Product Code: EP 9162
The power factor correction market is estimated to grow from USD 3.3 billion by 2030 from an estimated USD 2.4 billion in 2024, at a CAGR of 5.5% during the forecast period. Two important factors that drive the Power Factor Correction market are increasing energy efficiency and low-cost power management. First, while industries and governments across the world are concerned about reducing energy wastage in addition to improving the efficiency of power systems, PFC technologies turn out to be essential tools in optimizing power usage. Secondly, while energy costs are ever increasing, companies look for ways through which this bill can be reduced. A PFC system helps in attaining this by minimizing losses in power and also reduces the risks of penalties associated with poor power factor; hence, it is a good investment across many sectors.
Scope of the Report |
Years Considered for the Study | 2021-2030 |
Base Year | 2023 |
Forecast Period | 2024-2030 |
Units Considered | Value (USD), Volume (Units) |
Segments | Reactive power, Sales channel, Type, Application |
Regions covered | Asia Pacific, North America, Europe, Middle East & Africa, and South America |
"OEM Direct segment is the second largest segment of the power factor correction market, by sales channel"
The OEM Direct segment accounts for the second-largest base in the power factor correction market. This is due to a high degree of direct contacts and relationships with original equipment manufacturers. The segment has benefited from increasing demand for energy-efficient solutions that are directly built into the manufacturing stage of making machinery and equipment. The direct channels are preferred by the OEMs as the choice is important because of the offering of custom-made and high-quality components that meet specific technical requirements and ensure effective power management and energy savings in various industrial applications. It has proved to be a major factor for the significant increase in sales for this segment.
"200-500 KVAR is expected to emerge as the fastest-growing segment based on reactive power segment"
The 200-500 KVAR segment is expected to be the fastest-growing segment of the power factor correction market with respect to reactive power, as this segment offers the best balance between cost and efficiency for use in medium to large-scale industrial and commercial applications. The value of this range lies in its effective solution to the high reactive power requirements of facilities with gross electrical loads in a manner that assures improved power quality, together with reduced power operational costs. Moreover, power factor correction solutions retrievable in this KVAR range are in fast-growing demand due to an increased priority for energy efficiency and regulatory compliance in industries.
"Commercial is expected to be the second largest segment based on application"
The commercial segment is expected to rank second in application in the power factor correction market due to rising needs for energy efficiency in commercial buildings and facilities. With an increasing phenomenon of the operational cost increase and new energy regulations and policies coming into the scene, businesses have started looking towards power quality and reduction of energy waste. Commercial power factor correction solutions are applied to manage the electric power load in an efficient way, to increase the lifetime of equipment, and to avoid penalties by utility companies for poor power factor. This explains the reason this segment shows considerable growth and importance in the market.
"Europe is expected to emerge as the third largest region based on power factor correction market"
Europe will emerge as the third-largest market for the global power factor correction market in the forecast period. This can be attributed to the strong regulatory framework promoting energy efficiency and the rapid adoption of advanced technologies. The industrial sector in the region has been fueled by increasing energy costs and stringent environmental regulations. Growing attention toward the integration of renewable energy and development of smart grids further supports efficient power management demand, placing Europe as one of the major shareholders in the global market.
Breakdown of Primaries:
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:
By Company Type: Tier 1- 45%, Tier 2- 30%, and Tier 3- 25%
By Designation: C-Level- 35%, Director Levels- 25%, and Others- 40%
By Region: North America- 10%, Europe- 15%, Asia Pacific- 60%, the Middle East & Africa- 10%, and South America- 5%
Note: Others include product engineers, product specialists, and engineering leads.
Note: The tiers of the companies are defined on the basis of their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million
The power factor correction market is dominated by a few major players that have a wide regional presence. The leading players in the power factor correction market are Eaton (Ireland), ABB (Switzerland), GE Vernova (US), Schneider Electric (France), and Hitachi Energy Ltd (Switzerland)
Research Coverage:
The report defines, describes, and forecasts the power factor correction market, by reactive power, application, sales channel, type, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the smart grid market.
