US Smart Grid Volt-Var Control Technologies Market Size was valued at USD 129.5 million in 2022. The US Smart Grid Volt-Var Control Technologies market industry is projected to grow from USD 134.4 million in 2023 to USD 233.6 million by 2032, exhibiting a compound annual growth rate (CAGR) of 6.3% during the forecast period (2024 - 2032). The growing advantages of smart grid technology, growing need to update from a traditional electricity grid to a smart grid, and strong government focus on grid modernization are the key market drivers boosting the growth of the US smart grid volt-var control technologies market.
FIGURE 1: US SMART GRID VOLT-VAR CONTROL TECHNOLOGIES MARKET SIZE 2018-2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The stringent technological requirements of the electric power grid of the twenty-first century are beyond the capabilities of the current volt-var infrastructure for voltage optimization in distribution networks. If conventional voltage control systems are not adequately maintained, they might prevent renewable energy supplies from being widely used in the future smart grid. For instance, smooth voltage control may be jeopardized by integrating new energy storage technologies and renewable energy sources into the distribution system. We need to investigate and implement creative voltage-variable control techniques to get beyond these obstacles. A deep comprehension of the tactics and advancements in volt-var technology is necessary to accomplish such goals. Numerous approaches have been devised thus far to facilitate the extensive integration of renewable energy sources into distribution networks.
The important reciprocal influence that Demand Response (DR) and Volt/Var Optimization (VVO) have on one other has been largely ignored by most of the previous approaches. Demand Response (DR) and Volt/Var Optimization (VVO) are two essential components of a distribution management system. DR's primary objective is to reduce load demand during peak periods. In addition to lowering power loss and keeping the system-wide voltage profile within a reasonable range, VVO helps to prevent issues with voltage instability and imbalance. Because loading levels have a significant impact on the voltage profile, DR and VVO approaches have a significant mutual influence. DR may be applied in a variety of ways to load management. It is better to move flexible loads from peak to off-peak load duration, when incentives or enticing pricing schemes are used to drive client participation. Reduced energy procurement costs, losses, and enhanced voltage profiles benefit the utilities. A dynamic load shifting approach based on water-filling is described to flatten the load curve. Another method for reducing peak load consumption is conservation voltage reduction (CVR), which lowers the voltages at different busses with voltage-dependent loads with the intention of purposely reducing the energy demand. Thanks to advancements in communication technology, modern smart grids are able to transmit data and information in both ways with speed and reliability. These developments provide up a wide range of potential for customer engagement in load management. Home appliances such as air conditioners, heaters, washing machines, refrigerators, and stoves may all contribute to DR. Furthermore, battery energy storage systems (BESS) and electric vehicles (EVs) are thought to be adaptable technology for efficient DR implementation.
Based on volt-var control technologies, the US Smart Grid Volt-Var Control Technologies market segmentation includes Capacitor Bank, On-Line Tap Changer (OLTC) Control, Smart PV Inverters, Voltage Optimization (VO) Technology, and Others. On-Line Tap Changer (OLTC) Control System held the majority share in 2022, contributing around ~26.0% to the market revenue. On-load tap changers (LTC, or OLTC) regulate the turns ratio and thus the voltage ratio of an electrical transformer. Unlike its no-load counterpart, on-load tap changers do this without interrupting the load current. There are two main load tap changer designs, the reactance, and the resistive types. Load tap changers are often employed with conservator type transformers, but seldom with hermetic transformers. OLTC stands for On-load tap changer which is used in Transformer to regulate the output voltage. OLTC is installed inside the transformer main tank. It is operated by a Drive mechanism which is connected to OLTC through a tie rod. Generally, the Drive mechanism is mounted on the outside body of the Transformer.
