Flexible AC Transmission System (FACTS) Market By Type (Static Synchronous Compensators (STATCOM), Static Var Compensator (SVC), Unified Power Flow Controller (UPFC), Thyristor Controlled Series Capacitor (TCSC), Thyristor Controlled Phase Shifter (TCPS), Others (e.g., SSSC - Static Synchronous Series Compensator)); By Component (Power Electronics Devices, Phase Shifting Transformers, Thyristors, Reactor, Capacitor); By Application (Voltage Control, Power Flow Control, Stability Enhancement, Reactive Power Compensation, Congestion Management); By End-User (Utilities, Renewable Energy Generators, Industrial (Manufacturing, Oil & Gas), Railways, Others); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The flexible ac transmission system (facts) market was worth USD 1.8 billion in 2023 and will be worth USD 4.4 billion by 2030, growing at a CAGR of 9% during the forecast period.

 

The global Flexible AC Transmission System (FACTS) market is powered by the advancing need for bolstering the power grid, efficient flow control power, and incorporating renewable energy into the network. As the global energy mix is expected to reach approximately 48% by 2050, new approaches to handling the variability of renewable energy, such as wind and solar, have become important. FACTS technology makes more efficient use of present grid structures, increasing transmission capability without much physical reinforcement of the system. For example, Static Synchronous Compensators (STATCOMs), considered one of the FACTS devices, are applied to enhance the grid voltage stability and power quality in the case of integrated renewable energy sources. Recent trends include the use of highly developed FACTS devices to facilitate connection with Offshore wind farms as well as to safeguard the stability of the power supply system. These systems assist in tackling the emerging complexities in an advanced power grid where fluctuating inputs from renewable energy sources and a rising electricity demand pose tough problems.

 

The FACTS market brings opportunities, especially due to the increased utilization of renewable energy and demand for grid transformation. The global demand for electricity from renewable energy sources is likely to be a major segment by 2030, and hence, require devices such as FACTS to stabilize the grid scenarios. Recent developments use FACTS devices, such as the Unified Power Flow Controller (UPFC), to regulate voltage in renewable dominant systems. For instance, a few projects in Europe and the United States have installed FACTS to increase the effectiveness of the transmission systems in large wind farms, incorporating renewables and balancing the grid constraints with high growth prospects for FACTS solutions.

 

 

Market Segmentation

By Type:

• Static Synchronous Compensators (STATCOM)

• Static Var Compensator (SVC)

• Unified Power Flow Controller (UPFC)

• Thyristor Controlled Series Capacitor (TCSC)

• Thyristor Controlled Phase Shifter (TCPS)

• Others (e.g., SSSC - Static Synchronous Series Compensator)

 

By Component:

• Power Electronics Devices

• Phase Shifting Transformers

• Thyristors

• Reactor

• Capacitor

 

By Application:

• Voltage Control

• Power Flow Control

• Stability Enhancement

• Reactive Power Compensation

• Congestion Management

 

By End-User:

• Utilities

• Renewable Energy Generators

• Industrial (Manufacturing, Oil & Gas)

• Railways

• Others

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment Analysis of Flexible AC Transmission System (FACTS) Market

By Type:

Leading Segment: Static Synchronous Compensators (STATCOM)

Static Synchronous Compensators (STATCOM) are the leading type in the FACTS market. STATCOMs are widely used for voltage regulation, reactive power compensation, and improving grid stability. The technology is crucial for stabilizing power systems, especially in renewable energy integration, where fluctuating power generation can cause grid instability. Due to their ability to provide quick & efficient voltage control, STATCOMs have become a preferred solution for modern electrical grids. The integration of renewable sources like wind & solar has increased the demand for STATCOMs to stabilize voltage fluctuations, particularly in regions like North America and Europe.

Fastest-Growing Segment: Thyristor Controlled Series Capacitor (TCSC)

The Thyristor Controlled Series Capacitor (TCSC) is the fastest-growing segment in the FACTS market. TCSCs are mainly used for power flow control, enhancing the efficiency & stability of power systems by adjusting the impedance of transmission lines. The growing demand for efficient power transmission & reduced line losses is driving the growth of TCSC systems. These systems are particularly relevant for long-distance power transmission in regions like APAC, where large-scale energy projects are underway to meet growing energy demands.

 

By Component:

Leading Segment: Power Electronics Devices

Power electronics devices are the leading component in the FACTS market. These devices play a pivotal role in controlling and regulating power flow through transmission lines. Power electronic components such as thyristors, IGBTs (Insulated-Gate Bipolar Transistors), and diodes are essential in managing voltage and current in FACTS systems. The demand for power electronics devices is primarily driven by the increasing need for grid stability, efficient power transmission & renewable energy integration. The use of advanced power electronics is central to the operation of STATCOMs and other FACTS devices.