Key Benefits of Buying the Report
- Increasing investments in energy sector and rising number of renewable energy integration and energy effeciency attributed.
- Product Development/ Innovation: The trends such as integration of Internet of Things (IoT) technology with Power Factor Correction (PFC) systems and integration of solid-state switching devices in Power factor correction systems.
- Market Development: The global scenario of power factor correction has developed due to a global shift towards energy efficiency solutions, increased adoption of renewable sources like solar and wind power, technological advancements enhancing efficiency, and the growing demand for electric vehicles. These factors collectively propel innovation, creating a dynamic landscape for power factor correction to meet evolving energy demands.
- Market Diversification: Market diversification in the power factor correction market is a response to varied energy needs across industries and regions. As power factor correction adoption expands, diverse applications emerge, from various industries to renewable projects. Power factor correction manufacturers diversify their product offerings to cater to the specific requirements of different sectors, fostering market growth and resilience.
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Schnieder Electric (France), Eaton (Ireland), GE Vernova (US), ABB (Switzerland), Hitachi Energy (Switzerland), among others in the power factor correction market.
TABLE OF CONTENTS
1 INTRODUCTION
- 1.1 STUDY OBJECTIVES
- 1.2 MARKET DEFINITION
- 1.3 STUDY SCOPE
- 1.3.1 MARKET SEGMENTATION AND REGIONAL SCOPE
- 1.3.2 INCLUSIONS AND EXCLUSIONS
- 1.3.3 YEARS CONSIDERED
- 1.4 LIMITATIONS
- 1.5 UNITS CONSIDERED
- 1.6 CURRENCY CONSIDERED
- 1.7 STAKEHOLDERS
2 RESEARCH METHODOLOGY
- 2.1 RESEARCH DATA
- 2.1.1 PRIMARY AND SECONDARY RESEARCH
- 2.2 DATA TRIANGULATION
- 2.2.1 SECONDARY DATA
- 2.2.1.1 Key data from secondary sources
- 2.2.1.2 Key secondary sources
- 2.2.2 PRIMARY DATA
- 2.2.2.1 Major primary interview participants
- 2.2.2.2 Key data from primary sources
- 2.2.2.3 Key industry insights
- 2.2.2.4 Breakdown of primaries
- 2.3 MARKET SIZE ESTIMATION
- 2.3.1 BOTTOM-UP APPROACH
- 2.3.2 TOP-DOWN APPROACH
- 2.3.3 DEMAND-SIDE ANALYSIS
- 2.3.3.1 Demand-side assumptions
- 2.3.3.2 Demand-side calculations
- 2.3.4 SUPPLY-SIDE ANALYSIS
- 2.3.4.1 Supply-side assumptions
- 2.3.4.2 Supply-side calculations
- 2.3.5 GROWTH FORECAST
- 2.4 RESEARCH ASSUMPTIONS
- 2.5 RESEARCH LIMITATIONS
- 2.6 RISK ANALYSIS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
- 4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN POWER FACTOR CORRECTION MARKET
- 4.2 POWER FACTOR CORRECTION MARKET, BY REGION
- 4.3 POWER FACTOR CORRECTION MARKET IN NORTH AMERICA, BY SALES CHANNEL AND TYPE
