Excitation Systems Market Report 2026

The excitation systems market size has grown steadily in recent years. It will grow from $2.76 billion in 2025 to $2.86 billion in 2026 at a compound annual growth rate (CAGR) of 3.5%. The growth in the historic period can be attributed to growth in power generation infrastructure, adoption of synchronous generators in heavy industries, development of brushless and static excitation systems, increasing demand for reliable voltage regulation, expansion of industrial and utility power applications.

The excitation systems market size is expected to see steady growth in the next few years. It will grow to $3.3 billion in 2030 at a compound annual growth rate (CAGR) of 3.6%. The growth in the forecast period can be attributed to rising deployment of digital excitation and control systems, increased focus on energy efficiency and sustainability, growing adoption of predictive maintenance solutions, integration with smart grid and iot infrastructure, innovations in reactive power management and voltage stabilization. Major trends in the forecast period include integration of digital excitation control systems, advancements in brushless and rotational exciters, improved voltage regulation and reactive power management, expansion of predictive maintenance and monitoring solutions, adoption of energy-efficient excitation technologies.

The growing popularity of solar and wind power is expected to drive the expansion of the excitation system market. Solar and wind power are renewable energy sources that generate electricity by harnessing the energy of sunlight and wind, respectively. As awareness of climate change and the environmental effects of fossil fuel consumption rises, there has been a significant shift towards cleaner energy sources like solar and wind power, which produce minimal greenhouse gas emissions and reduce air pollution. Synchronous generators are commonly used in solar and wind power plants to convert mechanical energy from wind turbines or steam turbines (in concentrated solar power plants) into electrical energy. For example, in January 2024, the U.S. Energy Information Administration (EIA) projected a 75% increase in U.S. solar power generation, rising from 163 billion kilowatt-hours (kWh) in 2023 to 286 billion kWh in 2025. Wind power generation is also expected to grow by 11%, from 430 billion kWh in 2023 to 476 billion kWh in 2025. As a result, the increasing adoption of solar and wind energy is propelling the growth of the excitation system market.

The increasing integration of renewable energy sources, such as solar and wind, is expected to drive the growth of the excitation system market in the coming years. Renewable energy sources are inherently variable and are connected to the grid through power electronics rather than traditional synchronous generators, which reduces system inertia and can lead to voltage fluctuations, frequency instability, and reactive power imbalances. The rising share of renewables in electricity grids is driven by global decarbonization initiatives, government incentives, and the push for sustainable energy solutions. Grid operators depend on excitation systems to provide voltage regulation, reactive power support, and dynamic stability, ensuring a reliable and continuous electricity supply. For instance, in December 2024, Eurostat, a Luxembourg-based government agency, reported that in 2023, renewable energy accounted for 24.5% of total energy consumption in the European Union, up from 23% in 2022. Therefore, the growing integration of renewable energy sources is contributing to the expansion of the excitation system market.

In December 2025, WEG S.A., a Brazil-based electrical equipment and power systems company, acquired Sanelec Excitation Systems Private Limited for US $5.2 million. Through this acquisition, WEG aims to strengthen its excitation systems portfolio by incorporating Sanelec’s expertise in automatic voltage regulators and excitation control solutions for generators and synchronous motors. Sanelec Excitation Systems Private Limited is an India-based company that specializes in the design and manufacture of voltage regulators and excitation systems for power generation equipment, which are essential for maintaining generator performance and grid stability.

Major companies operating in the excitation systems market are General Electric Company, Mitsubishi Electric Corporation, Siemens Energy AG, ABB Ltd, Nidec Corporation, Rolls-Royce Holdings plc, Emerson Electric Co., ANDRITZ AG, Fuji Electric Co Ltd, WEG S.A. (WEG Industries), Voith Group, KONČAR - Electrical Industry Inc., Basler Electric Company, L & S Electric Inc., Amtech Power Limited, NR Electric Co Ltd (NARI Group), Excitation & Engineering Services Ltd, SVEA Power AB, Altex Electric GmbH, Birr Machines AG, Tenel s.r.o.

North America was the largest region in the excitation systems market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the excitation systems market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the excitation systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The excitation systems market consists of sales of voltage regulators, automatic voltage regulators, excitation transformers, field discharge resistors, control systems, and sensors and feedback devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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