Power Factor Corrector (PFC) Market Size & Share, by Material (Silicon-based, Silicon Carbide-based, Gallium Nitride-based PFC Devices); Type (Active, Passive, Dynamic PFC); Approach (Distributed, Group, Centralized, Combined, Automatic PFC), Application (Residential, Industrial, Commercial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 3305
  • Published Date: Dec 21, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Power Factor Corrector Market size is estimated to cross USD 72 Billion by the end of 2036, growing at a CAGR of 7% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of power factor corrector was over USD 10 Billion. The growth of the market can be attributed to the growing need for correct power supply amongst the end users, such as data centers, manufacturing, and other industries, This is mostly due to the growing adoption of loT in recent years, and the increase in spending in loT, the number of connected devices and other computer-based systems has grown significantly. The projected spending on loT by the end of 2024 is expected to reach around USD 1 Trillion. Moreover, in the year 2021, the spending on IT data centers were estimated to be close to USD 240 Billion.  

Moreover, in the end user industries, there has been a surge in demand for power factor correctors as these devices improve the reactive power and reduce harmonics in the equipment. Besides this, with the introduction of PFC integrated circuits (ICs), these correctors are now being utilized widely in commercial, enterprises, and for military purposes, due to the lack of reliable power management systems.


Power Factor Corrector Market
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Power Factor Corrector (PFC) Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~7%

Base Year Market Size (2023)

~USD 10 Billion

Forecast Year Market Size (2036)

`USD 72 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Power Factor Corrector Market: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Driver

  • Escalating Energy Cost and Penalties for Low Power Factor - Many countries have implemented regulations or policies that penalize businesses that operate with low power factors, which can lead to higher energy costs. This has prompted businesses to invest in power factor correction systems to reduce energy bills and avoid fines. Such as, in the United States, utilities can impose penalties on industrial and commercial customers with low power factors.
  • Increasing Demand for Energy Efficient Solutions - With growing concerns about climate change and energy security, there is an increasing focus on energy efficiency across all sectors. Power factor correction systems can improve energy efficiency by reducing the amount of reactive power generated, which can result in significant energy savings. Therefore, many companies are investing in power factor correction systems as part of their energy-saving initiatives. Furthermore, the application of energy efficiency norms and standards to develop public electricity and lighting systems is also expected to increase the demand for power factor correction devices in the near future times.
  • Stringent Government Regulations being Implemented- Stricter rules and energy efficiency requirements are being imposed by governments and utility companies to promote the use of power factor correction technologies. Furthermore, producers and customers alike are growing more aware of sustainability and carbon footprints. Additionally, by enhancing power quality, these devices encourage the use of extra incentives. The expansion and development of the power factor corrector (PFC) market are being accelerated by all of these variables.

Challenges

  • High Initial Investment Cost - Installing a power factor correction system can be expensive, especially for small and medium-sized businesses. Equipment, installation, and maintenance costs may deter some companies from investing in power factor correction systems, especially if they do not incur low power factor penalties.
  • Lack of Awareness is Expected to Pose Limitations on the Power Factor Corrector Market Growth in the Projected Period
  • Shortage of Skilled Labor is Predicted to Hamper the Market Expansion in the Upcoming Period. 


Power Factor Corrector Segmentation

Type (Active, Passive, Dynamic PFC)

Based on type, the passive segment is estimated to hold 40% share of the global power factor corrector market during the forecast period. Passive systems are widely used due to their cost-effectiveness and simple design, making them easy to install and maintain. They are especially suitable for low-power consumption applications, such as residential and small commercial buildings. This is why growing residential and small commercial building construction raises the segment growth in the forecast period. The forecast for new US residential construction occurring in 2023 is USD 817 billion.

