The Global Synchronous Capacitor Market is Expected to Grow at a Healthy CAGR of 8.2% Between 2022 and 2029
The global market value of Synchronous Capacitors stands at US$1.01 Billion in 2022 and is projected to grow at a CAGR of 8.2% during the forecast period 2022-2029. This growth is mainly driven by the integration of renewable energies through solar and wind power plants and the increasing installation of synchronous condensers to ensure the robust operation of power plants.
The rapid shift towards wind and solar power, in an effort to reduce dependence on fossil fuels, has generated a large demand for synchronous condensers in recent years. According to IMF analysis, manufacturers are turning to countries, like China, that are making great strides in increasing energy production from non-fossil fuel sources.
New opportunities identified in the Middle East and Africa
Regions such as North America and Europe are likely to hold significant market shares in terms of value. However, South Asia Market is estimated to witness lucrative growth in the Global Synchronous Capacitor Market over the forecast period 2022-2029. This growth in the region is propelled by rapid technological advancements and the growing number of HVDC projects in major countries such as India and Indonesia, among others.
Additionally, the synchronous capacitors market is expected to grow primarily in major Middle East and African countries including Saudi Arabia, Kuwait, Qatar, Abu Dhabi, Nigeria, and UAE, owing to various macroeconomic factors such as increasing urbanization, political and social stability. backdrop and rapid industrialization.
A growing number of market players in the region have won the trust of foreign investors and network operators to invest in the market. In addition, the renovation of synchronous condensers from old conventional plants and generators to new machines has added expressive positive momentum in recent years.
Furthermore, the growing number of HVDC projects in the MEA and the installation of sustainable energy power plants have boosted the demand for synchronous condensers to ensure the stability and robust operation of power plants. These factors have resulted in significant growth of the synchronous capacitor market in the region.
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Growing number of HVDC projects and related substations create new opportunities for synchronous capacitor manufacturers
The global synchronous condenser market has been segmented on the basis of different types of synchronous condensers, their multiple applications and regions such as North America, Latin America, Europe, Southeast Asia, East Asia, Oceania, the Middle East and Africa.
- By product, the newly constructed synchronous condenser is likely to hold significant value shares in the global synchronous condenser market. This is mainly a result of the increasing adoption of synchronous condensers over conventional gas-fired cooling plants and the increasing installation of solar and wind farms in several countries.
- Based on cooling, the water-cooled segment is expected to consume majority of the global synchronous condenser market value. This is due to the growing demand for water-cooled synchronous condensers in several regions. Also, the application of synchronous condensers in power plants and other similar machinery is expected to grow significantly throughout the forecast period.
- Based on the power rating, synchronous capacitors ranging from less than 50 MVAR and 50-80 MVAR are expected to consume the majority of the global market value of synchronous capacitors. This is due to the increasing construction of synchronous capacitors under power ratings specified by major market players in several regions.
Synchronous Capacitor Market: Vendor Insights
The report highlights some of the major market players, who have established themselves as leaders in the global synchronous capacitors market. Some of the examples of key players in the global synchronous capacitors market are ABB Ltd., General Electric, Siemens AG, Mitsubishi Electric Corporation, WEG, Eaton Corp. PLC, Voith GmbH, Ansaldo Energia, Toshiba Corporation, and Sustainable Power Systems Inc., among others.
The global synchronous capacitors market is significantly consolidated with some players holding significant market shares. These players offer synchronous capacitors in their business segments such as FACT.S., and motors and generators, among others.