Alternating Current (AC) Power Source Market Report 2026

The alternating current (ac) power source market size has grown steadily in recent years. It will grow from $1.22 billion in 2025 to $1.27 billion in 2026 at a compound annual growth rate (CAGR) of 4%. The growth in the historic period can be attributed to growth in aerospace and defense electrification needs, increasing demand from automotive and industrial sectors, technological advancements in inverter and modulation systems, adoption of ac power sources in medical and telecom sectors, expansion of military and deployable power solutions.

The alternating current (ac) power source market size is expected to see steady growth in the next few years. It will grow to $1.48 billion in 2030 at a compound annual growth rate (CAGR) of 3.9%. The growth in the forecast period can be attributed to rising investments in smart grid and renewable energy integration, growing adoption of portable and deployable power systems, increasing demand for high-efficiency and low-emission power sources, expansion of data centers and telecom infrastructure, integration of IoT-enabled monitoring and predictive maintenance. Major trends in the forecast period include rising adoption of modular and scalable ac power sources, increasing use of energy-efficient power conversion systems, growing integration of remote monitoring and control features, expansion of ac power sources in defense and aerospace applications, rising demand for portable and mobile ac power units.

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.

Major companies operating 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, ET Systems Electronic.

Asia-Pacific was the largest region in the alternating current (AC) power source market in 2025 and it is expected to be the fastest-growing region in the forecast period. The regions covered in the alternating current (ac) power source market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the alternating current (ac) power source market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

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