Application (Residential, Industrial, Commercial)

The fastest-growing segment in the application segmentation of the power factor corrector market is anticipated to be the commercial sector. Commercial facilities, including offices, retail spaces, hospitals, and educational institutions, are increasingly aware of the importance of power factor correction in their operations. With the increasing use of electrical appliances, lighting systems, and electronics, commercial buildings often have poor power factors and face higher electricity costs.  The commercial sector is witnessing a wave of modernization and automation. This consists of deploying sophisticated lighting systems, HVAC equipment, and electronic devices. While these advancements offer operational benefits, they often have low power utilization, protect equipment from harmonic distortion, and extend lifespans.

Our in-depth analysis of the global power factor corrector (PFC) market includes the following segments:

          Material

  • Silicon-based
  • Silicon Carbide-based
  •  Gallium Nitride-based PFC Devices

          Type

  • Active
  • Passive
  • Dynamic PFC

          Approach

  • Distributed
  •  Group
  • Centralized
  • Combined
  • Automatic PFC

          Application

  • Residential
  • Industrial
  • Commercial

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Power Factor Corrector Industry - Regional Synopsis

APAC Market Forecasts

The power factor corrector market in the Asia Pacific region is estimated to hold the highest CAGR of 35% by the end of 2036. The growth of the market in the region can be attributed to the growing demand for electricity in the region, followed by the increasing industrialization, and rapid urbanization in several countries, such as China, India, Malaysia, and others. According to the statistics by the International Energy Agency (IEA), electricity consumption in the Asia Pacific grew from 3842.1 TWh in 2000 to 11614.4 TWh in 2028. Many Asia Pacific countries are undergoing significant infrastructure upgrades and modernization initiatives. This includes revamping aging power grids, which demands the integration of energy-efficient solutions such as power factor correctors to reduce transmission losses and enhance grid stability. Furthermore, ongoing advancements in power factor corrector technologies in the region are making them more efficient, cost-effective, and compact. This opens up new application areas and makes them accessible to a wider user base. This is set to drive the growth in this region during the studied period.

Middle East and Africa Market Statistics

The power factor corrector market in the Middle East and Africa region is anticipated to grow significantly by the end of the forecast period. Growth in the region is due to increasing government initiatives to improve electricity infrastructure and energy efficiency, especially in countries such as the United Arab Emirates and Saudi Arabia. Growing demand for electricity due to population growth is also driving the need for power factor correction systems in the region.  Many MEA countries are experiencing rapid economic growth and investing heavily in infrastructure development. This comprises of expanding power grids constructing new industrial facilities, and building modern urban centers. All of these developments require efficient and reliable power supply where power factor correctors play a significant role in minimizing energy losses and ensuring grid stability. This is predicted to drive the growth of the power factor corrector market in the Middle East and Africa region during the projected period.

Research Nester
Power Factor Corrector Market Size
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Companies Dominating the Power Factor Corrector (PFC) Market

top-features-companies
    • Abb Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Eaton Corporation
    • Schneider Electric
    • General Electric
    • NAAC ENERGY CONTROLS
    • WEG S.A.
    • Texas Instruments Inc.
    • TDK Electronics AG
    • ON Semiconductor Components Industries LLC
    • STMicroelectronics

In-the-news

In The News

  • In March 2021, Schneider Electric announced the launch of the new AccuSine PCSn active harmonic filter for low voltage applications, designed to help customers improve power quality, reduce energy waste and reduce operating costs.
  •  In May 2021, ABB introduced the new PQF800-T reactive power compensation module, designed to help improve power quality and reduce energy consumption in industrial and commercial applications.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 3305
  • Published Date: Dec 21, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing demand for energy-efficient solutions and; the increasing integration of IoT and cloud computing are some of the major factors anticipated to drive the growth of the power factor corrector market.

The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2024-2036.

The major players in the market are of NAAC ENERGY CONTROLS, WEG S.A., Texas Instruments Inc., TDK Electronics AG, ON Semiconductor Components Industries LLC, STMicroelectronics, and others.

The industrial segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in Asia Pacific is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Power Factor Corrector Market Report Scope
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