Power Quality Equipment Market

Global Power Quality Equipment Market Forecast

• Global power quality equipment market size to reach US$48.3 Bn in 2030
• Market revenue projected to exhibit a remarkable rate of expansion, at an estimated CAGR of 6.2% during 2023 - 2030

Quick Report Digest

1. The global power quality equipment market is poised for substantial growth due to increasing demand for reliable power supply, the rise of renewable energy sources, and grid modernisation initiatives.
2. Significant challenges like high initial costs, complexity, and regulatory uncertainty remain as restraints.
3. As businesses and governments continue to prioritise power quality, the market is expected to evolve to address these challenges and capitalise on the opportunities presented by the changing energy landscape.
4. The market growth will receive tailwinds from trends like the growing renewable energy integration, energy storage, smart grids, electrification, Industry 4.0, emerging markets, and regulatory compliance.
5. Various industries, including manufacturing, data centres, healthcare, and telecommunications, have adopted power quality equipment to prevent downtime, equipment damage, and data loss due to power disturbances.
6. Emerging markets, the electrification of transportation, smart grid technologies, and a focus on energy efficiency are expected to create significant opportunities for growth in the global power quality equipment market in the coming years.

A Look Back and a Look Forward - Comparative Analysis

The global power quality equipment market has witnessed significant growth and transformation of late. The given projection period will witness notable growth that will shape the industry landscape, making it imperative to conduct a comparative analysis to understand the evolution of this market.

As the world continues to prioritise reliable and high-quality power supply, the power quality equipment market is poised for further growth and innovation in the coming years. One of the most striking developments in this period is the substantial expansion of the power quality equipment market.

Innovations such as smart meters, digital relays, and advanced power quality analyzers have become more widespread, enabling better monitoring and management of power quality issues. With the growing emphasis on renewable energy sources like solar and wind, the power quality equipment market has adapted to address the challenges posed by intermittent energy generation. This has led to the development of solutions that help stabilise power quality in grids with high renewable energy penetration.

The market has witnessed global expansion, with emerging economies in Asia, Latin America, and Africa showing a growing appetite for power quality solutions, driven by urbanization, and industrialisation. Many countries have embarked on grid modernisation initiatives during this period to enhance the overall reliability and quality of power distribution. As a result, the demand for power quality equipment, including voltage regulators and power conditioners, has surged.

The competitive landscape has evolved, with both established players and new entrants vying for market share. This has led to price competitiveness and continuous product innovation. Governments and regulatory bodies have imposed stricter standards for power quality, necessitating compliance and driving the adoption of power quality equipment.

How Does the Regulatory Scenario Shape this Industry?

The regulatory structure surrounding power quality equipment is dynamic and responsive to evolving technological and energy landscape changes. Compliance with these regulations is crucial for both manufacturers and end users to ensure the seamless integration and operation of power quality equipment within electrical systems. As the demand for high-quality and reliable power supply continues to grow, regulatory bodies will play an essential role in shaping the global power quality equipment market.

Many countries have established national and regional standards that define acceptable power quality levels. These standards typically address issues like voltage fluctuations, harmonics, and frequency variations. Manufacturers of power quality equipment must comply with these standards to ensure their products meet the required specifications.

As the integration of renewable energy sources into the power grid has increased, grid codes and interconnection standards have become crucial. These regulations govern how renewable energy systems connect to the grid and often require the use of power quality equipment to maintain grid stability.

Some regions have implemented energy efficiency regulations that indirectly impact the power quality equipment market. These regulations encourage the use of energy-efficient equipment, including power quality solutions that reduce energy losses and improve system performance.

Manufacturers of power quality equipment must obtain certifications and approvals to demonstrate compliance with regulatory requirements. Common certifications include CE (European Conformity), UL (Underwriters Laboratories), and IEEE (Institute of Electrical and Electronics Engineers) standards.

The deployment of distributed energy resources (DER) such as rooftop solar panels and battery storage, has prompted regulatory bodies to establish rules governing their impact on power quality. Power quality equipment plays a role in maintaining stability when integrating DER into the grid.

Regulatory authorities often conduct market surveillance to ensure that power quality equipment in use meets the specified standards. Non-compliance can lead to penalties and the removal of non-conforming equipment from the market.

In some regions, governments offer incentives or subsidies to encourage the adoption of power quality equipment. These programs aim to promote the use of technologies that improve energy efficiency and grid reliability.

Key Growth Determinants

Increasing Demand for Reliable Power Supply

One of the primary growth drivers for the power quality equipment market is the escalating demand for reliable power supply. Industries such as manufacturing, healthcare, and IT rely heavily on continuous and high-quality electricity to prevent downtime and equipment damage.

As businesses prioritise uninterrupted operations, they invest in power quality equipment, including voltage stabilizers, UPS systems, and harmonic filters, to safeguard against power disturbances.