- 4.4 POWER FACTOR CORRECTION MARKET, BY SALES CHANNEL
- 4.5 POWER FACTOR CORRECTION MARKET, BY TYPE
- 4.6 POWER FACTOR CORRECTION MARKET, BY REACTIVE POWER
- 4.7 POWER FACTOR CORRECTION MARKET, BY APPLICATION
5 MARKET OVERVIEW
- 5.1 INTRODUCTION
- 5.2 MARKET DYNAMICS
- 5.2.1 DRIVERS
- 5.2.1.1 Increasing investments in clear energy projects
- 5.2.1.2 Rising deployment of low-voltage PFC systems in industrial facilities
- 5.2.2 RESTRAINTS
- 5.2.2.1 High initial installation cost of PFC systems
- 5.2.3 OPPORTUNITIES
- 5.2.3.1 Introduction of incentive schemes by governments for adopting energy-saving technologies
- 5.2.3.2 Growing inclination toward smart grid deployment
- 5.2.3.3 Elevating demand for electric vehicles
- 5.2.4 CHALLENGES
- 5.2.4.1 Complexities associated with integrating PFC systems into existing infrastructure
- 5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS
- 5.4 VALUE CHAIN ANALYSIS
- 5.5 ECOSYSTEM ANALYSIS
- 5.6 INVESTMENT AND FUNDING SCENARIO
- 5.7 IMPACT OF AI/GENERATIVE AI ON POWER FACTOR CORRECTION MARKET
- 5.7.1 RATIONALE FOR IMPACT LEVELS
- 5.8 GLOBAL MACROECONOMIC OUTLOOK
- 5.8.1 INTRODUCTION
- 5.8.2 GDP TRENDS AND FORECAST
- 5.8.3 MANUFACTURING VALUE ADDED (% OF GDP)
- 5.8.4 GLOBAL ELECTRICITY PRODUCTION
- 5.9 TECHNOLOGY ANALYSIS
- 5.9.1 KEY TECHNOLOGIES
- 5.9.1.1 Internet of Things (IoT)
- 5.9.2 ADJACENT TECHNOLOGIES
- 5.9.2.1 Solid-state switching devices
- 5.10 PATENT ANALYSIS
- 5.11 TRADE ANALYSIS
- 5.11.1 EXPORT SCENARIO (HS CODE 8532)
- 5.11.2 IMPORT SCENARIO (HS CODE 8532)
- 5.12 KEY CONFERENCES AND EVENTS, 2024-2025
- 5.13 PRICING ANALYSIS
- 5.13.1 INDICATIVE PRICING TREND OF CAPACITOR BANKS USED IN POWER FACTOR CORRECTION, BY REACTIVE POWER
- 5.13.2 AVERAGE SELLING PRICE TREND OF POWER FACTOR CORRECTION SYSTEM, BY REGION
- 5.14 TARIFF AND REGULATORY LANDSCAPE
- 5.14.1 TARIFF ANALYSIS
- 5.14.2 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS
- 5.14.3 REGULATORY FRAMEWORK
- 5.15 PORTER'S FIVE FORCES ANALYSIS
- 5.15.1 THREAT OF SUBSTITUTES
- 5.15.2 BARGAINING POWER OF SUPPLIERS
- 5.15.3 BARGAINING POWER OF BUYERS
- 5.15.4 THREAT OF NEW ENTRANTS
- 5.15.5 INTENSITY OF COMPETITIVE RIVALRY
- 5.16 KEY STAKEHOLDERS AND BUYING CRITERIA
- 5.16.1 KEY STAKEHOLDERS IN BUYING PROCESS
- 5.16.2 BUYING CRITERIA
- 5.17 CASE STUDY ANALYSIS
- 5.17.1 SHOPPING MALL IN SYDNEY DEPLOYED SVG SYSTEM TO IMPROVE POWER FACTOR AND REDUCE ENERGY EXPENSE
- 5.17.2 HOSPITAL IN MALAYSIA ADOPTED AUTOMATIC PFC SYSTEM FOR RELIABLE AND UNINTERRUPTED POWER SUPPLY
- 5.17.3 MEDIUM-SIZED TEXTILE FACTORY IN INDIA IMPLEMENTED PFC CAPACITOR TO REDUCE ENERGY BILLS AND AVOID PENALTIES
6 POWER FACTOR CORRECTION MARKET, BY REACTIVE POWER
- 6.1 INTRODUCTION
- 6.2 0-200 KVAR
- 6.2.1 RISING DEMAND ACROSS SMALL COMMERCIAL APPLICATIONS TO DRIVE SEGMENTAL GROWTH
