The global power quality equipment market size is projected to reach USD 41.1 billion in 2024. It is anticipated to rise at a CAGR of 6% during the assessment period and is projected to reach a value of USD 73.7 billion by 2034. The industry is estimated to showcase a Y-o-Y growth of 5.4% in 2024.
Power quality equipment ensures a continuous flow of stable power in power grids. Good power quality not only saves money but also energy. Power equipment assists in avoiding damage and premature aging of the devices.
Reliable power quality assists consumers in saving their energy costs and reactive power tariffs. Capacitor banks are gaining traction as they provide a stable and efficient power supply, which is crucial in various industrial settings. The growth of the overall market is being fueled by substantial energy and cost savings.
| Attributes | Description |
|---|---|
| Estimated Global Power Quality Equipment Market Size (2024E) | USD 41.1 billion |
| Projected Global Power Quality Equipment Market Value (2034F) | USD 73.7 billion |
| Value-based CAGR (2024 to 2034) | 6% |
Power grids are increasingly being integrated with variable renewable energy. A key factor prompting the adoption of power quality equipment in renewable energy sources is their fluctuations in voltage and frequency. These are primarily caused by the unmanageable variability in renewable energy resources. The field has a rising need to accommodate supply-side variability, raising the demand for reliable and efficient power quality devices.
The manufacturing and industrial sectors are witnessing a rising demand for power quality equipment. The industrial equipment business is showcasing a growing adoption of Industry 4.0, which is poised to bolster expansion.
The booming power grid infrastructure is also set to support growth in the industry. The extensive utilization of non-linear equipment presents significant growth opportunities for manufacturers across the globe.
Developing countries are estimated to exhibit substantial demand for efficient power quality devices owing to increasing industrialization and urban development in these countries. The telecom and commercial sectors stand out as prominent end-users of the product in these countries.
The table below presents the projected CAGRs for the global power quality equipment industry over semi-annual periods ranging from 2023 to 2024. The examination provides businesses with a better understanding of the growth in the market over the year by divulging crucial shifts in performance and growth patterns. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Figures showcased in the table below exhibit the growth rate for each half between 2023 and 2024. The market was anticipated to rise at a CAGR of 5.5% in the first half (H1) of 2023. The second half of the same year showcases an increase in the growth rate at a CAGR of 6.1%.
| Particular | Value CAGR |
|---|---|
| H1 | 5.5% (2023 to 2033) |
| H2 | 6.1% (2023 to 2033) |
| H1 | 5.6% (2024 to 2034) |
| H2 | 6.4% (2024 to 2034) |
Preceding in the subsequent period, from H1 2024 to H2 2034, the CAGR is estimated to dip to 5.6% in the first half (H1) and then substantially surge to 6.4% in the second half (H2).
Adoption of Automation Drive Demand for Reliable Power Quality Solutions
Industrial growth and automation are boosting demand for reliable power quality solutions to protect unique machinery and processes. As industries broaden and adopt sophisticated automation technologies, the need for stable and clean power becomes crucial. For instance, Tesla’s Gigafactories deploy cutting-edge robotics and manufacturing systems as well as rely on uninterruptible power supplies (UPS) and voltage regulators to prevent disruptions and safeguard their high-value equipment.
Amazon’s automated fulfillment centers, on the other hand, rely on seamless power for efficient sorting and packing operations. These power quality solutions ensure that these processes run smoothly without delays. Prominent cloud service providers like Microsoft Azure and Google Cloud utilize unique UPS systems to manage power stability and protect against outages, ensuring continuous service and data integrity for countless users.
Pharmaceutical companies, such as Pfizer, also require stable power for precise control in drug production environments. The power conditioning equipment helps to maintain consistent conditions that are crucial for product quality and safety. These instances underscore the growing need for robust power quality solutions to support the smooth and reliable operation of modern industrial and automated systems.
Focus on Cloud-based Solutions Augments the Need for Cutting-edge Equipment
The rising demand for data centers, augmented by cloud computing and big data analytics, is significantly boosting the need for uninterrupted power and sophisticated power-quality equipment. As businesses increasingly migrate to cloud-based solutions, the reliance on data centers to manage and store vast amounts of information increases.
The rapid shift necessitates robust power systems to ensure continuous operation and prevent downtime, which can result in substantial financial losses if not kept in check. Data centers require cutting-edge power quality equipment to maintain optimal performance and protect sensitive electronic components from power disturbances.
