Alternating Current (AC) Power Source Global Market Report 2025

The alternating current (ac) power source market size has grown steadily in recent years. It will grow from $1.18 billion in 2024 to $1.22 billion in 2025 at a compound annual growth rate (CAGR) of 3.3%. The growth in the historic period can be attributed to rising demand for energy-efficient electronic devices, expansion in the renewable energy sector, surging deployment of electronic devices, increasing use of electric vehicles, and growing focus on energy efficiency and sustainability.

The alternating current (ac) power source market size is expected to see steady growth in the next few years. It will grow to $1.42 billion in 2029 at a compound annual growth rate (CAGR) of 3.9%. The growth in the forecast period can be attributed to renewable energy integration, a rise in smart grid development, rising industrial automation, increasing power demand, and rising demand for electronics testing and development. Major trends in the forecast period include the integration of IoT for remote management, advancements in smart grid technologies, expanding aerospace and defense applications, technological innovations in power electronics, and collaborations and partnerships.

The forecast of 3.9% growth over the next five years reflects a slight reduction of 0.2% from the previous projectiont. This reduction is primarily due to the impact of tariffs between the US and other countries. The imposition of tariffs on precision electronic components used in AC power source systems could hamper domestic production due to heavy reliance on imports from Japan and South Korea, increasing procurement expenses. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing adoption of renewable energy sources is expected to drive the expansion of the alternating current (AC) power source market in the coming years. Renewable energy sources, such as sunlight, wind, water, and geothermal heat, are naturally replenished and provide sustainable, clean energy. The shift towards these sources is being fueled by advancements in clean energy technologies, making solar and wind power more efficient and affordable. AC power sources are integral to renewable energy systems, as they facilitate the efficient transmission of electricity generated from sources such as solar and wind over long distances with minimal loss. This enhances the integration of clean energy into existing power grids. For example, in February 2025, the World Resources Institute reported that solar energy set a new record by adding approximately 39.6 gigawatts (GW) of capacity in 2024, surpassing the 27.4 GW added in 2023. Consequently, the growing adoption of renewable energy is driving the expansion of the AC power source market.

Leading companies in the AC power source market are focusing on developing innovative products, such as programmable AC power sources, to meet the growing demand for precise and customizable testing solutions. Programmable AC power sources are advanced electrical devices that can generate alternating current (AC) with adjustable parameters such as voltage, frequency, phase angle, and waveform. For instance, in September 2024, TDK Corporation, a Japan-based electronics company, introduced the GENESYS AC and GENESYS AC PRO series. These programmable AC power sources, rated at 2 kVA and 3.3 kVA, are designed for advanced test and measurement applications. Featuring a compact 1U chassis design, the GAC-PRO models support AC, direct current (DC), or combined AC+DC operation, providing full-rated power in DC modes. They include advanced features such as waveform generation, harmonics analysis, and real-time analog control, making them suitable for applications in automated test equipment, avionics, and automotive systems.

In December 2024, ABB Ltd., a Switzerland-based automation company, acquired the power electronics division of Gamesa Electric from Siemens Gamesa for an undisclosed amount. This acquisition strengthens ABB’s position in high-power renewable energy conversion technologies and expands its product offerings to include doubly-fed induction generator wind converters, industrial battery energy storage systems, and utility-scale solar inverters. Gamesa Electric, a Spain-based company, is a key provider of AC power sources, particularly in the form of inverters for various renewable energy applications.

An alternating current (AC) power source is a source of electrical energy where the current periodically reverses direction, and the voltage alternates between positive and negative values. AC power is widely used for power distribution because it can be transmitted efficiently over long distances and easily transformed to different voltage levels using transformers.

The main types of AC power sources are single-phase and three-phase. A single-phase AC power source delivers electric power through two conductors: one live (phase) and one neutral. It includes various modulation types, such as pulse width modulation (PWM) AC power sources and linear AC power sources. These are used in a wide range of applications, including aerospace and defense, automotive, consumer electronics, medical devices, telecommunications, and more.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a notable impact on the utilities sector, particularly across power generation, grid modernization, and renewable energy initiatives. Increased duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems are driving up both capital and operational expenses for utility companies, prompting many to delay projects or pass higher costs on to consumers through increased energy rates. The water and waste management sectors are similarly affected, as tariffs inflate the cost of essential machinery, piping, and treatment technologies. Moreover, retaliatory tariffs from key trading partners have disrupted the supply of critical raw materials - such as rare earth elements vital for clean energy technologies - posing further challenges to the shift toward sustainable energy. In response, the sector is increasingly focusing on domestic procurement, digital transformation, and efficiency-enhancing innovations to control rising costs while safeguarding energy reliability and meeting regulatory demands.

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

Major players in the alternating current (AC) power source market are AMETEK Programmable Power Inc., Keysight Technologies Inc., Advanced Energy Industries Inc., Tektronix Inc., Chroma ATE Inc., Kikusui Electronics Corporation, NF Corporation, Sophpower Electronics, Matsusada Precision Inc., Good Will Instrument Co Ltd, Regatron AG, Behlman Electronics, B&K Precision Corporation, ITECH Electronic, AC Power Corp, Pacific Power Source, Newtons4th ltd, Aplab Limited, Ikonix Corporation, and ET Systems Electronic.

Asia-Pacific was the largest region in the alternating current (AC) power source market in 2024 and it is expected to be the fastest-growing region in the forecast period. The regions covered in alternating current (AC) power source report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the alternating current (AC) power source market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The alternating current (AC) power source market consists of sales of programmable alternating current (AC) power sources, uninterruptible power supplies (UPS), frequency converters, inverters, and variable transformers. 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.

This product will be delivered within 1-3 business days.