Statcom Market Introduction 

STATCOM (Static Synchronous Compensator) is a power-electronic device used to regulate the voltage and reactive power of electrical power systems. It is a type of FACTS (Flexible AC Transmission System) device that helps in improving power quality and stability of electrical networks. STATCOMs are designed to be installed at strategic points on the electrical grid, where they can monitor and regulate voltage levels, control reactive power flow, and reduce power losses. These devices can also help prevent voltage instability, voltage collapse, and blackouts, which can occur due to sudden changes in power demand or grid conditions. The market for STATCOMs is expected to grow significantly in the coming years due to the increasing demand for clean energy and the need for more efficient power systems.

Statcom Market Size

As of 2021, the global STATCOM (Static Synchronous Compensator) market size was valued at USD 1.07 billion. The market is expected to grow at a CAGR of around 4% during the forecast period of 2022-2030. The demand for STATCOMs is driven by the increasing use of renewable energy sources and the need to improve the stability and reliability of the power grid. The Asia Pacific region is expected to hold the largest share of the market during the forecast period, owing to the growing demand for electricity and the increasing adoption of renewable energy sources in countries such as China and India.

Statcom Market Share

However, Statcom is a type of power electronics device used in electrical power systems to improve the stability, reliability, and efficiency of the grid. It is used to regulate voltage, reduce power fluctuations, and correct power factor in the system.The global Statcom market was valued at USD 1.15 billion in 2020 and is expected to reach USD 2.07 billion by 2028, growing at a CAGR of 7.6% from 2021 to 2028, The market growth is driven by increasing demand for renewable energy sources, growing investments in transmission and distribution infrastructure, and increasing focus on improving grid stability and reliability.In terms of regional market share, Asia Pacific is expected to dominate the Statcom market due to the increasing adoption of renewable energy sources and the growing demand for electricity in countries such as China and India. Other key markets include Europe and North America, where the focus on grid modernization and renewable energy integration is driving demand for Statcom solutions.Overall, the Statcom market is expected to continue to grow as the demand for reliable and efficient power systems increases, and as the transition towards renewable energy sources accelerates.

Statcom Market Trends

Some of the key trends in the Statcom market are:

1. Growing demand for renewable energy sources: With the increasing focus on renewable energy sources, the demand for Statcoms is growing. This is because renewable energy sources are intermittent in nature, and Statcoms can help stabilize the grid by providing reactive power support.
2. Increasing need for power quality: As power grids become more complex, there is a growing need for high-quality power. Statcoms can help improve power quality by mitigating voltage fluctuations and harmonics.
3. Advancements in technology: The Statcom market is witnessing technological advancements in terms of the development of more advanced control systems and software. These advancements are expected to improve the performance and efficiency of Statcoms.
4. Integration of IoT: The integration of IoT technology in Statcoms is also gaining traction. This enables real-time monitoring of the grid and helps optimize the performance of Statcoms.
5. Focus on energy efficiency: There is a growing focus on energy efficiency across industries, including power generation and distribution. Statcoms can help improve energy efficiency by reducing power losses and improving the overall efficiency of the grid.

Statcom Market Factors

The increasing demand for power quality, reliability, and efficiency is one of the major factors driving the growth of the STATCOM market. STATCOM provides dynamic reactive power compensation and voltage support to the power grid, thus improving the stability and reliability of the system. The growing deployment of renewable energy sources such as wind and solar power plants, which are highly dynamic in nature, is also driving the demand for STATCOMs.The aging power infrastructure and the need to replace and upgrade the existing power systems is another factor driving the growth of the STATCOM market. Furthermore, increasing investments in smart grid technology and the implementation of government regulations for power quality and grid stability are expected to drive the demand for STATCOMs.However, high installation and maintenance costs of STATCOMs are likely to hinder the growth of the market. Additionally, the lack of awareness and technical expertise required for the deployment of STATCOMs may also restrain the growth of the market in some regions.

Statcom Market Regional Analysis

The global Statcom market can be analyzed based on its regional markets including North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.North America is expected to hold a significant share in the market due to the presence of major players in the region and the increasing demand for Statcom to maintain the stability of the power grid. The United States is expected to account for the largest share in the North American market.The Asia-Pacific region is expected to have the largest market share during the forecast period due to the increasing investments in the energy sector, the rising demand for power, and the growing industrialization in the region. China is expected to account for the largest share in the Asia-Pacific market due to the rapid growth of the power sector and the increasing demand for electricity.Europe is expected to witness significant growth in the Statcom market due to the increasing investments in the renewable energy sector and the need for stable power supply in the region.The Middle East and Africa region are expected to witness moderate growth in the Statcom market due to the increasing demand for electricity and the growing industrialization in the region.Latin America is expected to have a significant growth rate in the Statcom market due to the increasing investments in the renewable energy sector and the need for stable power supply in the region. Brazil is expected to account for the largest share in the Latin American market.

Statcom Market Forecasts 2030 

The global Statcom market is expected to reach a valuation of USD 3.7 billion by 2025, growing at a CAGR of 5.4% during the forecast period of 2019 to 2025.The Asia-Pacific region is expected to dominate the Statcom market during the forecast period due to the increasing demand for renewable energy sources and the development of smart grids. The growth of the renewable energy sector in countries such as China and India is also expected to drive the market in this region.North America and Europe are also expected to witness significant growth during the forecast period due to the increasing demand for grid stability and the growth of renewable energy sources in these regions.The Middle East & Africa and South America are expected to have moderate growth during the forecast period due to the increasing adoption of renewable energy sources and the development of smart grids in these regions.Overall, the Statcom market is expected to witness steady growth during the forecast period due to the increasing adoption of renewable energy sources and the development of smart grids across the globe.

Statcom Market Key Industry Players

Some key players operating in the Statcom market include ABB, Siemens, GE, Eaton, NR Electric, Mitsubishi Electric, Schneider Electric, Toshiba, Rongxin Power Electronic, American Superconductor Corporation, and Hitachi, Ltd.