"Actionable Insights to Fuel Your Growth"

STATCOM Market Size, Share & COVID-19 Impact Analysis, By Type (Low Voltage, Medium Voltage, and High Voltage), By End-user (Utility, Railway, Steel Manufacturing, Renewable Energy, and Others), and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI102160



Play Audio Listen to Audio Version

The global STATCOM market size stood at USD 603.3 million in 2021. The market is projected to grow from USD 633.3 million in 2022 to USD 941.2 million by 2029, exhibiting a CAGR of 5.8% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering; with STATCOM experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -2.3% in 2020 compared to 2019.

The market has witnessed significant development owing to a substantial increase in smart grid infrastructure development and smart meter roll-outs, which are set to boost the industry pace further. For instance, in January 2022, the U.S. Department of Energy launched the “Building a Better Grid” initiative for catalyzing the countrywide development of upgraded and new high-capacity electric transmission lines. The initiative will work with industry and community stakeholders to identify the needs of national transmission and support the buildout of high voltage, long-distance transmission facilities that are crucial for achieving the goal of 100% clean electricity by 2035. Such government initiatives are anticipated to propel the product adoption in the coming years.


Frozen Steel Production and Decreasing Railway Electrification During the Pandemic Impacted the Market Demand

The global impact of COVID-19 on this market is moderate, as it hampered the growth rate of the market and power grid installation due to supply chain disruption of raw materials and hindrance in activities due to social distancing norms. The imposition of travel restrictions hampered the rail sector, affecting the progress of electrification projects. The slowdown of industrial activity hampered steel demand, affecting steel production and the market for STATCOMs in the steel manufacturing sector. Amid increasing efforts for renewable energy development over the COVID-19 period, the requirement for robust power grids became evident.


Request a Free sample to learn more about this report.

Growing Renewable Electricity Demand Globally Escalating the Product Requirement  

Globally, the demand for renewable electricity is increasing at a steady pace. Countries across the globe have already started focusing on increasing clean electricity generation to meet the growing demand. For instance, in April 2022, the Federal Government of Germany announced that the increase in renewable energy development created a demand for power grid expansion. The switch to renewable energies, especially wind power, requires additional overland lines capable of transporting electricity over long distances. Power supply bottlenecks have to be eliminated. Moreover, the technical basis has to be established to account for the fact that electricity trading is increasingly carried out across borders. Considering this, grid operating companies have increased investments in developing robust power grids, accelerating the adoption of STATCOMs.

According to the Long-Term Strategy of the U.S.: Pathways to Net-Zero Greenhouse Gas Emissions by 2050, the country has set a goal of 100% clean electricity by 2035, a crucial foundation for net-zero emissions no later than 2050. The decarbonization targets of the U.S. have led to the development of various on-grid renewable energy power generation, transmission, and distribution systems. Efforts are being made for voltage regulation, ensuring the power grid's reliability as renewable energy sources are brought online, enabling further decarbonization of the country's energy mix. This is expected to enhance product demand in the country.


Increased Focus on Voltage Stability to Drive the STATCOM Market Growth

In power systems, voltage stability is one of the biggest problems nowadays. To overcome the problems of voltage stability, Flexible AC Transmission System (FACTS) devices are being utilized. These are new devices originating from technologies capable of altering phase angle, impedance, and voltage at particular points in the power systems. Their fast response offers a high potential for the enhancement of power system stability apart from steady-state flow control. During contingency events, STATCOM provides fast-acting dynamic reactive compensation for voltage support. The solutions are extensively adopted for ensuring voltage stability.

Promising Transmission & Distribution Network Expansions to Boost Market Growth

WorldBank’s Tracking SDG7: The Energy Progress Report states that the share of the world’s population with access to electricity rose from 83% in 2010 to 91% in 2020, increasing the number of people with access by 1.3 billion globally. The number without access declined from 1.2 billion people in 2010 to 733 million in 2020. With increased digitalization and urbanization, the demand for remote electrification has enhanced manifold. The growing efforts by governments to develop robust transmission and distribution lines for electricity supply to remote locations are anticipated to drive the product adoption.


High Cost Incurred in the Installation of STATCOM may Open the Substitute Pathways  

Traditionally, a two-level Voltage Source Inverter (VSI) with a series coupling inductor is used as the main building block of the static compensator. However, the output voltage of the VSI is characterized by high harmonics that require bulky and costly filters. Furthermore, for high and medium voltage interconnections, it is mandatory to use the line frequency step-up transformer to match the output voltage of the VSI with the utility grid. This increases the cost, size, weight, and power losses of the overall solutions and affects the system dynamics.  The product adoption may also be affected by the high usage of its substitute product, Static Var Compensator (SVC).

Even though STATCOM has greater effectiveness in improving the transient stability and transmission limit and damping low-frequency oscillation, its comparatively higher cost is a significant disadvantage.


By Type Analysis

Medium Voltage Segment to Dominate the Overall Market 

The global market is categorized into low voltage (less than 20 Mvar), medium voltage (20-100 Mvar), and high voltage (greater than 100 Mvar) based on type. The medium voltage segment holds the highest market share globally among all types. The increasing requirement for voltage stabilization and support requirement for poor power factor in utility transmission and distribution is the prominent reason behind the maximum utilization of medium voltage solutions.

The growth prospect of low voltage compensators is higher in the long run. Growing electricity consumption globally across residential, commercial, and industrial sectors increases electricity production. With the increased electricity production from renewable sources, the low voltage segment growth is steady in the long run.

High voltage compensators are used to maintain voltage fluctuations and flickers of the electric furnace and increase the line transmission capacity of the hub substation of the electrical transmission system. Electric arc furnaces are used for steel manufacturing globally, so with their increased use, the product demand will also increase.

By End-user Analysis

To know how our report can help streamline your business, Speak to Analyst

Utility Segment to Continue its Domination over the Forecast Period

Based on end-user, the market is segmented into utility, railway, steel manufacturing, renewable energy, and others. Utility end-users across the globe primarily dominate the global market. Increasing applications, including reactive power optimization of load-center substation and voltage stability are driving the product requirement across utility (transmission and distribution) sectors.

Electricity generation from wind and solar energy is increasing at a significant pace across the globe. Low voltage ride-through function in the wind and solar farms fuels the product demand across renewable energy sectors. Moreover, the increasing requirement for traction and auxiliary power supply system of the electrified railway also increased the product demand.

Globally, the market value is anticipated to increase at a CAGR of 5.6% based on railway end-user.

Steel manufacturers are essentially adopting electric arc furnaces across the globe due to convenience of production, where the product is widely utilized for maintaining voltage fluctuation. Other industrial end-users primarily utilize the solution for the reactive power and harmonic compensation of mill and other industrial loads. Thus, the segment is expected to grow at a CAGR of 5.2% over the forecast period.


Asia Pacific STATCOM Market Size, 2021 (USD Million)

To get more information on the regional analysis of this market, Request a Free sample

The market has been studied geographically across five main regions, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The market in Asia Pacific stood at USD 201.5 million in 2021 and is anticipated to hold the largest market value share over the forecast period. Asia Pacific is the largest region for electricity production and consumption. Additionally, the region also has the largest capacity for renewable electricity generation. The region is also rich in steel manufacturing; many global and regional steel manufacturers operate across Asia Pacific. An increase in electricity generation and renewable investment is the primary reason behind the growing product demand across the region.

Europe is the second-largest market. An increase in smart grid infrastructure development in countries across the region, along with the growing demand for renewable electricity, is surging the product demand. The North America market is driven by growing electricity consumption across industrial, commercial, and residential sectors. The region also focuses on increasing electricity generation from renewable sources such as wind and solar. Also, the presence of leading manufacturers makes the region a prominent destination. Latin America and the Middle East & Africa markets are still not in line, although leading manufacturers, such as Siemens and GE, are involved in several regional projects.


Leading Market Players are Focusing on Catering to Renewable Energy End-user Demand

The market is fragmented, with many players providing flexible AC transmission systems to various end-users. Leading manufacturers already dominate high-demanding regions with maximum need for shunt compensators. Leading players are actively operating globally and adopting organic and inorganic growth strategies to strengthen their position in the market. Some players are truly focused on specific regions to cater to the increasing demand for STATCOM across the utility and renewable energy sectors.

The competition among top players in the market is very high as they are targeting to capture maximum STATCOM market share. The one with unique offerings in technology, portfolio, design, efficiency, and more will capture the maximum end-user attention. Again, the market is not stagnant; if one company comes up with extra benefits and advancements, the other will target more innovation. So, there is always strong competition among the top-notch players. Leading market players are focusing on developing low to medium-voltage solutions to cater to the upcoming demand from renewable end-users. Also, they are more focused on providing hybrid compensator systems for better grid stabilization.


  • GE (U.S.)

