The Europe synchronous condenser market is expected to grow from US$ 154.52 million in 2019 to US$ 179.84 million by 2027; it is estimated to grow at a CAGR of 2.8% from 2020 to 2027.
Growing demand for renewable power generation across Europe is expected to accelerate the growth of the Europe synchronous condenser market. Rising demand for renewable energy, combined with the electrification of transportation and increased involvement of oil & gas companies in the electricity value chain, is accelerating the convergence of the above-mentioned industries. Rising initiatives among states, cities, and utilities to pursue DE carbonization plans are increasing the demand for renewable energy across the Europe. The energy production of most countries around the Europe has been dominated by fossil fuels since the industrial revolution. This is significantly affecting both the Europe climate and human health. The combustion of fossil fuels for electricity results in three-quarters of Europe greenhouse gas emissions. In order to reduce carbon dioxide emission across the Europe, the consumption of renewable energy has increased, leading to high demand for the same. For instance, according to the International Renewable Energy Agency, the top European countries in terms of renewable power and electricity generation capacity are Germany, the UK, and Italy. Thus, rising investments in renewable power generation by major economies across the Europe are expected to influence the adoption of synchronous condensers, which would drive the Europe synchronous condenser market.
Furthermore, in case of COVID-19, Europe, especially the UK, is highly affected. The European Government has made tremendous investments in implementing technology into its healthcare systems to help detect symptoms of the virus, in order to protect its people from the virus. Businesses across Europe have shifted from traditional to online businesses in order to carry on with their financial activities during the coronavirus outbreak. Increasing adoption of work from home culture across the region owing to the nationwide lockdown has reduced the demand for power across the across especially from the commercial sector, thereby adversely affected the power sector across the region. For instance, Italy recorded a reduction of demand in power by 20% during the pandemic. This has negatively affected the demand for synchronous condensers across the region. The manufacturing processes of the condensers are also negatively impacted. Thus, the above-mentioned factors indicate that the European synchronous condenser market has been negatively impacted owing to the pandemic.
Based on reactive power rating, the above 200 MVAr segment led the Europe synchronous condenser market in 2019. Because of rising demand for reactive power for grid stabilization and voltage regulation, the need for power factor correction is increasing. In addition, the cost of synchronous condensers used for low power ratings is high. Synchronous condensers with a rating above 200 MVAr are, therefore, strongly preferred. The above 200 MVAr segment is likely to show strong growth during the forecast period. In addition, 200 MVAr synchronous condensers widely use hydrogen-cooled cooling technology. Increasing installations of large synchronous condensers above 200 MVAr are likely to foster the synchronous condenser market, especially in Europe. Advantages of above 200 MVAr synchronous condensers, such as low cost, grid stabilization, and better power factor correction, are expected to increase their demand in coming years, which would drive the Europe synchronous condenser market.
The overall Europe synchronous condenser market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Europe synchronous condenser market. The process also serves the purpose of obtaining overview and forecast for the Europe synchronous condenser market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, synchronous condenser market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the Europe synchronous condenser market. ABB Ltd.; Brush Group; Eaton Corporation plc; FUJI ELECTRIC CO., LTD.; General Electric Company; IDEAL ELECTRIC POWER CO.; Siemens AG (Siemens Energy); Voith GmbH & Co. KGaA; and WEG ELECTRIC CORP. are among key players operating in the Europe synchronous condenser market.