Harmonic Filter Market

Harmonic Filter Market Outlook (2023 to 2033)

The global harmonic filter market is poised to exhibit a steady CAGR of 6.9% during the forecast period. This growth trajectory translates to a substantial revenue increase, with the market value projected to reach US$ 977.8 million in 2023 and forecasted to surpass US$ 1,911.5 million by 2033.

The fundamental driver behind this surge lies in the capacity of harmonic filters to mitigate distortions within networks characterized by notably elevated levels of harmonics. This capacity is poised to catalyze heightened adoption rates of harmonic filters across various sectors.

The market is largely driven by the escalating demand for power quality and the increasing need to mitigate power system distortions. As industries and businesses continue to rely heavily on sensitive electronic equipment, any disruption in power quality can lead to operational inefficiencies and equipment damage. This has propelled the adoption of harmonic filters to counteract the adverse effects of harmonics and maintain a stable power supply.

Stringent government regulations and standards regarding power quality and harmonics are compelling industries to invest in advanced harmonic filter solutions. Compliance with these regulations not only ensures uninterrupted operations but also aids in avoiding penalties and reputation damage. Additionally, the growing awareness of the economic advantages associated with improved power quality is likely to drive the market growth.

The market faces challenges such as relatively limited product differentiation and a prevailing lack of awareness regarding their operational benefits. On the flip side, it's important to note that investments are on the rise within the consumer electronics industry. This upward trajectory in investments is projected to unlock new avenues of opportunity for the harmonic filter market to expand.

The Industry 4.0 sphere is witnessing the increasing deployment of Variable Frequency Drives (VFD), particularly in high-demanding power applications. These are increasingly being installed in electrical power systems to reduce overall power consumption.

The era of modern electrical power systems includes such as supervisory control and data acquisition (SCADA) systems and solar systems. A considerable amount of harmonic distortion in electrical networks is created in electrical networks as a consequence of applied high-frequency non-sinusoidal current in the circuit through high load factors, including programmable logical controllers (PLCs), printers, and computers.

Harmonic Filters Eradicate Power Quality Problems and Other Disturbances

The increasing demand for static converters and power inverters in commercial applications such as data centers and cloud computing is expected to accelerate market growth. Additionally, the growing inclination toward renewable energy solutions and upgraded power grids is anticipated to foster an upsurge in the need for harmonic filters.

Given the ongoing surge in power demand, the significance of maintaining high standards of power quality and reliability cannot be overstated. The complex web of modern power systems is vulnerable to various disturbances that can compromise the seamless flow of electricity. Among these disruptions, harmonic frequencies hold a prominent position as a leading source of power quality problems.

The implementation of harmonic filters emerges as a robust solution to counteract the detrimental influence of harmonic frequencies. These filters are designed to selectively absorb or redirect specific frequencies, effectively mitigating the disruptive effects of harmonics. By incorporating harmonic filters into power systems, the unwanted frequencies can be significantly reduced, leading to improved power quality and reduced losses.

The surge in mass transportation and telecommunication has led to increased demand for infrastructure development, including routers, high-end machines, servers, commercial space, and lighting systems among leading companies. These developments have also become a significant source of harmonic distortion. The heightened awareness of the impact of harmonic distortion on energy costs for IT and data centers is projected to drive the sales of harmonic filters.

Key Challenges Faced by the Harmonic Filter Market Players

The implementation of harmonic filters exhibits a gradual pace within small-scale industries. This phenomenon primarily stems from the presence of economical alternatives like budget-friendly filters, reactors, and transformers. Despite these substitutes offering incomplete harmonic mitigation, they remain the choice of economically cautious customers in emerging markets due to their more affordable price points.

Regulatory factors and industry standards might not mandate the use of harmonic filters in certain regions or sectors. In the absence of strict requirements, businesses might prioritize other immediate concerns over the potential long-term advantages of harmonic filtering.

Sudip Saha

Principal Consultant

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Prominent Opportunities on the Horizon for Participants in the Harmonic Filter Market

The demand for power inverters is on the rise, driven by the growing impact of cloud computing. Additionally, a heightened awareness regarding the detrimental effects of power frequency fluctuations on heating and electrical appliances has emerged. These factors are poised to act as lucrative catalysts for the expansion of the harmonic filter market.

The integration of Internet of Things and smart technology into power management systems is likely to open new opportunities for market players. Remote monitoring, predictive maintenance, and real-time analysis capabilities are enhancing the efficiency of harmonic filters and reducing downtime. This integration lines up with the overarching trend of digitalization across industries.

Country-wise Insights

North America's Advanced Infrastructure Drives Dominance in the Harmonic Filter Market

North America dominated the global harmonic filter market in 2022, commanding a significant 25.3% of the revenue. This can be attributed to the region's substantial production of consumer electronic goods and a sizable population base.

The harmonic filter market in the United States has seen a significant rise due to the escalating presence of non-linear loads in industrial and commercial sectors. Leading industries in the United States are opting for harmonic filters to ensure operational stability and uphold power quality standards. Regulations set by organizations like IEEE 519 -2022 have further underscored the need for effective harmonic mitigation.

