The SAM synchronous condenser market is expected to grow from US$ 15.23 million in 2019 to US$ 16.93 million by 2027; it is estimated to grow at a CAGR of 2.2% from 2020 to 2027.
Surging high-voltage direct current (HVDC) network is expected to accelerate the SAM synchronous condenser market. Existing and planned enhancements and extension of the HVDC network are expected to increase the demand for power factor correction devices, such as synchronous condensers, in different SAM countries. Increasing investments by key market players across SAM to build a strong HVDC network among major countries are further fueling the demand for synchronous condensers. Technological progress in HVDC transmission systems is expected to assist in minimizing wind and solar-based electricity transmission system operational problems, as the phase gap in the HVDC transmission line does not matter. Although traditional HVAC does not operate on this principle, transformers are required to fit the stage generated from a different source. This is also expected to provide a better opportunity for the HVDC transmission system to expand across SAM countries. Increased renewable energy penetration has accelerated the adoption of HVDC transmission networks. Thus, the above-mentioned factors are contributing to the growth of the SAM synchronous condenser market.
Brazil has the largest number of COVID-19 cases in SAM, followed by Ecuador, Chile, Peru, and Argentina. The pandemic has led to the closure of all economic activities across the region, in order to combat the spread of the virus. With the closure of transportation both within and outside the countries across the region, the supply chain of synchronous condenser market has been highly impacted. Moreover, the temporary shutdown of manufacturing plants has affected the production process of the same, which has severely impacted the SAM synchronous condenser market. Additionally, the reduction in demand for power from the commercial sector of the country is also expected to impact the market. Thus, based on the above-mentioned factors, the synchronous condenser market is expected to be negatively affected over the years in the region.
Based on cooling type, the hydrogen-cooled segment led the SAM synchronous condenser market in 2019. Since a synchronous condenser does not provide torque, the output shaft can be dispensed with and the unit can be easily enclosed in a gas-tight shell. To aid cooling and reduce windage losses, the synchronous condenser may then be filled with hydrogen. Since the hydrogen density is 7 percent of that of air, for a hydrogen-filled unit, the windage loss is 7 percent of that found in air. In addition, hydrogen's thermal conductivity is ten times that of air. Heat removal is therefore ten times more efficient. As a result, a synchronous condenser filled with hydrogen can be driven harder than an air-cooled unit or, for a given capacity, it may be physically smaller. As long as the hydrogen concentration is kept above 70 percent, typically above 91 percent, there is no explosion danger. Because of their properties, such as low density, high specific heat, and high thermal conductivity, hydrogen-cooled synchronous condensers are highly preferred, which is likely to boost demand for synchronous condensers during the forecast period for SAM region.
The overall SAM 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 SAM synchronous condenser market. The process also serves the purpose of obtaining overview and forecast for the SAM 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 SAM synchronous condenser market. ABB Ltd., Brush Group, Eaton Corporation plc, General Electric Company, Siemens AG (Siemens Energy), Voith GmbH & Co. KGaA, and WEG ELECTRIC CORP. are among key players operating in the SAM synchronous condenser market.