The power factor correction market is estimated to reach USD 3.3 billion by 2030 from an estimated USD 2.4 billion in 2024, at a CAGR of 5.5% during the forecast period. Two important factors that drive the Power Factor Correction market are increasing energy efficiency and low-cost power management. First, while industries and governments across the world are concerned about reducing energy wastage in addition to improving the efficiency of power systems, PFC technologies turn out to be essential tools in optimizing power usage. Secondly, while energy costs are ever increasing, companies look for ways through which this bill can be reduced. A PFC system helps in attaining this by minimizing losses in power and also reduces the risks of penalties associated with poor power factor; hence, it is a good investment across many sectors.
Note: The tiers of the companies are defined on the basis of their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million.
The power factor correction market is dominated by a few major players that have a wide regional presence. The leading players in the power factor correction market are Eaton (Ireland), ABB (Switzerland), GE Vernova (US), Schneider Electric (France), and Hitachi Energy Ltd (Switzerland)
OEM Direct segment is the second largest segment of the power factor correction market, by sales channel
The OEM Direct segment accounts for the second-largest base in the power factor correction market. This is due to a high degree of direct contacts and relationships with original equipment manufacturers. The segment has benefited from increasing demand for energy-efficient solutions that are directly built into the manufacturing stage of making machinery and equipment. The direct channels are preferred by the OEMs as the choice is important because of the offering of custom-made and high-quality components that meet specific technical requirements and ensure effective power management and energy savings in various industrial applications. It has proved to be a major factor for the significant increase in sales for this segment.200-500 KVAR is expected to emerge as the fastest-growing segment based on reactive power segment
The 200-500 KVAR segment is expected to be the fastest-growing segment of the power factor correction market with respect to reactive power, as this segment offers the best balance between cost and efficiency for use in medium to large-scale industrial and commercial applications. The value of this range lies in its effective solution to the high reactive power requirements of facilities with gross electrical loads in a manner that assures improved power quality, together with reduced power operational costs. Moreover, power factor correction solutions retrievable in this KVAR range are in fast-growing demand due to an increased priority for energy efficiency and regulatory compliance in industries.Commercial is expected to be the second largest segment based on application
The commercial segment is expected to rank second in application in the power factor correction market due to rising needs for energy efficiency in commercial buildings and facilities. With an increasing phenomenon of the operational cost increase and new energy regulations and policies coming into the scene, businesses have started looking towards power quality and reduction of energy waste. Commercial power factor correction solutions are applied to manage the electric power load in an efficient way, to increase the lifetime of equipment, and to avoid penalties by utility companies for poor power factor. This explains the reason this segment shows considerable growth and importance in the market.Europe is expected to emerge as the third largest region based on power factor correction market
Europe will emerge as the third-largest market for the global power factor correction market in the forecast period. This can be attributed to the strong regulatory framework promoting energy efficiency and the rapid adoption of advanced technologies. The industrial sector in the region has been fueled by increasing energy costs and stringent environmental regulations. Growing attention toward the integration of renewable energy and development of smart grids further supports efficient power management demand, placing Europe as one of the major shareholders in the global market.Breakdown of Primaries:
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:- By Company Type: Tier 1 - 45%, Tier 2 - 30%, and Tier 3 - 25%
- By Designation: C-Level - 35%, Director Levels - 25%, and Others - 40%
- By Region: North America - 10%, Europe - 15%, Asia Pacific - 60%, the Middle East & Africa - 10%, and South America - 5%
Note: The tiers of the companies are defined on the basis of their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million.
The power factor correction market is dominated by a few major players that have a wide regional presence. The leading players in the power factor correction market are Eaton (Ireland), ABB (Switzerland), GE Vernova (US), Schneider Electric (France), and Hitachi Energy Ltd (Switzerland)
Research Coverage:
The report defines, describes, and forecasts the power factor correction market, by reactive power, application, sales channel, type, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the smart grid market.Key Benefits of Buying the Report
- Increasing investments in energy sector and rising number of renewable energy integration and energy effeciency attributed.
- Product Development/ Innovation: The trends such as integration of Internet of Things (IoT) technology with Power Factor Correction (PFC) systems and integration of solid-state switching devices in Power factor correction systems.
- Market Development: The global scenario of power factor correction has developed due to a global shift towards energy efficiency solutions, increased adoption of renewable sources like solar and wind power, technological advancements enhancing efficiency, and the growing demand for electric vehicles. These factors collectively propel innovation, creating a dynamic landscape for power factor correction to meet evolving energy demands.
- Market Diversification: Market diversification in the power factor correction market is a response to varied energy needs across industries and regions. As power factor correction adoption expands, diverse applications emerge, from various industries to renewable projects. Power factor correction manufacturers diversify their product offerings to cater to the specific requirements of different sectors, fostering market growth and resilience.
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Schnieder Electric (France), Eaton (Ireland), GE Vernova (US), ABB (Switzerland), Hitachi Energy (Switzerland), among others in the power factor correction market.
Table of Contents
1 Introduction
2 Research Methodology
4 Premium Insights
5 Market Overview
6 Power Factor Correction Market, by Reactive Power
7 Power Factor Correction Market, by Type
8 Power Factor Correction Market, by Sales Channel
9 Power Factor Correction Market, by Application
10 Power Factor Correction Market, by Region
11 Competitive Landscape
12 Company Profiles
13 Appendix
List of Tables
List of Figures
Companies Mentioned
- Schneider Electric
- Eaton
- GE Vernova
- ABB
- Hitachi Energy Ltd.
- Gentec
- TCI, LLC
- Powerside
- Cos Phi
- Controllix Corporation
- Circutor
- Neptune India Limited
- Enerlux Power S.R.L
- Lifasa
- Ducati Energia Spa
- Ortea Spa
- Rtr Energia Srl
- Powercap Capacitors Pvt. Ltd.
- Zez Silko, S.R.O.
- Treffer
- Sharda Electronics & Co.
- Yuhchang Electric Co. Ltd.
- Whatoop
- Power Factor Correction Group
- C. J. Energetics
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 239 |
Published | September 2024 |
Forecast Period | 2024 - 2030 |
Estimated Market Value ( USD | $ 2.4 Billion |
Forecasted Market Value ( USD | $ 3.3 Billion |
Compound Annual Growth Rate | 5.5% |
Regions Covered | Global |
No. of Companies Mentioned | 25 |