CHICAGO, Nov. 20, 2019 /PRNewswire/ -- According to the new research report "Flexible AC Transmission Systems (FACTS) Market by Compensation Type (Shunt, Series, and Combined), Generation Type (First Generation and Second Generation), Vertical, Component, Application, Functionality, Geography - Global Forecast to 2024", published by MarketsandMarkets™, the Flexible AC Transmission Systems (FACTS) market size is projected to reach USD 1.7 billion by 2024 from USD 1.2 billion in 2019, at a CAGR of 6.0%. Major drivers for the market's growth are increasing benefits offered by FACTS, growth in transmission line, rising focus on energy generation using renewable sources, and surging demand for STATCOM devices for voltage control. Further, rising investment in transmission networks and potential opportunities in APAC are the opportunities for FACTS manufacturers.
Voltage control application for FACTS to grow at higher CAGR during forecast period
Shunt compensation of the FACTS family is used for voltage control applications. Static VAR compensator and STATCOM are used to stabilize the network voltage in order to keep the network voltage constant at a set reference value. In addition, SVC is used for large industrial loads, such as electric arc furnaces (EAF) and mine drives, to support voltages and improve power quality and power factor. Companies such as GE, American Superconductor, and NR Electric are focusing on voltage control applications. For instance, in 2019, AMSC launched 4 new D-VAR STATCOM systems (3 in the US and 1 in Jordan) worth USD 10 million to serve the renewable energy sector. These D-VAR systems are expected to regulate voltage by dynamically responding to varying load conditions while connecting wind power plants to the electric grid.
STATCOM to hold largest share of FACTS market during forecast period
Static VAR Compensators (SVCs) are devices that are used to control line voltages. In addition, it is used to regulate and control the voltage to the required set point under normal steady state and contingency conditions. SVC controls the transmission line voltage to compensate for reactive power balance by absorbing inductive reactive power when the voltage is too high and generates capacitive reactive power when the voltage is too low. Further, benefits such as an increase in transfer capability and reduction in losses, as well as mitigate active power oscillations and prevent over voltages at loss of load are expected to increase the demand for SVCs in coming years.
FACTS market in APAC to grow at highest CAGR during forecast period
APAC is the fastest-developing region for most verticals, such as utilities, railways, and industrial. The market in APAC is segmented into China, India, South Korea, and the Rest of APAC. The region has emerged as a global focal point for large investments and business expansion opportunities. The region represents the fastest-growing market worldwide, and the FACTS market in this region is expected to grow at the highest CAGR during the forecast period. Growing transmission investment in APAC countries results in the increasing number of substations and transmission lines, which propelled the demand for voltage stability and power flow control solution increased. Moreover, APAC is home to a few key FACTS manufacturers—such as Rongxin, which installed more than 800 STATCOM, and Hyosung. These factors are expected to drive the market for FACTS in this region during the forecast period.
ABB (ABB, Switzerland), General Electric Company (GE, US), Siemens AG (Siemens, Germany), Mitsubishi Electric Corporation (Mitsubishi Electric, Japan), Infineon Technologies AG (Infineon, Germany), American Superconductor (AMSC, US), NR Electric Co., Ltd. (NR Electric, China), Hyosung Heavy Industries (Hyosung, South Korea), and Rongxin Power Ltd. (RXPE, UK) are a few major players in the FACTS market.
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