Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Metal Enclosed Harmonic Filter Market size was over USD 1.12 billion in 2024 and is projected to reach USD 3.82 billion by 2037, growing at around 9.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of metal enclosed harmonic filter is evaluated at USD 1.3 billion.
The growth of the market can be attributed to the growing adoption of variable frequency drivers that can help save energy in the commercial and manufacturing industry, industrialization of developing countries and rising installations of harmonic filters in power distribution systems, automobiles, and other industries. Further, the numerous benefits of harmonic filters such as reducing operational costs, efficient power, eliminating noise are all anticipated to promote the growth of the market. The use of harmonic filters in EV’s to reduce any harmonic distortion while charging is a growth factor of the market. For instance, the estimated growth in the sales of electric vehicles in India is around 10 million by 2030. With the increase in EV’s, there is a boost to the harmonic filter market that is anticipated to happen in the coming years.
In addition to these, factors that are believed to fuel the market growth of metal enclosed harmonic filter include the rise in demand for electricity in the industrial segments of the developing countries. For instance, the global electricity demand has measured a 6% rise in 2021 and is largest in terms of percentage since 2010. Half of this global growth in electricity demand has been narrowed to China and India (10%) with rising industrialization. Additionally, the growing demand for power quality and reliability is predicted to present the potential for market expansion over the projected period.
Metal Enclosed Harmonic Filter Sector: Growth Drivers and Challenges
Growth Drivers
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Increasing Adoption of Harmonic Filters in the Transportation Systems – The growing need for rapid improvements in the high-speed railway systems in countries such as China, Japan, and others are anticipated to drive the growth of the metal enclosed harmonic filters market. For instance, the construction of high-speed train model in Japan in 2019 and the Kuala Lumpur Singapore high speed railway line needs higher levels of power quality and voltage levels. The use of harmonic filters for the same is projected to increase in the coming years and boost the market growth.
- Rising Number of IT and Data Centers – Increasing power demand from the IT industry owing to the upgraded infrastructure and technology, rise in the number of data centers, and IT centers are another factor that will drive the growth of the market. In 2019, around 3% of the global electricity consumption was attributed to the data centers, which is further expected to drastically increase owing to the technological advancements, such as digitalization, IoT, and automation.
- Increasing Need for Power Quality – The negative impact of non-linear loads on electrical systems such as failure of electrical devices have presented the need for power quality monitoring. According to the Asia Power Quality Initiative (APQI), continuous power quality monitoring is introduced from 2020 in India. The monitoring of power quality is quoted to be the only way ahead to accurately analyze the issues within the system.
- Rising Demand for Renewable Energy Applications – It is expected that renewable sources of energy such as wind, and photovoltaic will be using harmonic filters to improve power quality and is anticipated to drive the market growth. Huawei Fusionsolar team devised a smart Photovoltaic solution that can detect harmonic current that is less than 3% and mitigate it to almost zero in closed loops.
- Increasing Research Activities on Harmonic Distortion – Backed by the growing awareness for harmonic distortion, several researchers worldwide are increasingly researching on it to understand the positive and negative effects associated with it. For instance, the University of Wollongong, South Wales created a project under the Advancing renewables program to investigate and learn the impact and management of harmonic distortion in large farms.
Challenges
- Deployment issues in SME’s - The lack of technical expertise in the installation of the equipment among small and medium enterprises is therefore expected to hamper the market growth over the forecast period. Harmonic filters such as IEEE 519 and EN 50160 are best at setting limits for harmonic distortion. But its intricate and complex installation is estimated to be detrimental to the market growth.
- High installation rate of filters
- Lack of awareness among people in the industry
Metal Enclosed Harmonic Filter Market: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.9% |
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Base Year Market Size (2024) |
USD 1.12 billion |
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Forecast Year Market Size (2037) |
USD 3.82 billion |
|
Regional Scope |
|
Metal Enclosed Harmonic Filter Segmentation
Type (Active, Passive, Hybrid Filter)
The global metal enclosed harmonic filter market is segmented and analyzed for demand and supply by type into active, passive and hybrid filters. Out of the three types of metal enclosed harmonic filters, the passive filter segment is estimated to gain the largest market share of about 62% in the year 2037. The growth of the segment can be attributed to the simple construction and straightforward installation of the passive filters. The passive harmonic filters are known to be more efficient for dealing with harmonic distortion. Series and shunt passive filters are additional categories of the passive harmonic filters. For instance, a research study conducted on the effectiveness of passive harmonic filters on harmonic mitigation on a Steel Mill power system proved as an optimal and economical solution. On the other hand, another study conducted by ABB Ltd, on active and passive harmonic filters included that passive filters are economical, effective even with high power systems.
