Synchronous Condenser Market Size, Share, Opportunities, And Trends By Cooling Type (Air Cooled Condenser, Water Cooled Condenser), By Power Rating Type (Up To 100 MVAR, 100 – 200 MVAR, Above 200 MVAR), By End User (Utility, Industrial), And By Geography - Forecasts From 2023 To 2028
- Published : Nov 2023
- Report Code : KSI061615595
- Pages : 148
The global synchronous condenser market was valued at US$548.099 million in 2021 and is expected to grow at a CAGR of 2.93% during the forecast period.
A synchronous condenser is an electrical device utilized in power systems to manage and regulate reactive power. It comprises a synchronous motor that operates without a mechanical load, serving exclusively as a source of reactive power. Instead of converting mechanical energy into electrical power a synchronous condenser consumes electrical power to generate or absorb reactive power. A synchronous condenser is classified as an air-cooled condenser or a water-cooled condenser depending on their cooling type. Increasing the Integration of renewable energy is a key driver responsible for expanding the synchronous condenser market size.
The growing integration of renewable energy drives the synchronous condenser market growth.
The rapid expansion of renewable energy sources, such as wind and solar power, has accelerated the demand for reactive power compensation and voltage regulation. Synchronous condensers have emerged as a critical solution for effectively managing the fluctuating reactive power requirements that come with integrating renewable energy into the grid, as a result, the synchronous condensers market is experiencing significant growth. According to the International Energy Agency, in 2021 renewable electricity generation expanded by almost 8%, reaching upto 8 300 TWh ,
Rise in grid interconnection
The growing trend of grid interconnection has created a greater demand for effective reactive power management and voltage control. Synchronous condensers are pivotal in meeting these requirements as they provide essential reactive power support and enhance grid stability in interconnected networks. With their ability to improve power system performance and ensure voltage stability, synchronous condensers have become indispensable components in driving the growth of the global synchronous condenser market. According to the report of Renewable Energy World, the grid interconnection request grew by 40% as clean energy surges in 2022, including solar energy storage resources of nearly 2000 GW.
The rise in industrial sectors growth.
The growth of industries like manufacturing, mining, and transportation necessitates a reliable and stable power supply. Synchronous condensers play a crucial role in enhancing power system performance and ensuring voltage stability, making them indispensable for supporting industrial growth. As a result, the growth of the synchronous condensers industry is driven by their significance in meeting the power requirements of rapidly expanding industries. According to the Energy Information Administration, the industrial sector in the United States represented 35% of the country's overall energy consumption in 2021, both in terms of end-use energy consumption and total energy consumption, indicating its significant energy demand and consumption.
Asia Pacific region is expected to dominate the market.
The synchronous condenser market in the Asia-Pacific region is experiencing significant growth due to the increasing integration of renewable energy sources, such as wind and solar power. This surge in renewables has created a higher demand for reactive power compensation and voltage regulation, which synchronous condensers can effectively provide. Additionally, ongoing grid modernization, aimed at improving power system reliability, stability, and efficiency, has further propelled the adoption of synchronous condensers. These factors have led to a remarkable expansion of the synchronous condenser market in the Asia-Pacific region.
The high initial investment is restraining the synchronous condenser industry's growth.
The high initial costs involved in installing and integrating synchronous condensers into power systems can hinder market growth. These costs include purchasing the necessary equipment, hiring engineering services, and developing the required infrastructure. For regions with limited financial resources or tight budgets, these expenses can discourage potential buyers from investing in synchronous condensers. In simpler terms, the upfront investment required can be a barrier for many buyers in adopting synchronous condensers, resulting in a restrain in the synchronous condenser market growth.
- February 2021: ABB has successfully executed a significant turnkey project for Statkraft, the largest renewable power generator in Europe. At the Lister Drive Greener Grid Park in Liverpool, two ABB high-inertia synchronous condenser systems have been installed as part of the project.
- February 2022: Quinbrook Infrastructure Partners a specialist global investment manager focused on renewables, storage, and grid support infrastructure, announced the completion and commissioning of a new synchronous condenser installation at Rassau, in Ebbw Vale, South Wales.
- March 2021: Siemens Energy and Amprion entered into a technology partnership to enhance grid management with reliable and innovative solutions.
- December 2020: Elering AS, the Estonian transmission system operator, has selected Siemens Energy for a contract to construct three synchronous condenser plants in Estonia. This project marks Siemens Energy's introduction of the Flexible Alternating Current Transmission System (FACTS) in the Baltic States.
- GE Synchronous Condenser: This product made by General Electric has reactive power of 100 to 300+ MVAr and inertia of 250 to 2,500 MW with added flywheel with the TEWAC cooling technique.
- Mitsubishi Electric Synchronous Condensers: This product of Mitsubishi Electric is used to provide power factor correction and produce additional vars as needed and is unaffected by high rotating inertia and electrical harmonics. Additionally, can provide short-circuit power for the grid.
- WEG's synchronous condensers: WEG designed this product to enhance voltage support, network inertia, and short circuit power capacity in electrical grids. These reliable and efficient solutions effectively improve stability and voltage regulation in power systems.
- ANDRITZ Hydro synchronous condenser: ANDRITZ Synchronous Condensers offer a dependable, well-established, economical, and intelligent solution to meet requirements like maintaining the reliability of the grid, new regulatory requirements, a more diverse energy mix, and many more.
Synchronous Condenser Market Scope:
|Market Size Value in 2021||US$548.099 million|
|Growth Rate||CAGR of 2.93% from 2021 to 2028|
|Forecast Period||2023 – 2028|
|Forecast Unit (Value)||USD Million|
|Segments Covered||Cooling Type, Power Rating Type, End User, and Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||ABB, Siemens AG, General Electric, Eaton Corporation, Fuji Electric Co., Ltd, WEG Industries, Mitsubishi Electric Power Products, Inc., ANDRITZ|
|Customization Scope||Free report customization with purchase|
- By Cooling Type
- Air Cooled Condenser
- Water Cooled Condenser
- By Power Rating Type
- Up to 100 MVAR
- 100 – 200 MVAR
- Above 200 MVAR
- By End User
- By Geography
- North America
- South America
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.7. Base, and Forecast Years Timeline
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Research Process
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. SYNCHRONOUS CONDENSER MARKET ANALYSIS, BY COOLING TYPE
5.2. Air Cooled Condenser
5.3. Water Cooled Condenser
6. SYNCHRONOUS CONDENSER MARKET ANALYSIS, BY POWER RATING
6.2. Up to 100 MVAR
6.3. 100 – 200 MVAR
6.4. Above 200 MVAR
7. SYNCHRONOUS CONDENSER MARKET ANALYSIS, BY END-USER
8. SYNCHRONOUS CONDENSER MARKET ANALYSIS, BY GEOGRAPHY
8.2. North America
8.3. South America
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.3. South Korea
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
10. COMPANY PROFILES
10.2. Siemens AG
10.3. General Electric
10.4. Eaton Corporation
10.5. Fuji Electric Co., Ltd
10.6. WEG Industries
10.7. Mitsubishi Electric Power Products, Inc.
Mitsubishi Electric Power Products, Inc.
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