  • ABB (Switzerland)

  • Ingeteam SA (Spain)

  • Siemens (Germany)

  • Toshiba Corporation (Japan)

  • Hitachi Energy (Switzerland)

  • Hyosung Heavy Industries Corporation (South Korea)

  • Jema Energy (Spain)

  • Mitsubishi Electric (Japan)

  • Sieyuan (China)

  • American Superconductor (U.S.)


  • November 2021 – Hitachi Energy rolled out IdentiQ. The product is a type of STATCOM that exhibits the property of the digital twin of the HVDC converter station. Along with 3D interactive visualization, IdentiQ offers all the relevant information on operational data, analytics, assets, and others.

  • May 2021 – Siemens Energy announced that it received an order for two static synchronous compensators systems for grid stabilization from Italian transmission system operator Terna. S.p.A. Both the STATCOM systems formed part of the company’s SVC PLUS series and will be constructed in Latina (Lazio region) and Villanova (Abruzzo region). The units will contribute to interconnections between mainland Italy and Sardinia and Montenegro and Italy.

  • April 2021 – Amprion commissioned Siemens Energy with the construction of two static synchronous compensator systems based on SVC PLUS technology to stabilize the German transmission power grid further. Rheinau (Baden-Württemberg) and Polsum (North Rhine-Westphalia) were two locations of the plants where the project was to be initiated. 

  • November 2020 – American Superconductor (AMSC) announced that it received an order for a new energy power system of USD 15 million. The order includes AMSC’s D-VAR STATCOM system, AMSC’s D-VAR VVO system, and the recently acquired NEPSI metal-enclosed harmonic filters and capacitor banks. The principal service area for the order constituted the renewable energy sector of the U.S.

  • May 2020 – The grid solutions business of GE Renewable Energy successfully energized the Dynamic Reactive Compensator (DRC) project for National Grid in the U.K. The utility grade compensator was utilized for the project, providing a 975 Mvar power range. The compensator was deployed across the country's southeast and coordinated with three separate substations.


An Infographic Representation of Statcom Market

To get information on various segments, share your queries with us

The global market research report offers an in-depth analysis of the market. It further provides details on product adoption across various regions. Information on STATCOM market trends, drivers, opportunities, and market restraints can further help stakeholders gain valuable insights into the market. The report offers a detailed competitive landscape by presenting information on key players and their strategies in the market.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Million)


By Type, End-user, and Region

By Type

  • Low Voltage (Less than 20 Mvar)

  • Medium Voltage (20-100 Mvar)

  • High Voltage (Greater than 100 Mvar)

By End-User

  • Utility

  • Railway

  • Steel Manufacturing

  • Renewable Energy

  • Others

By Geography

  • North America (By Type, By End-user, By Country)

    • U.S. (By End-user)

    • Canada (By End-user)

  • Europe (By Type, By End-user, By Country)

    • U.K. (By End-user)

    • Germany (By End-user)

    • France (By End-use)

    • Italy (By End-user)

    • Russia (By End-user)

    • Rest of Europe (By End-user)

  • Asia Pacific (By Type, By End-user, By Country)

    • China (By End-user)

    • India (By End-user)

    • Japan (By End-user)

    • Australia (By End-user)

    • Rest of Asia Pacific (By End-user)

  • Latin America (By Type, By End-user, By Country)

    • Brazil (By End-user)

    • Mexico (By End-user)

    • Rest of Latin America (By End-user)

  • Middle East & Africa (By Type, By End-user, By Country)

    • GCC Countries (By End-user)

    • Rest of Middle East & Africa (By End-user)

Frequently Asked Questions

Fortune Business Insights estimates that the global market size was USD 603.3 million in 2021 and is expected to reach USD 941.2 million by 2029.

Registering a CAGR of 5.8%, the market is projected to exhibit steady growth during the forecast period (2022-2029).

In 2021, the region stood at USD 201.5 million.

The utility segment is set to hold the largest share in the market during the forecast period.

Voltage stabilization requirements for efficient transmission and distribution of electricity tend to boost the market.

GE, ABB, Ingeteam SA, Siemens, Toshiba Corporation, Hitachi Energy, Hyosung Heavy Industries Corporation, Jema Energy, Mitsubishi Electric, Sieyuan, and American Superconductor are the key players operating in the market.

In terms of market value, Asia Pacific dominated the market in 2021.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Oct, 2022
  • 2021
  • 2018-2020
  • 214


  • $4850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.