Low-voltage Capacitor Bank Market Overview:
As per MRFR analysis, the Low-voltage Capacitor Bank Market Size was estimated at 5.0 (USD Billion) in 2022.The Low-voltage Capacitor Bank Market Industry is expected to grow from 5.2(USD Billion) in 2023 to 7.43 (USD Billion) by 2032. The Low-voltage Capacitor Bank Market CAGR (growth rate) is expected to be around 4.04% during the forecast period (2024 - 2032).
Key Low-voltage Capacitor Bank Market Trends Highlighted
Automation, Industrialization and advancement in technology have surged the demand for low-voltage capacitor banks globally. Moreover, increasing investments in renewable energy sources and smart grid infrastructure are further driving market growth. The rising adoption of energy-efficient solutions in commercial and industrial sectors is creating lucrative opportunities for market players. The integration of capacitor banks with power factor correction systems and harmonic mitigation devices is a key trend gaining traction in the market. Additionally, the growing focus on reducing energy consumption and improving power quality is expected to drive the demand for low-voltage capacitor banks in the near future
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Low-voltage Capacitor Bank Market Drivers
Electrification of the Power Grid
The increasing need for electricity is promoting the increasing demand for a more effective and reliable power grid. First, replacing all old and obsolete equipment with new solutions, such as Low-voltage capacitor banks, and keeping the whole infrastructure updated will improve the functioning of a grid and decrease the losses. Additionally, due to the increasing popularity of renewable energy sources, it will be necessary to transform the grid into a more modern, flexible, and adaptive one.On the one hand, the hours of sunshine and wind are variable, which implies that the grid has to adapt to such intermittency. Low-voltage capacitor banks are a perfect solution to either deliver or absorb the electricity needed to maintain voltage and regulate power. On the other hand, the possibility of energetic vehicles implies that in the near future drives and car workshops will appear on the streets of modern cities. They will require the electric filling stations, which also should be equipped with the Low-voltage capacitor banks responsible for maintaining a stable power level.In the future, the demand for Low-voltage capacitor banks will be determined mainly by the number of electric cars.
Growth of Data Centers
The rapid growth of data centers is driving the need for Low-voltage capacitor banks. Data centers are large facilities that house computer servers and other IT equipment, and they require a reliable and efficient power supply. Low-voltage capacitor banks can help to improve the power quality in data centers by regulating voltage and reducing harmonics. Additionally, the increasing use of cloud computing and big data analytics is driving the need for more data centers, which is expected to further drive the demand for Low-voltage capacitor banks.
Expansion of Industrial Automation
The growth of industrial automation has resulted in the increasing demand for Low-voltage capacitor banks. In particular, industrial automation refers to the use of various types of computers and other types of electronic and mechanical devices that are used to carry out the automatic control of a large number of industrial processes. As such, such systems also require a quality power supply that can be gained when using Low-voltage capacitor banks.Besides, other trends, such as the increasing use of robots and other types of automatic machines, are also expected to result in the growth of the demand for Low-voltage capacitor banks.
Low-voltage Capacitor Bank Market Segment Insights:
Low-voltage Capacitor Bank Market Phase Insights
The Global Low-voltage Capacitor Bank Market is segmented by phase into single-phase and three-phase. The three-phase segment is expected to dominate the market in 2023, as these devices offer superior efficiency, reliability, and overall cost-effectiveness. Three-phase capacitor banks are commonly used for industrial and commercial applications, where they are employed to raise the power factor, decrease energy consumption, and boost voltage stability. In addition, the single-phase segment is projected to rise at a much higher pace than the three-phase segment through 2032, as the latter are analogously bigger and more expensive, making them less attractive to the residential and small commercial end users.The growth is driven by the increasing interest in capacitor banks across a broad array of industries, such as power generation, transmission and distribution, industrial, commercial, and even residential applications. These devices play a major role in improving power quality, decreasing energy consumption, and improving the overall efficiency of electric systems. Overall, the Low-voltage capacitor bank market is characterized by the high saturation and the robust competition between the numerous global and regional contenders. Some of the key players include Schneider Electric, Siemens, ABB, Eaton, and General Electric, which offer a wide variety of capacitor bank types that meet the specific requirements of various applications and industries
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Low-voltage Capacitor Bank Market Power Rating Insights
The market is divided according to power rating into four segments, which are up to 10 kVAR, 10-100 kVAR, 100-500 kVAR, and above 500 kVAR. As of 2023, the 10-100 kVAR segment was the most significant market division, accounting for approximately 40% of the worldwide revenue. The growth in consumption of capacitors in this power rating is primarily because of their application for power factor correction in a wide diversity of industrial and commercial applications. In the up to 10 kVAR segment, there will be further fast growth over the forecast period as demand for small-scale power factor correction solutions in houses and small commercial buildings grows.The 100-500 kVAR segment will increase at a stable rate, with the growth underpinned by the escalating use of capacitors in medium-sized industrial and commercial plants. The above 500 kVAR segment will remain a small but stable market presence, selling capacitors that can correct reactive power in large industrial applications with high power.
