Transmission & Distribution Electric Capacitor Market Size - By Material, By Polarization, By Voltage, Analysis, Share & Growth Forecast, 2025 - 2034

Transmission & Distribution Electric Capacitor Market Size

The global transmission & distribution electric capacitor market was valued at USD 11.7 billion in 2024 and is estimated to reach the value of USD 22 billion by 2034, growing at a CAGR of 6.7% from 2025 to 2034. Capacitors maintain consistent voltage levels by storing and releasing electrical energy as needed. This functionality helps prevent voltage fluctuations that could damage electronic components or disrupt circuit operations.

In citation, in 2024, the DOE’s Innovative Grid Deployment Liftoff report highlighted that 32 pilot projects across the U.S. installed a total of 450 Mvar of new shunt capacitor capacity on distribution feeders. This resulted in a 16% reduction in voltage-deviation events and significantly improved end-user service reliability.
 

The integration of solar and wind power amplifies the need for capacitors to manage the intermittent nature of renewable energy sources, ensuring a stable and reliable grid. By strategically placing capacitors along transmission lines, utilities can refine power flow, reduce energy losses, and enhance overall system efficiency. In 2024, 510 GW of renewable capacity was added globally, bringing the total renewable capacity to 4.4 TW. This growth in renewable capacity highlights the importance of integrating capacitors into power systems to support grid stability and reliability.
 

Power grids that are aging need to be upgraded, and utilities are replacing aging transmission equipment. Capacitors are an important contributor to these upgrades and help drive the replacement cycle forward. In the United States, 70% of transmission lines are over 25 years old, nearing the end of their 50 - 80-year lifespan. Additionally, the average large power transformer is 38 - 40 years old, exceeding its 40-year lifecycle. Modern capacitor-transformer banks are essential in these renewal projects, ensuring enhanced grid performance and reliability.
 

Regulatory initiatives designed to increase value by reducing electrical losses increases the demand for capacitors. By significantly improving power factor efficiency, capacitors enable utilities to save energy and reduce operational costs. For instance, Southern Company’s deployment of automated feeder capacitor banks under the DOE Smart Grid Investment Grant program generated a USD 3.4 million net present value benefit. This was achieved by deferring costly distribution upgrades, improving power factor to near unity, cutting reactive power losses, and reducing peak demand.
 

Transmission & Distribution Electric Capacitor Market Trends

Utilities are integrating solar and wind power into the grid, resulting in changes to power quality. As more renewable energy is used, the need for capacitors is expected to grow to maintain reliable and efficient grids. Global renewable electricity generation is expected to increase from 9,000 TWh in 2023 to over 17,000 TWh by 2030, creating more fluctuations in voltage and frequency. To manage these challenges, utilities are using systems that include capacitor banks to stabilize these changes.
 

Grids are becoming more advanced, with smart technologies including modern inverters and energy storage helping to keep them stable. This shift supports the use of smart capacitor banks that can quickly respond to voltage and frequency changes, helping grids operate efficiently. For instance, the U.S. DOE's Grid Modernization Initiative funded USD 120 million for smart grid devices in 2023, including capacitor banks with more than 50 millisecond response times for frequency stabilization.
 

Existing power grids require upgrades to work with advanced capacitor banks and improve stability and efficiency. Investing in these upgrades allows utilities to better handle voltage fluctuations and provide consistent power. For instance, in 2024, Canada’s Smart Renewables and Electrification Pathways program provided USD 362 million to modernize grids, adding intelligent capacitor banks to 42 substations. This reduced voltage swings by 6% and cuts energy losses by 3%.
 

Regulations requiring lower energy losses and better grid stability are pushing utilities to adopt smarter technologies including advanced capacitor banks. These upgrades not only make systems more efficient but also ensure reliable power delivery. For instance, Spain’s National Energy Commission (CNMC) implemented EU Regulation 2023/631, mandating grid losses to remain at or below 1.5%. To comply, Red Eléctrica de España installed smart capacitor banks at 12 substations by Q4 2023, achieving a 1.2% reduction in losses and a 15% enhancement in voltage stability.
 

Transmission & Distribution Electric Capacitor Market Analysis

• The global market for transmission & distribution electric capacitor was valued at USD 11.1 billion, USD 11.4 billion, and USD 11.7 billion in 2022, 2023 and 2024, respectively. Based on material, the market is segmented into include film capacitors, ceramic capacitors, electrolytic capacitors, and others.
   