- 6.3 200-500 KVAR
- 6.3.1 RISING USE IN MEDIUM-SIZED COMMERCIAL BUILDINGS AND INDUSTRIAL FACILITIES TO FUEL SEGMENTAL GROWTH
- 6.4 500-1,500 KVAR
- 6.4.1 INCREASING FOCUS OF LARGE INDUSTRIAL PLANT OWNERS ON MINIMIZING ENERGY LOSSES TO BOOST DEMAND
- 6.5 ABOVE 1,500 KVAR
- 6.5.1 PRESSING NEED TO STABILIZE VOLTAGE LEVELS ACROSS POWER GRID TO SUPPORT SEGMENTAL GROWTH
7 POWER FACTOR CORRECTION MARKET, BY TYPE
- 7.1 INTRODUCTION
- 7.2 AUTOMATIC
- 7.2.1 ABILITY TO CRAFT EFFICIENT ELECTRICAL SYSTEMS TO BOOST DEMAND
- 7.3 FIXED
- 7.3.1 RISING FOCUS ON ENERGY COST REDUCTION TO SUPPORT SEGMENTAL GROWTH
8 POWER FACTOR CORRECTION MARKET, BY SALES CHANNEL
- 8.1 INTRODUCTION
- 8.2 DISTRIBUTORS
- 8.2.1 ABILITY TO COVER BROADER GEOGRAPHIC AREAS AND ENTER NEW MARKETS AT FASTER RATE TO BOOST SEGMENTAL GROWTH
- 8.3 OEM DIRECT
- 8.3.1 HIGHER UPFRONT COSTS FOR TRAINING SALES TEAM TO LEAD TO SMALLER MARKET SHARE
9 POWER FACTOR CORRECTION MARKET, BY APPLICATION
- 9.1 INTRODUCTION
- 9.2 INDUSTRIAL
- 9.2.1 RISING USE OF POWER-INTENSIVE INDUSTRIAL EQUIPMENT TO BOOST DEMAND
- 9.3 RENEWABLE
- 9.3.1 INTEGRATION OF RENEWABLE ENERGY SOURCES INTO POWER GRID TO PROPEL MARKET
- 9.4 COMMERCIAL
- 9.4.1 INCREASING DEMAND FOR ENERGY EFFICIENCY AND COST REDUCTION IN COMMERCIAL BUILDINGS TO DRIVE MARKET
- 9.5 DATA CENTER
- 9.5.1 SURGING NEED FOR EFFICIENT AND RELIABLE DATA CENTER INFRASTRUCTURE TO FUEL MARKET GROWTH
- 9.6 EV CHARGING
- 9.6.1 INCREASING INVESTMENT AND RAPID EXPANSION OF ELECTRIC VEHICLES TO SUPPORT MARKET GROWTH
10 POWER FACTOR CORRECTION MARKET, BY REGION
- 10.1 INTRODUCTION
- 10.2 NORTH AMERICA
- 10.2.1 US
- 10.2.1.1 Increasing focus on sustainable energy production using renewable sources to boost demand
- 10.2.2 CANADA
- 10.2.2.1 Rising demand from automotive sector to augment market growth
- 10.2.3 MEXICO
- 10.2.3.1 Thriving industrial sector to propel demand
- 10.3 ASIA PACIFIC
- 10.3.1 CHINA
- 10.3.1.1 Government initiatives to reduce energy consumption to boost demand
- 10.3.2 JAPAN
- 10.3.2.1 Growing adoption of renewable energy sources into power grid to foster market growth
- 10.3.3 SOUTH KOREA
- 10.3.3.1 Rising focus on enhancing power grid efficiency to drive market
- 10.3.4 INDIA
- 10.3.4.1 Pressing need to reduce energy waste to accelerate market growth
- 10.3.5 AUSTRALIA
- 10.3.5.1 Emphasis of industrial firms on reducing energy bills to spike demand
- 10.3.6 REST OF ASIA PACIFIC
- 10.4 EUROPE
- 10.4.1 GERMANY
- 10.4.1.1 Stringent energy regulations to fuel market growth
- 10.4.2 UK
- 10.4.2.1 Strategic path to reduce energy consumption and achieve net-zero carbon emission to stimulate market growth
- 10.4.3 FRANCE
- 10.4.3.1 Strong need for efficient grid operations to propel market
- 10.4.4 ITALY
- 10.4.4.1 Rising demand for higher energy efficiency to drive market
