US Smart Grid Volt-Var Control Technologies Market

• Demand Response with Volt/ Var Optimization for Unbalanced Active Distribution Systems.

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.

Regulatory support and incentives play a crucial role in shaping the Global US Smart Grid Volt-Var Control Technologies Market Industry. Government initiatives aimed at promoting smart grid technologies are fostering an environment conducive to innovation and investment. Policies that encourage utilities to adopt volt-var control solutions are likely to drive market growth. The projected compound annual growth rate of 8.28% from 2025 to 2035 indicates a strong commitment to enhancing grid efficiency and reliability. As utilities respond to regulatory pressures, the adoption of advanced technologies is expected to accelerate, further solidifying the market's trajectory.

The Global US Smart Grid Volt-Var Control Technologies Market Industry is experiencing a surge in demand for energy efficiency solutions. As energy consumption continues to rise, utilities are increasingly adopting volt-var control technologies to optimize voltage levels and reduce energy losses. This trend is driven by regulatory mandates and consumer expectations for sustainable practices. The market is projected to reach 12.5 USD Billion in 2024, reflecting a growing recognition of the importance of energy efficiency in grid management. Utilities are investing in advanced technologies to enhance grid reliability and performance, indicating a robust shift towards smarter energy management solutions.

The integration of renewable energy sources into the grid is a pivotal driver for the Global US Smart Grid Volt-Var Control Technologies Market Industry. As the share of renewables in the energy mix increases, managing voltage and reactive power becomes critical. Volt-var control technologies facilitate this integration by ensuring grid stability and reliability. The anticipated growth of the market to 30 USD Billion by 2035 underscores the need for advanced control systems that can accommodate fluctuating energy outputs from solar and wind sources. This integration not only supports sustainability goals but also enhances the resilience of the energy infrastructure.

Rising consumer awareness and engagement regarding energy usage are driving the Global US Smart Grid Volt-Var Control Technologies Market Industry. Consumers are increasingly seeking ways to reduce their energy bills and carbon footprints, prompting utilities to adopt technologies that facilitate demand response and energy management. This shift towards consumer-centric energy solutions is likely to enhance the adoption of volt-var control technologies. As the market evolves, utilities are recognizing the importance of engaging consumers in energy efficiency initiatives, which could further propel market growth in the coming years.

Technological advancements in control systems are significantly influencing the Global US Smart Grid Volt-Var Control Technologies Market Industry. Innovations in software and hardware are enabling more sophisticated voltage and reactive power management solutions. These advancements allow for real-time monitoring and control, enhancing grid performance and reliability. As utilities seek to modernize their infrastructure, the demand for advanced volt-var control technologies is expected to rise. The market's growth trajectory, reaching 12.5 USD Billion in 2024, reflects the increasing reliance on technology to optimize grid operations and meet evolving energy demands.

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.