The global flexible AC transmission systems (FACTS) market is anticipated to account for $1,229.6 million in 2027, growing at a CAGR of 8.0% and is rising from $641.3 million by the end of 2019, according to a new report published by Research Dive.
The emergency of COVID-19 pandemic has had an undesirable effect on the global flexible AC transmission systems market growth in 2020. In the crisis time, petroleum production has decreased and the demand for petroleum products has fallen owing to production cuts as well as raw material & refined products supply-demand gap because of travel restrictions and industrial shutdowns. This factor has directly impacted the global FACTS market growth. Nonetheless, in recent times, some of the governments are implementing several measures to help organizations during the lockdown period. For instance, Chinese government has announced a new economic measure of extension of tax payment for export and import organizations to normalize the foreign trading sector. As per these economic measures, the tax relief plan will be available till the end of December 2020 for oil & gas import and export organizations. These abovementioned aspects have eventually affected the FACTS market growth in the pandemic time.
The global flexible AC transmission systems market is significantly driven by factors including rise in demand for reliable systems for voltage regulation along with developments in the energy transmission networks. This projected growth is mainly due to rising investments by various countries in expanding and advancing energy grid networks globally. For example, since 2003, China government has funded about $66 billion in modernization of power generation networks to meet consumer demand. Furthermore, emergency of most advanced FACTS based smart grids as well as growing incorporation of these smart grids in the electricity production of renewable sources are projected to produce huge investment prospects for the market growth in the upcoming years. In spite of several benefits of FACTS, the global market is restrained by huge expenditure required for incorporation of FACTS.
The global flexible AC transmission system market has been divided into compensation type, controller, industry vertical and region.
By compensation type, the global market is categorized into shunt compensation, combined series-shunt compensation and series compensation. In these, series compensation type held a significant revenue share in the past years, which was about 39.9% and is estimated to generate a revenue of $454.8 million in 2027. This dominance is owing to wide utilization of series compensation type which has several applications and is used to improve transmission capacity, voltage stabilization, minimize transmission losses and others. Besides series compensation, the market for combined series-shunt compensation will experience a notable growth and is predicted to account for $469.5 million by 2027.
By controller, the global market is categorized into SVC, TCSC, STATCOM, UPFC and others. In these, the market for STATCOM sub-segment will witness to rise at a highest rate of 11.3% CAGR and is estimated to account for $219.1 million till 2027. This growth is majorly accredited to increasing demand for STATCOM from end use industries due to it is best controller for voltage stabilization during rapid fluctuations. SVC sub-segment held a significant global market share in the previous time and is projected to continue its steady growth with a CAGR of 6.9% in the coming years.
By industry vertical, the global market is categorized into railways, electric utility, oil & gas and others. In these, electric utility accounted for highest FACTS market size, it was about $158.7 million in the past decades and is estimated to rise at a moderate CAGR of 6.8% during the forecast time. Increasing use of FACTS devices in energy utility sector for voltage control, power flow control and network stabilization is predicted to accelerate the market growth in the forecast timeframe.
Regional outlook, the global flexible AC transmission system market was investigated across the several regions including North America, Europe, Asia-Pacific and LAMEA. In these, North America region held the majority of the overall market revenue share in 2019 and is predicted to generate a revenue of $715.5 million by 2027. Presence of significant manufacturers and early adoption of advanced FACTS devices into their existed power systems are major driver for the growth of the market in North America. Europe region accounted for subsequent position in the global market in the previous years and is anticipated to rise at a moderate CAGR of 7.2% during the estimated time.
The major manufacturers in the global flexible AC transmission system market include ABB, Eaton, General Electric, HYOSUNG, NR Electric Co., Ltd., Adani Group, Alstom, cgglobal.com, Mitsubishi Electric Corporation, and Siemens.
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