Power Quality Equipment Market Size, Trends and Growth Analysis by 2027

The power quality equipment sector is anticipated to grow significantly, reaching an estimated US$ 45,131.9 million by 2028, up from US$ 28,499.6 million in 2021. This growth represents a compound annual growth rate (CAGR) of 6.8% from 2021 to 2028.

As global warming becomes an increasingly pressing issue, the rise in carbon emissions from fossil fuel combustion, including coal and natural gas, has led to a heightened demand for renewable energy sources. The increasing emphasis on renewable energy initiatives is expected to drive the need for power quality equipment, which is essential for assessing the quality of electricity produced at distribution substations. The shift towards renewable energy is largely due to its benefits, such as minimal or zero carbon emissions, lower levels of air and water pollution, and cost-effective electricity generation. Additionally, numerous governments worldwide are offering financial incentives to promote the adoption of renewable energy projects. For example, in the United States, the government provides various tax credits, including the Renewable Electricity Production Tax Credit (PTC) and the Investment Tax Credit (ITC), as well as residential energy credits for those investing in renewable energy solutions. Furthermore, the US Department of Energy (DOE) and the Department of the Interior have established loan programs and financial subsidies to support the installation of renewable energy equipment. Consequently, the expanding renewable energy infrastructure is fostering the demand for power quality equipment in distribution substations, thereby creating growth opportunities for market participants.

The power quality equipment market is categorized based on equipment type, phase, end user, and geographical region. In terms of equipment, the market includes segments such as uninterruptible power supply (UPS), harmonic filters, static VAR compensators, power quality meters, and others. The UPS segment held the largest market share in 2020. When considering phase, the market is divided into single-phase and three-phase categories, with the three-phase segment accounting for a significant portion of the market in 2020. Regarding end users, the market is segmented into industrial and manufacturing, commercial, and other sectors, with the industrial and manufacturing segment dominating the market share in 2020. Geographically, the power quality equipment market is divided into North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America (SAM), with North America holding a substantial share of the global market in 2020.

During the initial two quarters of 2020, North American countries faced significant economic challenges due to the COVID-19 pandemic, particularly in the United States, where high case numbers led to various government-imposed restrictions. These restrictions adversely affected the production capabilities of industries such as manufacturing, construction, metal and mining, and commercial sectors, contributing to an economic downturn. Although power quality equipment is designed to ensure uninterrupted power supply for various applications, the demand for UPS systems saw a notable decline as visitor numbers to hotels and shopping malls dropped. Additionally, the closure of educational institutions led to a reduced need for power quality meters in laboratories. However, as businesses transitioned to remote work, there was a marked increase in demand for UPS systems specifically designed for residential use. As economies stabilize and return to normal operations, the power quality equipment market in North America is expected to witness steady growth in the coming years.

The overall size of the power quality equipment market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide a comprehensive overview and forecast of the power quality equipment market across all segments. Furthermore, it included an analysis of the market based on five major regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South America. Primary interviews with industry participants were conducted to validate the data and gain deeper analytical insights. Participants included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the power quality equipment sector.

Key players in the global power quality equipment market include Acumentrics, Emerson Electric Co., AMETEK Inc., Eaton, General Electric Company, Schneider Electric SE, Siemens AG, Toshiba Energy Systems & Solutions Corporation, Hitachi ABB Power Grids Group, and Piller Group GmbH.