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.
Growth Driver
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~7% |
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Base Year Market Size (2023) |
~USD 10 Billion |
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Forecast Year Market Size (2036) |
`USD 72 Billion |
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Regional Scope |
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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:
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Material |
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Type |
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Approach |
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Application |
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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.
Author Credits: Abhishek Verma, Hetal Singh
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