The systems are essential for managing the power supply, ensuring that data centers operate efficiently and securely. Increasing complexity of data center operations, coupled with the demand for high energy efficiency and sustainability further emphasizes the need for sophisticated power solutions. As the data center field continues to broaden, driven by the proliferation of cloud services and the need for reliable data management, the demand for uninterrupted power and unique power quality equipment is set to rise correspondingly.
Development of Smart Grids and Smart Meters to Create New Growth Avenues
The development of smart grids and smart meters presents significant opportunities for enhancing power quality management through real-time monitoring and control. These technologies enable precise management of electrical networks, enabling immediate detection and resolution of power quality issues.
In the United States, Pacific Gas and Electric (PG&E) Company has implemented a smart grid system across its service area. This system includes reliable smart meters and grid sensors that provide real-time data on power quality, such as voltage levels and frequency fluctuations. The data collected enables PG&E to quickly identify and address power quality problems, reducing outages and improving reliability.
Enel, based in Italy, recently deployed a smart grid across various regions, which includes smart meters and automated grid management tools. This setup allows for continuous monitoring and dynamic adjustments to balance supply and demand efficiently. The real-time data helps in managing fluctuations and integrating renewable energy sources effectively, ensuring a stable and high-quality power supply.
The aforementioned innovations illustrate how smart grids and smart meters offer opportunities to improve power quality management and enhance operational efficiency. These also help support the integration of renewable energy sources by providing real-time insights and control capabilities.
Emergence of Microgrids is Creating High Demand for Power Quality Equipment
The emergence of microgrids is raising the demand for unique power quality equipment to ensure stable and reliable operations. S&C Electric’s PureWave UPS is a prime example, providing robust support for microgrids with its high-efficiency and reliable power protection features that maintain stability during power disruptions.
General Electric’s Digital Energy Microgrid Solutions enhance microgrid performance through real-time monitoring and control, enabling seamless integration of renewable energy sources and maintenance of consistent power quality. Tesla’s Powerwall and Powerpack are pivotal in microgrids. These offer energy storage solutions that stabilize voltage and frequency fluctuations while providing backup power during outages.
Schneider Electric’s Smart Grid Solutions further cater to microgrid applications, with cutting-edge software and hardware for monitoring and managing energy flow, ensuring efficient and reliable operation. Eaton’s EnergyAware UPS is also designed to support microgrid environments with its scalable and high-performance capabilities that are essential for maintaining power quality across various load conditions.
The examples demonstrate how microgrids are influencing the demand for sophisticated power quality equipment. Customers are looking for novel equipment that can handle the complexities of decentralized energy systems while ensuring continuous and reliable power supply.
The global power quality equipment industry was valued at USD 35.3 billion in 2019. It experienced a CAGR of 2.6% in the historical period ranging between 2019 and 2023. It also attained a value of USD 39 billion in 2023.
Growth in the industry during the historical period was prominently driven by the rapid evolution of renewable energy sources. Increasing data centers and efforts toward the modernization of grids further fueled the need for power quality solutions.
The market, however, faced challenges, including cost sensitivity among small and medium enterprises. High initial costs also limited the adoption of unique power-quality equipment.
The COVID-19 pandemic disrupted supply chains and delayed projects as the industry’s priorities shifted. The demand for reliable power supply, however, witnessed a surge in the healthcare sector as it was a necessity during the pandemic. A few regions quickly rebounded by localizing supply chains and focusing on developing the healthcare infrastructure, thereby stabilizing growth.
The quick shift to remote work accelerated the demand for data centers, increasing the need for power-quality solutions. Rural electrification faced delays but maintaining essential infrastructure, especially in healthcare sustained demand. Despite severe supply chain disruptions in a few sectors, quick recoveries elsewhere drove early demand for this equipment, especially for decentralized energy systems.
The industry is projected to reach a value of USD 41.1 billion by 2024 and is further estimated to rise at a CAGR of 6% through 2034. The overall industry is anticipated to reach a size of USD 73.7 billion by 2034.
Integration of renewable energy and critical infrastructure development is projected to support growth. Ongoing expansion of data centers and increasing investments in infrastructure development across the globe are estimated to create a steady demand. Government support in the rapid expansion of renewable energy projects is also set to fuel growth.
Smart grid initiatives and localized manufacturing are anticipated to open new opportunities. Ambitious green policies amid increasing awareness of climate change are likely to foster development. Developed countries are investing in the renovation of their aging infrastructure and this upgradation is estimated to create a rising demand for efficient power quality equipment.
