Flexible AC Transmission Systems Market Size - By Configuration, By Product, By Voltage, By End Use, Growth Forecast, 2026 - 2035

Flexible AC Transmission Systems Market Size

The global flexible AC transmission systems market was estimated at USD 1.3 billion in 2025. The market is expected to grow from USD 1.4 billion in 2026 to USD 2.8 billion in 2035, at a CAGR of 8.3%.

• The global flexible AC transmission systems market is expanding largely due to accelerated transmission infrastructure spending. Utilities worldwide are modernizing their grids to handle higher electricity flows, aging assets, and increasingly complex power networks.
   
• For example, U.S. utility transmission spending nearly tripled between 2003 and 2023, reaching USD 27.7 billion, driven by new transmission station equipment and long-distance line upgrades. This surge in investment naturally increases the deployment of STATCOM, SVC, and other FACTS devices that provide voltage support, congestion management, and system reliability.
   
• A second major driver is the massive global rise in grid investments linked to renewable energy integration. In 2025, global grid capital spending is expected to exceed USD 470 billion, marking the first time the sector crosses that threshold. FACTS systems are essential for connecting variable renewable power—especially wind and solar, to the main grid. As countries expand renewable capacity, the need for dynamic reactive power compensation grows.
   
• The flexible AC transmission systems market demand is also increasing due to grid instability caused by rapid renewable penetration, especially in Asia, Europe, and North America. Modern grids face voltage fluctuations and intermittency as older fossil plants retire and are replaced by inverter-based renewable systems.
   
• According to industry analyses, utilities are increasingly adopting STATCOM systems for voltage stability, reactive power support, and grid integration of wind and solar plants. This is particularly evident in countries such as India and China, where large-scale renewable parks and ultra-high-voltage transmission lines depend on FACTS equipment to manage power flow and reduce losses.
   
• Another powerful growth driver is ongoing grid modernization programs, especially in advanced economies. The U.S., China, and EU remain the highest contributors to global grid investments, each accounting for a major share of worldwide spending in 2025, reflecting upgrades such as long-distance transmission lines, digital substations, and reactive power compensation assets that frequently include FACTS devices.
   
• For instance, in the U.S., grid modernization initiatives tied to clean energy and wildfire-resilient infrastructure have increased deployment of high-voltage STATCOM systems in states such as California and Texas, supporting renewable growth and grid resilience.
   
• FACTS adoption is also being propelled by technological advancements in power electronics, such as modular multilevel converter (MMC)-based STATCOMs. These offer faster response, enhanced control, and lower losses compared to earlier FACTS technologies.
   
• Market insights show growing uptake of such advanced STATCOMs across industrial power quality management, transmission support, and renewable integration applications, driven by the need for higher efficiency and flexibility under dynamic grid conditions. Hybrid STATCOM-SVC solutions are also emerging to meet the increasingly complex reactive power requirements of modern grids.
   
• Moreover, rising electricity demand and congestion challenges across major economies are making FACTS solutions indispensable. As highlighted by the International Energy Agency (IEA), congestion management costs tripled in Germany, the UK, and the U.S. between 2019 and 2022, underscoring the urgent need for technologies that enhance grid capacity without new transmission build-outs.
   
• FACTS technologies like TCSC, SVC, and STATCOM can increase power transfer capability, defer expensive infrastructure upgrades, and improve grid reliability, making them a preferred choice among system operators facing rapid load growth, new data-center clusters, and electrification of transport and industry.
   

Flexible AC Transmission Systems Market Trends

• A major trend shaping the FACTS market is the increased adoption of FACTS technologies across renewable-heavy grids, driven by accelerated wind and solar additions. New renewable mega-projects in 2024 are significantly driving demand for grid-stabilization tools such as FACTS devices.
   
• According to IRENA's 2025 Renewable Capacity Highlights, the world added 585 GW of renewable capacity in 2024, marking the largest annual increase in history. Solar contributed 452 GW, while wind added 113 GW in the same year, meaning solar and wind together accounted for 96.6% of total global additions.
   
• Any large-scale solar or wind installation, such as the huge 278 GW of solar added in China alone in 2024, places heavy dynamic stress on transmission grids. When countries add such massive gigawatt-scale renewable blocks, utilities need STATCOMs and SVCs to maintain grid voltage, stabilize intermittent flows, and ensure smooth integration.
   
• FACTS adoption is also rising due to the growing need for advanced power electronics and digital grid components. Emerging technologies such as voltage source converters (VSCs) and enhanced control systems are improving the responsiveness, accuracy, and efficiency of STATCOMs, UPFCs, and SVCs.
   
• These advancements lower operating costs and enhance grid flexibility, positioning FACTS as a core element of modern smart grids. Manufacturers are increasingly integrating intelligent controllers and real-time monitoring capabilities to support autonomous grid optimization.
   
• Another trend influencing market direction is the expanding deployment of FACTS solutions in industrial sectors, including metals, mining, and heavy manufacturing. Industrial facilities require voltage stabilization and power quality improvements to protect sensitive equipment.
   
• Insights show growing uptake of shunt-based compensation systems in industries where large motors, arc furnaces, and variable loads demand fast reactive power adjustments to prevent voltage sags and harmonic distortions. This diversification outside utilities strengthens the multi-sector appeal of FACTS technologies.
   
• The flexible AC transmission systems market is also witnessing increasing traction in transportation electrification, particularly railways. As electric rail networks expand across Asia and Europe, utilities are leveraging FACTS controllers to manage voltage fluctuations on long traction feeder lines and improve power factor stability. Market intelligence indicates that FACTS solutions are becoming integral to railway electrification projects, which require stable and high-quality power delivery across distributed traction substations, an application increasingly highlighted in FACTS market segmentation.
   
• Another significant trend is the growing integration of FACTS technologies within aging transmission networks. Many countries are confronting decades-old grid infrastructure; utilities are therefore adopting FACTS devices as cost-efficient alternatives to full-scale rebuilds.
   
• FACTS systems enhance controllability, maintain voltage levels, and optimize power flow without requiring extensive upgrades. Reports emphasize that utilities are turning to these solutions to extract greater capacity from existing corridors while ensuring higher stability and reliability across aging grids.
   

Flexible AC Transmission Systems Market Analysis

• Based on configuration, the series segment is anticipated to exceed USD 400 million by 2035 since Series compensation, a core "series segment" of Flexible AC Transmission Systems (FACTS) plays a critical role in enhancing transmission efficiency and grid stability worldwide.
   
• By installing capacitors directly in transmission lines, utilities effectively reduce inductive reactance, enabling higher power throughput, improved voltage control, and enhanced system resilience without the need for new infrastructure. This configuration proves especially beneficial for long high-voltage corridors often spanning over 200-km, where line reactance limits performance.
   
• One of the key advantages of series compensation is its cost-effectiveness compared to constructing new transmission lines. For example, GE Vernova boasts over 30,000-MVAR of series compensation capacity deployed in the past three years, leveraging decades of experience from the world’s first series capacitor project in 1928 to modular.
   
• These systems can be implemented within 12–18 months, far outpacing the expense and time needed for new AC corridors, making them a preferred option for utilities under budget and time constraints.
   
• An illustrative case of series compensation enabling grid modernization is that Leeds–Hurley Avenue 345-kV circuit in New York (2024), where smart wires deployed fifteen SmartValve modules, unlocking 185-MW of additional transmission capacity using a modular static synchronous series compensator.
   
• This project exemplifies how dynamic series devices not only static fixed capacitors support renewable energy integration and congestion mitigation by offering flexible, real-time power flow control.
   
• Fixed series capacitance also plays a significant role in long-distance conveyance in developing nations. In India, Hitachi Energy’s Fixed Series Compensation (FSC) units are actively used on 200-km+ AC corridors to bolster load transfer and voltage profiles by counterbalancing inductance–leading to operational normalization across heavily loaded circuits.
   
• Meanwhile, policy support is accelerating this deployment: recent updates to India’s Right-of-Way (RoW) guidelines aim to fast-track transmission projects and support infrastructure retrofits such as series compensation by offering clearer compensation norms and reducing acquisition delays.
   
• Technological evolution has further expanded the capabilities of series compensation beyond fixed configurations. DFAs like Thyristor-Controlled Series Capacitors (TCSC) and Static Synchronous Series Compensators (SSSC) now allow dynamic, on-the-fly adjustment of line reactance.
   
• These devices can bolster system stability under fluctuations caused by renewables or variable loading. ENTSO-E and IEEE documentation note that utilities in Europe and North America increasingly use these active compensation systems to address wind-induced instability via fast-response solution deployment.
   
• Moreover, The shunt segment in FACTS is also crucial, holding market share of 78.8% because it provides dynamic reactive power support and voltage regulation at key nodes of the power system. Unlike series compensation, SVC (Static Var Compensator) stabilize voltage levels, correct power factor, and mitigate flicker essential for grids integrating large renewable energy sources.
   
• As renewable penetration rises, voltage fluctuations become common due to variable generation. Shunt compensation counters these issues by injecting or absorbing reactive power instantly, ensuring grid reliability.
   
• For instance, India’s renewable expansion adding over 20 GW of solar in 2024 has led to multiple STATCOM installations at 400 kV substations to maintain voltage stability in Rajasthan’s solar hubs. Similarly, Europe’s offshore wind projects, like the Dogger Bank Wind Farm (3.6 GW) in the UK, require STATCOMs at onshore converter stations to manage reactive power and grid compliance.
   

• Based on process, the static synchronous compensator (STATCOM) segment is expected to grow at a CAGR of over 8% by 2035 since it is one of the most critical products in the Flexible AC Transmission Systems (FACTS) market because it provides fast, dynamic reactive power support and voltage stabilization for modern power grids.
   
• The global surge in renewable capacity is a primary driver for STATCOM adoption. In 2024, the world added 585 GW of renewable energy, with solar contributing 452 GW and wind 113 GW (IRENA) the largest annual increase ever. Countries like China alone added 278 GW of solar in 2024, creating massive voltage stability challenges. STATCOMs are deployed at 400 kV substations in renewable hubs.
   
• STATCOMs are central to grid modernization programs in Europe and North America. For example, the Dogger Bank Wind Farm (UK), the world’s largest offshore wind project at 3.6 GW, uses STATCOMs at onshore converter stations to stabilize voltage and ensure compliance with grid codes. Similarly, U.S. utilities are installing STATCOMs in Texas and California to support high renewable penetration and prevent voltage collapse during peak demand.
   
• Beyond renewables, STATCOMs are vital for industrial sectors such as steel and mining, where large motors and arc furnaces cause voltage flicker. In 2025, several Indian steel plants announced STATCOM installations to maintain power quality and avoid equipment damage. Urban grids with electric vehicle charging clusters also rely on STATCOMs for fast voltage correction.
   
• STATCOM’s ability to provide dynamic reactive power and operate effectively under low-voltage conditions gives it a technological edge over SVC. Modern STATCOMs use modular multilevel converters (MMC), reducing losses and improving scalability. OEMs like Siemens, Hitachi Energy, and GE are investing heavily in STATCOM R&D, with recent deployments in Europe’s smart grid projects and Asia’s renewable corridors.
   
• Large transmission projects indirectly boost STATCOM demand. For instance, India’s Green Energy Corridor Phase-II, designed to evacuate 20 GW of renewable power, includes multiple STATCOM installations at 765 kV substations. Similarly, Europe’s interconnector projects linking offshore wind farms to mainland grids require STATCOMs for reactive power support.
   
• Additionally, the Static Var Compensator (SVC) segment is also vital segment and is anticipated to cross USD 500 million by 2035. It provides fast and reliable reactive power compensation, ensuring voltage stability and power quality in high-voltage transmission networks. SVCs operate by dynamically adjusting reactive power through thyristor-controlled reactors and capacitors, making them essential for grids with fluctuating loads and renewable integration.
   
• SVCs are widely used in long transmission corridors and industrial applications where voltage dips and flicker can damage equipment or disrupt operations. For example, large steel plants and mining operations deploy SVCs to stabilize voltage during heavy motor starts or arc furnace operations. In power systems, SVCs help maintain voltage profiles during peak demand and prevent cascading failures.
   

• The U.S. flexible AC transmission systems market size crossed USD 230.4 million, USD 240.3 million and USD 250.3 million in year 2023, 2024, and 2025 respectively due to rapid grid modernization, renewable integration, and electrification trends. The U.S. power grid faces increasing stress from large-scale renewable projects and rising electricity demand.
   
• For instance, the U.S. added over 30 GW of solar and wind capacity in 2024, with more projects planned under the Inflation Reduction Act incentives. These additions create voltage stability challenges, making FACTS solutions like STATCOM and SVC essential for reactive power support.
   
