Synchronous Condenser Market Size, Share, and Industry Analysis By Cooling Type (Air-cooled, Hydrogen-cooled, and Water-cooled), By Starting Method (Static Frequency Converter, Pony Motors, and Others), By Power Rating (Up to 200 MVAR and Above 200 MVAR), and By Application (Utility and Industrial), and Regional Forecast, 2021-2028

The global synchronous condenser market size was valued at USD 617.8 million in 2020 and is projected to grow from USD 629.3 million in 2021 to USD 753.1 million by 2028, exhibiting a CAGR of 2.6% during the forecast period. The market is surging with increasing renewable energy integration, grid stability concerns, and advancements in power infrastructure. Also, rising demand for reactive power solutions to contribute the market growth.

The global impact of COVID-19 has been unprecedented and staggering, with the power industry witnessing a negative impact across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -10.0% in 2020 than average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

The synchronous condenser can be defined as a DC-excited synchronous motor in which the shaft is not connected to anything and this shaft spins independently. It is used to adjust conditions on the ideal electric power transmission grid. The field of this condenser is controlled by a voltage regulator to either absorb reactive power as needed to adjust the grid’s voltage or to improve the power factor correction. The installation and operation are identical to large generators and electric motors. These condensers are an alternative to capacitor banks for power-factor correction in power grids.

COVID-19 Impact: Project Delays could Affect Market Growth Severely

The COVID-19 pandemic has impacted several business sectors, such as manufacturing, power generations, oil & gas, aviation, hospitality, and others, has been explicit and unprecedented. The government in many countries had imposed nationwide lockdowns & restrictions in the wake of the pandemic which has severely affected economies across the globe. The pandemic has disrupted supply chains, delayed many projects, and created a huge shortage of workforce. The investment in many winds, and other power plants has decreased severely.

Several upcoming projects were delayed or shut down due to a lack of availability of proper resources due to the outbreak of COVID-19. Governments in many countries have closed international borders and imposed travel restrictions due to which, the power generation equipment, machinery, and experts required to install equipment were not available.

LATEST TRENDS

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Increasing Use in High Voltage Direct Current (HVDC) Systems are Trending in Market

The synchronous condensers play vital role in providing stability to the power grids along with reducing the lagging power factor. These condensers are highly installed in the HVDC systems these days due to their various benefits in the grids. Condensers are also used to prevent the systems from short circuits. These factors make such condensers ideal to use in HVDC systems. The demand for these condensers is highly increasing in the HVDC systems in the market globally.

DRIVING FACTORS

Rising Government Initiatives to Eradicate Nuclear and Fossil Fuel Power Generation to Propel Market Growth

The power generation from nuclear or fossil fuels releases toxic gases and affects the environment and human life immensely. Phasing out coal and nuclear power plants has become a primary concern for governments across many countries. The need for power correction factors is also increasing in the power sector. The penetration of renewable power generation sources is also increasing globally. These condensers are highly used in renewable power generation. Renewable energy sources do not harm the environment or human life. These condensers are used to adjust the conditions on the electric power transmission grid. These condensers are highly suitable for renewable sources. The government has adopted various regulations to decrease power generation from coal and nuclear power plants and balance that with renewable sources. These factors will drive synchronous condenser market growth during the forecast period.

Increasing demand from Utility and Rising Upgrades Augmented Market Growth

There are numerous power plants in the existing networks that are aging. The government in many countries has initiated the upgrades for such plants and they are even replacing such plants with renewable sources. The demand from the electric utility sector is also increasing for such condensers as they are easy to maintain and does not have complicated structure. The electricity demand is increasing rapidly and this increases the loads on power grids which causes unnecessary stress on the distribution network. However, the use of an improved condenser can help ensure the proper functioning of such equipment with high stability. This increases the demand for such condensers in the market.   

RESTRAINING FACTORS

High Initial Cost Hinders Market

The initial cost of synchronous condenser components is very high and it involves the high use of expensive raw materials such as copper and aluminum. These condensers also require a substantial amount of electricity to function continuously. The initial cost of new such condensers is very high also the refurbishment cost of such equipment is also very high in the market. These condensers are DC excited synchronous motors which makes them more expensive than other motors. 

SEGMENTATION

By Cooling Type Analysis

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Hydrogen-Cooled Segment to Dominate Market during the Forecast Period

Based on the cooling type, the market is segmented into air-cooled, water-cooled, and hydrogen-cooled. The hydrogen-cooled segment is likely to dominate the market during the forecast period as they are highly in demand due to their different properties such as high specific heat, low density, and high thermal conductivity. This increases the demand for the hydrogen-cooled condenser in the market.

The air-cooled segment is estimated to register growth at a significant pace during the forecast period. The demand and adoption of such type condensers are increasing significantly in the market.