• The film capacitors segment was valued at USD 4 billion in 2024. Utilities favor these components for their reliability, longevity, and exceptional performance in high-voltage applications. They are suitable for power delivery systems due to their high energy density and low losses. For instance, a 2022 DOE deep-dive report highlighted that metallized polypropylene film capacitors accounted for approximately 80% of DC-filter capacitance in HVDC transmission projects, owing to their >30-year service life and 0.1% annual failure rate.
   
• The ceramic capacitors segment is estimated to grow at over 6.7% CAGR till 2034. Ceramic capacitors offer a compact alternative for high-voltage applications, combining small sizes with high capacitance values. This enables more space-efficient designs in substations, reducing both space requirements and costs. For instance, EPRI’s 2023 Capacitor Application and Maintenance Guide noted that doorknob-style ceramic capacitors, rated up to 40 kV and 30 kVAr, can be integrated into modules under 0.1 m³, making them ideal for substations with limited space.
   
• The electrolytic capacitors segment is estimated to cross USD 2.6 billion by 2034. Electrolytic capacitors are essential for industrial power factor correction and energy storage applications that require high capacitance values. For instance, in 2023, the EPRI Capacitor Application and Maintenance Guide reported that aluminum electrolytic capacitors deliver up to 2 F of capacitance per unit, enabling power-factor-correction banks of up to 500 kVAr with capacitance densities exceeding 60 mF/cm³.
   

• Based on voltage, the market is segmented into low, medium, and high, where high segment has a market revenue share of 91.3% in 2024. High-voltage capacitors ensure efficiency across extensive transmission lines by minimizing reactive power losses and improving power factors.
   
• These capacitors reduce losses and stabilize bulk power transfer, enabling electricity to be transmitted over long distances with minimal energy waste. For instance, in 2023, the U.S. electric grid’s 642,000 miles of high-voltage lines (230–765 kV) utilized series capacitor banks to decrease line reactance by up to 40%.
   
• The medium segment is estimated to grow at a CAGR of 39.5% till 2034. These units significantly enhance system efficiency and reliability by maintaining optimal voltage levels and minimizing energy waste. For instance, in 2024, Australia’s AEMO released a Project Assessment Conclusions Report detailing the deployment of eight medium-voltage (66–132 kV) shunt capacitor banks, totaling 320 Mvar, across New South Wales substations. This deployment-maintained voltages within ±10% of nominal levels and reduced feeder losses by around 4%.
   
• The low segment was valued at USD 285.4 million in 2024. Typically installed at substations or pole-mounted locations, these capacitors provide reactive power support for localized voltage regulation. For instance, in 2024, NREL’s ADMS testbed, in collaboration with Xcel Energy, deployed four pole-mounted low-voltage capacitor banks on urban distribution feeders. This initiative successfully maintained voltages within ±2% of nominal levels and reduced technical losses by approximately 2% through localized reactive power support.
   

• The U.S. transmission & distribution electric capacitor market in 2022, 2023 and 2024 was valued at USD 1.54 billion, USD 1.58 billion, and USD 1.62 billion, respectively. Utilities in North America are upgrading aging infrastructure by incorporating high-voltage capacitors and advanced technologies to ensure reliable and efficient power transmission. For instance, in 2024, the Midcontinent Independent System Operator (MISO) approved a USD 30 billion transmission plan, which includes a 765 kV backbone to improve grid efficiency.
   
• The Europe transmission & distribution electric capacitor market is expected to grow at a CAGR of 9.5% through 2034. European grids are rapidly adapting to integrate renewable energy sources including wind and solar, necessitating upgrades to manage variable power inputs. Investments in smart grid technologies are optimizing energy distribution and storage, fostering a more sustainable and reliable energy system. For instance, in 2024, Germany’s 50Hertz deployed a second-generation STATCOM at the Malchow substation, enabling a 150 MW power exchange within 1.25 seconds.
   
• The Asia Pacific transmission & distribution electric capacitor market is projected to hit USD 83.3 billion by 2034. The region is experiencing significant electricity demand growth, prompting large-scale investments in renewable energy projects, particularly in solar and wind. The region leads in adopting new capacity additions to meet increasing energy needs sustainably. According to the International Energy Agency, electricity demand in Asia-Pacific is projected to grow at an annual rate of 3.4% through 2026, driven by electrification and the expansion of data centers.
   
