Medium Voltage Electric Capacitor Market

Medium Voltage Electric Capacitor Market Size

The global medium voltage electric capacitor market size market was valued at USD 7.3 billion in 2024. The market is expected to grow from USD 7.7 billion in 2025 to USD 14.6 billion by 2034, at a CAGR of 7.4%.

• Continuous public & private investments along with the rapid growth of renewable energy sources connected to the medium-voltage grid, introduce challenges including voltage fluctuations and instability due to their intermittent nature. Medium-voltage capacitors solve these issues by providing reactive power support, stabilizing voltage levels, and enhancing power quality. For instance, in 2024, the U.S. DOE granted the TVA up to USD 250 million through its Grid Resilience and Innovation Partnerships (GRIP) program to install advanced reactive-power controls, including medium-voltage capacitors.
  
• Power grids worldwide are aging and require significant upgrades to meet contemporary demands for reliability and efficiency. Utilities are heavily investing in grid modernization projects, including the installation or replacement of capacitor banks. These capacitors reduce power losses across transmission and distribution lines and improve voltage regulation over larger areas, thereby preventing outages and improving service quality. For instance, in 2024, over USD 600 million was allocated to harden and modernize transmission and distribution systems in communities hit by Hurricanes Helene and Milton.
  
• The rise in industrialization has led to increased electricity consumption, often driven by large industrial motors and machinery. Medium-voltage capacitors are strategically deployed at industrial sites or substations to correct power factor issues, reducing energy waste and lowering electricity costs by avoiding penalties. For instance, in 2024, Germany's Federal Ministry for Economic Affairs and Climate Action deployed a project on medium-voltage local reactive power resources for voltage stabilization at the 110 kV/medium-voltage interface in Southern Germany.
  
• Governments and regulatory bodies are enforcing stricter energy efficiency standards and grid performance requirements. Utilities face pressure to minimize transmission and distribution losses while improving operational efficiency. Capacitors offer a cost-effective solution, enhancing power factor and voltage profiles, directly reducing energy losses, and maximizing the utilization of existing grid assets. For instance, in 2024, Italy, Spain, and Portugal initiated national support schemes to subsidize medium-voltage capacitor bank installations at commercial and industrial facilities. 
  
• The North America market is driven by the rapid expansion of electric vehicle (EV) infrastructure and the modernization of aging power grids. In March 2025, the U.S. National Renewable Energy Laboratory (NREL) launched the EVI-X Modeling Suite to accelerate EV charging infrastructure deployment, significantly boosting demand for capacitors that ensure voltage stability and power quality. Additionally, increased investments in renewable energy integration and industrial automation are reinforcing the need for reliable capacitor solutions across utilities and manufacturing sectors.
  
• In Europe, the market is primarily fueled by the continent’s aggressive push toward renewable energy adoption and grid decarbonization. In 2025, Germany expanded its offshore wind capacity, necessitating advanced grid stabilization technologies, including medium voltage capacitors. The EU’s stringent energy efficiency regulations and growing investments in smart grid technologies are also propelling market growth. Capacitors play a vital role in managing voltage fluctuations and reactive power, making them indispensable in Europe’s evolving energy landscape.
  

Medium Voltage Electric Capacitor Market Trends

• The market is shifting from basic capacitor units towards smart and automated capacitors around the globe, with sensors, controllers, and communication technology. They can automatically check grid conditions in real time and switch capacitor sections on or off precisely when needed. For instance, in 2024, in Canada, through the Smart Renewables and Electrification Pathways (SREPs) program, USD 4.5 billion has been allocated to provinces and utilities to deploy smart technologies, including medium-voltage capacitors.
  
• Capacitors are being integrated with digital grid management as they communicate data to centralized grid control centers and work alongside other devices, including voltage regulators and distributed energy resources. This allows utilities to manage voltage, power flow, and reactive power support across the entire network enhancing overall grid reliability and resilience. For instance, in 2024, The DOE awarded nearly USD 2 billion to 38 projects under its Grid Resilience Utility & Industry Grants initiative. These projects mandate utilities to integrate medium-voltage capacitors.
  