Leading manufacturers have introduced advanced harmonic filter solutions that cater to the diverse needs of industries such as manufacturing, data centers, and healthcare. MTE Corporation, a global frontrunner in crafting power quality solutions for industrial and commercial uses, introduced Matrix® ONE in the country. It is a dedicated solution tailored for single-phase power requirements. Matrix® ONE extends the range of Matrix® harmonic filters, renowned across the sector for their leading-edge harmonic reduction capabilities.

Europe's Market Revenue Soars as it Takes Cues from North America's Success

Europe has emerged as a burgeoning player in the harmonic filter market, securing a notable 22.3% revenue share in 2022. This growth can be attributed to significant investments in renewable energy initiatives by governments across various countries, including the United Kingdom, Germany, and France. Europe has outlined a goal of attaining a 27% share of renewable energy in its overall energy composition by 2030.

The integration of these renewable energy sources into the grid introduces fluctuations in voltage, which, in turn, account for a substantial 20% of power loss within electrical systems. The upswing observed in the alternate energy sector significantly propels the expansion of the harmonic filters market.

Germany, known for its industrial prowess, has witnessed a similar trend in the harmonic filter market. The manufacturing sector, including the automotive and machinery industries, has been at the forefront of embracing harmonic filters to ensure optimal operation of equipment and compliance with power quality standards. Notably, a collaborative investment of US$ 117 million between Germany and Ghana in 2017 exemplifies the commitment to enhancing renewable energy infrastructure.

In the United Kingdom, industries such as manufacturing, information technology, and healthcare have demonstrated a significant uptake of harmonic filters to counter the challenges posed by harmonics. The MTE Corporation Matrix AP Harmonic Filter, featuring its pioneering adaptive passive filtering technology, was unveiled by DEM Manufacturing. The stringent power quality regulations outlined by organizations like the IET Wiring Regulations have played a pivotal role in propelling the adoption of harmonic mitigation solutions.

Asia Pacific Gears up for a Decade of Remarkable Growth Supported by Infrastructure Investments

As the demand for reliable and efficient power distribution systems surges, countries within the Asia Pacific region recognize the critical role that harmonic filters play in maintaining grid stability and power quality. Consequently, governments and industries are channeling significant resources into bolstering their infrastructure to accommodate the expanding requirements of the energy sector.

In Japan, the drive toward energy efficiency and the adoption of advanced technologies has led to a heightened focus on power quality. The country's strict regulations and standards for power quality, set by organizations like the Japan Electrical Manufacturers' Association, have been instrumental in propelling the harmonic filter market. Japan's commitment to maintaining high power quality standards is evident through its strict regulations and guidelines for harmonic control. In Japan, active filters with a capacity spanning from 50 KVA to 60 MVA have been effectively deployed.

China, as a global manufacturing hub, has seen a surge in the adoption of harmonic filters across industries such as electronics, automotive, and heavy machinery. The country's rapid industrialization and urbanization have increased the load on power systems. With the increasing deployment of renewable energy projects, China's power grid faces the task of accommodating intermittent energy sources. As a result, harmonic filters are playing a crucial role in managing power quality issues arising from renewable energy integration.

In India, the government's push for 'Make in India' and its initiatives in the electronics and manufacturing sectors have spurred the demand for harmonic filters. India's ambitious renewable energy goals have heightened the demand for harmonic filters that can manage the integration of renewable sources into the grid effectively. The industrial sector accounted for more than half of the total revenue in the Indian market. Harmonic filters are widely employed in Variable Frequency Drives to mitigate harmonics across diverse end-use industries.

Segment-wise Insights

Active Harmonic Filters Lead the Market with Proactive Precision

The active type segment commands a significant presence in the market by offering efficient management of harmonic distortions and proactive power quality regulation. Its real-time monitoring and rapid response to harmonic loads ensure reduced distortions, improved efficiency, and minimized downtime in various industrial applications. This adaptable technology caters to sectors like manufacturing, data centers, and renewable energy systems, solidifying its prominence.

The active type harmonic filters' capability to enhance equipment permanence, maintain power factor, and advocate power quality standards positions them as a crucial solution for industries. As industries prioritize reliability and efficiency, active type harmonic filters are poised to continue their prevalent impact on modern electrical power management.

Medium Voltage Segment's Comprehensive Solutions Take the Lead

The medium voltage segment's supremacy in the market stems from its essential role in addressing power quality challenges within industries operating at this voltage range. The segment's dominance is a result of persistent demand from manufacturing, energy, and infrastructure domains, where harmonic filters effectively manage power quality issues. The prevalence of non-linear loads, strict regulatory standards, and harmonics-induced disruptions further drive the adoption of harmonic filters.

Technological advancements have streamlined their integration into medium voltage systems, cementing their significance. This segment's leadership is expected to persist as industries prioritize operational efficiency and adherence to power quality regulations. This reinforces the fundamental role of medium voltage harmonic filters in the market.

