Synchronous Condenser Market Size, Trends and Growth Analysis by 2027

The global market for synchronous condensers was valued at approximately US$ 507.64 million in 2019 and is anticipated to grow to US$ 580.28 million by 2027, reflecting a compound annual growth rate (CAGR) of 2.6% from 2020 to 2027.

As technology continues to advance, businesses are increasingly seeking solutions that can boost productivity, enhance operational efficiency, improve customer experiences, and lower costs. This trend has led to a significant rise in the demand for sophisticated application monitoring solutions, including synchronous condensers, across various sectors such as metal and mining, electrical utilities, grid operators, marine, and oil and gas industries. The ongoing and planned expansions of the global high-voltage direct current (HVDC) network are expected to drive the need for power factor correction devices like synchronous condensers in multiple regions. Major investments by leading market players to establish a robust HVDC network among key countries are further propelling the demand for these devices. For example, Siemens has been awarded a contract to construct the HVDC link between Great Britain and France, which aims to enhance power supply reliability and facilitate the integration of renewable energy sources into the power grids of both nations. Siemens will provide two HVDC converter stations on either side of the DC power line, which will be routed through the Channel Tunnel as a DC cable. The advancements in HVDC transmission systems are anticipated to alleviate operational challenges associated with wind and solar electricity transmission, as the phase gap in HVDC lines is not a concern, unlike traditional HVAC systems that require transformers to accommodate different generation sources.

However, the COVID-19 pandemic has led to the abrupt shutdown of numerous industries worldwide, resulting in a decline in power demand and adversely affecting the energy sector. The temporary halt of economic activities has also disrupted the supply chains for manufacturing goods, which has impacted the production of synchronous condensers globally. These factors are currently hindering market growth.

The synchronous condenser market is categorized based on several criteria, including cooling type, reactive power rating, starting method, application, and geographical region. In terms of cooling type, the market is divided into air-cooled, hydrogen-cooled, and water-cooled segments. The hydrogen-cooled segment dominated the market in 2019. Regarding reactive power rating, the market is segmented into three categories: up to 100 MVAr, 100-200 MVAr, and above 200 MVAr, with the above 200 MVAr segment holding the largest market share in 2019. The starting method classification includes pony motor, static frequency converter, and others, with the static frequency converter segment leading the market share in 2019. Applications of synchronous condensers are varied, encompassing metal and mining, electrical utilities and grid operators, marine, oil and gas, among others, with the electrical utilities and grid operators segment being the largest in 2019. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America (SAM). North America held the largest market share in 2019, followed by Europe and APAC, with the APAC region expected to experience the fastest growth rate during the forecast period from 2020 to 2027.

The overall size of the synchronous condenser 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 an overview and forecast of the synchronous condenser market across all segments. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals 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 synchronous condenser market.

Key players profiled in this market study include ABB Ltd., BRUSH Group, Eaton Corporation PLC, Fuji Electric Co., Ltd., General Electric, Hyundai Ideal Electric Co., Mitsubishi Electric Corporation, Siemens AG, Voith GmbH, and WEG Electric Corp.