Voltage Level (Low, Medium, High Voltage)
The global metal enclosed harmonic filter market is also segmented and analyzed for demand and supply by voltage level into low, medium and high. Amongst these three segments, the low voltage level segment is expected to garner a significant share of around 28% in the year 2037. Low voltage harmonic filters are typically designed in order to eliminate any premature degradation of power system. With distortion created in power systems that lead to improper operations, this can be prevented with low voltage harmonic filter. On the other hand, the reduction in electric bill by about 2.5% and overall reduction of power consumption is projected to be a major factor of market growth. On September 2019, Danfoss India launched and enclosed low harmonic drive with passive filters for better energy consumption and reduction of energy loss. The growing demand for low voltage harmonic filters as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Phase |
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By Voltage Level |
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By Application |
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By End User |
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Vishnu Nair
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Metal Enclosed Harmonic Filter Industry - Regional Synopsis
APAC Market Statistics
Asia Pacific industry is set to account for largest revenue share of 54% by 2037. The growth of the market in the region can be attributed majorly to the increasing rate of industrialization, and the rise in number of commercial establishments in the region. In addition to this, the growing investments in IT sector in the region, and the need amongst these IT companies for optimum power supply as well as power supply correctors to lower their equipment maintenance downtime, is also projected to drive the market growth in the region. For instance, a value of about USD 35 billion is estimated to be spent on developing data centers and related infrastructure during 2022-2027 in the China region. Further, the highest rate of adoption of electronic systems, solutions and products in the Asia Pacific regions such as India, China Taiwan, South Korea, Japan, Indonesia, Malaysia, and Sri Lanka among others are also anticipated to contribute to the market growth in the region. In addition, the region's successful integration of renewable energy sources with global investment of USD 250 Billion is also anticipated to boost the market growth during the forecast period.
Europe Market Forecast
The European metal enclosed harmonic filter market, amongst the market in all the other regions, is projected to hold the second largest share of about 32% during the forecast period. The growth of the market can be attributed majorly to the rising demand for power electronics in the region. Countries such as Germany, UK, and France are in need for better power quality in power systems. With the growing need for renewable energy sources as clean energy, the market is set to grow in the coming years. For instance, it is noted that Europe has set a target of achieving 27% share of total renewable energy mix by 2030. Further, the opportunities of investments in the renewable energy sector along with growth in alternative energy are also anticipated to contribute to the market growth in the region. Spain is expected to be allocating USD 7.8 Billion in renewables, green hydrogen and energy storage in the next two years. In addition, the region's need to create power and electricity with minimum distortions are also anticipated to boost the market growth during the forecast period.
North American Market Forecast
Further, the market in the North America, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2036. The growth of the market can be attributed majorly to the increasing demand for modernized power grids and renewable energy sources. For instance, the United States of America, invested USD 100 Billion to clean energy initiatives. It was also noted that renewable energy production and electric vehicles received the maximum investment share. These factors are also anticipated to contribute to the market growth in the region.
Companies Dominating the Metal Enclosed Harmonic Filter Landscape
- ABB Ltd.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- 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
- Hitachi Energy Ltd.
Recent Developments
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ABB Ltd., won orders worth over $150 million to supply and integrate renewable wind energy form Hornsea Project using controller systems, transformers and harmonic filters. ABB Ability enabled system called MicroSCADA will be used for monitoring the network and ensure reliable and safe grid integration.
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Transgrid and Hitachi Energy sign supply contracts for transmission project in Australia. This was an effort to provide reliable power quality solutions in order to improve transmission capacity and increase power flow. Hitachi’s capacitors are to be installed in the transmission network at strategic locations to improve reliability and voltage capacity.
Author Credits: Parul Atri
- Report ID: 2689
- Published Date: Dec 20, 2024
- Report Format: PDF, PPT
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