static VAR Compensators (SVCs) and Flexible AC Transmission Systems (FACTS) presents a growing competitive challenge to traditional capacitor banks. While capacitor banks have long been relied upon for power factor correction and reactive power compensation, these newer technologies such as SVCs and FACTS offer similar benefits with added flexibility and advanced capabilities. SVCs, for example, are dynamic devices that provide fast and continuous reactive power compensation, which is particularly useful for handling rapid changes in grid conditions. Similarly, FACTS technologies, which include devices such as STATCOMs (Static Synchronous Compensators) and SVCs, allow for more sophisticated voltage regulation, power flow control, and reactive power management. These systems offer improved grid stability and efficiency, especially in complex, high-demand networks. FACTS help optimize the operation of transmission lines, reduce losses, and enhance the overall reliability of the grid, particularly in high-traffic regions or where renewable energy sources are integrated.
Segments Overview
The capacitor bank market is segmented on the basis of voltage, type, installation, connection type, application, and region. Depending on voltage, the market is segmented into less than 1kV, 1kV to10 kV, 10 kV to 69 kV, and more than 69 kV. On the basis of type, the market is categorized into externally fused, internally fused, and fuseless. On the basis of installation, the market is divided into pole mounted, open air substation, metal enclosed substation, and other. On the basis of connection type, the market is categorized into star connection and delta connection. On the basis of application, the market is divided into power factor correction, industrial, harmonic filter, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.On the basis of voltage, the 10 kV to 69 kV segment dominated the capacitor bank market in 2023. Industrial facilities also utilize capacitor banks in the 10 kV to 69 kV range to optimize their internal power distribution. Large motors, arc furnaces, and other inductive loads generate reactive power, which can cause poor power factor and increased utility charges. By strategically placing capacitor banks, industries can offset this reactive power demand, improving their energy efficiency and reducing electricity bills. Moreover, capacitor banks help prevent voltage instability in critical applications, ensuring smooth operation and prolonging the lifespan of electrical equipment.
On the basis of installation, metal enclosed substation was the fastest growing segment in the market in 2023 and is expected to witness a CAGR of 4.3% during the forecast period. Harmonic filtering is significant function of capacitor banks in metal-enclosed substations. In modern electrical networks, nonlinear loads such as variable frequency drives (VFDs) and power electronic converters generate harmonic distortions that can lead to equipment overheating and reduced efficiency. Specially designed capacitor banks, often used in conjunction with reactors, help filter out unwanted harmonics, thereby improving power quality and preventing potential damage to electrical infrastructure. Metal-enclosed capacitor banks offer a compact and safe solution compared to open-rack designs. These enclosures provide physical protection from environmental factors such as dust, moisture, and extreme temperatures, ensuring long-term reliability. Additionally, metal enclosures enhance safety by reducing the risk of electrical hazards, making them an ideal choice for substations in industrial and urban settings where space constraints and personnel safety are paramount.
Region wise, Asia-Pacific dominated the wind turbine market in 2023. Countries like China, India, Japan, and South Korea have been at the forefront of adopting capacitor banks to optimize energy consumption in industrial, commercial, and residential applications. In China and India, where electricity demand is surging due to economic growth and expanding manufacturing sectors, capacitor banks help in maintaining grid stability by compensating for reactive power. In the industrial sector, capacitor banks are widely used in manufacturing plants, refineries, and mining operations to maintain power quality and avoid penalties associated with low power factor. Countries like Australia, Indonesia, and Malaysia, which have significant mining and oil refining industries, deploy capacitor banks to ensure efficient energy utilization. In Japan and South Korea, where technological advancements drive automation and robotics, capacitor banks are integrated into high-tech manufacturing facilities to enhance energy efficiency.
Competitive Analysis
The key players operating in the capacitor bank market include Circutor, Toshiba Corporation (Toshiba), Vishay Intertechnology Inc., Siemens, Enerlux Power s.r.l., Comar Condensatori S.p.A, Hitachi Ltd. (Hitachi), ABB Ltd., Eaton, and EPCOS.Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the capacitor bank market analysis from 2023 to 2033 to identify the prevailing capacitor bank market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the capacitor bank market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global capacitor bank market trends, key players, market segments, application areas, and market growth strategies.
Additional benefits you will get with this purchase are:
- Quarterly Update and* (only available with a corporate license, on listed price)
- 5 additional Company Profile of client Choice pre- or Post-purchase, as a free update.
- Free Upcoming Version on the Purchase of Five and Enterprise User License.
- 16 analyst hours of support* (post-purchase, if you find additional data requirements upon review of the report, you may receive support amounting to 16 analyst hours to solve questions, and post-sale queries)
- 15% Free Customization* (in case the scope or segment of the report does not match your requirements, 15% is equivalent to 3 working days of free work, applicable once)
- Free data Pack on the Five and Enterprise User License. (Excel version of the report)
- Free Updated report if the report is 6-12 months old or older.
- 24-hour priority response*
- Free Industry updates and white papers.
Possible Customization with this report (with additional cost and timeline, please talk to the sales executive to know more)
- End user preferences and pain points
- Installed Base analysis
- Investment Opportunities
- Upcoming/New Entrant by Regions
- Technology Trend Analysis
- New Product Development/ Product Matrix of Key Players
- Regulatory Guidelines
- Additional company profiles with specific to client's interest
- Additional country or region analysis- market size and forecast
- Expanded list for Company Profiles
- Historic market data
- Market share analysis of players at global/region/country level
- SWOT Analysis
Key Market Segments
By Voltage
- Less than 1 kV
- 1 kV to 10 kV
- 10 kV to 69 kV
- More than 69 kV
By Type
- Fuse Less
- Internally Fused
- Externally Fused
By Installation
- Pole Mounted
- Open Air Substation
- Metal Enclosed Substation
- Others
By Connection Type
- Star
- Delta
By Application
- Power Factor Correction
- Harmonic Filter
- Industrial
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- Italy
- France
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- UAE
- South Africa
- Rest of LAMEA
Key Market Players
- Enerlux Power s.r.l.
- COMAR Condensatori S.p.A.
- TOSHIBA CORPORATION
- TDK Electronics AG
- Circutor
- Eaton
- ABB
- Siemens
- Vishay Intertechnology, Inc.
- Hitachi, Ltd.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CAPACITOR BANK MARKET, BY VOLTAGE
CHAPTER 5: CAPACITOR BANK MARKET, BY TYPE
CHAPTER 6: CAPACITOR BANK MARKET, BY INSTALLATION
CHAPTER 7: CAPACITOR BANK MARKET, BY CONNECTION TYPE
CHAPTER 8: CAPACITOR BANK MARKET, BY APPLICATION
CHAPTER 9: CAPACITOR BANK MARKET, BY REGION
CHAPTER 10: COMPETITIVE LANDSCAPE
CHAPTER 11: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- Enerlux Power s.r.l.
- COMAR Condensatori S.p.A.
- TOSHIBA CORPORATION
- TDK Electronics AG
- Circutor
- Eaton
- ABB
- Siemens
- Vishay Intertechnology, Inc.
- Hitachi, Ltd.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
LOADING...
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 398 |
| Published | January 2025 |
| Forecast Period | 2023 - 2033 |
| Estimated Market Value ( USD | $ 4.3 billion |
| Forecasted Market Value ( USD | $ 6.8 billion |
| Compound Annual Growth Rate | 4.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
