Static VAR Compensator Market Forecasts to 2028 - Global Analysis By Type (Magnetically Controlled Reactor (MCR) Based SVC and Thyristor Based SVC), Component (GIS Switchgear, Phase Shifting Transformer and Other Components), Application (Metallurgy, Elec

Static VAR Compensator Market Forecasts to 2028 - Global Analysis By Type (Magnetically Controlled Reactor (MCR) Based SVC and Thyristor Based SVC), Component (GIS Switchgear, Phase Shifting Transformer and Other Components), Application (Metallurgy, Electric Utility and Other Applications) and Geography

According to Stratistics MRC, the Global Static VAR Compensator Market is accounted for $773.1 million in 2022 and is expected to reach $1,078.2 million by 2028 growing at a CAGR of 5.7% during the forecast period. An electrical device termed a ""static VAR compensator"" provides rapid reactive power to high-voltage transmission networks. It assists in regulating the entire system by controlling harmonics, power factor, and voltage. For the purpose of managing the transmission voltage and enhancing the quality of the electricity, they are connected to power networks that are close to significant industrial loads. In large industrial sectors, the Static VAR Compensator (SVC) is mainly used to regulate the quality of the power supply and voltage fluctuations in transmission lines. The use of SVC has grown in the railway industry to replace the current grids as well as in the upcoming solar and wind stations.

According to a report published by the National Bureau of Statistics of China, the large-scale manufacturing industry witnessed 20% decline in production in March 2020 as compared to March 2019 while profits declined by 66%.

Market Dynamics:

Driver:

Rising copper mining

The increased demand for copper requires enhanced production capacities at mine locations all over the world. Furthermore, there are more and more greenfield mining projects being developed. Existing Brownfield mining facilities also evaluate the expansion of their output capacities. Additionally, the drives used in mining facilities are almost entirely electrical drives; this capability raises the demand for electricity consumption.

Restraint:

Growing adoption of STATCOM

Over the past several decades, there have been various transmission and distribution problems with power. The adoption of FACTS devices has increased throughout end-use industries as a solution to those issues. For voltage regulation, STATCOM and SVCs are the best FACTS devices to use. The primary controlled shunt compensation mechanism continues to be the static VAR compensator. In terms of market growth, STATCOM is better than SVC. Faster response rates and improved reactive power capability are the major drivers of STATCOM's rapid adoption. Additionally, STATCOM provides the highest voltage output even at low system voltages, which minimises the necessity for an SVC component harmonic filter.

Opportunity:

Smart Grid Infrastructure Development

Due to a significant increase in the development of smart grid infrastructure, the SVC market has experienced tremendous growth, and the roll-out of smart metres is expected to accelerate the industry's pace even further. For instance, in January 2022, the U.S. Department of Energy will launch the ""Building a Better Grid"" initiative to spur the development of new and upgraded high-capacity electric transmission lines across the country. Additionally, achieving the objectives of 100% clean electricity and a zero-emissions economy will require long-distance, high-voltage transmission systems, which Build a Better Grid will continue to lay out in collaboration with community and industry stakeholders. It is anticipated that such government initiatives will increase SVC adoption.

Threat:

Low awareness among corporates

The main barriers to the market for static VAR compensators are low corporate awareness of the benefits of MCR-based SVCs and high political participation in the power sector. Furthermore, it is projected that end users' resistance to adopting or switching to static VAR compensators will negatively impact market expansion.

Covid-19 Impact

The global epidemic of 2020 has reduced demand for electricity. During the initial stages of the pandemic, major nations with high electricity consumption have seen a decline in usage. The International Energy Agency (IEA) estimates that between February 2019 and February 2020, China's electricity demand decreased by approximately 13%. Due to the pandemic's decreased need for power, static VAR compensator sales also declined.

The renewable segment is expected to be the largest during the forecast period

The expansion in investments made by investors in the renewable sector in nations in the Asia-Pacific region, including India, Japan, and China, as well as in Africa, is causing a significant growth in the market for renewable SVC. Furthermore, large numbers of plants are anticipated to be built as a result of the rise in investments; these plants will need SVC solutions for power transmission and distribution, which will have a direct impact on the expansion of the SVC market.

The thyristor based SVC segment is expected to have the highest CAGR during the forecast period

The market could grow as a result of an increase in the use of three-phase electric power systems in large-scale industries including steel manufacturing, mining, and others where thyristor-based static VAR compensators are commonly used to regulate the voltage across the inductor. Furthermore, Thyristor use in a static VAR compensator boosts a number of significant attributes, including high power factor, quick response time and real-time reactor control.

Region with largest share:

The increase in energy usage in the commercial, industrial, and residential sectors is driving the North American SVC market. The region also places an emphasis on increased production of power from renewable energy such as wind and solar. Additionally, the region is a prominent destination due to the presence of major SVC players.

Region with highest CAGR:

The regional SVC market is being driven by the expansion of the utility and renewable energy sectors across countries in Asia Pacific, as well as high volume demands for grid voltage stability. Furthermore, the area is also considered to have the world's highest electricity consumption rates, with significant market contributions from utilities, renewable energy and metallurgy.

Key players in the market

Some of the key players in Static VAR Compensator market include Toshiba Corporation, NR Electric Co Ltd, Nidec Industrial Solutions, Nidec ASI S.p.A, Hitachi Energy, General Electric, ABB, American Superconductor, Jema Energy, Maschinenfabrik Reinhausen GmbH and Mitsubishi Electric.

Key Developments:

In March 2022, Hitachi Energy announced its selection by Aker BP, the Norwegian oil and gas exploration and Production Company, as a technology partner for the NOAKA power-from-shore project off the Norwegian coast.

In December 2021, the power transmission & distribution division of Larsen & Toubro (L&T) on 16th December 2021 received dynamic reactive power compensator system order in Abu Dhabi. According to the announcement by the company, the order was for a 220 kV substation.

Types Covered:
• Magnetically Controlled Reactor (MCR) Based SVC
• Thyristor Based SVC

Components Covered:
• GIS Switchgear
• Phase Shifting Transformer
• Control Protection System
• Thyristor Controlled Reactors (TCR)
• Advanced Thyristor Valve (ATV)
• Thyristor Switched Capacitors (TSC)
• Harmonic Filter
• Power Electronic Device
• Reactor
• Capacitor bank
• Other Components

Applications Covered:
• Metallurgy
• Electric Utility
• Renewable
• Railway
• Mining
• Industrial
• Oil & Gas
• Steel & Metal
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements