Dynamic Voltage Restorer Market Size, Regional Outlook, Application Development Potential, Price Trends, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3492
Dynamic Voltage Restorer Market size is slated to grow exponentially over 2021-2027, on account of the rising efforts to reduce electric supply interruptions through the mitigation of power quality (PQ) issues, coupled with the high awareness about the impacts of voltage sags and other power issues on sensitive loads such as medical equipment. Custom power devices, including dynamic voltage restoration devices, are gaining widespread adoption as a cost-effective solution to optimize power quality and reduce voltage disturbances.
Dynamic voltage restorer is a potential D-FACTS (Distribution Flexible AC Transmission System) used to surmount the issues related to non-standard voltage, frequency, and current in the distribution grid. This device can inject voltages in the distribution line to ensure effective maintenance of voltage profile and constant load voltage.
Escalating need to modernize the existing power grid infrastructure due to the ever-increasing electricity demand and the mounting investment in grid expansion across various economies are the prominent trends bolstering the overall dynamic voltage restorer (DVR) market size. For example, in March 2021, TenneT announced plans to invest over €6 billion annually, to expand the power grid in the Netherlands and Germany over the next 3-5 years. Furthermore, accelerating energy consumption due to the rapid digitalization across the industry peripherals will also foster industry trends in years ahead.
On the basis of application, the mining segment is set to exhibit a high growth rate through 2027, driven by the strong focus on reducing carbon footprint in this sector and subsequent integration of microgrids to potentially enhance the mining processes. The potential inclusion of FACTS such as DVRs in the control hierarchy of microgrids will enable cooperative schemes between renewable energy sources and filters, thereby increasing the overall power quality.
Regionally, Asia Pacificis poised to emerge as a lucrative revenue pocket for the dynamic voltage restorer market by 2027, which can be credited to the growing energy demand due to rapid urbanization and industrialization as well as economic growth, particularly in Southeast Asian countries. Further fueled by population growth, the energy demand in the region is projected to double by 2030, which could enhance demand for grid management systems like DVRs in the region.
The competitive landscape of the dynamic voltage restorer (DVR) industry consists of companies such as Hykon Power Electronics, American Superconductor, S&C Electric Company, and ABB Ltd., among others. Key strategies employed by these firms to sustain a strong position in the global market include M&A and new product launches.
For instance, in February 2021, Sentient Energy acquired key assets of Varentec with an objective to combine its sensor and software suite with Varentec’s technology for sensing & altering voltages on the low-voltage circuits to meet the rising needs for complex distribution grid management.
High Power Demand Across Housing Sector Amid COVID-19 & its Impact on Dynamic Voltage Restorer Market Trends:
The ongoing COVID-19 pandemic has led to a drastic social, economic, and health crisis due to the implementation of localized lockdowns, travel bans, and other strict restrictions. New practices and social norms during the outbreak have asserted adverse impacts on the overall energy demand and consumption, which may create roadblocks to the steady growth of the dynamic voltage restorer market.
Despite the decline in power demand across the commercial buildings as well as manufacturing sectors, the electricity consumption in the housing sector surged by over 30% during the lockdown period in 2020, due to the increased usage of energy-intensive systems like air conditioners, lighting, and other appliances. These factors, alongside the gradual ease of lockdown measures, are expected to boost the adoption of dynamic voltage restorers for management of voltage sags in years ahead.
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