USD 2.65 billion
Power Factor Correction Systems Market Size, Share, Growth Analysis, By Type(Active power factor correction systems, passive power factor correction systems, and hybrid power factor correction systems), By Application(residential, commercial, and industrial), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20D2130 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|Tables:
63
|Figures:
75
Power Factor Correction Systems Market Insights
Global Power Factor Correction Systems Market size was valued at USD 2.65 billion in 2022 and is poised to grow from USD 2.83 billion in 2023 to USD 4.83 billion by 2031, growing at a CAGR of 6.9% during the forecast period (2024-2031).
The global power factor correction systems market is a rapidly growing industry that is driven by the need for energy efficiency in various sectors, including industrial, commercial, and residential. Power factor correction systems improve the efficiency of electrical power usage by reducing the amount of reactive power in the electrical system. The purpose of the market is to provide efficient and reliable power factor correction systems to consumers across various sectors. These systems not only reduce energy consumption but also improve the overall performance and lifespan of electrical equipment. One of the key drivers of the power factor correction systems market is the growing demand for energy-efficient solutions. The need to reduce energy consumption and lower electricity bills has led to increased adoption of power factor correction systems. Additionally, government initiatives to promote energy efficiency and reduce carbon emissions have further boosted market growth.
The high initial investment required for the installation of power factor correction systems can be a barrier to adoption for some consumers. Additionally, the lack of awareness about the benefits of power factor correction systems in some regions can hinder market growth. Despite these challenges, the market presents several key trends and opportunities. For instance, the rise of renewable energy sources has created a need for power factor correction systems that can improve the efficiency of these systems. Moreover, the growing demand for power factor correction systems in emerging markets presents a significant opportunity for market growth.
US Power Factor Correction Systems Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Passive Power Factor Correction Systems
Fastest Growth
Passive Power Factor Correction Systems
Growth Rate
6.9% CAGR
Global Power Factor Correction Systems Market 2021-2030 ($ Bn)
Country Share for Asia Pacific Region- 2021 (%)
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Power Factor Correction Systems Market Segmental Analysis
Global Power Factor Correction Systems Market is segmented on the basis of type, application, and region. By type, the market is segmented into active power factor correction systems, passive power factor correction systems, and hybrid power factor correction systems. By application, the market is segmented into residential, commercial, and industrial. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Power Factor Correction Systems Market Analysis by Type
The largest segment in the power factor correction systems market is currently the passive power factor correction systems. Passive systems are widely used due to their cost-effectiveness and simple design, which makes them easy to install and maintain. They are particularly suitable for low-power applications, such as residential and small commercial buildings.
The fastest growing segment in the power factor correction systems market is active power factor correction systems. Active systems are ideal for high-power applications, such as large commercial and industrial buildings, data centers, and factories. They provide more precise and efficient power factor correction, which can result in significant energy savings and reduced carbon emissions.
Power Factor Correction Systems Market Analysis by Application
The largest segment in the power factor correction systems market is the industrial sector. Industrial operations require substantial amounts of electrical power to run machinery, equipment, and processes efficiently. However, these operations often exhibit poor power factors due to the presence of inductive loads such as motors, transformers, and fluorescent lighting. As a result, industrial facilities face challenges such as high reactive power consumption, low power factor, and increased electricity bills.
The fastest growing segment in the power factor correction systems market is the commercial sector. Commercial establishments, including offices, retail spaces, hospitals, and educational institutions, are becoming more aware of the importance of power factor correction in their operations. With the increasing use of electrical appliances, lighting systems, and electronic devices, commercial buildings often exhibit poor power factors and encounter higher electricity costs.
Global Power Factor Correction Systems Market Size By Type 2021(%)
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Power Factor Correction Systems Market Regional Insights
Asia Pacific dominated the global power factor correction systems market. The high demand for power factor correction systems in the region is mainly due to the growing industrialization and urbanization in countries like China, India, and Japan. These countries are witnessing rapid growth in the manufacturing and construction sectors, driving the demand for energy-efficient systems, including power factor correction systems. Moreover, the adoption of renewable energy sources in the region is also boosting the demand for power factor correction systems.
Middle East and Africa is the fastest-growing region in the global power factor correction systems market. The growth in the region is attributed to the increasing government initiatives to improve the power infrastructure and energy efficiency, especially in countries like the United Arab Emirates and Saudi Arabia. The rising demand for electricity due to the growing population and rapid industrialization is also driving the demand for power factor correction systems in the region.
Global Power Factor Correction Systems Market Size By Geography, 2021-2030
- Largest
- Fastest
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Power Factor Correction Systems Market Dynamics
Power Factor Correction Systems Market Drivers
Rising energy costs and penalties for low power factor
- Many countries have implemented regulations or policies that penalize companies for operating with low power factors, which can lead to higher energy costs. This has driven companies to invest in power factor correction systems to reduce their energy bills and avoid penalties. For example, in the United States, utility companies may impose a penalty 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 has been a greater emphasis on energy efficiency across industries. Power factor correction systems can improve energy efficiency by reducing the amount of reactive power that is generated, which can lead to significant energy savings. As a result, many companies are investing in power factor correction systems as part of their energy efficiency initiatives.