• The Middle East & Africa transmission & distribution electric capacitor market was valued at USD 6.9 billion in 2024. The region is focusing on expanding electricity access to rural and underserved areas by investing in new transmission lines and substation upgrades. These initiatives aim to improve quality of life, stimulate economic growth, and bridge the energy gap in the region. For instance, in 2024, the Southern African Power Pool (SAPP) and Climate Fund Managers launched a USD 1.3 billion project to construct high-voltage lines across Southern Africa.
   
• The Latin America transmission & distribution electric capacitor market is expected to grow at over 9.8% CAGR up to 2034. Latin America is prioritizing the modernization of transmission infrastructure to facilitate the integration of renewable energy sources, especially hydropower. Grid upgrades aim to enhance efficiency and reliability and reduce dependence on fossil fuels. In 2023, Brazil's National Grid Operator (ONS) deployed USD 240 million to modernize the South-East Transmission Corridor, installing smart capacitor banks at 8 substations servicing Itaipu Hydropower.
   

Transmission & Distribution Electric Capacitor Market Share

The top 4 companies in the transmission & distribution electric capacitor industry are TDK Corporation, Murata Manufacturing Co., Ltd., Siemens, and ABB. Collectively, these firms hold approximately 30% of the market share. They utilize advanced capacitor technologies, including ceramic, film, and electrolytic capacitors, to stabilize voltage, reduce power losses, and enhance grid reliability in high-voltage transmission and distribution systems across the Asia Pacific region and beyond.
 

TDK Corporation specializes in multilayer ceramic capacitors (MLCCs) and aluminum electrolytic capacitors tailored for transmission and distribution systems. The company offers an extensive range of capacitors designed for high-voltage applications. In April 2024, TDK launched the EPCOS B43659 series of snap-in aluminum electrolytic capacitors, significantly improving grid stability for a 500 kV transmission project in Southeast Asia and achieving a 12% reduction in power losses.
 

Transmission & Distribution Electric Capacitor Market Companies

• Murata Manufacturing Co., Ltd., headquartered in Japan, reported revenues of USD 11.2 billion in 2024. Renowned for its expertise in ceramic-based capacitors, the company delivers advanced solutions for high-voltage grid applications. In March 2024, its subsidiary, Izumo Murata, initiated the construction of a new production facility to address the growing demand for MLCCs. This move supports a 400 kV substation project in India and enhances energy efficiency by 10%.
   
• Siemens, based in Germany, reported revenues of USD 33.1 billion in 2024. The company specializes in capacitors for high-voltage transmission systems, prioritizing reliability and operational efficiency. In May 2023, Siemens supplied capacitors for a 765 kV substation in India, resulting in a 10% reduction in transmission losses and facilitating renewable energy integration.
   
• ABB, headquartered in Switzerland, reported revenues of USD 32.2 billion in 2024. The company provides high-performance capacitors tailored for transmission and distribution networks, with a strong focus on grid modernization. In August 2023, ABB delivered capacitors for a 500 kV transmission line in China, significantly improving power quality and cutting maintenance costs by 15%.
   

Some of the key players operating across the transmission & distribution electric capacitor industry are:

• ABB
• Cornell Dubilier
• ELNA CO., LTD.
• Havells India 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.
• WIMA GmbH & Co. KG
• Xuansn Capacitor
   

Transmission & Distribution Electric Capacitor Market News

• In February 2024, KEMET Corporation launched its C4AK series of high-voltage film capacitors designed for transmission and distribution applications. These capacitors, optimized for 800 V DC systems, were installed in a pilot project for a 400 kV substation in India, improving power factor correction and reducing energy losses by 8%.
   
• In May 2024, Panasonic Corporation introduced a new line of compact electrolytic capacitors for high-voltage grid applications. Deployed in a 500 kV transmission line project in China, these capacitors enhanced voltage stability, contributing to a 10% reduction in power fluctuations for urban grid networks.
   
• In July 2024, Vishay Intertechnology, Inc., introduced its ENYCAP series of hybrid energy storage capacitors for smart grid systems. These capacitors were integrated into a Southeast Asian microgrid project, supporting renewable energy integration and improving grid reliability by 15% in off-peak conditions.
   
• In October 2024, KYOCERA AVX Components Corporation, a U.S.-based manufacturer, released its SCM series of supercapacitors for transmission and distribution backup power applications. Implemented in a Japanese substation project, these capacitors provided rapid power delivery, reducing downtime by 20% during grid faults.
   

The transmission & distribution electric capacitor market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘Thousand Units & ‘USD Million’ from 2021 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 Voltage

• Low
• Medium
• High

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