- 10.4.5 RUSSIA
- 10.4.5.1 Pressing need to upgrade power transmission infrastructure to drive market
- 10.4.6 REST OF EUROPE
- 10.5 MIDDLE EAST & AFRICA
- 10.5.1 GCC
- 10.5.1.1 Saudi Arabia
- 10.5.1.1.1 Rising focus on building digital infrastructure to boost demand
- 10.5.1.2 UAE
- 10.5.1.2.1 Increasing investment in renewable energy sector to propel market
- 10.5.1.3 Rest of GCC
- 10.5.2 SOUTH AFRICA
- 10.5.2.1 Rising electricity costs to spur demand
- 10.5.3 REST OF MIDDLE EAST & AFRICA
- 10.6 SOUTH AMERICA
- 10.6.1 BRAZIL
- 10.6.1.1 Increasing adoption of clean energy sources to propel market
- 10.6.2 ARGENTINA
- 10.6.2.1 Strong need for efficient grid operations to fuel market growth
- 10.6.3 REST OF SOUTH AMERICA
11 COMPETITIVE LANDSCAPE
- 11.1 OVERVIEW
- 11.2 KEY PLAYER STRATEGIES/RIGHT TO WIN, 2020-2024
- 11.3 MARKET SHARE ANALYSIS, 2023
- 11.4 REVENUE ANALYSIS, 2019-2023
- 11.5 BRAND/PRODUCT COMPARISON
- 11.6 COMPANY VALUATION AND FINANCIAL METRICS, 2024
- 11.7 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023
- 11.7.1 STARS
- 11.7.2 EMERGING COMPANIES
- 11.7.3 PERVASIVE PLAYERS
- 11.7.4 PARTICIPANTS
- 11.7.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023
- 11.7.5.1 Company footprint
- 11.7.5.2 Reactive power footprint
- 11.7.5.3 Application footprint
- 11.7.5.4 Type footprint
- 11.7.5.5 Region footprint
- 11.8 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2023
- 11.8.1 PROGRESSIVE COMPANIES
- 11.8.2 RESPONSIVE COMPANIES
- 11.8.3 DYNAMIC COMPANIES
- 11.8.4 STARTING BLOCKS
- 11.8.5 COMPETITIVE BENCHMARKING: STARTUPS/SMES, 2023
- 11.8.5.1 Detailed list of key startups/SMEs
- 11.8.5.2 Competitive benchmarking of key startups/SMES
- 11.9 COMPETITIVE SCENARIO
- 11.9.1 PRODUCT LAUNCHES
- 11.9.2 OTHER DEVELOPMENTS
12 COMPANY PROFILES
- 12.1 KEY PLAYERS
- 12.1.1 SCHNEIDER ELECTRIC
- 12.1.1.1 Business overview
- 12.1.1.2 Products offered
- 12.1.1.3 Recent developments
- 12.1.1.4 MnM view
- 12.1.1.4.1 Key strengths/Right to win
- 12.1.1.4.2 Strategic choices
- 12.1.1.4.3 Weaknesses/Competitive threats
- 12.1.2 EATON
- 12.1.2.1 Business overview
- 12.1.2.2 Products offered
- 12.1.2.3 Recent developments
- 12.1.2.4 MnM view
- 12.1.2.4.1 Key strengths/Right to win
- 12.1.2.4.2 Strategic choices
- 12.1.2.4.3 Weaknesses/Competitive threats
- 12.1.3 GE VERNOVA
- 12.1.3.1 Business overview
- 12.1.3.2 Products offered
- 12.1.3.3 Recent developments
- 12.1.3.4 MnM view
- 12.1.3.4.1 Key strengths/Right to win
- 12.1.3.4.2 Strategic choices
- 12.1.3.4.3 Weaknesses/Competitive threats
- 12.1.4 ABB
- 12.1.4.1 Business overview
- 12.1.4.2 Products offered
- 12.1.4.3 MnM view
- 12.1.4.3.1 Key strengths/Right to win
- 12.1.4.3.2 Strategic choices
- 12.1.4.3.3 Weaknesses/Competitive threats
- 12.1.5 HITACHI ENERGY LTD.
