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Capacitor Bank Market

Published Jan 15, 2025
Length 398 Pages
SKU # ALMR20275346

Description

The global capacitor bank market was valued at $4.3 billion in 2023, and is projected to reach $6.8 billion by 2033, growing at a CAGR of 4.8% from 2024 to 2033.

Introduction

A capacitor bank is a combination of multiple capacitors connected in series or parallel to store electrical energy for reactive power compensation, voltage regulation, and power factor improvement in an electrical system. These systems are crucial in various industries, and applications that require efficient power management and energy optimization. A capacitor bank functions by absorbing the reactive power, which is necessary to sustain the electric and magnetic fields in devices such as motors, transformers, and other inductive loads. This reduces the burden on the power source and enhances overall efficiency.

Capacitor banks help maintain voltage stability in electrical systems by compensating for fluctuations caused by inductive loads. Voltage stability is a critical parameter for sensitive equipment, and capacitor banks help in reducing the risks of voltage dips, flickers, or surges that damage devices or interrupt operations. For example, in manufacturing plants with large motors and electric furnaces, maintaining voltage levels within safe limits is vital for continuous production and protection of expensive machinery.

Market Dynamics

Rise in energy demand globally is expected to drive the growth of capacitor bank market. The growing demand for energy has placed significant strain on power grids, underscoring the need for solutions that ensure efficient and consistent energy delivery. Capacitor banks have become crucial in addressing this challenge by improving power quality, enhancing grid efficiency, and supporting the integration of renewable energy sources like solar and wind. These technologies compensate for reactive power, boost power factor, reduce transmission losses, and stabilize voltage, making them vital to modern power infrastructure.

However, availability of alternatives is expected to hamper the growth of the market. Availability of advanced technologies such as Static VAR Compensators (SVCs) and Flexible AC Transmission Systems (FACTS) presents a growing competitive challenge to traditional capacitor banks. While capacitor banks have long been relied upon for power factor correction and reactive power compensation, these newer technologies such as SVCs and FACTS offer similar benefits with added flexibility and advanced capabilities. SVCs, for example, are dynamic devices that provide fast and continuous reactive power compensation, which is particularly useful for handling rapid changes in grid conditions. Similarly, FACTS technologies, which include devices such as STATCOMs (Static Synchronous Compensators) and SVCs, allow for more sophisticated voltage regulation, power flow control, and reactive power management. These systems offer improved grid stability and efficiency, especially in complex, high-demand networks. FACTS help optimize the operation of transmission lines, reduce losses, and enhance the overall reliability of the grid, particularly in high-traffic regions or where renewable energy sources are integrated.

Segments Overview

The capacitor bank market is segmented on the basis of voltage, type, installation, connection type, application, and region. Depending on voltage, the market is segmented into less than 1kV, 1kV to10 kV, 10 kV to 69 kV, and more than 69 kV. On the basis of type, the market is categorized into externally fused, internally fused, and fuseless. On the basis of installation, the market is divided into pole mounted, open air substation, metal enclosed substation, and other. On the basis of connection type, the market is categorized into star connection and delta connection. On the basis of application, the market is divided into power factor correction, industrial, harmonic filter, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of voltage, the 10 kV to 69 kV segment dominated the capacitor bank market in 2023. Industrial facilities also utilize capacitor banks in the 10 kV to 69 kV range to optimize their internal power distribution. Large motors, arc furnaces, and other inductive loads generate reactive power, which can cause poor power factor and increased utility charges. By strategically placing capacitor banks, industries can offset this reactive power demand, improving their energy efficiency and reducing electricity bills. Moreover, capacitor banks help prevent voltage instability in critical applications, ensuring smooth operation and prolonging the lifespan of electrical equipment.

On the basis of installation, metal enclosed substation was the fastest growing segment in the market in 2023 and is expected to witness a CAGR of 4.3% during the forecast period. Harmonic filtering is significant function of capacitor banks in metal-enclosed substations. In modern electrical networks, nonlinear loads such as variable frequency drives (VFDs) and power electronic converters generate harmonic distortions that can lead to equipment overheating and reduced efficiency. Specially designed capacitor banks, often used in conjunction with reactors, help filter out unwanted harmonics, thereby improving power quality and preventing potential damage to electrical infrastructure. Metal-enclosed capacitor banks offer a compact and safe solution compared to open-rack designs. These enclosures provide physical protection from environmental factors such as dust, moisture, and extreme temperatures, ensuring long-term reliability. Additionally, metal enclosures enhance safety by reducing the risk of electrical hazards, making them an ideal choice for substations in industrial and urban settings where space constraints and personnel safety are paramount.

