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Capacitor Bank Market Size By Voltage (Low [<10 kV], Medium [10 kV - 69 kV], High [>69 kV]), By Type (Open Air Substation, Metal Enclosed Substation, Pole Mounted, Others), By Application (Power Factor Correction, Harmonic Filter, Voltage Regulation, Renewable Integration, Industrial Application, Data Centers. Others) Analysis Report, Regional Outlook (U.S., Canada, Mexico, Germany, France, Spain, Italy, UK, Netherlands, Russia, Sweden, China, India, Japan, South Korea, Indonesia, New Zealand, Malaysia, Thailand, Singapore, Australia, Saudi Arabia, UAE, Qatar, Oman, South Africa, Brazil, Chile, Argentina), Application Potential, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI3767
  • Published Date: Sep 2020
  • Report Format: PDF

Industry Trends

Capacitor Bank Market size was valued at over USD 3.4 billion in 2019 and annual installation is expected to surpass 160 thousand units by 2026. Growing efforts to enhance energy efficiency along with increasing electrical line losses have increased the demand for capacitor banks. Medium voltage capacitor banks accounted for a dominant market share in 2019.

The capacitor bank market in the recent years has witnessed a substantial growth on account of soaring electricity demand along with the regulatory focus to reduce the existing line losses. This equipment help in improving the operational efficiency of supply systems and provide voltage stability during peak load. This in turn proliferating the market demand of capacitor banks across utility substations globally.

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In the first quarter of 2020, the global economy had been seriously impacted by the outbreak of coronavirus across the globe. The ongoing COVID-19 pandemic has halted certain electrical projects across some extremely affected economies including India and Brazil for short durations.

In addition, the large scale disruptions in supply chains owing to shortage of manpower has further restricted the product deployment. However, the capacitor bank market statistics will not witness significant downfall as the product falls under essential commodities and will register an elevated market growth from 2021.

The study features a detailed analysis of capacitor bank market trends across the globe segmented on a regional & country basis across voltage, type and application. Moreover, the market forecasts & estimates are in line with the data represented by authorities including the International Energy Agency (IEA), Institute of Electrical and Electronics Engineers (IEEE), International Electrotechnical Commission (IEC), Energy Information Administration (EIA), government regulatory bodies, and company press releases.

Lower KVAR billings by significant reduction in power losses will drive the medium voltage capacitor bank growth across industries

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Medium voltage capacitor banks are expected to witness a growth of over 5.5% during 2020 to 2026 on account of growing demand for power factor conversion technologies across renewables, commercial, and industrial systems with MV characteristics. These units are installed across both indoor and outdoor substations for voltage support, power loss reduction, and power factor correction.

The MV capacitor banks can effectively reduce the KVAR billing and power factor penalties driving the market demand across industrial establishments. In addition, the improved power flow capability and enhanced voltage profile are some of the paramount features augmenting the capacitor bank market growth.

Expanding utility grid infrastructure along with efforts toward enhancing the power output will stimulate the open air capacitor bank trends

The open-air capacitor banks are the most commonly used design deployed across industrial and utility facilities to improve power quality and reduce losses. These are mounted on an elevating structure and can be configured in series and parallel combinations on the basis of system voltage, KVAR requirements and system solutions to meet application requirements.

Increasing investments pertaining the development of present transmission lines coupled with the formation of smart energy infrastructure will propel the capacitor bank market. Furthermore, the growing demand of open air substations from the renewable sector will augment the market statistics in the forthcoming years.

Reduced power losses and increased system capability are some of the paramount feature driving the product installations

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Most of the loads in an electrical distribution system are inductive, therefore, capacitor banks are deployed across output terminals for correcting and enhancing the power factor by providing reactive current. These banks also enhance the power carrying capacity, which encourages its adoption across the utilities.

The installation of a power factor correction system can offer several benefits including increased system capability, reduced utility bills, lower power losses, and improved grid voltage. It has been anticipated that the power factor conversion application will account for over 30% of the global capacitor bank market share by 2026.

Growing electricity demand along with expanding grid infrastructure across Asia Pacific region will stimulate the industry growth

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The Asia Pacific is predicted to witness a growth of over 5% during 2020 to 2026 owing to increasing investments toward industrial developments and utility-based electrification networks. Emerging economies including Malaysia, New Zealand and China will lead the regional market growth on account of the ongoing fund flow toward expansion and upgradation of power capacities and electric infrastructure.

Furthermore, growing focus toward the development of commercial zones coupled with high-end investment across the industrial and utility sector will significantly drive the capacitor bank market demand over the forecast period.

Strategic mergers and acquisitions acting as the focal point for market players

The key market players are aggressively investing on the R&D activities to enrich their product portfolio with cost-efficient and sustainable products to enhance their market share in the capacitor bank industry. In addition, mergers and acquisitions are among the key strategies adopted by the industry giants to gain a competitive edge in the global market.

Moreover, leading market players are focusing toward backward & forward integration by manufacturing capacitor bank components to achieve economies of scale and increase their market share.

The prominent players profiled in the capacitor bank industry report includes ABB Limited, General Electric, Siemens AG, Eaton Corporation, American Superconductor, Schneider Electric, Arteche, Alpes Technologies, CIRCUTOR, SA, Aener Energía, and amongst others.

Capacitor bank market report includes in-depth coverage of the industry with estimates & forecast in terms of “Units” and ‘USD” from 2015 to 2026, for the following segments:

By Voltage

  • Low [<10 kV]
  • Medium [10 kV – 69 kV]
  • High [>69 kV]

By Type

  • Open Air Substation
  • Metal Enclosed Substation
  • Pole Mounted
  • Others

By Application

  • Power Factor Correction
  • Harmonic Filter
  • Voltage Regulation
  • Renewable Integration
  • Industrial Application
  • Data Centers
  • Others

The above information has been provided for the following regions and countries.

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Spain
    • Italy
    • UK
    • Netherlands
    • Russia
    • Sweden
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • New Zealand
    • Malaysia
    • Thailand
    • Singapore
    • Australia
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Qatar
    • Oman
    • South Africa
  • Latin America
    • Brazil
    • Chile
    • Argentina


Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

In 2019, the global capacitor bank market accounted for more than USD 3.4 billion, and the annual installation is expected to cross 160 thousand units by 2026.
Owing to the rising demand for power factor conversion technologies across renewables, commercial, and industrial systems with MV characteristics, the medium voltage capacitor bank segment is projected to witness a 5.5% growth through 2026.
The power factor conversion application is expected to account for over 30% of the global capacitor bank market share by 2026. Its benefits including increased system capability, reduced utility bills, lower power losses, and improved grid voltage, are anticipated to foster industry growth.
The capacitor bank industry is projected to witness over 5% growth through 2026 in the Asia Pacific region due to the growing investments in industrial developments and utility-based electrification networks.

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Premium Report Details

  • Base Year: 2019
  • Companies covered: 16
  • Tables & Figures: 611
  • Countries covered: 29
  • Pages: 320
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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