Low-voltage Capacitor Bank Market Technology Insights
The Global Low-voltage Capacitor Bank Market is segmented by technology into switched capacitor banks, fixed capacitor banks, and hybrid capacitor banks. Among these, the switched capacitor banks segment is expected to hold the largest market share in 2023, owing to their ability to provide voltage regulation and reactive power compensation in a wide range of applications. The fixed capacitor banks segment is expected to witness significant growth over the forecast period, driven by their cost-effectiveness and simplicity of installation. Hybrid capacitor banks, which combine the advantages of both switched and fixed capacitor banks, are expected to gain traction in the future due to their ability to provide both voltage regulation and reactive power compensation in a single unit.
Low-voltage Capacitor Bank Market Application Insights
The application segment plays a crucial role in shaping the Global Low-voltage Capacitor Bank Market. Among the key applications, Motor Drives held the largest market share in 2023. The increasing demand for energy-efficient motors in industrial and commercial sectors has driven the growth of this segment. Furthermore, the growing adoption of variable frequency drives (VFDs) in motor control systems is expected to further boost the demand for Low-voltage capacitor banks, as they help improve motor efficiency and reduce harmonic distortion. Industrial Machinery is another significant application segment with a substantial market share.The increasing automation and electrification of industrial processes have led to a rise in the demand for Low-voltage capacitor banks to enhance power quality and reliability. Power Distribution Systems also represent a major application segment. Capacitor banks are widely used in power distribution systems to improve voltage regulation, reduce power losses, and enhance system stability. The growing demand for reliable and efficient power distribution networks is expected to drive the growth of this segment in the coming years. Renewable Energy Systems is a rapidly growing application segment for Low-voltage capacitor banks.The integration of renewable energy sources, such as solar and wind power, into the grid requires the use of capacitor banks to mitigate voltage fluctuations and improve power quality. The increasing adoption of renewable energy systems is expected to drive the growth of this segment in the future.
Low-voltage Capacitor Bank Market Regional Insights
The Global Low-voltage Capacitor Bank Market is segmented into North America, Europe, APAC, South America, and MEA. In 2023, North America held the largest market share due to the presence of major manufacturing hubs and favorable government policies. The APAC region is expected to witness the highest growth rate during the forecast period, owing to the increasing demand for electricity and the growing construction industry. Europe and MEA are also expected to experience significant growth, driven by the increasing adoption of renewable energy sources and the need to improve power quality.South America is expected to see a steady growth rate, with Brazil and Argentina being the key markets.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Low-voltage Capacitor Bank Market Key Players And Competitive Insights:
Major players in the Low-voltage Capacitor Bank Market industry are continuously developing new and innovative products to meet the evolving needs of their customers. For instance, in 2023, Eaton introduced a new series of Low-voltage capacitor banks designed to improve power quality and reduce energy consumption in industrial and commercial applications. Additionally, ABB launched a new range of Low-voltage capacitor banks with integrated harmonic filtering capabilities, making them ideal for use in applications where harmonics are a concern. Leading Low-voltage Capacitor Bank Market players are also investing heavily in research and development to improve the efficiency and performance of their products. For example, Schneider Electric is currently working on developing new capacitor technologies that can operate at higher temperatures and voltages. These developments are expected to drive the growth of the Low-voltage Capacitor Bank Market in the coming years.ABB is a leading provider of Low-voltage capacitor banks, with a wide range of products designed to meet the needs of various applications. The company's Low-voltage capacitor banks are known for their high quality, reliability, and efficiency. ABB also offers a variety of value-added services, such as engineering support, installation, and maintenance.Siemens is another major player in the Low-voltage Capacitor Bank Market. The company's Low-voltage capacitor banks are known for their innovative design and features. Siemens also offers a wide range of Low-voltage capacitor banks, from small, single-phase units to large, three-phase units. The company's Low-voltage capacitor banks are used in a variety of applications, including power factor correction, harmonic filtering, and voltage regulation.
