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

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.

Challenges

• 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.