Fastest-Growing Segment: Thyristors

Thyristors are the fastest-growing component segment in the FACTS market. Thyristors, as semiconductor devices, are integral to many FACTS systems, including SVC, STATCOM, and TCSC. The surge in demand for grid modernization, along with the rise of renewable energy generation and high-voltage power transmission, is boosting the demand for thyristors. Their role in providing high-speed switching capabilities & voltage regulation makes them essential in the ongoing transition to smarter & more reliable electrical grids.

 

By Application:

Leading Segment: Voltage Control

Voltage control is the leading application in the FACTS market. As electrical grids become more complex with the integration of renewable energy sources, voltage control has become a critical component in maintaining grid stability and ensuring efficient power distribution. FACTS systems, particularly STATCOMs and SVCs, are widely used in voltage regulation to mitigate voltage fluctuations and prevent outages. This application is especially significant in regions with variable renewable energy production, such as Europe & North America, where grid stability is a growing concern.

Fastest-Growing Segment: Reactive Power Compensation

Reactive power compensation is the fastest-growing application in the FACTS market. Reactive power is essential for maintaining voltage levels within transmission lines, and as more power generation sources are connected to the grid, the need for reactive power compensation becomes more critical. FACTS devices like STATCOM and SVC are used to provide dynamic reactive power compensation, particularly in areas with high renewable energy penetration. This application is growing rapidly as utilities & grid operators seek to improve grid reliability & efficiency.

 

By End-User:

Leading Segment: Utilities

The utilities sector is the leading end-user industry in the FACTS market. Utilities rely heavily on FACTS devices to enhance grid stability, control voltage & manage power flow. The increasing need for grid modernization, efficient energy transmission & integration of renewable energy sources is driving the demand for FACTS solutions in this sector. Utilities in developed economies like the United States, Canada, and Germany are particularly active in adopting FACTS technologies to address growing power demands and improve system reliability.

Fastest-Growing Segment: Renewable Energy Generators

The renewable energy generation sector is the fastest-growing end-user industry for FACTS systems. As renewable energy sources such as wind & solar become a larger part of the global energy mix, the demand for FACTS devices to ensure grid stability and manage power fluctuations is increasing. FACTS technologies like STATCOMs are being integrated into renewable energy plants to stabilize voltage and ensure smooth integration into the grid. The growth of the renewable energy sector, particularly in regions like Europe and Asia Pacific, is driving the rapid adoption of FACTS technologies.

 

By Region:

Leading Region: North America

North America holds the largest market share in the FACTS market. The region's strong emphasis on grid modernization, efficient power transmission & the integration of renewable energy sources are key drivers of the FACTS market in North America. The United States, in particular, is investing heavily in grid stability technologies, such as FACTS devices, to meet the increasing demand for power and accommodate renewable energy generation. The demand for FACTS systems in the utilities and renewable energy sectors is expected to continue to grow in North America.

Fastest-Growing Region: Asia Pacific

APAC is the fastest-growing region for the FACTS market. Countries like China, India, and Japan are making significant investments in their electrical grids to support growing power demands & the integration of renewable energy. The expansion of energy infrastructure and the adoption of smart grid technologies are propelling the growth of the FACTS market in this region. Additionally, Asia Pacific’s increasing focus on reducing transmission losses & improving grid stability is driving demand for FACTS solutions. The rapid industrialization & energy consumption in countries like China & India further contribute to the surge in demand for FACTS technologies.

 

Key Players

• ABB Ltd.

• Siemens AG

• General Electric

• Mitsubishi Electric

• Schneider Electric

• Eaton Corporation

• NR Electric Co., Ltd.

• Toshiba Corporation

• Alstom Grid

• American Electric Power (AEP)

 

Flexible AC Transmission System (FACTS) Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 1.8 billion
Revenue Forecast in 2030	USD 4.4 billion
Overall Growth Rate	CAGR of 9%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Type, By Component, By Application, By End-User, By Region
By Type	Static Synchronous Compensators (STATCOM), Static Var Compensator (SVC), Unified Power Flow Controller (UPFC), Thyristor Controlled Series Capacitor (TCSC), Thyristor Controlled Phase Shifter (TCPS), Others (e.g., SSSC - Static Synchronous Series Compensator)
By Component	Power Electronics Devices, Phase Shifting Transformers, Thyristors, Reactor, Capacitor
By Application	Voltage Control, Power Flow Control, Stability Enhancement, Reactive Power Compensation, Congestion Management
By End-User	Utilities, Renewable Energy Generators, Industrial (Manufacturing, Oil & Gas), Railways, Others
By Region	North America, Europe, Asia Pacific, LAMEA
Country Scope	US, Mexico, Canada, Germany, UK, France, China, Japan, India, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.