• Industries can improve energy efficiency and reduce carbon emissions within their own facilities by installing medium-voltage capacitors for power factor correction. This reduces their electricity bills, avoids utility penalties for poor power factor, and lowers their carbon footprint, driving increased adoption in the industrial sector. For instance, in 2024, a DOE-supported project in a steel manufacturing plant in Ohio installed capacitors that improved the plant’s power factor from 0.75 to 0.95. This adjustment resulted in a 15% reduction in electricity costs and decrease in CO2 emissions due to lower energy demand.
  
• Capacitors play a vital role in supplying reliable electricity with minimal disruptions and consistent, high-quality power. Utilities are investing in capacitors to strengthen grids against faults by rapidly supporting voltage during sudden changes, including large motor or generator trips. For instance, in 2024, ARENA funded a project of USD 5.4 million in New South Wales to install medium-voltage capacitors in the grid to enhance power quality and resilience. These capacitors were deployed to support voltage during peak demand periods and mitigate the impact of renewable energy fluctuations.
  

 Medium Voltage Electric Capacitor Market Analysis

• Based on material, the market is segmented into film capacitors, ceramic capacitors, and electrolytic capacitors. The ceramic capacitors dominated the overall industry, accounting for 44% share in 2024 and will grow at a CAGR of 5% till 2034. Ceramic capacitors are used in MV applications for high-frequency filtering, snubber circuits to suppress voltage spikes, and sensing applications.
  
• Ceramic material can manage very high voltages in small packages, but not for high-energy storage and continuous power handling section. Also, increasing private & public investments is augmenting medium voltage electric capacitor market growth. For instance, Ofgem’s Strategic Innovation Fund awarded USD 5 million in 2024 to National Grid for a feasibility project deploying 250 kV ceramic snubber capacitors at two substations, targeting harmonic filtering in the transmission network.
  
• The film capacitors segment was valued at USD 2.5 billion in 2024. These are the most common types used in medium voltage (MV) applications and use thin plastic films as the insulating dielectric material. They manage high voltages efficiently, provide good power-handling capability, and have low losses. For instance, in 2024, the Federal Ministry for Economic Affairs and Climate Action backed >10,000 applications, funding reactive-power compensation projects including MV capacitors with 30–60% cost subsidies, achieving 10% average energy savings per site.
  
• The electrolytic capacitors industry will grow at a CAGR of 6% through 2034. Electrolytic capacitors leverage a liquid or gel electrolyte with a metal anode to achieve very high capacitance values relative to their physical size and cost at high voltage points. This makes them the preferred solution when space constraints are extreme and very high energy storage. For instance, in 2024, the DOE committed USD 11 million under its HVDC R&D program to four pilot projects, each installing 120 MV electrolytic capacitor modules (up to 6 kV) for DC link smoothing in converter stations.
  
• Based on polarization, the industry is segmented into polarized & non-polarized. The non-polarized market will grow at a CAGR of 5.5% through 2034. Their ability to operate with alternating current makes them essential in utility grids, industrial motors, and smart grid infrastructure. The market for non-polarized capacitors is expanding rapidly due to global grid modernization efforts and the integration of renewable energy sources. Their durability, high voltage tolerance, and versatility across applications give them a broader and more stable market presence.
  
• Polarized MV capacitors, typically electrolytic, are designed for applications requiring a fixed polarity, such as DC filtering and power electronics. Their market is driven by the rising demand for high-efficiency inverters and converters in renewable energy systems and electric vehicles. These capacitors offer high capacitance in compact sizes, making them ideal for space-constrained environments. However, their limited voltage tolerance and polarity sensitivity restrict their use in AC applications, confining their market to specific industrial and power electronics segments.
  

• Based on end use, the medium voltage electric capacitor market is segmented into consumer electronics, automotive, communications & technology, transmission & distribution, and others. The transmission & distribution segment catered for a share of 55.2% in 2024 and is estimated to grow at a CAGR of 4.5% till 2034.
  
• Capacitors are crucial at the substations to maintain stable voltage and manage power factors due to the fluctuating demand. For instance, in 2024, Sweden’s Klimatklivet program granted USD 21 million to install 150 medium-voltage (10 kV) capacitors at fast-charging corridors, adding 50 MVAR of reactive capacity to mitigate voltage dips during peak EV charging.
  
