STATCOM Market Size & Share, by Type (Low Voltage, Medium Voltage, High Voltage); Application (Solar, Hydro, Wind); End-Use (Electricity Networks, Photovoltaic Generation) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5344
  • Published Date: Oct 27, 2023
  • Report Format: PDF, PPT

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

STATCOM Market size is expected to cross USD 4.8 Billion by the end of 2036, growing at a CAGR of 13% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of STATCOM was over USD 1 Billion. The demand for renewable energy continues to grow at a steady pace. To cope with growing demand, countries around the world have already begun to focus on increasing clean energy production. In 2022, India recorded the highest year-on-year increase in solar electricity additions of 9.83%. The installed capacity of photovoltaic energy has increased by 24.4 times in the past 9 years to 67,07 gigawatts as at July 2023.

In addition, the worldwide market is being driven by increasing acceptance of new technologies, e.g. cloud computing and Internet services. Reliable backup power is required, critical data protection and continuity of operations are essential for these facilities. Also, Continuous improvements have led to more efficient, cost-effective, and compact power electronics, energy storage, and control systems. These advances in technology have broadened their applicability across other industries and raised market demand.

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STATCOM Market: Key Insights

Base Year


Forecast Year



~ 13%

Base Year Market Size (2023)

 ~ USD 1 Billion

Forecast Year Market Size (2036)

 ~ USD 4.8 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)

STATCOM Sector: Growth Drivers and Challenges


Growth Drivers

  • Increased Focus on Voltage Stability- Stability of the power system voltage is now one of the most significant problems. To overcome the problems of voltage stability, flexible ac transmission system (FACTS) technologies are being used. These new devices are the result of technology that can alter phase angle, impedance, and voltage. Particularly in the power systems, at particular points. The rapid response will give them a powerful potential for enhancing the stability of the energy system, apart from its continuous flow control. In case of an emergency, STATCOM shall provide fast and effective Dynamic Response Compensation for voltage support. For the purpose of ensuring voltage stability, solutions are widely adopted.
  • Expansion of the Transmission and Distribution Network- According to the Energy Progress report, by 2020, 91% of world population had access to electricity compared with 83% in 2010, which led to 1.3 billion more people having access across the globe. The number of persons without access has fallen to 733.6 million by 2020 compared with 1.2 billion in 2010. In view of the growing digitization and urbanization, there is increasing demand for distant delivery of electricity and power generation technologies. The growing efforts of governments to develop strong transmission and distribution lines for electricity supply to remote locations are anticipated to drive product adoption.
  • Industry Participants Enter into Partnership & Collaboration Agreements to Improve Market Position- Major industry players are forming partnerships and working together to increase their market position. In addition, many businesses are concentrating on a number of activities, such as product developments, mergers, and acquisitions, to strengthen their market positions. Intense trade conference attendance is one of the additional steps.


  • The Market was Impacted by the Pandemic's Reduction in Railway Electrification and Frozen Steel Production- COVID-19's global impact on the market is small, as it hinders growth in STATCOM and power grid installations by disrupting supply chains because of raw material shortages and barriers to activities triggered by societal distancing standards. The imposition of travel restrictions had an adverse effect on the railway sector, which was adversely affected by electrification projects. The slowdown in demand for steel, which has resulted in reduced production of steel and an impact on the market for STATCOMs in the steel manufacturing sector, has caused industry to halt its activity. The need for strong power grids has come to light as a result of increasing efforts towards the development of renewable energy sources in COVID 19.
  • Availability of alternatives, for example in the case of static compensator VAR compensator (SVC) UPS technology which is applied to certain parts of the country could be hindrance to the market.
  • The growth of the STATCOM market is likely to be hindered by high capital costs associated with installing solutions.

Static Synchronous Compensator Segmentation

Type (Low Voltage, Medium Voltage, High Voltage)

The high voltage segment is expected to hold 42% share of the global STATCOM market by 2036. A number of advantages, such as power factor correction, rapid activation, reactive load current removal, and voltage support, are also available for H.V. Synchronous Static Compensators. These characteristics will make it possible for high-voltage STATCOMs to be used in heavy sectors such as electric arc furnaces, rolling mills, and transmission lines. In an electric arc furnace, a short tonne of steel requires about 400 kilowatt-hours and a full tonne needs about 440 kWh (1.6 GJ). Theoretically, 300 kWh of energy is needed to melt one tonne of scrap steel.

End-Use (Electricity Networks, Photovoltaic Generation)

STATCOM market from the electricity networks segment is attributed to holding the largest share of about 55% by the end of 2036. In emerging economies, demand for electricity is increasing in the homes, industry, and business sectors. The need for research and development components will also be strengthened by increasing investment in renewable energy sources. CEA projects India's electricity demand to increase 1.8 times between 2021-22 and 2031-32. India's annual per capita electricity consumption in 2031-32 will be around 800-1600 units at this rate.

Our in-depth analysis of the global market includes the following segments:



  • Low Voltage
  •  Medium Voltage
  • High Voltage


  • Solar
  • Hydro
  • Wind


  • Electricity Networks
  • Photovoltaic Generation

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STATCOM Industry - Regional Synopsis

APAC Market Forecast

The STATCOM market in the Asia Pacific region is expected to gain the largest revenue share of about 28% during the forecast period. This can be attributed to an increasing demand for electricity in the region. A new energy mix, consisting of different fuel sources and renewables, is accepted by utilities in countries such as China or India. In order to support their use in different sectors, the market is being stimulated by increased investments in a wide range of renewable energy technologies. IEEFA notes that in 2021-22, renewable investments made by the Indian Government recorded a record growth of 125% compared to last year. Significant investments are also made in the field of renewable energy such as offshore wind projects, large solar installations, and hydro plants.

Europe Market Statistics

STATCOM market in Europe is projected to hold the second largest share with about 25% by the end of 2036. The highest level of renewables adoption is the driving force for growth in this region. In addition, there are some technological developments in the region that favor renewable energy sources like solar as a kind of electronic equipment.

Research Nester
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Companies Dominating the STATCOM Landscape

    • ABB
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Bharat Heavy Electricals Limited
    • Siemens Energy
    • GE Energy
    • Sieyuan Electric
    • Hyosung Heavy Industries
    • Ingeteam S.A.
    • Eaton Corporation
    • American Superconductor
    • RXHK


In The News

  • Energy giant Siemens Energy declared that it would provide four STATCOM installations for the substation projects of LS Power Grid in California to strengthen the energy grid's reliability. LS Power's substation in Fresno County hosted two STATCOM systems, while the remaining two were installed at LS Power's newly constructed Fern Road substation.
  • GE Energizes the STATCOM Scheme in Europe for UK’s National Grid. GE Renewable Energy’s Grid Solutions business has successfully energized the Dynamic Reactive Compensator project for National Grid in the UK. The project represents the largest utility-grade Static Synchronous Compensator STATCOM scheme in Europe, delivering 975 Mvar power range. It is deployed and coordinated over three separate substations along with the transmission network in the southeast UK.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 5344
  • Published Date: Oct 27, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

increasing adoption of renewable energy and increasing demand for electricity are the major factors driving the growth of the static synchronous compensator (STATCOM) market.

The market size of STATCOM is anticipated to attain a CAGR of 13% over the forecast period, i.e., 2024-2036.

The major players in the market are Bharat Heavy Electricals Limited, Siemens Energy, GE Energy, Sieyuan Electric, Hyosung Heavy Industries, Ingeteam S.A., Eaton Corporation, American Superconductor and others.

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

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

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