Rising Adoption of Renewable Energy Sources

The global shift towards renewable energy sources, such as solar and wind, is another significant driver. These sources are inherently variable, leading to grid instability and power quality issues. To address these challenges, power quality equipment is essential for stabilising power grids and ensuring consistent energy supply.

As governments worldwide encourage renewable energy integration, the demand for power quality solutions is expected to grow.

Grid Modernisation Initiatives

Many countries are embarking on grid modernisation projects to enhance energy efficiency, reliability, and sustainability. This includes upgrading infrastructure and incorporating advanced technologies.

As part of these initiatives, utilities and industries are deploying power quality equipment to improve grid stability, reduce power losses, and maintain consistent voltage levels. This trend is expected to drive substantial growth in the power quality equipment market.

Major Growth Barriers

High Initial Costs

One of the primary restraints for the power quality equipment market is the high initial investment required.

Quality power quality equipment can be expensive, and for some businesses, especially small and medium-sized enterprises, the upfront costs can be prohibitive.

While the long-term benefits in terms of improved efficiency and equipment protection are significant, the initial financial barrier can slow adoption.

Complexity and Maintenance

Power quality equipment often requires specialised knowledge for installation and maintenance. This complexity can deter some businesses from investing, particularly if they lack the necessary expertise.

Additionally, regular maintenance is essential to ensure the continued effectiveness of these systems, which can be an ongoing operational cost.

Regulatory Uncertainty

While regulations can be a driver, they can also create uncertainty in the power quality equipment market. Frequent changes in standards and compliance requirements can make it challenging for manufacturers to keep up and for businesses to choose the right equipment. Regulatory inconsistency across regions can also complicate international trade and adoption.

Key Trends and Opportunities to Look at

Rise of Renewable Energy Integration

The global shift towards renewable energy sources, such as solar and wind, presents a substantial opportunity for power quality equipment. As the integration of intermittent renewables into the grid increases, power quality solutions like voltage stabilizers and grid-tied inverters play a crucial role in maintaining grid stability and ensuring a consistent power supply.

Energy Storage

The proliferation of energy storage systems, including batteries, is creating new opportunities for power quality equipment. These systems can smooth out fluctuations in power supply and demand, reducing the risk of voltage sags and surges. Power quality equipment is essential in optimising the performance and longevity of energy storage installations.

Smart Grids and Pacing IoT Integration

The adoption of smart grid technologies and the Internet of Things (IoT) is driving the demand for advanced power quality equipment. Smart meters, sensors, and real-time monitoring solutions enable utilities and industries to proactively identify and address power quality issues, offering opportunities for data-driven insights and predictive maintenance.

Electrification of Transportation

The growing electrification of transportation, including electric vehicles (EVs) and charging infrastructure, requires robust power quality equipment to manage increased energy demand and prevent grid instability. This trend offers opportunities for equipment manufacturers to provide solutions tailored to EV charging facilities.

Industry 4.0 and Digitalisation

The Industry 4.0 revolution, characterised by automation and data exchange in manufacturing and industrial processes, relies heavily on power quality. To protect sensitive equipment and ensure uninterrupted operations, industries are investing in advanced power quality analyzers and voltage regulators.

Emerging Regional Pockets

Emerging economies in Asia, Latin America, and Africa are experiencing rapid urbanisation and industrialisation, leading to increased power quality equipment demand. As these regions invest in infrastructure development, there are significant opportunities for market expansion.

The Energy Efficiency Boom

Energy efficiency is a growing concern for both businesses and governments. Power quality equipment, such as active power filters and energy-efficient transformers, contributes to reducing energy waste and carbon emissions, presenting opportunities in sustainability-focused markets.

Fairfield’s Ranking Board

Top Segments

Voltage Regulators and Stabilizers

Voltage regulators and stabilizers are critical in maintaining a stable voltage supply, protecting sensitive equipment from voltage fluctuations.

These segments have witnessed strong growth due to their widespread adoption in industries such as manufacturing, healthcare, and data centres.

Uninterruptible Power Supplies (UPS)

UPS systems are essential for ensuring uninterrupted power supply during blackouts and voltage irregularities.

The demand for UPS systems has surged in various sectors, particularly in IT and data centres, where downtime can be extremely costly.

Power Quality Analyzers

Power quality analyzers help monitor and analyse electrical parameters to identify and rectify power quality issues.

With the increasing complexity of electrical networks, these analyzers have gained popularity across industries to ensure smooth operations.

Harmonic Filters

Harmonic filters mitigate harmonic distortion in electrical systems caused by nonlinear loads, such as variable frequency drives.

As industries adopt more electronic equipment, the need for harmonic filters has grown significantly to maintain power quality.

Static VAR Compensators (SVC) and Static Synchronous Compensators (STATCOM)

SVC and STATCOM systems are used for reactive power compensation, voltage support, and improving grid stability.

These solutions have seen increased demand in response to the integration of renewable energy sources and grid modernisation efforts.

