Harmonic filters are used to mitigate harmonics to prevent pollution of the environment. These harmonics are majorly created by non-linear loads in electrical machinery and equipment. These filters are widely used in a broad range of industrial sectors, for instance, manufacturing, paper and pulp, oil & gas, metal and mining, aviation, food and beverage, petrochemical, and various industries. The global metal enclosed harmonic filter market is thriving on the back of the growing industrialization in the developing countries worldwide, for instance the US, China, Australia, Germany, India, and various others, growing adoption of variable frequency drivers in the commercial and manufacturing industry, rising installations of harmonic filters in power distribution systems, coupled with the numerous benefits associated with metal enclosed harmonic filters, such as reducing overall operating costs by efficient use power, reducing the risk of operational downtime from overloading, premature plant failure, and nuisance tripping among others are anticipated to promote towards the growth of the global metal enclosed harmonic filter market. Moreover, with the widening scope of data centers, which is encouraging the application of harmonic filters, coupled with the addition of renewable energy capacity in the recent years, where the metal-based harmonic filters are utilized significantly and the increasing expansion of the power grid projects globally are some of the additional factors which are anticipated to promote the growth of the global metal enclosed harmonic filter market.
The global metal enclosed harmonic filter market registered a value of USD 631.78 million in the year 2019 and is anticipated to reach a value of USD 997.03 million by registering a CAGR of 5.20% across the globe over the forecast period 2020-2028. Additionally, the market is also anticipated to register an incremental $ opportunity of USD 32.85 million in the year 2020 as compared to the previous year. The global metal enclosed harmonic filter market is also anticipated to gain an absolute $ opportunity of USD 332.4 million by growing at 1.5x during the forecast period.
Growth Highlights Based on Region During 2018-2028
The global metal enclosed harmonic filter market is segmented by regions into North America, Latin America, Europe, Asia Pacific, Middle East and Africa. Among these regions, the market in Asia Pacific registered the largest market share of 47.49% in the year 2019 and reached a value of USD 300.01 million in the same year. The market in the region is thriving on the back of the increasing automotive industry in the nations such as China, India and others, coupled with the region growing as the global data center hub, which is requiring data center operators to deploy metal enclosed harmonic filters. Additionally, the market in Asia Pacific is anticipated to gain an incremental $ opportunity of USD 16.36 million in the year 2020 as compared to the previous year. Further, the market in the region is also anticipated to gain an absolute $ opportunity of USD 167.39 million by growing at 1.53x during the forecast period.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa). CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
The global metal enclosed harmonic filter market has been segmented based on type into active, passive and hybrid filter. The passive filter segment registered the largest market share of 54.16% in the year 2019 and accounted for a value of USD 342.16 million in the same year. Passive harmonic filters were preferred in earlier days to compensate harmonics on account of its simple structure and easy installations. The passive harmonic filters are further categorized into series and shunt passive filters. The segment is anticipated to grow at a CAGR of 5.99% during the forecast period and gain an incremental $ opportunity of USD 10.3 million in the year 2020 as compared to the previous year. Moreover, the segment is also anticipated to gain an absolute $ opportunity of USD 107.2 million by growing at 1.6x during the forecast period.
Market Drivers and Challenges
Increasing Industrialization in Developing Countries
The growing demand for electricity in the industrial sectors of the developing countries is anticipated to drive the growth of the metal enclosed harmonic filters market. The never-ending growth in energy demand in the form of electricity from the industrial sector across the globe has escalated the installation of metal-enclosed harmonic filters with various voltage ranges These harmonic filters improve the performance of the equipment and enhance the system's capacity in industries such as utility and commercial power systems. These filters are highly efficient in eliminating electrical disturbances and harmonics and establishes a clean network, which improves the life span of the equipment and enables low maintenance and replacements cost. Moreover, the maintenance cost is also drastically reduced for the utility and other industries operating at medium and high voltage.
Increasing IT and Data Centers
Increasing power demand from the IT industry with upgraded infrastructure and technology, data centers, and IT centers uses additional power sources by using colocation centers. In 2019, around 3% of the global electricity consumption was attributed to the data centers, which is further expected to drastically increase due to the technological advancements, such as digitalization, IoT, and automation. The data centers and IT centers strategically adopt efficient ways to reduce electricity consumption and incorporate the use of clean and sustainable energy, which is expected to boost the market growth for metal-enclosed harmonic filters over the forecast period.
Lack of Awareness Amongst Small and Medium Enterprises
The high installation rate of metal enclosed harmonic filters among the large enterprises that caters to the utility and IT sectors are aware about the product efficiency and performance standards, which in the case of SMEs is not that significant. The lack of awareness about the equipment among small and medium enterprises is therefore expected to hamper the market growth over the forecast period.
Some of the affluent industry leaders in the global metal enclosed harmonic filter market are ABB Ltd., Siemens AG, General Electric Company, CG Power and Industrial Solutions Limited, Eaton Corporation plc, Baron Power Limited, Northeast Power Systems, Inc., Arteche Group, Controllix Corporation, and AZZ Inc.
Increasing demand for electricity in the industrial sectors of the developing countries is one of the major factors that is driving the growth of the market.
The market is anticipated to attain a CAGR of 5.20% over the forecast period, i.e. 2020-2028.
Asia Pacific is anticipated to hold the dominating share in the market.
The market in North America is anticipated to display significant business opportunities in the future.
The major players in the market are ABB Ltd., Siemens AG, General Electric Company, CG Power and Industrial Solutions Limited, Eaton Corporation plc, Baron Power Limited, Northeast Power Systems, Inc., Arteche Group, Controllix Corporation, and AZZ Inc.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is majorly segmented by type, phase, voltage level, application, end user and by region.
The passive filter segment, which is a sub-segment of the type segment, held the largest market share of 54.16% in the year 2019 and is anticipated to display significant growth opportunity.
Lack of awareness for metal enclosed harmonic filters among the small and medium enterprises is one of the major factors anticipated to act as a barrier towards the growth of the global metal enclosed harmonic filter market.
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