• The consumer electronics segment had a market revenue share of 15% in 2024. Electric utilities deploy MV capacitors extensively within their power grids. Capacitors are installed at substations and along distribution lines to improve power factors, regulate voltage levels, reduce energy losses during transmission, and enhance grid stability. For instance, in 2024, the Department of Energy’s Grid Resilience & Innovation Partnerships awarded TVA USD 250 million to upgrade 12 medium-voltage substations with smart capacitors.
  
• The automotive segment is estimated to grow to CAGR of 6% till 2034. Industrial facilities with significant electrical loads are major consumers of MV capacitors and lower overall energy consumption. Installing MV capacitors directly at the facility or at industrial substations reduced electricity bills, freed up electrical system capacity, and improved voltage stability for sensitive equipment. For instance, in 2024, under the Federal Funding for Energy & Resource Efficiency scheme, 10,000+ industrial projects received grants to install MV capacitors, achieving 5–15% electricity savings.
  
• The communications & technology segment is estimated to grow to CAGR of 6% through 2034. This segment includes data centers, telecom switching stations, and large communication network hubs. MV capacitors are used within their power supply infrastructure to maintain stable voltage and continuous power. For instance, in 2024, Italy, Spain, and Portugal deployed >500 MVA of MV capacitor capacity at telecom hubs and data centers, funded via national incentive schemes under the EU’s 2024 Article 7 implementation, to stabilize power quality.
  

• The U.S. dominated the North America medium voltage electric capacitor market with 74% share in 2024 and generated a revenue of USD 1 billion. The U.S. market is experiencing robust growth driven by large-scale investments in grid modernization, renewable energy integration, and electric vehicle infrastructure. The market benefits from technological advancements and domestic manufacturing capabilities, positioning the U.S. as a key player in the global MV capacitor landscape.
  
• Government policies pushing wind and solar power also create demand, as capacitors stabilize the grid against fluctuations from these sources. For instance, The Canadian federal government granted USD 9.7 million to Antigonish, Nova Scotia, for electrical grid modernization, explicitly supporting deployment of reactive-power assets, including capacitors, to integrate renewables and enhance grid reliability.
  
• The Europe medium voltage electric capacitor market is expected to grow at a CAGR of 5.8% through 2034. Massive investments in offshore wind farms and solar integration require significant grid reinforcement and stability, heavily relying on MV capacitors. Strict EU-wide regulations on energy efficiency and grid losses compel utilities to deploy capacitors. For instance, in 2024, under EU structural funds and Germany’s BMDV initiative, USD 160 million was allocated to reinforce 220–380 kV offshore wind grid connections, including medium-voltage capacitor for voltage support along coastal substation feeders.
  
• The Asia Pacific medium voltage electric capacitor market is estimated to be valued at USD 4.5 billion by 2034. Rise in investments in new power infrastructure including transmission lines, substations, and urbanization require extensive capacitor deployment. Government initiatives for renewable energy integration of large-scale solar, wind, and grid stability improvements fuel significant growth. For instance, in India, the Ministry of Power allocated USD 265 million to upgrade 765/400 kV substations, including the installation of MV capacitors for solar and wind integration.
  
• The Middle East & Africa medium voltage electric capacitor market is expected to grow at a CAGR of 5% till 2034. Industrial development, particularly in energy-intensive sectors including oil & gas, petrochemicals, and mining, creates demand for MV capacitors. Rapid urbanization and population growth, leading to increased demand for electricity and infrastructure development. For instance, in 2024, the UAE committed USD 20 million to install 50 MVARR of MV capacitor banks at key substations across Abu Dhabi to improve grid stability amid heavy industrial and urban loading.
  
• The Latin America medium voltage electric capacitor market is expected to grow at a CAGR of 5.6% through 2034. This region is investing in expanding and modernizing their often-underdeveloped power grids to improve reliability and reduce losses, creating demand for capacitors. Increasing renewable energy projects contribute to use for capacitors in grid stabilization. For instance, in 2024, Brazil’s National Electric System Operator ran a USD 205 million modernization tender requiring all awarded distribution concessionaires to install MV capacitor banks at 138 kV substations.
  

Medium Voltage Electric Capacitor Market Share

The top 5 companies in the market are Hitachi Energy, Kemet Corporation, Panasonic Corporation, KYOCERA AVX Components Corporation, and TDK that all together accounted for approximately 30% of the market share in 2024. They focus on high-performance capacitors with higher capacitive value to meet the growing demands of businesses around the world. Advanced features in these capacitors include better capacitance and stability, therefore ideal for future electric vehicle systems and energy-saving industrial equipment. 

Kemet Corporation capacitors are known for their reliability and efficiency, making them a preferred choice for utilities and industries worldwide. In 2025, the company, a subsidiary of Yageo Group, expanded its medium voltage capacitor offerings by introducing advanced ceramic capacitors designed for high-reliability applications in renewable energy and industrial automation. These new products feature enhanced temperature stability and longer operational lifespans, aligning with the growing demand for durable components in smart grids and EV infrastructure.

Medium Voltage Electric Capacitor Market Companies

• Kemet Corporation, headquartered in the U.S., reported revenues of USD 1.5 billion in 2024. Kemet focuses on high-reliability capacitors for industrial and automotive sectors, with a strong emphasis on innovation and sustainability. Their capacitors are designed to meet the stringent requirements of critical applications, ensuring long-term performance and durability. In June 2024, Kemet introduced a new series of film capacitors for medium-voltage applications, improving energy efficiency by 15% in European renewable energy projects.
  
• Panasonic Corporation, based in Japan, reported revenues of USD 68.2 billion in 2024. Panasonic offers a wide range of capacitors for medium-voltage systems, emphasizing sustainability and environmental responsibility. Their commitment to reducing carbon emissions is reflected in their capacitor designs, which prioritize energy efficiency and eco-friendly materials. In May 2024, Panasonic deployed its capacitors in a German smart grid initiative, cutting energy consumption by 8%.
  
• TDK Corporation, headquartered in Japan, reported revenues of USD 14.6 billion in 2024. TDK specializes in high-performance capacitors for medium-voltage applications, backed by an extensive product portfolio and a commitment to quality. Their EPCOS B43659 series of snap-in aluminum electrolytic capacitors, launched in April 2024 and deployed in a 500 kV Southeast Asian transmission project, improved grid stability and reduced power losses by 12%.
  

Some of the key players operating across the medium voltage electric capacitor market are:

• Cornell Dubilier
• Circutor
• ELNA CO., LTD.
• Eaton Corporation
• Havells India Ltd.
• Hitachi Energy Ltd
• KEMET Corporation
• KYOCERA AVX Components Corporation
• Murata Manufacturing Co., Ltd.
• Panasonic Corporation
• SAMSUNG ELECTRO-MECHANICS
• Schneider Electric
• Siemens
• TAIYO YUDEN CO., LTD.
• TDK Corporation
• Vishay Intertechnology, Inc.
• UNITED CHEMI-CON
• WIMA GmbH & Co. KG
• Xuansn Capacitor
• ZONKAS ELECTRONIC CO., LTD
  

Medium Voltage Electric Capacitor Market News

• In February 2024, Samsung Electro-Mechanics launched its high-voltage multilayer ceramic capacitor (MLCC) series for automotive applications. These capacitors, designed for 800 V systems, were integrated into an electric vehicle powertrain project in South Korea, improving energy efficiency by 9% and supporting faster charging capabilities.
  
• In April 2024, Siemens introduced its SIVACON series of film capacitors for high-voltage grid applications. Deployed in a 400 kV substation in Germany, these capacitors enhanced grid stability, reducing transmission losses by 11% and facilitating renewable energy integration.
  
• In June 2024, Schneider Electric unveiled its EcoCap series of electrolytic capacitors for smart grid systems. Implemented in a 500 kV transmission line project in France, these capacitors improved power quality and reduced energy fluctuations by 12%, supporting urban grid reliability.
  
• In September 2024, Cornell Dubilier released its Type 947D high-energy density film capacitors for industrial applications. These capacitors were used in a U.S.-based microgrid project, boosting renewable energy storage efficiency by 10% and reducing system downtime by 15%.
  

This medium voltage electric capacitor market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (Thousand Units) & volume (USD Billion) from 2025 to 2034, for the following segments:

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Market, By Material

• Film capacitors
• Ceramic capacitors
• Electrolytic capacitors
• Others

Market, By Polarization

• Polarized
• Non-polarized

Market, By End Use

• Consumer electronics
• Automotive
• Communications & technology
• Transmission & distribution
• Others

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

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