Region wise, Asia-Pacific dominated the wind turbine market in 2023. Countries like China, India, Japan, and South Korea have been at the forefront of adopting capacitor banks to optimize energy consumption in industrial, commercial, and residential applications. In China and India, where electricity demand is surging due to economic growth and expanding manufacturing sectors, capacitor banks help in maintaining grid stability by compensating for reactive power. In the industrial sector, capacitor banks are widely used in manufacturing plants, refineries, and mining operations to maintain power quality and avoid penalties associated with low power factor. Countries like Australia, Indonesia, and Malaysia, which have significant mining and oil refining industries, deploy capacitor banks to ensure efficient energy utilization. In Japan and South Korea, where technological advancements drive automation and robotics, capacitor banks are integrated into high-tech manufacturing facilities to enhance energy efficiency.

Competitive Analysis

The key players operating in the capacitor bank market include Circutor, Toshiba Corporation (Toshiba), Vishay Intertechnology Inc., Siemens, Enerlux Power s.r.l., Comar Condensatori S.p.A, Hitachi Ltd. (Hitachi), ABB Ltd., Eaton, and EPCOS.

Key Benefits For Stakeholders

This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the capacitor bank market analysis from 2023 to 2033 to identify the prevailing capacitor bank market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the capacitor bank market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global capacitor bank market trends, key players, market segments, application areas, and market growth strategies.

Key Market Segments

By Voltage

Less than 1 kV
1 kV to 10 kV
10 kV to 69 kV
More than 69 kV

By Type

Fuse Less
Internally Fused
Externally Fused

By Installation

Pole Mounted
Open Air Substation
Metal Enclosed Substation
Others

By Connection Type

Star
Delta

By Application

Power Factor Correction
Harmonic Filter
Industrial
Others

By Region

North America
U.S.
Canada
Mexico
Europe
Germany
Italy
France
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
LAMEA
Brazil
UAE
South Africa
Rest of LAMEA
Key Market Players
Enerlux Power s.r.l.
COMAR Condensatori S.p.A.
TOSHIBA CORPORATION
TDK Electronics AG
Circutor
Eaton
ABB
Siemens
Vishay Intertechnology, Inc.
Hitachi, Ltd.The research methodology of the global market involves extensive primary and secondary research. Primary research includes about over 12 hours of interviews and discussion with a wide range of stakeholders, including upstream and downstream participants. The primary research typically is the bulk of our research efforts; however, coherently supported by extensive secondary research. Researchers have reviewed over 6,765 product literatures, industry releases, annual reports, and other such documents of key industry participants to obtain better market understanding and gain competitive intelligence. In addition, authentic industry journals, trade associations' releases,and government websites have also been reviewed for generating high-value industry insights.

Table of Contents

398 Pages
CHAPTER 1: INTRODUCTION
1.1. Report description
1.2. Key market segments
1.3. Key benefits to the stakeholders
1.4. Research methodology
CHAPTER 2: EXECUTIVE SUMMARY
2.1. CXO perspective
CHAPTER 3: MARKET OVERVIEW
3.1. Market definition and scope
3.2. Key findings
3.2.1. Top impacting factors
3.2.2. Top investment pockets
3.3. Porter’s five forces analysis
3.3.1. Moderate bargaining power of suppliers
3.3.2. Moderate threat of new entrants
3.3.3. High threat of substitutes
3.3.4. Moderate intensity of rivalry
3.3.5. High bargaining power of buyers
3.4. Market dynamics
3.4.1. Drivers
3.4.1.1. Rising Energy Demand
3.4.1.2. Increase in renewable energy integration
3.4.2. Restraint
3.4.2.1. Maintenance and Operational Challenges
3.4.3. Opportunity
3.4.3.1. Increase in demand for Smart Grid
3.5. Value Chain Analysis
3.6. Regulatory Guidelines
CHAPTER 4: CAPACITOR BANK MARKET, BY VOLTAGE
4.1. Overview
4.1.1. Market size and forecast
4.2. Less than 1 kV
4.2.1. Key market trends, growth factors and opportunities
4.2.2. Market size and forecast, by region
4.2.3. Market share analysis by country
4.3. 1 kV to 10 kV
4.3.1. Key market trends, growth factors and opportunities
4.3.2. Market size and forecast, by region
4.3.3. Market share analysis by country
4.4. 10 kV to 69 kV
4.4.1. Key market trends, growth factors and opportunities
4.4.2. Market size and forecast, by region
4.4.3. Market share analysis by country
4.5. More than 69 kV
4.5.1. Key market trends, growth factors and opportunities
4.5.2. Market size and forecast, by region
4.5.3. Market share analysis by country
CHAPTER 5: CAPACITOR BANK MARKET, BY TYPE
5.1. Overview
5.1.1. Market size and forecast
5.2. Internally Fused
5.2.1. Key market trends, growth factors and opportunities
5.2.2. Market size and forecast, by region
5.2.3. Market share analysis by country
5.3. Externally Fused
5.3.1. Key market trends, growth factors and opportunities
5.3.2. Market size and forecast, by region
5.3.3. Market share analysis by country
5.4. Fuse Less
5.4.1. Key market trends, growth factors and opportunities
5.4.2. Market size and forecast, by region
5.4.3. Market share analysis by country
CHAPTER 6: CAPACITOR BANK MARKET, BY INSTALLATION
6.1. Overview
6.1.1. Market size and forecast
6.2. Pole Mounted
6.2.1. Key market trends, growth factors and opportunities
6.2.2. Market size and forecast, by region
6.2.3. Market share analysis by country
6.3. Open Air Substation
6.3.1. Key market trends, growth factors and opportunities
6.3.2. Market size and forecast, by region
6.3.3. Market share analysis by country
6.4. Metal Enclosed Substation
6.4.1. Key market trends, growth factors and opportunities
6.4.2. Market size and forecast, by region
6.4.3. Market share analysis by country
6.5. Others
6.5.1. Key market trends, growth factors and opportunities
6.5.2. Market size and forecast, by region
6.5.3. Market share analysis by country
CHAPTER 7: CAPACITOR BANK MARKET, BY CONNECTION TYPE
7.1. Overview
7.1.1. Market size and forecast
7.2. Star
7.2.1. Key market trends, growth factors and opportunities
7.2.2. Market size and forecast, by region
7.2.3. Market share analysis by country
7.3. Delta
7.3.1. Key market trends, growth factors and opportunities
7.3.2. Market size and forecast, by region
7.3.3. Market share analysis by country
CHAPTER 8: CAPACITOR BANK MARKET, BY APPLICATION
8.1. Overview
8.1.1. Market size and forecast
8.2. Power Factor Correction
8.2.1. Key market trends, growth factors and opportunities
8.2.2. Market size and forecast, by region
8.2.3. Market share analysis by country
8.3. Harmonic Filter
8.3.1. Key market trends, growth factors and opportunities
8.3.2. Market size and forecast, by region
8.3.3. Market share analysis by country
8.4. Industrial
8.4.1. Key market trends, growth factors and opportunities
8.4.2. Market size and forecast, by region
8.4.3. Market share analysis by country
8.5. Others
8.5.1. Key market trends, growth factors and opportunities
8.5.2. Market size and forecast, by region
8.5.3. Market share analysis by country
CHAPTER 9: CAPACITOR BANK MARKET, BY REGION
9.1. Overview
9.1.1. Market size and forecast By Region
9.2. North America
9.2.1. Key market trends, growth factors and opportunities
9.2.2. Market size and forecast, by Voltage
9.2.3. Market size and forecast, by Type
9.2.4. Market size and forecast, by Installation
9.2.5. Market size and forecast, by Connection Type
9.2.6. Market size and forecast, by Application
9.2.7. Market size and forecast, by country
9.2.7.1. U.S.
9.2.7.1.1. Market size and forecast, by Voltage
9.2.7.1.2. Market size and forecast, by Type
9.2.7.1.3. Market size and forecast, by Installation
9.2.7.1.4. Market size and forecast, by Connection Type
9.2.7.1.5. Market size and forecast, by Application
9.2.7.2. Canada
9.2.7.2.1. Market size and forecast, by Voltage
9.2.7.2.2. Market size and forecast, by Type
9.2.7.2.3. Market size and forecast, by Installation
9.2.7.2.4. Market size and forecast, by Connection Type
9.2.7.2.5. Market size and forecast, by Application
9.2.7.3. Mexico
9.2.7.3.1. Market size and forecast, by Voltage
9.2.7.3.2. Market size and forecast, by Type
9.2.7.3.3. Market size and forecast, by Installation
9.2.7.3.4. Market size and forecast, by Connection Type
9.2.7.3.5. Market size and forecast, by Application
9.3. Europe
9.3.1. Key market trends, growth factors and opportunities
9.3.2. Market size and forecast, by Voltage
9.3.3. Market size and forecast, by Type
9.3.4. Market size and forecast, by Installation
9.3.5. Market size and forecast, by Connection Type
9.3.6. Market size and forecast, by Application
9.3.7. Market size and forecast, by country
9.3.7.1. Germany
9.3.7.1.1. Market size and forecast, by Voltage
9.3.7.1.2. Market size and forecast, by Type
9.3.7.1.3. Market size and forecast, by Installation
9.3.7.1.4. Market size and forecast, by Connection Type
9.3.7.1.5. Market size and forecast, by Application
9.3.7.2. Italy
9.3.7.2.1. Market size and forecast, by Voltage
9.3.7.2.2. Market size and forecast, by Type
9.3.7.2.3. Market size and forecast, by Installation
9.3.7.2.4. Market size and forecast, by Connection Type
9.3.7.2.5. Market size and forecast, by Application
9.3.7.3. France
9.3.7.3.1. Market size and forecast, by Voltage
9.3.7.3.2. Market size and forecast, by Type
9.3.7.3.3. Market size and forecast, by Installation
9.3.7.3.4. Market size and forecast, by Connection Type
9.3.7.3.5. Market size and forecast, by Application
9.3.7.4. Spain
9.3.7.4.1. Market size and forecast, by Voltage
9.3.7.4.2. Market size and forecast, by Type
9.3.7.4.3. Market size and forecast, by Installation
9.3.7.4.4. Market size and forecast, by Connection Type
9.3.7.4.5. Market size and forecast, by Application
9.3.7.5. UK
9.3.7.5.1. Market size and forecast, by Voltage
9.3.7.5.2. Market size and forecast, by Type
9.3.7.5.3. Market size and forecast, by Installation
9.3.7.5.4. Market size and forecast, by Connection Type
9.3.7.5.5. Market size and forecast, by Application
9.3.7.6. Rest of Europe
9.3.7.6.1. Market size and forecast, by Voltage
9.3.7.6.2. Market size and forecast, by Type
9.3.7.6.3. Market size and forecast, by Installation
9.3.7.6.4. Market size and forecast, by Connection Type
9.3.7.6.5. Market size and forecast, by Application
9.4. Asia-Pacific
9.4.1. Key market trends, growth factors and opportunities
9.4.2. Market size and forecast, by Voltage
9.4.3. Market size and forecast, by Type
9.4.4. Market size and forecast, by Installation
9.4.5. Market size and forecast, by Connection Type
9.4.6. Market size and forecast, by Application
9.4.7. Market size and forecast, by country
9.4.7.1. China
9.4.7.1.1. Market size and forecast, by Voltage
9.4.7.1.2. Market size and forecast, by Type
9.4.7.1.3. Market size and forecast, by Installation
9.4.7.1.4. Market size and forecast, by Connection Type
9.4.7.1.5. Market size and forecast, by Application
9.4.7.2. Japan
9.4.7.2.1. Market size and forecast, by Voltage
9.4.7.2.2. Market size and forecast, by Type
9.4.7.2.3. Market size and forecast, by Installation
9.4.7.2.4. Market size and forecast, by Connection Type
9.4.7.2.5. Market size and forecast, by Application
9.4.7.3. India
9.4.7.3.1. Market size and forecast, by Voltage
9.4.7.3.2. Market size and forecast, by Type
