STATCOM UPS Market

STATCOM UPS Market Outlook (2023 to 2033)

The global STATCOM UPS market is estimated to secure a valuation of US$ 52 million in 2023 and is predicted to surpass a valuation of US$ 115 million by 2033. The market is anticipated to rise at a CAGR of 8.3% during the forecast period.

A few of the key factors that contribute the market growth are:

• Increasing Power Quality Requirements: With the increasing adoption of sensitive electronic devices and equipment, reliable and high-quality power supply rises. STATCOM and UPS systems help to regulate voltage and power fluctuations that enhance power quality.
• Growth in Renewable Energy Integration: The integration of renewable energy, including solar and wind, significantly drive the global market during the forecast period. STATCOMs play a crucial role by providing reactive power support, voltage control, and grid synchronization.
• Industrial Growth and Urbanization: Rapid industrialization and urbanization increased the demand for reliable power and consumption. Industries and commercial sectors heavily rely on UPS systems for critical operations, preventing data loss and production downtime.
• Data Center Expansion: The growing adoption of advanced technologies such as cloud computing and online services drives the global market. These facilities require reliable power backup solutions, protect critical data and maintain uninterrupted operations.
• Increasing Frequency of Power Outages: Power outages are taken place by natural disasters, grid failures, and inconvenience for individuals. UPS systems offer short-term power backup, allowing critical systems to continue functioning during outages until alternative power sources are activated.
• Government Initiatives and Regulations: Governments are implementing regulations and standards to improve power quality, grid stability, and energy efficiency. It has led to increased adoption of STATCOMs and UPS systems in various sectors to ensure reliable power supply.
• Technological Advancements: Ongoing advancements in power electronics, energy storage, and control systems are more efficient, compact, and cost-effective. These technological improvements have expanded their applications across different industries and increased market demand.

These factors continue to expand the global market during the forecast period.

Restrain Factors in the STATCOM UPS Market

Apart from driving factors, certain factors can act as restraints or challenges to market growth. These are:

• High Initial Investment Costs: STATCOM and UPS systems often involve high upfront costs, including equipment, installation, and maintenance expenses. The smaller businesses or regions with limited financial resources decline to adopt these technologies.
• Technological Complexities: STATCOM and UPS systems are advanced technologies requiring design, installation, and maintenance expertise. The complex nature of these systems can pose challenges in understanding their operation and ensuring proper functioning. The need for specialized knowledge can be a restraint, particularly in regions with a shortage of trained personnel.
• Limited Awareness and Understanding: Many businesses and industries may need to be fully aware of the benefits and functionalities of STATCOM and UPS systems. A lack of awareness or limited understanding of these technologies can hinder their adoption.

STATCOM UPS Market, 2018 to 2022 Historical Sales, Compared to 2023 to 2033 Future Outlook

Between 2018 and 2022, the STATCOM and UPS market experienced significant growth globally, with a CAGR of 8.9% with a valuation of US$ 47.5 million in 2022. Here are a few of the key trends and factors that influenced the market during this period:

• Increasing demand for power quality and reliability: The growing reliance on sensitive electronic devices and equipment across various industries, such as manufacturing, IT, healthcare, and telecommunications, drove the need for improved power quality and uninterrupted power supply. This demand played a crucial role in expanding the STATCOM and UPS market.
• Industrial growth and infrastructure development: Rapid industrialization, urbanization, and infrastructure projects in emerging economies led to increased demand for STATCOM and UPS systems. Industries and commercial sectors require reliable power backup solutions to protect critical operations, minimize downtime, and prevent financial losses.
• Increasing frequency of power outages: Power outages caused by natural disasters, grid failures, or other factors continued to highlight the importance of UPS systems in providing backup power. Businesses and industries sought reliable UPS solutions to minimize disruptions, protect sensitive equipment, and maintain operational continuity during power outages.

Category-wise Insights

Which Type of Segment is Highly Sough-after?

