Global Flexible AC Transmission System Market is anticipated to Account for $1,229.6 Million by 2027 Despite the COVID-19 OutbreakDownload Sample Reports Overview
As per flexible AC transmission systems (FACTS) market analysis by Research Dive, the overall market forecast will be $1,229.6 million by 2027, at an 8.0% CAGR, growing from $641.3 million in 2019.
Flexible AC Transmission System Market, COVID-19 Effect:
The pandemic of the novel coronavirus is expected to impact the global flexible AC transmission system market growth in a negative direction. During the lockdown period, oil & gas industry has drastically declined across the globe, owing to dearth of workforces, resulting in decreased production capacity and demand for petroleum owing lockdown. Thereby, this factor has eventually impacted the global oil & gas industry and indirectly impacted the FACTS market growth in the pandemic time. Nevertheless, in recent times, UK government has announced new funds plan for energy sector to support during the pandemic. The government has released about $75 million to energy industry including oil & gas industry to help attract private investors into energy sector. This factor has had a positive impact on the global market growth in the crisis time.
Flexible AC Transmission System Market, Dynamics:
Increasing electrification and innovation in the transmission networks especially in developing economies are significantly driving the flexible AC transmission systems market growth in the forecast time. This expected growth is majorly owing to increasing investments by several economies in modernizing and expanding power grids across the globe. For instance, in China, the government has invested about $66 billion in modernization of energy generation systems since 2003. In addition, increasing demand for FACTS devices from renewable electricity generation systems such as solar plants and wind power plants is expected to generate massive growth prospects in the global market throughout the forecast time. This expected growth is attributed to FACTS devices playing an important role in ensuring reliable and stable energy grid operation in the electricity generation plants. These factors are predicted to accelerate the market growth in the analysis period. However, huge financial investments are needed for the installation and maintenance of advanced flexible AC transmission systems, which is significantly hampering the growth of the market.
Flexible AC Transmission System Market, Segmentation Overview:
Combined series-shunt compensation type accounted for second highest flexible AC transmission market size; it valued about $222.7 million in 2019 and is expected to rise at a notable rate of 9.7% CAGR during the forecast time. This compensation is a combination of series and shunt types that has ability to inject voltages in series part and injecting currents in shunt part to provide improved voltage controllability. This aspect is estimated to impel the demand for combined series-shunt compensation type, which is predicted to drive the market growth in the forecast timeframe.
STATCOM controller sub-segment will witness a remarkable growth during the forecast time and is predicted to reach up to $219.1 million by 2027, at an 11.3% CAGR. Increasing demand for STATCOM controller from energy utility sector for incorporation into existing energy transmission systems to support energy networks that have a poor power factor and voltage regulation is estimated to impel the market growth in the upcoming decades.
Electric utility industry vertical sub-segment was the highest revenue contributor of the FACTS market in 2019 and is estimated to account for $269.9 million till the end of 2027. FACTS has an important role in enhancing control in green-field and existing transmission networks as well as it has the capability to improve efficiency of longer distance power transfer in the electric utility sector, which is estimated to accelerate the market growth in the review period.
Asia-Pacific market generated $95.3 million in 2019; it is expected to witness a noteworthy growth and is estimated to grow at a faster rate of 9.4% CAGR throughout the projected time. This expected growth is attributed to increasing adoption of flexible AC transmission systems in the end use industries especially railway sector to modernize the network infrastructure across the Asia-Pacific. In addition, government favorable activities to build advanced energy grid systems and increasing investments for renewable energy generation networks are projected to increase demand for FACTS devices, which is estimated to fuel the market growth in the review time.
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Flexible AC Transmission System Market, Significant Market Players:
The major players in the global flexible AC transmission system market are Adani Group, cgglobal.com, Eaton, General Electric, Mitsubishi Electric Corporation, Siemens ABB, NR Electric Co., Ltd., Alstom, and HYOSUNG.
Porter’s Five Forces Analysis for Flexible AC Transmission Systems Market:
- Bargaining Power of Suppliers: This market includes high number of dealers and high expenditure required for installation are delivering high costs of the systems. The bargaining power of dealers is MODERATE.
- Bargaining Power of consumers: This market has huge number of buyers that produce high demand for FACTS systems. However, the cost of these systems is high. The negotiating power of the consumer is MODERATE.
- Threat of New Entrants: Heavy initial expenditure is needed for the installation and maintenance of FACTS. Also, increasing demand from end use industries is projected to generate notable growth. These factors are resulting MODERATE threat of new entrants into the industry.
- Threat of Substitutes: Flexible AC transmission system market contains less alternatives and delivering LOW risk of substitutes.
- Competitive Rivalry in the Market: This market consists of huge number of leading manufacturers. These manufacturers are focusing on product advancements by investing in R&D to gain competitive edge. This factor is resulting in HIGH competitive rivalry in the industry.