Volt VAR Management Market

• Growing use of smart grids is driving the market growth

The rising use of smart grids drives Market CAGR for Volt/VAR management. Volt/VAr management market expansion will be driven by a significant need for skilled operations to minimize power distribution loss and maximize energy factor throughout the anticipated timeframe. In addition, there will be a considerable need for volt management services over the next years because of the continuous need for electricity from industry and houses. 

The importance of load flow and load shedding in the power sector has increased the demand for skilled voltage management operations, which will likely fuel the expansion of the volt/VAr management market in future years. Modernizing the electrical grid must include smart grid integration for utilities to improve sustainability, dependability, and efficiency. Demand response programs are made possible by smart grid integration, allowing utilities to communicate with customers directly. 

Utility companies can instruct smart metres to transmit messages to customers to temporarily cut their power use during high demand or grid problems. Demand-side management lessens the need for expensive infrastructure investments while assisting in grid balancing. Volt/VAR management seeks to keep the grid's voltage and reactive power at ideal levels. Using smart grid technology, utilities may optimize dynamic Volt/VAR using the real-time data gathered from smart meters and sensors. 

This entails dynamically altering voltage levels and reactive power settings to reduce energy losses and enhance power quality. Smart grid technologies use cutting-edge communication, control, and information technology to develop a more intelligent and interactive power system. Smart meter and sensor deployment across the distribution network is a component of smart grid systems. These gadgets provide real-time information on electricity use, voltage levels, and power quality.

With thorough monitoring, utilities may learn much about how the grid behaves and spot inefficiencies or possible issues. DERs are frequently situated close to customers, generally smaller-scale, and dispersed across the distribution network. Due to DERs' decentralized nature, energy generation is more unpredictable and intermittent, which can cause voltage fluctuations, power imbalances, and other operational challenges for grid operators. 

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Volt/VAR Management market area will dominate this market, with growth in Volt/VAR management market demand during the course of the projection. Reducing power losses would increase volt/VAR management investments, increasing North American demand for volt/VAR management.

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

Figure 2: Volt/Var Management Market Share By Region 2022 (USD Billion)

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

Europe has the second-largest market share for Volt/VAR Management. European countries have been aggressively updating their electrical infrastructure to enable the integration of energy from renewable sources like wind and solar. Volt/VAR management systems are essential for optimizing reactive power and voltage regulation, which is necessary for the steady and effective integration of these decentralized energy resources. Furthermore, the German Volt/VAR Management market dominated, while the UK Volt/VAR Management market grew fastest in Europe.

From 2023 to 2032, the Asia-Pacific Volt/VAR Management Market will develop quickly. The Asia-Pacific area is seeing a major rise in energy consumption due to its sizable and steadily growing population. Volt/VAR management tools aid utilities in better demand management, peak load reduction, and grid stability. Furthermore, China's Volt/VAR Management market had the highest market share, while India's was the fastest expanding in the Asia-Pacific region.

Leading market companies are extensively spending R&D on increasing their product lines, which will help the Volt/VAR Management market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Volt/VAR Management industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.

Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Volt/VAR Management industry to serve clients and expand the market sector. The Volt/VAR Management industry has provided some of the most important benefits recently. Schneider Electric, and other major competitors in the Volt/VAR Management market are seeking to improve market demand by investing in R&D efforts.

The digital transformation of  infrastructure, energy management and automation in homes,data centers,  buildings,and industries is driven by Schneider Electric. Schneider is, without a doubt, the market leader in Automation Systems and Power Management - Medium Voltage, Low Voltage, and Secure Power - with a presence in more than 100 countries worldwide. They offer comprehensive efficiency solutions that incorporate energy, automation, and software. 

They work with the biggest Partner, Integrator, and Developer Community on their Open Platform in our worldwide Ecosystem to provide real-time control and operational efficiency. Their dedication to innovation, diversity, and sustainability guarantees that life is on everywhere, for everyone, and at all times, and they think that great people and partners make Schneider a great business.

In May 2019, Upgrade to EcoStruxureTM Power, the digital energy management solution built on industry-leading connected devices, edge control software, and advisor services, was announced today by Schneider Electric, the pioneer in the digital revolution of energy management and automation. The most recent EcoStruxure Power 2.0 design complies with IEC cyber-security requirements and is fully accredited to ISO energy management standards.

ABB solutions link software and technical expertise to optimize objects' power, production, movement,  and operation. ABB's 105,000 workers are dedicated to driving breakthroughs that hasten industrial change, building on more than 130 years of excellence.ABB's Electrification division offers a diverse spectrum of products, digital solutions, and services, allowing safe, intelligent, and sustainable electrification from substation to socket. 

Offerings include modular substations,  EV infrastructure, distribution automation, solar inverters, power protection, wire accessories, switchgear, enclosures, cabling, sensors, and low- and medium-voltage control. In June 2019, The State Grid Corporation of China (SGCC) won a power transmission contract with ABB. To protect the grid against disruptive failures, the firm intends to deploy high-voltage equipment like breakers. It also seeks to use capacitor banks to enhance the quality of the energy supply, increase product life, and reduce losses.