Power Factor Correction

Global Power Factor Correction Market to Reach US$2.8 Billion by 2030

The global market for Power Factor Correction estimated at US$2.3 Billion in the year 2024, is expected to reach US$2.8 Billion by 2030, growing at a CAGR of 3.3% over the analysis period 2024-2030. Below 200 KVAR, one of the segments analyzed in the report, is expected to record a 3.0% CAGR and reach US$1.2 Billion by the end of the analysis period. Growth in the 200 - 500 KVAR segment is estimated at 2.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$634.4 Million While China is Forecast to Grow at 6.2% CAGR

The Power Factor Correction market in the U.S. is estimated at US$634.4 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$559.9 Million by the year 2030 trailing a CAGR of 6.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.4% and 2.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.9% CAGR.

Global Power Factor Correction Market – Key Trends & Drivers Summarized

How Is Power Factor Correction Transforming Energy Efficiency?
Power factor correction (PFC) has become a crucial component in modern electrical systems, optimizing energy consumption, reducing losses, and enhancing power quality. Industries, utilities, and commercial facilities increasingly rely on PFC solutions to improve energy efficiency, reduce electricity costs, and ensure compliance with regulatory standards. The growing adoption of automation, industrial electrification, and renewable energy integration has further fueled the demand for advanced power factor correction technologies.

Traditional power factor correction solutions, such as capacitor banks and passive filters, remain widely used in industrial applications. However, the market is witnessing a shift toward smart PFC systems, including active power factor correction (APFC) units and dynamic PFC controllers. These advanced solutions leverage digital monitoring, real-time compensation, and AI-based analytics to optimize power usage and minimize reactive power penalties. Additionally, the increasing deployment of variable frequency drives (VFDs) and energy-efficient motors in manufacturing and HVAC systems is driving the need for integrated PFC solutions to maintain optimal power performance.

What Market Trends Are Influencing the Growth of Power Factor Correction Solutions?
One of the most significant trends in the PFC market is the rising emphasis on energy conservation and grid stability. Governments and regulatory bodies worldwide are enforcing stringent power quality standards and incentivizing industries to adopt power factor correction solutions. Policies such as IEEE 519 in the United States and the European Union’s Eco-design Directive have strengthened the adoption of power quality management technologies across various sectors.

Another key trend is the increasing adoption of smart grid infrastructure and digital substations. With the integration of Internet of Things (IoT) technology, utilities and large-scale industrial facilities are deploying intelligent power factor correction systems that offer real-time monitoring, predictive maintenance, and automated adjustments to improve power efficiency. The convergence of PFC with energy storage systems and renewable energy sources is also shaping the market, as hybrid solutions help balance power demand fluctuations and improve the overall stability of distributed energy networks.

Furthermore, the growing electrification of transportation, including electric vehicle (EV) charging infrastructure, has highlighted the need for power factor correction. EV chargers, particularly fast-charging stations, can introduce harmonic distortions and reactive power issues, necessitating the implementation of PFC solutions to ensure grid reliability and efficiency.

Which Regions Are Leading the Power Factor Correction Market?
North America and Europe dominate the power factor correction market, driven by strong regulatory frameworks, industrial automation trends, and a high focus on energy efficiency. In the United States and Canada, utilities and manufacturing sectors are actively investing in PFC solutions to optimize energy usage and comply with national grid codes. Similarly, in Europe, industries are leveraging PFC technologies to meet stringent energy efficiency directives and improve power quality in industrial operations.

The Asia-Pacific region is experiencing rapid growth in PFC adoption due to increasing industrialization, urbanization, and expansion of renewable energy projects. Countries such as China, India, and Japan are witnessing a surge in demand for PFC solutions as governments push for improved power reliability and reduced transmission losses. Meanwhile, the Middle East and Africa are also emerging as key markets, particularly in the oil & gas, mining, and infrastructure sectors, where power efficiency is critical for operational sustainability.

The Growth in the Power Factor Correction Market Is Driven by Several Factors
One of the primary drivers of market growth is the rising demand for energy-efficient solutions across industrial and commercial sectors. Power factor correction technologies help reduce energy wastage, lower operational costs, and extend the lifespan of electrical equipment, making them a vital component in power management strategies.

Another major factor fueling market expansion is the rapid advancement of smart power correction technologies. The development of active harmonic filters, real-time compensators, and AI-driven monitoring systems has significantly enhanced the efficiency and adaptability of PFC solutions. The increasing deployment of smart meters and energy management systems further supports the adoption of power factor correction technologies in industrial and commercial buildings.

Additionally, the growing integration of renewable energy sources such as solar and wind power necessitates improved power factor management to ensure grid stability. With fluctuating power supply characteristics, utilities and microgrid operators are investing in dynamic PFC solutions to maintain optimal power quality. The expansion of EV charging networks and the rising demand for high-power data centers are also contributing to the market`s growth, as these sectors require efficient power management systems to handle large electrical loads.

As industries, utilities, and commercial enterprises continue to prioritize energy optimization and power quality improvements, the power factor correction market is expected to witness sustained growth, driven by regulatory support, technological innovations, and increasing awareness of energy efficiency benefits.

SCOPE OF STUDY:

The report analyzes the Power Factor Correction market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Reactive Power (Below 200 KVAR, 200 - 500 KVAR, 500 - 1500 KVAR, Above 1500 KVAR); Product Type (Automatic Correction, Fixed Correction); Application (Industrial Application, Renewable Application, Commercial Application, Data Center Application, EV Charging Application)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 36 Featured) -

• ABB Ltd.
• Comar Condensatori S.p.A.
• Cordyne, Inc.
• Ducati Energia S.p.A.
• Eaton Corporation plc
• Elcontrol Energy Net S.p.A.
• Enerdoor Inc.
• ETI Group
• Fritz Driescher & Söhne GmbH
• General Electric Company
• Hitachi Energy Ltd.
• Hubbell Power Systems
• LOVATO Electric S.p.A.
• Messko GmbH
• Power Control Systems S.r.l.
• Powerside
• Ronkelectrical Inc.
• Schneider Electric SE
• Sheng Ye Electric Co., Ltd.
• Siemens AG

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