• Major transmission projects such as SunZia Transmission, a 550-mile line designed to carry 3 GW of wind power from New Mexico to Arizona, will require advanced FACTS devices to manage power flow and maintain grid reliability. Similarly, the expansion of high-voltage corridors in Texas to accommodate growing renewable clusters and data centre loads highlights the need for dynamic compensation technologies.
   
• Additionally, U.S. utilities are investing heavily in grid resilience to prevent outages and meet clean energy targets (70% renewable by 2030 in some states). FACTS technologies, particularly STATCOMs and series compensators, enable higher transfer capability without building new lines, making them a cost-effective solution for the evolving U.S. grid.
   
• Europe plays a pivotal role in the global flexible AC transmission systems market due to its aggressive renewable energy targets, aging grid infrastructure, and strong regulatory push for decarbonization. The European Union aims for 42.5% renewable energy share by 2030, driving massive integration of wind and solar power.
   
• Countries like Germany, the UK, and Spain are adding gigawatt-scale renewable projects such as the Dogger Bank Wind Farm (3.6 GW) in the UK which require advanced FACTS solutions like STATCOMs and SVCs to manage voltage stability and reactive power.
   
• Additionally, Europe’s extensive cross-border interconnector projects, such as the North Sea Wind Power Hub, demand dynamic power flow control to ensure seamless energy exchange between nations. FACTS technologies, particularly series compensation and STATCOMs, are critical for these high-voltage corridors. Aging transmission networks in countries like France and Italy further increase reliance on FACTS retrofits to boost capacity without building new lines.
   

Flexible AC Transmission Systems Market Share

• The top 5 companies in the flexible AC transmission systems industry are ABB, Siemens Energy, Hitachi Energy, GE Vernova, and Mitsubishi Electric. They are contributing around 40% of the market in 2025.
   

Flexible AC Transmission Systems Market Companies

Major players operating in the flexible AC transmission systems industry are:

• ABB
• BHEL
• Fuji SMBE Pte Ltd.
• GE Vernova
• HICO America
• Hitachi Energy
• Hyosung Heavy Industries
• Infineon
• Ingeteam
• LS Electric Co.
• Mitsubishi Electric
• NR Electric
• Quanta Technology
• Siemens Energy
   
• Siemens Energy: Siemens Energy generated USD 11.3 billion in revenue for Q3 FY-2025, marking a 13.5% year-over-year increase. It offers a full portfolio of Flexible AC Transmission Systems (FACTS), including SVC Plus, multilevel STATCOM, and frequency stabilizers, tailored to enhance grid reliability, stability, and efficiency amid growing renewable integration.
   
• GE Vernova: GE Vernova reported USD 9.1-billion in revenue for Q2-2025, representing an 11% year-over-year increase. GE Vernova’s FACTS portfolio, named FACTSFLEX, includes advanced STATCOM (voltage-sourced converter) technology, Static Var Compensators, synchronous condensers, and series compensation systems.
   

Flexible AC Transmission Systems Industry News

• In June 2025, In India, The Ministry of Power announced a major initiative to strengthen India’s transmission infrastructure by introducing an Ultra-High Voltage Alternating Current (UHV AC) system. Under the “Grid 2034” vision, the plan includes nine 1,100-kV transmission lines and ten UHV AC substations, backed by an investment of  USD 5 billion. This move aims to support rising power demand, which hit a record 241-GW in June 2025, and integrate large-scale renewable energy.
   
• In October 2025, Hitachi Energy announced the next phase of their collaboration to strengthen transmission capacity between the Eastern and Western U.S. grids. Under a newly signed Engineering Services Agreement (ESA), the companies have begun detailing project and system requirements for the North Plains Connector (NPC), an interregional transmission system designed to link Montana and North Dakota. This initiative aims to enhance grid reliability, enable renewable energy integration, and improve power flow between major regions, marking a significant step toward a more resilient U.S. energy network.
   

The flexible AC transmission systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and volume (MVAr) from 2022 to 2035, for the following segments:

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Market, By Configuration

• Series
• Shunt
• Combined

Market, By Product

• Static Var Compensator (SVC)
• Thyristor Controlled Series Capacitor (TCSC)
• Static Synchronous Compensator (STATCOM)
• Unified Power Flow Controller (UPFC)
• Others

Market, By Voltage

• 132 kV to 220 kV
• > 220 kV to 660 kV
• > 660 kV

Market, By End Use

• Utilities
• Renewables
• Smart grid
• Railways
• Metal & mining industries
• Oil & gas
• Others

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

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina