Synchronous Condenser Market

• Growing use of renewable and sustainable energy sources drives the market growth

This addition is driven by continuous government support in over 130 countries, net-zero objectives declared by countries accounting for nearly 90% of GDP, and improved wind and solar PV competitiveness. This factor drives the market CAGR in the forecast period.

Additionally, Investments in renewable energy technologies have risen globally in the last decade, amounting to USD 359 billion in 2020. The capital expenditure for renewables increased by around 7% in 2020 compared to 2019, even as the COVID-19 pandemic disrupted the power industry. The rapidly declining installation cost of solar panels due to fast-paced technological advancements contributes to the rising demand for renewable energy technologies. Thus, the increasing adoption of renewable energy power generation technologies is expected to fuel the Synchronous Condenser market revenue during the forecast period.

The Global Synchronous Condenser Market Industry experiences a growing demand for grid stability as renewable energy sources become more prevalent. Synchronous condensers play a crucial role in maintaining voltage levels and providing reactive power support, which is essential for the integration of intermittent renewable sources like wind and solar. As countries strive to meet their renewable energy targets, the need for reliable grid infrastructure intensifies. This trend is reflected in the projected market value of 0.66 USD Billion in 2024, indicating a robust investment in technologies that enhance grid reliability and performance.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Synchronous Condenser Market area will dominate this market due to the developments in this Region actively focusing on upgrading and replacing aging infrastructures to improve grid reliability and resilience and develop smart electricity networks. Moreover, China’s Synchronous Condenser market held the largest market share, and the Indian Synchronous Condenser market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Synchronous Condenser Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Synchronous Condenser market accounts for the second-largest market share. This is attributed to a huge consumer base, the rapid development of the renewable energy sector, high voltage direct current (HVDC) systems, and key players in the Region. Further, the German Synchronous Condenser market held the largest market share, and the UK Synchronous Condenser market was the fastest-growing market in the European Region.

North Americais expected to grow at the fastest CAGR from 2023 to 2032. This is due to the region undergoing a major digital operational transformation. Their operators focus on decentralization, digitization, and decarbonization of power systems.

Leading market players are investing heavily in research and development to expand their product lines, which will help the synchronous condenser market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The synchronous condenser industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Synchronous Condenser industry to benefit clients and increase the market sector. The Synchronous Condenser industry has offered some of the most significant environmental advantages in recent years.

Major players in the Synchronous Condenser market, including Eaton (Ireland), Siemens (Germany), ABB (Switzerland), Voith Group (Germany), General Electric (US), Sustainable Power Systems, Inc. (the US), Toshiba Corporation (Japan), Electro Mechanical Engineering Associates, Inc. (US), WEG (Brazil), Power Systems & Controls, Inc. (the US), Ideal Electric Company (US), Andritz (Austria) and Ansaldo Energia (Italy)and others, are attempting to increase market demand by investing in research and development operations.

Andritz AG is an international technology group offering plants, equipment, systems, and services for various industries. The group's headquarters are in Graz, Austria. The group gets its name from the district of Andritz, which is located and listed on the Vienna Stock Exchange.ANDRITZ Group received a contract from Doosan Heavy Industries and Construction Co. Ltd. to supply the hydro- and electromechanical equipment for the 216-MW Upper Trishuli 1 hydropower plant, a run-of-river plant in Nepal owned by Nepal Water & Energy Development Company Pvt. Ltd.

The order for the electromechanical equipment comprises the basic and detailed design of the turbine and generator components, complete electrical power systems, balance of plant, automation, installation, and commissioning.

ABB Ltd. is a Swedish-Swiss multinational corporation headquartered in Zürich, Switzerland. The company was formed in 1988 when Sweden's Allmänna Svenska Elektriska Aktiebolaget and Switzerland's Brown, Boveri &Cie merged to create ASEA Brown Boveri, later simplified to the initials ABB. Statkraft, Europe's largest renewable energy generator, awarded ABB a major turnkey contract to design, manufacture, and install two high-inertia synchronous condenser systems for the Lister Drive Greener Grid project at Liverpool in Northwest England. • In May 2021, Italian transmission system operator Terna.

S.p.A (Terna) has ordered two static synchronous compensators (STATCOM) systems, and two synchronous condensers will ensure the stability of the Italian grid.