Power Factor Correction Devices Market Size, Share, Growth and Industry Analysis by Type (Power capacitor, AC reactor, active power filter, and, others), By Application (Commercial Utility, industrial utility, and, public power supply), Regional Insights, and Forecast 2024 To 2031

Power Factor Correction Devices Market Report Overview

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The global power factor correction devices market is expected to be worth USD 6723.3 million in 2021 and is projected to touch USD 11101.91 million by 2031 with a CAGR of 5.1% during the forecast period.

Power factor correction devices are electrical devices which are used for the purpose of improving the power factor of an electrical system. These equipments operate by minimizing reactive power, reducing wasted energy, and optimizing the efficiency of electrical equipment. Also, these correction devices make use of capacitors to offset the inductive loads in the system. These devices are employed in many industries.

Power factor correction devices find various applications in both industrial and commercial settings where there are significant inductive loads. They are highly useful in improving the overall power quality, and reducing line losses. All of these factors help in driving the power factor correction devices market growth.

COVID-19 Impact: Disruption in Both Commercial and Industrial Sectors During Pandemic Decreased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

The COVID-19 pandemic hit all the sectors globally. Many problems that were created during the pandemic that had both direct and indirect impact on the market. As there were lockdowns and reduced industrial activities during the pandemic, the demand for power factor correction devices was severely affected.

Power factor correction devices are mainly used in the industrial and commercial setting. With several unfavorable conditions prevailing during the pandemic, the market suffered from low demand. Many industries scaled back or temporarily ceased operations, leading to lower energy consumption and potentially reduced requirements for power factor correction. Post pandemic as businesses are gradually resuming their operations, these equipments are gaining their popularity. However, the market suffered during the pandemic period.

LATEST TRENDS

Integration of Digital Control Systems and Intelligent Algorithms to Increase Market Growth

Key industry players are introducing several new innovations which is creating many lucrative growth opportunities for the market. One significant trend is the integration of advanced technologies, such as digital control systems and intelligent algorithms, to enhance the efficiency and performance of these devices. By doing this precise monitoring and control of power factor correction can be managed efficiently. Manufacturers are introducing compact and modular power factor correction solutions. These equipments offer flexibility and scalability to meet varying power demands. All of these are considered as the latest trends and innovations in the market.

Power Factor Correction Devices Market Segmentation

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• By Type:

The market can be divided on the basis of type into the following segments:

Power capacitor, AC reactor, active power filter, and, others. The power capacitor segment is projected to hold the dominant market share through 2031 the forecasting period.

• By Application:

The market can be divided on the basis of application into the following segments:

Commercial Utility, industrial utility, and, public power supply. The commercial utility segment is predicted to dominate the market through 2031.

DRIVING FACTORS

Numerous Benefits Offered by These Devices to Amplify Market Growth

A lot of positive factors are increasing the adoption and utilization of power factor correction devices. Due to several factors the energy costs are increasing and hence there is a need for energy efficiency. This has led to an increase in the adoption of these devices.  Power factor correction devices offer many benefits. They help in reducing reactive power, leading to lower electricity bills and improved energy efficiency.

Governments as well as utility companies are imposing stricter regulations and energy efficiency standards to encourage the implementation of power factor correction solutions. Along with this, both consumers and manufacturers are becoming conscious regarding sustainability and carbon footprints. These devices also help in improving the power quality providing additional incentives for their implementation. All of these factors are increasing the market growth and development.

Urbanization and Industrialization During Recent Times to Drive Market Development

Several factors such as urbanization, and, industrialization are increasing the widespread adoption of power factor correction equipments. Due to population growth, urbanization, and industrialization, demand for electricity has increased. Also, there is a need for utilizing electrical resources efficiently. Power factor correction equipments help maximize the capacity and utilization of electrical infrastructure, allowing for more efficient distribution of power.

These devices can also be used for reducing voltage drops, improving power stability, and minimizing the risk of power interruptions. Corporate social responsibility taken up by many companies plays a role in promoting market growth. All of the above-mentioned factors will help in increasing power factor correction devices market share.

RESTRAINING FACTOR

Initial Cost Associated with These Equipments to Deteriorate Market Growth

While power factor correction devices offer numerous benefits, there are some restraining factors that can limit their widespread adoption. The initial cost which is associated with installing and implementing these devices, can prove to become a major barrier for many small companies that have budget restraints.

 These equipments are highly complex and may require technical expertise for proper installation and maintenance, posing a challenge for some users. Alternative solutions, such as purchasing energy from utility companies with improved power factor are also readily available. Many people are not aware about the benefits of power factor correction. These factors can pose a challenge for market growth.

Power Factor Correction Devices Market Regional Insights

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North America to Dominate Market in Upcoming Years

The leading region in terms of the adoption and implementation of power factor correction devices is North America. This region has witnessed significant growth in energy-intensive industries, such as manufacturing, data centers, and commercial buildings, driving the demand for efficient power factor correction solutions.

The United States and Canada have implemented regulations and standards promoting energy efficiency and power factor optimization. Initiatives by utility companies, government incentives, and educational programs have further encouraged the use of these devices in North America, solidifying its position as a leading region in power factor correction.

Key Industry Players

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

LIST OF TOP POWER FACTOR CORRECTION DEVICES COMPANIES

• ABB (Switzerland)
• Schneider (France)
• Siemens (Germany)
• Eaton (U.S.)
• GE Grid Solutions (U.S.)
• NISSIN ELECTRIC (Japan)
• Guilin Power Capacitor (China)
• Hubbell (U.S.)
• Xian XD Power (China)
• Herong Electric (China)
• Shizuki Electric (Japan)
• Sieyuan Electric (China)
• Socomec (France)
• Rongxin Power Electronic (China)
• Ducati Energia (Italy)
• Iskra (Slovenia)
• ICAR SpA (Italy)
• Hangzhou Yinhu Electric (China)

Report Coverage

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. A list of key industry players is also provided to get a better understanding of the market dynamics and competition.