9.4.7.3.3. Market size and forecast, by Installation
9.4.7.3.4. Market size and forecast, by Connection Type
9.4.7.3.5. Market size and forecast, by Application
9.4.7.4. South Korea
9.4.7.4.1. Market size and forecast, by Voltage
9.4.7.4.2. Market size and forecast, by Type
9.4.7.4.3. Market size and forecast, by Installation
9.4.7.4.4. Market size and forecast, by Connection Type
9.4.7.4.5. Market size and forecast, by Application
9.4.7.5. Rest of Asia-Pacific
9.4.7.5.1. Market size and forecast, by Voltage
9.4.7.5.2. Market size and forecast, by Type
9.4.7.5.3. Market size and forecast, by Installation
9.4.7.5.4. Market size and forecast, by Connection Type
9.4.7.5.5. Market size and forecast, by Application
9.5. LAMEA
9.5.1. Key market trends, growth factors and opportunities
9.5.2. Market size and forecast, by Voltage
9.5.3. Market size and forecast, by Type
9.5.4. Market size and forecast, by Installation
9.5.5. Market size and forecast, by Connection Type
9.5.6. Market size and forecast, by Application
9.5.7. Market size and forecast, by country
9.5.7.1. Brazil
9.5.7.1.1. Market size and forecast, by Voltage
9.5.7.1.2. Market size and forecast, by Type
9.5.7.1.3. Market size and forecast, by Installation
9.5.7.1.4. Market size and forecast, by Connection Type
9.5.7.1.5. Market size and forecast, by Application
9.5.7.2. UAE
9.5.7.2.1. Market size and forecast, by Voltage
9.5.7.2.2. Market size and forecast, by Type
9.5.7.2.3. Market size and forecast, by Installation
9.5.7.2.4. Market size and forecast, by Connection Type
9.5.7.2.5. Market size and forecast, by Application
9.5.7.3. South Africa
9.5.7.3.1. Market size and forecast, by Voltage
9.5.7.3.2. Market size and forecast, by Type
9.5.7.3.3. Market size and forecast, by Installation
9.5.7.3.4. Market size and forecast, by Connection Type
9.5.7.3.5. Market size and forecast, by Application
9.5.7.4. Rest of LAMEA
9.5.7.4.1. Market size and forecast, by Voltage
9.5.7.4.2. Market size and forecast, by Type
9.5.7.4.3. Market size and forecast, by Installation
9.5.7.4.4. Market size and forecast, by Connection Type
9.5.7.4.5. Market size and forecast, by Application
CHAPTER 10: COMPETITIVE LANDSCAPE
10.1. Introduction
10.2. Top winning strategies
10.3. Product mapping of top 10 Player
10.4. Competitive dashboard
10.5. Competitive heatmap
10.6. Top player positioning, 2023
CHAPTER 11: COMPANY PROFILES
11.1. Eaton
11.1.1. Company overview
11.1.2. Key executives
11.1.3. Company snapshot
11.1.4. Operating business segments
11.1.5. Product portfolio
11.1.6. Business performance
11.2. COMAR Condensatori S.p.A.
11.2.1. Company overview
11.2.2. Key executives
11.2.3. Company snapshot
11.2.4. Operating business segments
11.2.5. Product portfolio
11.3. ABB
11.3.1. Company overview
11.3.2. Key executives
11.3.3. Company snapshot
11.3.4. Operating business segments
11.3.5. Product portfolio
11.3.6. Business performance
11.4. Enerlux Power s.r.l.
11.4.1. Company overview
11.4.2. Key executives
11.4.3. Company snapshot
11.4.4. Operating business segments
11.4.5. Product portfolio
11.5. Hitachi, Ltd.
11.5.1. Company overview
11.5.2. Key executives
11.5.3. Company snapshot
11.5.4. Operating business segments
11.5.5. Product portfolio
11.5.6. Business performance
11.6. Circutor
11.6.1. Company overview
11.6.2. Key executives
11.6.3. Company snapshot
11.6.4. Operating business segments
11.6.5. Product portfolio
11.7. Siemens
11.7.1. Company overview
11.7.2. Key executives
11.7.3. Company snapshot
11.7.4. Operating business segments
11.7.5. Product portfolio
11.7.6. Business performance
11.8. TOSHIBA CORPORATION
11.8.1. Company overview
11.8.2. Key executives
11.8.3. Company snapshot
11.8.4. Operating business segments
11.8.5. Product portfolio
11.8.6. Business performance
11.9. Vishay Intertechnology, Inc.
11.9.1. Company overview
11.9.2. Key executives
11.9.3. Company snapshot
11.9.4. Operating business segments
11.9.5. Product portfolio
11.9.6. Business performance
11.10. TDK Electronics AG
11.10.1. Company overview
11.10.2. Key executives
11.10.3. Company snapshot
11.10.4. Operating business segments
11.10.5. Product portfolio

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