Static VAR Compensator Market Size - By Product (Thyristor-Based, MCR-Based), By Application (Utility, Railway, Industrial, Oil & Gas) & Forecast, 2023 - 2032

Static VAR Compensator Market Size - By Product (Thyristor-Based, MCR-Based), By Application (Utility, Railway, Industrial, Oil & Gas) & Forecast, 2023 - 2032

Static VAR Compensator Market size is projected to expand at 4.8% CAGR from 2023 to 2032 propelled by the ongoing grid modernization initiatives across the globe. The increasing integration of renewable energy sources and the higher need for grid flexibility is amplifying the demand for static VAR compensators (SVCs). Additionally, the growing integration of renewable energy sources is surging the need for advanced grid solutions to manage voltage fluctuations and enhance grid performance.

Furthermore, several industry participants are making efforts to keep up with the ongoing introduction of renewable energy power, further accelerating the industry expansion. For instance, in March 2023, Tohoku Electric Power Network placed an order with Toshiba Energy Systems & Solutions Corporation for installing STATCOM (Static Synchronous Compensator) to enhance grid stability during large-capacity power transfer while ensuring stable supply during transmission system faults.

The industry is segmented as per product, application, and region.

Based on product, the MCR-based static VAR compensator industry is anticipated to gain significant traction between 2023 and 2032. MCR-based SVCs offer advanced control over reactive power compensation for providing flexible and efficient solution for voltage regulation. Additionally, on account of the capability to rapidly respond to dynamic grid conditions, including load fluctuations and voltage variations, these systems help to enhance the grid stability. The growing emphasis of several industries on variable and high-power consumption will further contribute to the higher product adoption for minimizing disruptions.

In terms of application, the market share from the industrial segment is set to witness high demand during 2023-203. This is owing to the widespread usage of SVCs in industrial applications for mitigating voltage fluctuations and supporting the reliable operation of sensitive equipment. Additionally, there is rising need for efficient reactive power compensation to stabilize voltage levels and enhance power quality across industries. Moreover, the increasing awareness of the economic benefits associated with enhanced power quality will further fuel the segment growth.

Regionally, the North America static var compensator industry is estimated to expand at a robust growth rate through 2032, driven by the surge in power infrastructure investments and grid modernization initiatives. For instance, in October 2023, the Department of Energy (DoE) announced a $3.5 billion investment to improve grid stability and resilience in 44 states. The increasing focus on reliable power supply and compliance with stringent grid codes is fueling the adoption of SVCs in North America. Additionally, the rising demand for efficient reactive power compensation in industrial applications will further contribute to the regional market expansion.