Active Power Filters

Active power filters are used to correct power factor and suppress harmonics, enhancing overall power quality.

Industries looking to improve energy efficiency and comply with power quality standards have embraced these solutions.

Transformers

Transformers play a crucial role in voltage transformation and distribution.

As power grids expand and require efficient energy transmission, the demand for advanced transformers with built-in power quality features has risen.

Renewable Energy Integration Solutions

With the growth of renewable energy sources like solar and wind, power quality equipment for grid integration has become vital. Grid-tied inverters and advanced control systems ensure the seamless integration of renewable energy into the grid.

These segments have outperformed others in the global power quality equipment market due to their critical roles in maintaining reliable and high-quality power supply. Factors such as increased industrialisation, regulatory requirements, the expansion of renewable energy, and the growing reliance on sensitive electronic equipment have all contributed to the success of these segments. As industries continue to prioritise power quality, these top-performing segments are expected to remain key drivers of market growth in the coming years.

Regional Frontrunners

Asia Pacific Gains from Flourishing End-use Industries

The Asia Pacific region, with countries like China, India, Japan, and South Korea, is experiencing rapid industrialisation, and urbanisation. This has led to a significant increase in power quality equipment demand.

Investments in manufacturing, IT infrastructure, and renewable energy projects have contributed to the growth of the power quality equipment market in this region that currently accounts for nearly 43% revenue share of the global power quality equipment market.

European Markets Benefit from Energy Efficiency

Europe is another prominent market for power quality equipment, driven by its emphasis on energy efficiency and renewable energy integration.
European countries have stringent regulations regarding power quality and energy efficiency, compelling industries to invest in advanced power quality solutions.

North America Performs Notably

North America has consistently been amongst the top-performing region in the power quality equipment market. The market here presently brings in more than 21% of the total revenue. The United States, in particular, has a robust demand for power quality solutions due to its extensive industrial and commercial infrastructure.

Factors driving growth in North America include the need to protect critical data centres, support renewable energy integration, and adhere to stringent power quality standards set by regulatory bodies.

These top-performing regions in the global power quality equipment market benefit from a combination of industrial development, regulatory requirements, and investments in infrastructure.

Additionally, the increasing awareness of the importance of power quality for efficient operations and the protection of sensitive equipment continues to drive demand across these regions. While regional variations persist, the overall market for power quality equipment is expected to experience continued growth as industries worldwide prioritise high-quality and reliable power supply.

Fairfield’s Competitive Landscape Analysis

The competition landscape in the power quality equipment market is characterised by intense rivalry among key players striving for market share. Established companies like Schneider Electric, Eaton Corporation, and ABB dominate the market, leveraging their extensive product portfolios and global reach.

Additionally, emerging players, often specialising in niche segments, are gaining prominence through innovation and cost-effective solutions. Partnerships, mergers, and acquisitions are prevalent strategies to expand market presence and enhance product offerings.

As the market continues to grow, competition intensifies, fostering innovation and pushing companies to develop more advanced and efficient power quality equipment to meet evolving customer demands.

Who are the Leaders in the Global Power Quality Equipment Space?

• Schneider Electric
• Eaton Corporation
• ABB
• Emerson Electric Co.
• Siemens
• Legrand
• Eaton Corporation
• General Electric (GE)
• Schweitzer Engineering Laboratories (SEL)
• EPCOS (a TDK Group Company)
• Phoenix Contact
• Mitsubishi Electric Corporation
• Toshiba Corporation 
• MTE Corporation 
• Active Power Inc. 
• Smith’s Group plc.
• Honeywell
• Infinite Electronics
• Duromax Power Equipment

Significant Company Developments

• In May 2021, Siemens Energy secured three contracts from ESB to provide its Static Compensator technology (SVC Plus) for managing grid stability at three substations in South-West Ireland.
• In March 2020, the Schaffner group launched the Ecosine Max series of passive harmonic filters, designed to ensure compliance with IEEE-519 and other international power quality standards.

An Expert’s Eye

The global power quality equipment market is poised for steady growth between 2022 and 2030, driven by factors such as industrialisation, renewable energy integration, and government regulations.

While challenges like high initial costs, and limited awareness persist, opportunities in sectors like data centres, healthcare, and transportation electrification are expected to drive market expansion.

As technology continues to advance, power quality equipment will play a crucial role in ensuring reliable and clean power supply across various industries. The global power quality equipment market is at a pivotal juncture, driven by the need for stable power supply in an increasingly electrified world.

The integration of IoT and digitalisation will be game changers, enabling proactive power quality management and reducing downtime. Companies that invest wisely in R&D and market expansion are likely to thrive in this evolving landscape.

The Global Power Quality Equipment Market is Segmented as Below:

By Equipment

• UPS
• Harmonic filter
• Surge Protector
• Voltage Regulator
• Static VAR
• Others

By Phase Type

• Single phase
• Three phase

By End User

• Residential
• Commercial
• Industrial & Manufacturing