Tier 1 comprises organizations having a revenue of above USD 1,000 million. These businesses capture a significant share ranging between 20% and 25% in the global market. These companies are characterized by their high production capacity and extensive product portfolio.
They have expertise in manufacturing and a broad geographical reach that is underpinned by a robust consumer base. They utilize the latest technology and ensure compliance with regulatory standards, providing premium-quality products. Prominent companies in Tier 1 include Schneider Electric SE, Siemens Energy, General Electric Company, and Hitachi Energy Ltd.
Tier 2 consists of mid-sized players with revenue ranging from USD 1,000 million to USD 500 million. They have a significant presence in specific regions and highly impact the local market. These businesses are characterized by a strong presence overseas and a wide knowledge of the industry.
The companies may not have the latest technology but have access to good technology and ensure regulatory compliance. Renowned companies in Tier 2 include Eaton Corporation PLC, ABB Ltd., Nidec Industrial Solutions, Rockwell, and Hubbell Incorporated.
A massive portion of Tier 3 is made up of small-scale companies operating at the local level and serving niche markets. They have a revenue below USD 50 million. These organizations are notably oriented toward fulfilling the demand of the local customers and are consequently classified within the Tier 3 share segment.
The players have a limited geographical reach. Tier 3, within this context, is recognized as an unorganized segment, denoting a sector characterized by a lack of extensive structure and formalization compared to its organized competitors.
The section provides businesses with an overview of the industry. It consists of a detailed analysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination of the dynamics is projected to help companies in understanding the multifaceted nature of the market.
The examination comprises key factors, potential challenges, and forecasts influencing the demand, production, and consumption of the product within each country. It aims to assist businesses make informed decisions and develop effective strategies customized to individual countries.
ASEAN is estimated to remain at the forefront during the forecast period with a projected CAGR of 6.1% through 2034. South Korea, Canada, and India are estimated to follow closely behind to become a few key countries with predicted CAGRs of 5.8%, 5.7%, and 5.6%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| ASEAN | 6.1% |
| South Korea | 5.8% |
| Canada | 5.7% |
| India | 5.6% |
| United States | 5.3% |
India's power quality equipment market is set to rise at a CAGR of 5.6% between 2024 and 2034. It is estimated to reach USD 5.8 billion by 2034. This fast-paced growth in the industry is set to be driven by rapid infrastructural development in the country. Upgradation in the power sector, where voltage fluctuations, outages, and load imbalances are common, creates a high demand for power quality solutions, specifically voltage regulators and surge protectors.
The government's push toward urban electrification and industrial expansion has raised the demand for power quality devices, particularly in the manufacturing and IT industries. In the financial year 2022 to 2023, India's total electric power consumption was 1,403,400 GWh. The industrial sector accounted for 44% share while the residential sector registered a share of 25%. This underlined the vital significance of power equipment solutions in providing a stable power supply across prominent sectors.
The ongoing infrastructure expansion for renewable energy, particularly in solar and wind, is further projected to boost demand for power quality equipment as these variable energy sources require unique solutions to maintain grid stability.
Upcoming projects like the Sanand Semiconductor Assembly and Test Plant, which is set to be completed by 2025, and the Hubli Dharwad EV Components Manufacturing Factory, anticipated to be completed by 2024, are likely to contribute to the growing demand for these power equipment. Government initiatives like the “National Smart Grid Mission" and "Power for All" are likely to attract investments, promising reliable and quality power as India increases its energy infrastructure.
The United States power quality equipment market is anticipated to showcase a CAGR of 5.3% during the forecast period. North America currently holds a share of 18.5% in the global industry. The United States is predicted to have a command of the industry due to its position as the leading exporter worldwide. The country is a key producer of power quality equipment products worldwide.
For instance, with grid-scale battery energy storage installations surging, there is an increasing need for cutting-edge power quality solutions. One prominent expansion is Vistra’s 750 MW facility at Moss Landing in California equipped with 300 utility-scale battery storage projects, particularly in Texas and California. These systems, including voltage regulators and harmonic filters, are essential for managing energy flows and maintaining grid stability in the face of high renewable energy penetration.
China is witnessing rapid innovations in the energy storage industry, particularly through the integration of large-scale battery systems. This also includes renewable energy projects such as solar and wind farms. Government-mandated policies like the 14th Five-Year Plan have assisted China to emerge as the global leader in renewable energies, generating over 1,000 gigawatts of power from sources like solar and wind.