- 12.1.5.1 Business overview
- 12.1.5.2 Products offered
- 12.1.5.3 Recent developments
- 12.1.5.4 MnM view
- 12.1.5.4.1 Key strengths/Right to win
- 12.1.5.4.2 Strategic choices
- 12.1.5.4.3 Weaknesses/Competitive threats
- 12.1.6 GENTEC
- 12.1.6.1 Business overview
- 12.1.6.2 Products offered
- 12.1.6.3 Recent developments
- 12.1.7 TCI, LLC
- 12.1.7.1 Business overview
- 12.1.7.2 Products offered
- 12.1.8 POWERSIDE
- 12.1.8.1 Business overview
- 12.1.8.2 Products offered
- 12.1.9 COS PHI
- 12.1.9.1 Business overview
- 12.1.9.2 Products offered
- 12.1.10 CONTROLLIX CORPORATION
- 12.1.10.1 Business overview
- 12.1.10.2 Products offered
- 12.1.11 CIRCUTOR
- 12.1.11.1 Business overview
- 12.1.11.2 Products offered
- 12.1.12 NEPTUNE INDIA LIMITED
- 12.1.12.1 Business overview
- 12.1.12.2 Products offered
- 12.1.13 ENERLUX POWER S.R.L
- 12.1.13.1 Business overview
- 12.1.13.2 Products offered
- 12.1.14 LIFASA
- 12.1.14.1 Business overview
- 12.1.14.2 Products offered
- 12.1.14.3 Recent developments
- 12.1.15 DUCATI ENERGIA SPA
- 12.1.15.1 Business overview
- 12.1.15.2 Products offered
- 12.1.16 ORTEA SPA
- 12.1.16.1 Business overview
- 12.1.16.2 Products offered
- 12.1.17 RTR ENERGIA SRL
- 12.1.17.1 Business overview
- 12.1.17.2 Products offered
- 12.1.18 POWERCAP CAPACITORS PVT. LTD.
- 12.1.18.1 Business overview
- 12.1.18.2 Products offered
- 12.1.19 ZEZ SILKO, S.R.O.
- 12.1.19.1 Business overview
- 12.1.19.2 Products offered
- 12.1.20 TREFFER
- 12.1.20.1 Business overview
- 12.1.20.2 Products offered
- 12.2 OTHER PLAYERS
- 12.2.1 SHARDA ELECTRONICS & CO.
- 12.2.2 YUHCHANG ELECTRIC CO., LTD.
- 12.2.3 WHATOOP
- 12.2.4 POWER FACTOR CORRECTION GROUP
- 12.2.5 C. J. ENERGETICS
13 APPENDIX
- 13.1 INSIGHTS FROM INDUSTRY EXPERTS
- 13.2 DISCUSSION GUIDE
- 13.3 KNOWLEDGE STORE: MARKETSANDMARKETS' SUBSCRIPTION PORTAL
- 13.4 CUSTOMIZATION OPTIONS
- 13.5 RELATED REPORTS
- 13.6 AUTHOR DETAILS