Synchronous Condenser Market Trends

Global Synchronous Condenser Market Overview:

Synchronous Condenser Market Size was valued at USD 0.63 billion in 2023. The Synchronous Condenser market industry is projected to grow from USD 0.66 Billion in 2024 to USD 0.95 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.60% during the forecast period (2024 - 2032). An increase in synchronous condensers in HVDC systems and increasing demand for utilities are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Synchronous Condenser Market Trends

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

  
  

Governments were implementing strategies to tackle environmental issues such as warming, carbon emissions, and rising pollution, which have motivated countries to move toward clean energy sources. According to International Renewable Energy Agency (IRENA), renewables accounted for 38% of installed power generation capacity in 2021. The power generation mix is expected to change over the next ten years, including a considerable increase in solar (utility-scale), distributed generation and storage, and grid-scale energy storage. According to the International Energy Agency (IEA), annual additions to renewable power capacity will average roughly 305 GW annually between 2021 and 2026. 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.

Synchronous Condenser Market Segment Insights:

Synchronous Condenser Cooling Type Insights

Based on cooling type, the Synchronous Condenser market segmentation includes hydrogen, air, and water. The air segment dominated the market, owing to the rise in demand for synchronous condensers from high-voltage DC systems, wind/solar power generations, synchronous condenser upgrading, and other reactive power compensation applications in electric utilities. One of the major advantages of using an air cooling system in the synchronous condenser is simple operation and maintenance. This is further expected to fuel the market growth of this segment in the upcoming years.

Synchronous Condenser Reactive Power Rating Insights

Based on reactive power rating, the Synchronous Condenser market segmentation includes Up to 100 MVAr, between 100MVAr-200 MVAr, and Above 200 MVAr. The 100 MVAr segment exhibited the highest market share in 2022. This is attributed to the rise in demand for power factor correction and reactive power compensation, owing to multiple inductive loads equipped in industrial applications. In addition, increased short circuit megavolt ampere (MVA), high response excitation system, high overload capability, prolonged service life, and enhanced reliability are the key advantages of using synchronous condensers in utility applications are expected to drive the growth of the market during the forecast period.

Synchronous Condenser Type Insights

Based on type, the Synchronous Condenser market segmentation includes new and refurbished. The new segment held the largest market share in 2022, owing to a rise in demand for reactive power compensation from electric utilities such as transmission systems, power plants, and other industrial applications. In addition, advantages associated with synchronous condensers, such as power factor correction, reactive power compensation, grid stability, and voltage regulation, are anticipated to fuel the growth of the synchronous condenser market in the coming years.

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.

January 2021: WEG acquired Industrial e Comércio de Turbinals e Transmissões Ltda. (TGM). TGM is a Brazilian provider of solutions and equipment for power generator drivers focusing on thermal and wind energy. This acquisition would expand WEG's product portfolio related to the Industrial Electro-electronic Equipment and Energy Generation segments.

Figure1: Synchronous Condenser Market, by Type, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Synchronous Condenser Starting Method Insights

Based on starting method, the Synchronous Condenser market segmentation includes static frequency converter, pony motors, and others. The static frequency converter segment garnered the highest synchronous condenser market share in 2022. This is attributed to the rapid expansion of heavy industries & projects such as dams, power plants, power grids, refineries, and mills. In addition, the rise in hydropower projects across the globe will act as the key driving force of the static frequency converter-based synchronous condenser in the coming years.

Synchronous Condenser End-Use Insights

Based on end-use, the Synchronous Condenser market segmentation includes electric utilities and industries. The electrical utilities segment acquired the largest market share, owing to a rise in demand for electricity and related products that fuel the demand for grid infrastructure. Moreover, the rapid penetration of electric vehicles led to an increase in charging stations, which acts as a key growth factor and creates new opportunities for renewable power integration in charging stations. In these stations, a synchronous condenser can be used to improve the power factor by absorbing or generating reactive power as per requirement in this station. This is further anticipated to propel the demand for synchronous condensers in upcoming years.

Synchronous Condenser Regional Insights

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, MRFR 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.

Synchronous Condenser Key Market Players & Competitive Insights

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.

Key Companies in the synchronous condenser market include

• 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)


• Ansaldo Energia (Italy)

Synchronous Condenser Industry Developments

March 2022: 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.

August 2021: ABB was awarded a major turnkey contract by Statkraft, Europe's largest renewable energy generator, to design, manufacture, and install two high-inertia synchronous condenser systems for the Lister Drive Greener Grid project at Liverpool in Northwest England.

Doosan Heavy Industries and Construction Co. Ltd. awarded a contract to ANDRITZ Group in March 2022 to supply hydro-and electromechanical equipment for the Upper Trishuli 1 hydropower plant, owned by Nepal Water & Energy Development Company Pvt. Ltd, a run-of-river plant in Nepal with an installed capacity of 216 MW.

In May 2021, Terna has ordered two static synchronous compensators (STATCOM) systems, and two synchronous condensers will ensure the stability of the Italian grid.

In January 2021, WEG acquired Industrial e Comércio de Turbinals e Transmissões Ltda.(TGM). TGM is a Brazilian provider of solutions and equipment for power generator drivers focused on thermal and wind energy. The acquisition would open up WEG's product portfolio linked to Industrial Electro-electronic Equipment as well as Energy Generation areas.

Toshiba Energy Systems received an order from Tohoku Electric Power to install a STATCOM in March 2023; this component will play an important role in improving grid reliability during transmission of high-capacity power as well as guaranteeing uninterrupted delivery of electricity during faults in transmission system.

Ansaldo Energia, along with Terna, carted a synchronous condenser and transformer to Codrongianos electrical station located in Sassari province; they were shipped via sea and land in January 2023. This specialized electrical generator will be connected to Terna's transmission grid, which will facilitate reactive energy exchange and improve the short-circuit power.

Siemens Energy signed a contract with Elering AS (Estonian transmission system operator) in December 2020. The focus of this agreement was on the construction of three synchronous condenser plants in Estonia. Through this Siemens Energy will design, supply and install three 330 kilovolt (kV) synchronous condenser plants located in the north of Estonia.

Synchronous Condenser Market Segmentation

Synchronous condenser Cooling Type Outlook

• Hydrogen


• Air


• Water

Synchronous condenser Reactive Power Rating Outlook

• Up to 100 MVAr


• Between 100 MVAr-200 MVAr


• Above 200 MVAr

Synchronous condenser Type Outlook

• New


• Refurbished

Synchronous condenser Starting Method Outlook

• Static Frequency Converter


• Pony Motor


• Others

Synchronous condenser End-Use Outlook

• Electric Utilities


• Industries

Synchronous condenser Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America