Market Overview:
The flexible AC transmission system (FACTS) market is experiencing rapid growth, driven by Developing Electric Power Transmission Systems, Increasing Government Expenditure to Build Smart Grids, and Rising Adoption of Renewable Energy Sources. According to IMARC Group's latest research publication, "Flexible AC Transmission System (FACTS) Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global flexible AC transmission system (FACTS) market size reached USD 1.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2.3 Billion by 2033, exhibiting a growth rate (CAGR) of 4.64% during 2025-2033.
This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.
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Our report includes:
- Market Dynamics
- Market Trends And Market Outlook
- Competitive Analysis
- Industry Segmentation
- Strategic Recommendations
Growth Factors in the Flexible AC Transmission System (FACTS) Industry:
- Developing Electric Power Transmission Systems
One of the most important factors driving the market is the increase in demand for electricity, which is leading to many new power generation and transmission projects. Due to their capability to increase power transfer capability and reduce congestion, FACTS devices improve reliability and ease the pressure on transmission networks due to growing electricity consumption as populations and economies expand. FACTS devices are a way to instantly upgrade existing transmission lines without building new ones, which are expensive, time-consuming to build, and take years to permit. They allow utilities to maximize existing infrastructure. Their deployment stabilizes the grid, reduces distortions and improves quality of the delivered electrical energy. FACTS devices are an essential technology for modern power systems, allowing more power to be delivered without new transmission line construction.
- Increasing Government Expenditure to Build Smart Grids
Other contributing factors for market growth include growing government investments in smart grid projects. As the global grid becomes older, the installation of FACTS systems can help optimize customary grid systems. This is because FACTS systems help to make the power grid more stable and reduce losses. International government agencies, utilities, and transmission system operators are increasingly recognizing the need to modernize the power infrastructure to accommodate changes in energy demand and increase the integration of renewable energy sources. Smart grids with advanced monitoring, control, and automation capabilities will be an integral part of the evolution, and FACTS devices will be key enablers. The instantaneous precise control of active power flow, voltage and reactive power using FACTS technology allows for clever grid management and system reconfiguration to be implemented in response to changes in load or system disturbances.
- Rising Adoption of Renewable Energy Sources
The increase of power quality-related concerns, and the growing penetration of renewable energy sources (RES, e.g., wind and solar energy) is expected to create a demand for FACTS devices that are capable of reducing the power quality issues that are present in RES integration, such as power flow fluctuations and voltage deviations. RES have variable and non-continuous generation, which makes this integration challenging for the stability and reliability of the grid. FACTS devices are used to provide voltage and frequency support for larger levels of connection from renewable generation. FACTS devices will become increasingly important as utilities look to accommodate larger amounts of renewable generation, and as global energy use shifts towards lower carbon energy sources.
Key Trends in the Flexible AC Transmission System (FACTS) Market
- Growing Need for Controllability in Critical Industries
Factors such as increasing demand for the controllable power systems in the oil & gas, railways and electric utility industries is expected to drive the market. Highly reliable and controllable power systems are required for critical infrastructure systems as they help in uninterrupted operations and avoid losses. The advanced control capabilities of FACTS technology allow for accurate control of power flow, voltage and system stability, thus enabling their application in systems where power quality requirements are high, e.g. traction power networks of railways and oil & gas facilities in inaccessible locations where a reliable supply of electricity is required.
- Strategic Mergers, Acquisitions, and Collaborations
The increasing number of mergers and acquisitions (M&As) and partnerships among the key participants to strengthen the foothold in the market are expected to benefit global market growth. The consolidation in the industry is enabling the players to pool their expertise in technology, expand their product offerings, and increase their global footprints. Partnerships between manufacturers of FACTS and utilities or other technology companies are helping to disseminate knowledge, shorten product development cycles, provide integrated solutions to grid complexity, address regulatory issues, enter new markets, and develop new applications for FACTS technologies in emerging markets.
- Advanced Power Electronics and Control Systems Integration
As power electronic and control technology advanced, more active and advanced FACTS devices were introduced. The most recent devices use modern power semiconductor devices and employ digital control and communication techniques for increased performance, reliability and flexibility. These developments are also leading to less expensive and easier to integrate FACTS technologies. More modular FACTS technologies and hybrid compensation systems are being developed that expand the application horizon and also help utilities to use tailored applications for addressing and solving grid bottlenecks and limitations.
Our report provides a deep dive into the flexible AC transmission system (FACTS) market analysis, outlining the current trends, underlying market demand, and growth trajectories.
Leading Companies Operating in the Global Flexible AC Transmission System (FACTS) Industry:
- Alstom
- Eaton Corporation PLC
- GE Grid Solutions (General Electric)
- Hitachi Energy Ltd.
- Mitsubishi Electric Corporation
- NR Electric Co., Ltd. (Nari Technology Co., Ltd.)
- Siemens Energy
- Toshiba Energy Systems & Solutions Corporation (Toshiba Corp.)
Flexible AC Transmission System (FACTS) Market Report Segmentation:
By Compensation Type:
- Series Compensation
- Shunt Compensation
- Combined Series-Shunt Compensation
Shunt compensation represented the largest segment as it provides essential reactive power support and voltage regulation capabilities that are fundamental requirements for most power transmission applications.
By Controller:
- Static Synchronous Compensator (STATCOM)
- Static Var Compensator (SVC)
- Unified Power Flow Controllers (UPFC)
- Thyristor Controlled Series Compensator (TCSC)
- Others
Static Synchronous Compensator (STATCOM) accounted for the largest market share due to its superior performance characteristics, faster response times, and ability to provide both reactive power support and voltage regulation in a compact footprint.
By Industry Vertical:
- Utilities
- Renewables
- Railways
- Others
Utilities represented the largest segment as they are the primary operators of power transmission infrastructure and the main adopters of FACTS technology for grid enhancement, stability improvement, and capacity optimization.
Regional Insights:
- North America (U.S., Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, and Others)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Australia, and Others)
- Latin America (Brazil, Mexico)
- Middle East Africa
North America was the largest market for flexible AC transmission system (FACTS). Some of the factors driving the North America flexible AC transmission system (FACTS) market include the increasing demand for electricity, the surging need to upgrade infrastructure, and the implementation of government regulations and initiatives.
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