Start-up Ecosystem Shaping the Harmonic Filter Market Space

In parallel with established manufacturers, many start-ups are actively addressing harmonic distortions and non-linear loads within the electrical power system. These emerging companies are strategically deploying innovative solutions such as harmonic filters and related services to effectively mitigate these issues.

PQE - It is engaged in developing comprehensive hardware and software-based power quality monitoring systems catering to diverse sectors including the power grid, health & safety, and various industry segments. The hardware products offered are portable analyzers, power correction equipment, voltage controller, passive filter, and many others.

SCG Electrical Group - They are a provider of project management services for the implementation of efficiency systems. It offers workplace surveys and audits, usage and saving forecasts, approval, and installations. They provide different systems, spanning from cutting-edge lighting controls, occupancy sensors, and daylight harvesting to sophisticated building automation systems, metering solutions, and HVAC systems. Additionally, their service include thermographic scanning and preventative maintenance, switchboard testing, repairing, and upgrading.

Key Companies Transforming the Harmonic Filter Market Space

The landscape of the harmonic filters industry is characterized by intense competition and fragmentation, primarily due to the significant presence of numerous participants. Market players actively engage in mergers, acquisitions, and partnerships, leveraging advanced technologies strategically to amplify and diversify their product portfolio. This proactive approach toward consolidation and innovation underscores the industry's drive toward enhanced competitiveness and value creation.

Recent developments in the harmonic filter market are:

• In June 2021, HPS unveiled the HPS Centurion P Passive Harmonic Filter. This innovative filter is designed to counteract harmonic currents originating from non-linear loads. With initial offerings ranging from 5 to 500 horsepower, it enhances power quality by diminishing harmonics while also enhancing the true power factor. This integration delivers a dependable and efficient resolution.
• In November 2020, CP Automation unveiled a fresh lineup of compact Revcon harmonic filters and regenerative units. The range features the Revcon RLD regen unit, Revcon Harmonic Filter RHF-5P, and Revcon RHF-Active. This expanded array of products is geared toward enhancing equipment durability and optimizing energy utilization in sectors like oil and gas, water treatment, and data centers.
• In February 2019, the East Japan Railway Co. launched a new high-speed train model in the spring of 2019. The construction of the Kuala Lumpur-Singapore high-speed railway line was initiated in 2017 and is expected to complete around 2026.
• In January 2019, Mesta Electronics, Inc. launched a new third-generation, DPM active harmonic filter. This can be used for high-frequency current sensors to continuously monitor the load current.
• In December 2018, ABB Ltd. introduced a multi-functional power quality and energy storage solution called PQactiF, which consists of active harmonic filters and energy storage solutions.

Top 5 Market Players of the Harmonic Filter Market

• Schneider Electric SE - It is a France-based multinational company that specializes in digital automation and energy management. It addresses homes, buildings, data centers, infrastructure, and industries by combining energy technologies, real-time automation, software, and services. A new series of harmonic filters that are intended exclusively for use in data centers has been unveiled by Schneider Electric. These filters are exceptionally energy-efficient and are made to meet the exacting power quality standards of data centers.
• Eaton Corporation Plc - It stands as a distinguished multinational power management entity rooted in the United States. In 2021, the company achieved remarkable sales of US$19.63 billion, showcasing its significant financial prowess. Founded in the United States, the company's global headquarters are nestled in Dublin, Ireland, while its secondary administrative center resides in Beachwood, Ohio.
• ABB Ltd. - It emerges as a prominent multinational corporation with its headquarters spanning Västerås, Sweden, and 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. It has created a brand-new active harmonic filter that is more cost-effective and effective than earlier generations. The new filter's output is managed by a cutting-edge technique known as "digital pulse modulation" (DPM). This enhances the performance of the filter by enabling it to respond to changes in the harmonic current more quickly.
• Danfoss A/S - It is a multinational engineering company based in Denmark, with more than 40,043 employees globally. The roots of Danfoss date back to its founding in 1933, a testament to the visionary engineer Mads Clausen. The company has navigated a remarkable journey, driven by innovation, dedication, and a commitment to engineering excellence.
• AVX Corporation - It stands as a prominent American electronic components manufacturer, with its headquarters situated in the vibrant locale of Fountain Inn, South Carolina. Notably, AVX Corporation holds the distinction of being the predominant industrial employer in Horry County, South Carolina, a fact underlined by its substantial workforce of around 1,000 individuals in Myrtle Beach and Conway.AVX has 9,900 employees and operates in the United States, Europe, and Asia.

Other Harmonic Filter Market Players

• Baron Power Limited
• Crompton Greaves Ltd
• TDK Corporation
• Schaffner Holding AG
• Comsys AB
• Merus Power Dynamics Oy
• Larsen & Toubro Ltd.
• Siemens AG

Report Scope

Key Segments Profiled in the Harmonic Filter Market Survey

By Type:

• Active
• Passive
• Tuned
• De-tuned
• Hybrid

By Voltage:

• Low
• Medium
• High Medium

By Modality:

• Single Phase
• Three Phase

By Application:

• Commercial
• Industrial
• Residential

By Region:

• North America
• Latin America
• Asia Pacific
• Middle East and Africa
• Europe