Power Factor Correction Systems Market Restraints
High initial investment costs
- The installation of power factor correction systems can be expensive, especially for small and medium-sized businesses. The cost of equipment, installation, and maintenance can deter some companies from investing in power factor correction systems, especially if they are not subject to penalties for low power factor.
Lack of awareness and expertise
- Power factor correction systems can be complex, and their effectiveness depends on several factors, including the specific application and load characteristics. Some companies may lack the awareness and expertise to properly design, install, and maintain power factor correction systems. This can lead to suboptimal performance and reduce the overall benefits of the system.
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Power Factor Correction Systems Market Competitive Landscape
Global Power Factor Correction Systems Market is highly competitive, with several major players operating in the industry. Some of the key players in the market offer a range of power factor correction systems and related services, such as installation, maintenance, and repair. Other notable players in the market also have a significant presence in the market and compete with the major players for market share. The competitive landscape of the power factor correction systems market is characterized by intense competition, with players competing on factors such as product quality, reliability, and pricing. Additionally, players also focus on offering value-added services to customers, such as customized solutions, technical support, and after-sales service.
Power Factor Correction Systems Market Top Player’s Company Profiles
- Siemens AG (Germany)
- General Electric Company (USA)
- Emerson Electric Co. (USA)
- Delta Electronics, Inc. (Taiwan)
- Rockwell Automation, Inc. (USA)
- Crompton Greaves Limited (India)
- L&T Electrical & Automation (India)
- Mitsubishi Electric Corporation (Japan)
- Larsen & Toubro Limited (India)
- RTR Energia SRL (Italy)
- Adpower FZCO (UAE)
- Arteche (Spain)
- Avantha Group (India)
- Bharat Heavy Electricals Limited (India)
- Dynamic Control Systems (USA)
- EPCOS AG (Germany)
- Ergon Energy Corporation Limited (Australia)
Power Factor Correction Systems Market Recent Developments
- In March 2021, Schneider Electric announced the launch of its new AccuSine PCSn active harmonic filter for low-voltage applications, which is designed to help customers improve power quality, reduce energy waste, and lower operating costs.
- In May 2021, ABB introduced its new PQF800-T reactive power compensation module, which is designed to help improve power quality and reduce energy consumption in industrial and commercial applications.
- In June 2021, Eaton announced the launch of its new Power Defense molded case circuit breaker (MCCB) with integrated power metering and power factor correction capabilities, which is designed to help customers improve energy efficiency and reduce costs.
- In July 2021, Delta Electronics announced that it had completed the acquisition of Trihedral Engineering Limited, a leading provider of supervisory control and data acquisition (SCADA) software for industrial automation and energy management applications.
- In August 2021, ABB announced that it had won a contract to supply and install a turnkey power factor correction solution for a new wastewater treatment plant in Saudi Arabia. The solution is designed to improve power quality and reduce energy consumption at the plant.
Power Factor Correction Systems Key Market Trends
- Growing adoption of IoT and cloud-based solutions: Power factor correction systems can benefit from the integration of IoT sensors and cloud-based analytics, which can provide real-time monitoring and control of the system. This can improve the efficiency and reliability of the system, as well as enable predictive maintenance. For example, ABB offers a cloud-based power factor correction solution that allows remote monitoring and control of the system.
- Increasing use of hybrid power factor correction systems: Hybrid power factor correction systems combine passive and active correction technologies to provide a more flexible and efficient solution. Passive systems are simple and reliable, but they may not be suitable for all applications. Active systems can provide more precise control, but they can be expensive and complex. Hybrid systems can combine the benefits of both approaches, providing a cost-effective and efficient solution. For example, Eaton offers a hybrid power factor correction system that uses a combination of capacitors and active filters.
Power Factor Correction Systems Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our Global Power Factor Correction Systems Market analysis, the market growth is driven by increasing awareness about the benefits of power factor correction systems in reducing energy consumption and improving overall power quality. The rising emphasis on energy efficiency, coupled with government initiatives promoting the use of sustainable energy solutions, is expected to further fuel market expansion. The growing demand for power factor correction systems from various industries, such as manufacturing, healthcare, and commercial sectors, is anticipated to contribute to market growth. Technological advancements in power factor correction systems, such as the integration of smart and automated features, are also expected to drive the market forward. The global market is poised for substantial growth due to increasing energy efficiency concerns and the need for optimized power management solutions.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 2.65 billion |
| Market size value in 2031 | USD 4.83 billion |
| Growth Rate | 6.9% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Power Factor Correction Systems Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Power Factor Correction Systems Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Power Factor Correction Systems Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Power Factor Correction Systems Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Power Factor Correction Systems Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Power Factor Correction Systems Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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