The country has several ambitious projects, including the development of offshore wind turbines with capacities of up to 18 MW, the Lijiaxia Hydropower Station in Qinghai Province, and the Kela Solar Power Station in Sichuan Province. These projects highlight its commitment to clean energy. Increasing projects as such are boosting the need for unique power quality solutions to handle grid stability, further raising demand for harmonic filters, voltage regulators, and energy management systems.
By 2024, China is likely to hold a market share of 53.4% in East Asia. The country is set to maintain its dominance owing to its rising investments in renewable energy and grid stability.
The section provides businesses with insightful data and analysis of the two leading segments. Segmentation of these categories assists organizations in understanding the dynamics of the business and investing in the beneficial zones.
Examination of the growth helps companies gain a thorough understanding of the trends, opportunities, and challenges. This analysis is projected to assist businesses in navigating the complex business environment and making informed decisions.
Capacitor banks are projected to lead in terms of equipment type with a CAGR of 4.5% during the assessment period ranging between 2024 and 2034. In terms of end-use, the automotive and industrial segment is set to lead with a value share of 31.1% in 2034.
| Segment | Capacitor Banks (Equipment Type) |
|---|---|
| Value Share (2024) | 13.1% |
Capacitor banks are anticipated to lead the equipment type segment with a value share of 13.1% in 2024. These are projected to rise at a CAGR of 4.5% during the forecast period. The deployment of capacitor banks results in enhanced power efficiency decreased utility charges, and improved voltage regulations.
The banks are also critical in providing a stable and efficient power supply and therefore have applications in industrial settings and electrical substations. However, one restraint that might limit the adoption of these capacitor banks is their high price compared to other power equipment.
| Segment | Automotive and Industrial (End-use) |
|---|---|
| Value Share (2034) | 31.1% |
The automotive and industrial segment is predicted to account for a revenue of USD 22.9 billion in the power quality equipment market by 2034. The segment is poised to rise at a CAGR of 5.2% during the forecast period. Automotive and industrial sectors are generally under strict operational demands, requiring reliable power quality equipment to maintain stability and efficiency.
The equipment is essential in the automotive and industrial sectors for voltage regulation to protect sensitive machinery. These are also used for harmonic filtering to reduce electrical distortions from variable-speed drives and inverters.
At the same time, these are set to help surge protection against voltage spikes, initiate power factor correction to enhance energy efficiency, and offer uninterruptible power supply (UPS) systems to ensure continuous operation during power outages. All of these are significant to minimize downtime and maximize productivity in these high-demand environments.
Key players in the industry include ABB Ltd, Schneider Electric, Mitsubishi Electric Corporation, Emerson Electric Co., Toshiba Corporation, General Electric, and Siemens Energy AG. In order to address several power quality issues in the electrical networks, manufacturers are working toward introducing multi-functional power quality and energy storage solutions. They are focusing on enhancing electricity quality and transmission capacity.
Rising energy consumption, especially in developed nations is anticipated to open new opportunities for manufacturers located in these countries. Favorable government regulations coupled with rising investments in the power industry in several nations are set to drive innovations.
Industry Updates
In terms of equipment type, the industry is segregated into dynamic voltage restorers (DVR), capacitor banks, inductive reactors, surge protection devices, harmonic filters, power conditioning units, power distribution units, voltage regulators, digital static transfer switches, static VAR compensators, solid oxide fuel cells, isolation transformers, and power quality meters.
Single phase and three phase are the two key phases.
By application, the industry is divided into residential, commercial, industrial and manufacturing, and transportation and utilities.
Telecommunications, automotive and industrial, electrical and electronics, and energy and utilities are the main end uses.
Information about different countries in North America, Latin America, Europe, East Asia, South Asia, the Middle East and Africa, and Oceania is given.
The industry is projected to reach USD 41.1 billion in 2024.
The market is estimated to reach USD 73.7 billion by 2034.
Power quality products operate as electrical filters by removing or decreasing the level of harmful harmonics and re-shaping the sinewave for the longevity of operation.
ABB Ltd, Schneider Electric, Mitsubishi Electric Corporation, Emerson Electric Co., and Siemens Energy AG are the key players.
The market is set to rise at a CAGR of 6% through 2034.
A power quality meter or low-frequency spectrum analyzer is mainly utilized.
ASEAN is anticipated to dominate with a CAGR of 6.1% during the assessment period.
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