Key Companies in the Low-voltage Capacitor Bank Market Include:
- Havells India
- Hitachi
- Eaton
- Rockwell Automation
- ABB
- Mitsubishi Electric
- Hyundai Heavy Industries
- Schneider Electric
- Bharat Heavy Electricals
- General Electric
- Toshiba
- LS Electric
- Siemens
- Crompton Greaves
- Larsen Toubro
Low-voltage Capacitor Bank Market Industry Developments
The Global Low-voltage Capacitor Bank Market is expected to reach a valuation of USD 7.43 billion by 2032, expanding at a CAGR of 4.04% from 2024 to 2032. Growth in the market is attributed to increasing demand for Low-voltage capacitor banks in various industries, including power generation, transmission, and distribution, as well as manufacturing and industrial applications.Recent news developments in the market include: In February 2023, Schneider Electric launched a new range of Low-voltage capacitor banks designed to improve power quality and reduce energy consumption in industrial and commercial applications. In March 2023, Eaton announced the acquisition of Power Electronics, a leading manufacturer of Low-voltage capacitor banks, to strengthen its portfolio and expand its global reach.These developments highlight the growing importance of Low-voltage capacitor banks in enhancing power quality and efficiency, driving market growth in the coming years.
Low-voltage Capacitor Bank Market Segmentation Insights
Low-voltage Capacitor Bank Market Phase Outlook
Low-voltage Capacitor Bank Market Power Rating Outlook
- Up to 10 kVAR
- 10-100 kVAR
- 100-500 kVAR
- Above 500 kVAR
Low-voltage Capacitor Bank Market Technology Outlook
- Switched Capacitor Banks
- Fixed Capacitor Banks
- Hybrid Capacitor Banks
Low-voltage Capacitor Bank Market Application Outlook
- Motor Drives
- Industrial Machinery
- Power Distribution Systems
- Renewable Energy Systems
Low-voltage Capacitor Bank Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
5.0(USD Billion) |
| Market Size 2023 |
5.2(USD Billion) |
| Market Size 2032 |
7.43(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.04% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Havells India, Hitachi, Eaton, Rockwell Automation, ABB, Mitsubishi Electric, Hyundai Heavy Industries, Schneider Electric, Bharat Heavy Electricals, General Electric, Toshiba, LS Electric, Siemens, Crompton Greaves, Larsen Toubro |
| Segments Covered |
Phase, Power Rating, Technology, Application, Regional |
| Key Market Opportunities |
IoT integration Digitalization of capacitor banks Surge arrester replacement Retrofit and replacement market expansion Industrial automation |
| Key Market Dynamics |
Growing Industrial Automation Increasing Power Consumption Government Regulations Advancements in Technology Rising Demand for Renewable Energy |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global Low-voltage capacitor bank market is valued at approximately USD 5.2 billion in 2023.
The global Low-voltage capacitor bank market is projected to reach USD 7.43 billion by 2032, exhibiting a CAGR of 4.04% from 2024 to 2032.
North America is expected to account for the largest market share, owing to the increasing demand for electricity and the growing renewable energy sector in the region.
Low-voltage capacitor banks are primarily used for power factor correction, voltage regulation, and harmonic filtering in various industries, including manufacturing, utilities, and commercial buildings.
Key competitors in the global Low-voltage capacitor bank market include Schneider Electric, Siemens, ABB, Eaton, and General Electric.
The increasing demand for energy efficiency, the growing adoption of renewable energy sources, and the need to improve power quality are key factors driving the growth of the global Low-voltage capacitor bank market.
Challenges faced by the global Low-voltage capacitor bank market include fluctuating raw material prices, intense competition, and the need for continuous technological advancements.
Key trends shaping the global Low-voltage capacitor bank market include the increasing adoption of smart grids, the growing demand for distributed energy resources, and the development of new capacitor technologies.
Opportunities for growth in the global Low-voltage capacitor bank market include the expansion of the renewable energy sector, the increasing demand for energy storage systems, and the growing adoption of electric vehicles.
Key factors to consider when selecting a Low-voltage capacitor bank include voltage rating, capacitance, power factor correction requirements, and harmonic filtering capabilities.
