The automatic power factor controller market was valued at US$2.801 billion in 2020 and will increase to US$3.871 billion by 2027. Over the forecast period, this market is estimated to increase at a compound yearly growth rate of 4.73%.
An automated power factor controller is a device that automatically boosts output power when the power factor falls below a certain level. The need for electricity is steadily increasing. Furthermore, as a low power factor puts an undue burden on power grids and transmission lines, demand for a system that automatically improves the power factor is growing. This demand can be met by using automatic power factor controllers. The automated power factor market is growing due to its ability to dramatically reduce energy loss as the global focus on reducing energy usage develops.
According to analysts, the growing demand for power management in certain industrial applications will be the driving force behind the market's robust growth over the forecasted timeframe.
The rising demand for automation technology and the augmentation of industrial facilities to improve energy efficiency will undoubtedly enhance the automatic power factor controller market over the forecast period, as will the increasing need for energy conservation in homes and industries to reduce power loss. And on the other hand, the development of updated and sophisticated infrastructure will give numerous opportunities for the automated power factor controller market to grow throughout the forecast period. One of the primary driving forces for the automatic power factor controller market is the growing demand for power management in industries like manufacturing, military, commercial, utilities, and enterprise. Power management is used in computers, graphics processing units (GPUs), and computer peripherals to reduce power supplies, leading to a more efficient power supply for these devices. When APFC is installed in these industries, it decreases energy bills by reducing the quantity of power used. Most utility sectors, such as power plants and transformers, require reactive power factors, and power loss minimization is one of the most significant requirements. This would prevent electrical equipment from being damaged, and owing to the aforementioned reasons APFC is expected to witness rising demand during the forecast period.
The automatic power factor controller's market expansion could be hindered by the high cost of maintenance associated with its infrastructure.
The expensive cost of installing and maintaining automatic power factor controllers is a major impediment to the market's expansion. Due to its high cost, repairing the old one is not cost-effective. The global market for automated power factor controllers is being held back by high maintenance costs and technical constraints related to extreme energy volatility. The cost of designing and manufacturing APFC panels is high due to the addition of large-capacity inductors and capacitors for low-frequency filtering. Industrial and commercial equipment is expensive and requires a one-time expenditure. Furthermore, they have a short service life of 8 to 10 years and must be replaced regularly. They are also easily harmed if the voltage is too high.
During the projected period, the Active APFC segment is expected to grow rapidly in the Automatic power factor controller market.
By Type, the Automatic power factor controller market can be segmented into Active Automatic Power Factor Controller and Passive Automatic Power Factor Controller. Amongst the two types, the Active Automatic Power Factor Controller segment is likely to occupy a substantial share. The adoption of Active Automatic Power Factor Controller by many industries such as commercial, manufacturing, military, utility, and others has contributed to the expansion of this sector. Furthermore, active components such as diodes and transistors are used in the Active Automatic Power Factor Controller, allowing engineers to achieve a high-power factor of 0.99. As a result of the high precision of power superiority, most industries choose Active Automatic Power Factor Controller. There are two types of active APFCs: single stage and multi stage. Single-stage power factor controllers employ a single switch and controller to correct input current and maintain output voltage, whereas multi-stage power factor controllers use two or more power stages to decrease input current harmonics.
During the predicted period, the microcontroller segment is anticipated to expand rapidly in the Automatic power factor controller market, followed by switch and display.
Based on the components Relays, microcontrollers, capacitors, resistors, switches, and displays make up the Automatic Power Factor Controller Market. The need for inductive load is expanding in the period of industrialization, and power system losses are a common occurrence. As a result, demand for APFC microcontrollers is expected to rise over the forecast period. Due to its ease of managing electricity flow, the APFC switch is another important segment that is expected to expand in demand throughout the projection period. Furthermore, the Display segment is expected to grow. The power factor, voltage, current, harmonics, active and reactive power, and apparent power value are all presented on displays. Various types of displays, including LED displays and LCD screens, are employed in the automatic power factor control panel.
During the forecast period, the utility sector is expected to grow fast in the Automatic power factor controller market.
Manufacturing, Utility, Commercial, Enterprise, and Military are the end-user industries that make up the global market. In the forecast period, the Utility Industry is anticipated to occupy the largest share of the global market, and it is expected to continue to do so. Reduced power loss in distribution systems, the superiority of reactive power, and the protection of electronic equipment from destruction are all elements that contribute to the sector's growth. Moreover, the utility industry is committed to improving the power factor. Furthermore, the manufacturing sector has been gaining market share over time, which is projected to boost APFC demand.
During the forecast period, the Automatic power factor controller market in North America is predicted to have a dominating share, followed by the Asia Pacific.
The Automatic power factor controller market is classified into five regions based on geography: North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The North American market is expected to account for the largest revenue share in the global automated power factor controller market over the projected period. Because of the existence of major players in the area, this is the scenario. Due to growing urbanization, and industrialization, in the region, revenues from the Asia Pacific market are expected to grow at a significant rate throughout the projected period. The rising demand for automated power factor controllers in the Asia Pacific is expected to enhance the global market. In the coming years, growth in infrastructural investment in the Asia Pacific is expected to maintain the region's dominance. The adoption of automatic power factor controllers to help reduce inefficiencies in electric systems and maintain the power factor is increasing the demand for power management devices. South Korea, Japan, India, and China are just a few of the Asia Pacific countries that could further boost the global automated power factor controller market.
The impact of COVID-19 on the automatic power factor controller business has been unfavorable as a result of various precautionary lockdowns and other limitations imposed by governments around the world, and substantial disruptions in their manufacturing and supply-chain activities. Moreover, consumer demand has declined as people have been more concerned about cutting non-essential items from their budgets as the epidemic has negatively impacted most people's overall economic status. The aforementioned factors are projected to have an impact on the revenue trajectory of the global automatic power factor controller market throughout the forecast period. As various regulatory authorities begin to lift these imposed lockdowns, the global automatic power factor controller market is expected to rebound.