Based on type, Insulated Gate Bipolar Transistors (IGBT), STATCOM dominates the global STATCOM UPS market by securing a CAGR of 8.2% by 2033.

Insulated Gate Bipolar Transistors (IGBT)-based STATCOMs have gained prominence in the global STATCOM and UPS market. IGBT technology offers several advantages, making it a preferred choice in many applications. Here are some reasons why IGBT-based STATCOMs dominate the market:

• High power handling capability: IGBT devices have a high power handling capacity, allowing them to handle the reactive power requirements of STATCOMs effectively. It makes IGBT-based STATCOMs suitable for a wide range of power grid applications.
• Enhanced switching characteristics: IGBTs offer improved switching characteristics than other power electronic devices. They can operate at high frequencies, enabling fast and precise control of reactive power compensation, voltage regulation, and harmonic mitigation in STATCOM systems.
• High efficiency and low losses: IGBTs exhibit high efficiency with low conduction and switching losses. It reduces power dissipation, resulting in higher energy efficiency and lower operational costs for STATCOM and UPS applications.

Which Application Dominates the Global Market?

Based on application, power substations is leading the global market by capturing a CAGR of 8.5% during the forecast period.

Power substations significantly drive the demand for STATCOM and UPS systems, particularly in the utility sector. Here's why power substations are a leading application for STATCOM and UPS systems:

• Voltage regulation and reactive power compensation: Power substations are critical nodes in the power grid, responsible for receiving, transforming, and distributing electricity. STATCOM systems installed at power substations help regulate voltage levels and provide reactive power compensation, ensuring a stable and reliable power supply to the grid and downstream consumers.
• Grid stability and power quality enhancement: Power substations often experience voltage fluctuations and power disturbances due to load variations, faults, or integration of renewable energy sources. STATCOMs installed at substations can mitigate these issues by rapidly injecting or absorbing reactive power, maintaining grid stability. Moreover, improving power quality parameters such as voltage stability, harmonic mitigation, and flicker compensation.
• Fault ride-through capability: Power substations must withstand and mitigate the impact of faults, such as short circuits or equipment failures. UPS systems installed at substations are a reliable backup power source, ensuring continuous power supply during fault conditions. It helps prevent disruptions, minimize downtime, and maintain the operational integrity of the substation equipment.

Sudip Saha

Principal Consultant

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Country-wise Insights:

Overview of China STATCOM UPS Market

China is estimated to dominate the global market by securing a CAGR of 11%, with a valuation of 30.3% by 2033. China's market has experienced significant growth in recent years, driven by various factors such as power demand and industrial growth to improve power quality and reliability. Here is an overview of China market:

• Market Size and Growth: China is one of the leading markets for STATCOM and UPS systems globally. The country's rapid economic growth, urbanization, and industrialization have increased the demand for reliable power, making STATCOM and UPS systems crucial in various sectors. The market size has been steadily expanding, with a positive growth trajectory.
• Power Infrastructure Development: China has invested heavily in its power infrastructure, including power generation, transmission, and distribution systems. The construction of new power plants, substations, and transmission lines creates opportunities for STATCOM and UPS installations to enhance grid stability, voltage control, and power quality.
• Industrial and Commercial Applications: China's expanding industrial sector, including manufacturing, I.T., healthcare, telecommunications, and data centers, requires a reliable power supply and backup solutions. UPS systems are widely deployed in these sectors to provide uninterrupted power during outages and protect critical equipment and operations.

