STATCOM Market

STATCOM Market Summary

The global STATCOM market size was estimated at USD 1.26 billion in 2025, and is projected to reach USD 2.69 billion by 2033, growing at a CAGR of 10.5% from 2026 to 2033. The market is being significantly driven by the rapid integration of renewable energy sources into global power grids.

Increasing dominance of wind and solar power in the global energy mix is creating heightened challenges for utilities, including voltage fluctuations, reduced system inertia, and reactive power imbalances. STATCOM systems play an essential role in addressing these challenges by providing rapid, dynamic voltage regulation and enhancing grid stability under variable operating conditions. Rising investments in grid modernization, renewable interconnection infrastructure, and stricter grid code compliance are further boosting demand for STATCOM solutions across both developed and emerging markets. STATCOMs play a critical role in mitigating these challenges by providing fast, dynamic reactive power support, ensuring grid code compliance such as Low Voltage Ride Through (LVRT), and maintaining power quality. Countries such as India, China, and Germany are leading in the adoption of STATCOMs in solar and wind projects, reflecting a broader global shift toward grid-connected renewable energy stabilization.

Another major trend is the ongoing modernization of aging transmission and distribution infrastructure. Utilities across North America, Europe, and parts of Asia-Pacific are investing in grid resiliency and smart grid technologies to cope with growing demand, distributed generation, and changing load profiles. STATCOMs are increasingly deployed at substations and critical grid nodes to ensure voltage stability, minimize transmission losses, and enhance the overall reliability of the grid. These devices are especially valuable in weak grids or remote areas where voltage regulation is critical but challenging through traditional mechanical systems.

The market is also experiencing growth due to the expansion of industrial applications, particularly in sectors such as steel manufacturing, mining, and cement. Heavy industrial processes are known for causing significant voltage dips and harmonic distortion due to their large, fluctuating power demands. STATCOMs, especially medium-power systems, are being deployed to provide flicker mitigation, power factor correction, and voltage stabilization, resulting in improved operational efficiency and reduced energy costs. As industrial automation and electrification intensify in emerging economies, demand for STATCOM solutions in these sectors is expected to rise steadily.

Another trend driving the expansion of the STATCOM market is the rise of green hydrogen and energy storage projects. As governments and companies invest in hydrogen electrolyzer plants and hybrid systems (e.g., STATCOM + BESS), there is a growing need for power electronics devices that can stabilize load and supply-side fluctuations. STATCOMs are well-positioned to support the power quality needs of electrolyzers and help integrate them into the grid without creating instability. This emerging use case, although currently small in volume, is projected to grow significantly, especially in Europe, Japan, and the Middle East.

The market is also benefiting from technological advancements in STATCOM design, including the adoption of modular multilevel converters (MMC) and compact containerized systems. These innovations are making STATCOMs more flexible, scalable, and suitable for deployment in space-constrained or mobile environments such as offshore wind platforms or mining sites. The integration of digital monitoring and predictive maintenance tools is also enhancing system performance and uptime.

Global STATCOM Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global STATCOM market report based on rated capacity, end use, and region.

• Rated Capacity Outlook (Revenue, USD Billion, 2021 - 2033)
• 0-20 MVAR
• 20-100 MVAR
• More than 100 MVAR
• End Use Outlook (Revenue, USD Billion, 2021 - 2033)
• Utility
• Steel Manufacturing
• Mining
• Renewable Energy
• Hydrogen Power Plant
• Others
• Regional Outlook (Revenue, USD Billion, 2021 - 2033)
• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Latin America
• Brazil
• Middle East and Africa (MEA)
• KSA
• UAE
• South Africa

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