FIGURE 2: US SMART GRID VOLT-VAR CONTROL TECHNOLOGIES MARKET, BY VOLT-VAR CONTROL TECHNOLOGIES, 2022 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on type, the US Smart Grid Volt-Var Control Technologies market segmentation includes Fixed Voltage Reduction and Variable Voltage Reduction. Fixed Voltage Reduction held the majority share in 2022. A voltage regulator is a circuit that creates and maintains a fixed output voltage, irrespective of changes to the input voltage or load conditions. Voltage regulators (VRs) keep the voltages from a power supply within a range that is compatible with the other electrical components. While voltage regulators are most used for DC/DC power conversion, some can perform AC/AC or AC/DC power conversion as well. Types of Voltage Regulators: Linear vs. Switching There are two main types of voltage regulators: linear and switching. Both types regulate a system’s voltage, but linear regulators operate with low efficiency and switching regulators operate with high efficiency.
Based on voltage, the US Smart Grid Volt-Var Control Technologies market segmentation includes Low and High. Low held the majority share in 2022. Low voltage has multiple meanings in the electric/electronic world. A common rule of thumb is that anything below 600 volts is considered low voltage. Factories that use automation can use multiple voltages. Dividing the electrical use into supply and controls aids in understanding the usage. Each division performs a mission critical to the operation to the factory. Both must be working for production.
By Region, the study provides market insights into Northeast, Southwest, West, Southeast, and Midwest. The Southeast US smart grid volt-var control technologies market accounted for ~40.2% in 2022. the region's large US smart grid volt-var control technologies industries. Increased investments in volt/VAr management would result from lower power losses. In addition, this would increase the need for volt/VAr management in North America. During the projected period, U.S. market are expected to rise rapidly. The overall number of colocation data centers in the region is rapidly increasing, presenting attractive opportunities for enterprises in the power distribution sector in U.S. government announced plans to spend US$10 billion to create new electric networks in 2020 to lower the rate of curtailment on the Western Transmission and Distribution (T&D) Network. The growing emphasis on replacing traditional electrical equipment with new, high-quality systems will drive the market demand. According to Greentech media, Utilities in the U.S. are recognizing the benefits of using IOT technology to manage voltage and reactive power (VARs) at a granular level.
FIGURE 3: US SMART GRID VOLT-VAR CONTROL TECHNOLOGIES MARKET SIZE BY REGION 2022 VS 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
With a strong presence across different verticals and geographies, the US smart grid volt-var control technologies market is highly competitive and dominated by established, pure-play vendors. The vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The US smart grid volt-var control technologies market is highly competitive, with many vendors offering similar products and services.
The major players in the market include ETAP, Hitachi, GE, ABB Group, Eaton, Siemens, Schneider Electric, Mitsubishi Electric, American Superconductor Corporation, and Varentec Corporation Industries Corporation constantly takes on new challenges to ensure the stability of its management foundation by extending its reach into business fields such as engine production, vehicle assembly, and the development and production of lift trucks and car air-conditioning compressors. It concentrates on broadening its product offerings to reach new audiences in the global market.
The US Smart Grid Volt-Var Control Technologies market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 129.5 million |
| Market Size 2023 | USD 134.4 million |
| Market Size 2032 | USD 233.6 million |
| Compound Annual Growth Rate (CAGR) | 6.3% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Volt-Var Control Technologies (type and voltage) and Region |
| Countries Covered | Northeast, Southwest, West, Southeast, and Midwest |
| Key Companies Profiled | ETAP, Hitachi, GE, ABB Group, Eaton, Siemens, Schneider Electric, Mitsubishi Electric, American Superconductor Corporation, and Varentec Corporation |
| Key Market Opportunities | ·      Demand response with volt/ var optimization for unbalanced active distribution systems |
| Key Market Dynamics | ·      Growing advantages of smart grid technology ·      Growing need to update from a traditional electricity grid to a smart grid. ·      Strong government focus on grid modernization |
Frequently Asked Questions (FAQ) :
The US Smart Grid Volt-Var Control Technologies market size is expected to be valued at USD 129.5 million in 2022.
The global market is projected to grow at a CAGR of 6.3% during the forecast period, 2024-2032.
Southeast had the largest share of the global market.
The key players in the market ETAP, Hitachi, GE, ABB Group, Eaton, Siemens, Schneider Electric, Mitsubishi Electric, American Superconductor Corporation, and Varentec Corporation.
On-Line Tap Changer (OLTC) Control dominated the market in 2022.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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