Performance of the United States STATCOM UPS Market

The United States is a significant and dynamic market that has experienced steady growth in recent years. The United States is estimated to register a CAGR of 7.1% with a valuation of US$ 16.1 million by 2033. Here's an overview of the STATCOM and UPS market in the United States:

• Technological Advancements: The United States is at the forefront of technological advancements in power electronics, energy storage, and control systems. It fosters innovation and the development of more efficient, compact, and cost-effective STATCOM and UPS solutions that meet the market's evolving needs.
• Increasing Focus on Power Quality: Power quality is a growing concern in the United States, driven by the proliferation of sensitive electronic devices, increasing reliance on digital technologies, and the need to avoid disruptions in critical operations. STATCOM and UPS systems are essential for maintaining stable voltage levels, reducing harmonic distortions, mitigating voltage sags and surges, and ensuring high power quality.
• Government Support and Incentives: The United States government has implemented policies, initiatives, and incentive programs to support the deployment of advanced grid technologies, renewable energy integration, and the improvement of power quality. These initiatives create a favorable environment for adopting STATCOM and UPS systems, driving the market growth.

Competitive Landscape

The competitive landscape in the STATCOM and UPS market is dynamic, featuring established players and new entrants. The market is highly competitive, driven by the increasing demand for reliable power supply, power quality, and grid stability. Here are some key aspects of the competitive landscape:

• Established Global Players: Several multinational companies have a strong presence in the STATCOM and UPS markets. These companies have extensive experience, a wide product portfolio, and a global customer base. They often offer integrated solutions, including STATCOMs, UPS systems, and associated services. Examples of such established players include ABB, Siemens, Schneider Electric, Eaton Corporation, and General Electric.
• Domestic and Regional Players: Besides global players, many domestic and regional companies compete in the STATCOM and UPS markets. These companies often have a strong foothold in specific geographic regions and cater to local demand. They may provide customized solutions, local support, and competitive pricing. Examples include Delta Electronics (Taiwan), TMEIC (Japan), Mitsubishi Electric (Japan), and Luminous Power Technologies (India).
• Partnerships and Collaborations: Collaboration among companies is common in the STATCOM and UPS markets. Players may form strategic partnerships, joint ventures, or technology collaborations to leverage each other's strengths, expand their market reach, and develop innovative solutions. Such collaborations often combine domain expertise, manufacturing capabilities, and technological advancements to deliver comprehensive and competitive offerings.
• Focus on Service and Support: After-sales service, maintenance, and support are essential considerations for customers in the STATCOM and UPS markets. Companies offer reliable customer support, remote monitoring, predictive maintenance, and service-level agreements. Providing comprehensive services enhances customer satisfaction and builds long-term relationships.
• Emerging Market Entrants: The growing demand for STATCOM and UPS systems attracts new companies to enter the market. These emerging players often focus on niche segments, specific applications, or regional markets. They bring fresh perspectives, innovative solutions, and competitive pricing to meet specific customer needs.

Other Essential Players in the Global Market are:

• ABB Ltd.
• Siemens AG
• Schneider Electric SE
• Eaton Corporation plc
• General Electric Company
• Mitsubishi Electric Corporation
• Hitachi ABB Power Grids Ltd.
• Toshiba Corporation
• Delta Electronics, Inc.
• TMEIC Corporation
• Luminous Power Technologies Pvt. Ltd.
• Advanced Energy Industries, Inc.
• Tesla, Inc.
• S&C Electric Company
• Power-One, Inc. (Now part of ABB)
• Emerson Electric Co.
• Riello UPS Ltd.
• Socomec Group
• Legrand SA
• Vertiv Holdings Co.

Recent Developments in the Global Market are:

• In 2021, ABB introduced the PCS120 MV UPS system, a medium-voltage uninterruptible power supply solution designed for industrial and commercial applications.
• Siemens announced in 2021 that it may supply STATCOM systems to provide grid stability and reactive power compensation for the Rampion Offshore Wind Farm in the United Kingdom.

Scope of Report

STATCOM UPS Market by Category

By Type:

• Gate Turn-off Thyristors (GTO) STATCOM
• Insulated Gate Bipolar Transistors (IGBT) STATCOM

By Application:

• Power Substations
• Automotive Industry
• Oil & Gas
• Mining
• Others

By Region:

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