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

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).

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. 'ABB Ltd. (Switzerland)', 'Schneider Electric SE (France)', 'Eaton Corporation (Ireland)', '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)'

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.

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.

Asia Pacific dominated the 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.