By Starting Method Analysis

Static Frequency Converter Segment is Likely to Dominate the Market due to its Numerous Technological Advantages

Based on the starting method, the market is segmented into static frequency converters, pony converters, and others. The static frequency converter segment is likely to dominate the market during the forecast period. The static frequency converter is independent of supply voltage and load variations with a low installation cost. The static frequency converter has low noise characteristics and is highly reliable. This increases the demand for static frequency converters in the market. 

The pony motors segment is expected to foresee growth during the forecast period. This motor is a small and mostly an induction motor which is preferred to run the rotor near to the synchronous speed. Due to such advantages this motor has high demand in the market.

By ApplicationAnalysis

Increase in Grid Infrastructure Leads Utility Segment to Dominate the Market

Based on the application, the market is segmented in to utility and industrial. The utility segment is likely to dominate the market during the forecast period. These condensers are highly used in utility as they help in achieving grid reliability, inertia, and stability. The investment in the utility segment is rapidly increasing and also the installations of such condensers are increasing in the utility segment. The utility segment is highly in need to increase grid stability and controlling voltage fluctuations and synchronous condensers help in achieving this. This drives growth in the utility segment during the forecast period. 

The industrial segment is likely to witness growth during the forecast period. The demand for this type of condensers is increasing in the industrial segment. Industrialization is rapidly growing across the major regions and the investment is also increasing in such regions in the expansion of the industrial segment.

By Power Rating Analysis

Above 200 MVAr Segment to Dominate Market during Forecast Period

Based on the power rating, the market is segmented into up to 200 MVAR and above 200 MVAR. The above 200 MVAR segment is likely to dominate the market during the forecast period. The installation of above 200 MVAR condensers is increasing widely in the market as these condensers are highly efficient and compatible with different applications in the market.

The category of up to 200 MVAR segments are estimated to grow significantly during the forecast period. The demand for such condensers is highly increasing in electric utility and industries as they are highly reliable for small-scale applications.

REGIONAL INSIGHTS

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Geographically, the global synchronous condenser market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

Asia Pacific region has dominated the market during the forecast period owing to the increasing investments in utility and expanding across these regions. Industrialization is also increasing in this region. The demand for such condensers is widely increasing in this region as the new installation of such condensers is increasing in the market.

North America region is estimated to register growth at a significant pace during the forecast period. This region is experiencing high demand for such condensers due to the increasing trend to convert the old power plants to this condenser. Condensers help in enhancing the power line voltage regulation in the power generation plants.

Europe region is likely to witness growth during the forecast period. Europe is highly experiencing the requirement of controlling the voltage fluctuations in the power plants and this increases the demand for such condensers in this region.

The Latin America region is estimated to witness growth during the forecast period. The demand and adoption of such condensers are high in this region due to rising energy demand within the region and also the demand from the utility segment is also increasing for such condensers in the market.

The Middle East & African region is likely to witness growth during the forecast period. The demand for these condensers is increasing in this region as the government is increasing regulations to encourage renewable sources and also decreasing the nuclear and fossil fuel energy sources.  

KEY INDUSTRY PLAYERS

Key Players Focus on Increasing Their Production Capacity by Introducing Highly Efficient Products

The global market is fragmented owing to the presence of a large number of companies in developed and developing countries. Currently, ABB, Eaton, General Electric, Siemens, Andritz, WEG are leading players in the market. These companies are expanding their presence and condenser products. Also, focusing on the new contract is one of the preferred strategies by companies.

In January 2021, Andritz AG has announced to receive an order from Secure Energy. The scope of the supply includes designing, manufacturing, delivery, and technical consulting during the installation and commissioning of four 120 MVA salient pole synchronous condensers for the power plants in New South Wales. The company will start its first shipment in 2022.

In October 2020, Siemens has announced that it has received a contract from Welsh Power for the grid stabilization facility in South Wales. The company will use its advanced technologies including flywheel and synchronous condensers which will provide inertia to the grid and short circuit power to ensure reliable operations.

LIST OF KEY PLAYERS PROFILED:

• Andritz AG (Austria)


• General Electric (U.S.)


• Siemens (Germany)


• Voith GmbH & Co. Kgaa (Germany)


• AnsaldoEnergia (Italy)


• Fuji Electric (Japan)


• WEG (Brazil)


• Eaton (Ireland)


• BRUSH (U.K.)


• BHEL (India)


• Sustainable Power System (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In February 2021, ABB has won a major turnkey contract from Statkraft to design, manufacture and install two high inertia synchronous condenser systems for the Lister Drive Greener Grid project at Liverpool in Northwest England. This project will play a significant role in stabilizing the local grid to handle an increased amount of solar and wind power.


• In February 2020, AnsaldoEnergia and ABB have announced to win an order from Trena, an Italian transmission system operator. The contract is worth USD 70 million. The scope of the supply includes design, supply, commissioning, and maintenance for three synchronous condensers of 250 MVAR each for the installation in Southern and Central Italy.

REPORT COVERAGE

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The global synchronous condenser market research report includes a detailed industry analysis and focuses on key aspects such as leading companies, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several drivers that have contributed to the growth of the market over recent years.

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