Flexible AC Transmission System (FACTS) Market Size, Share and Trends 2025-2033

Market Overview:

The flexible AC transmission system (FACTS) market is experiencing rapid growth, driven by Developing Electric Power Transmission Systems, Increasing Government Expenditure to Build Smart Grids, and Rising Adoption of Renewable Energy Sources. According to IMARC Group's latest research publication, "Flexible AC Transmission System (FACTS) Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global flexible AC transmission system (FACTS) market size reached USD 1.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2.3 Billion by 2033, exhibiting a growth rate (CAGR) of 4.64% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

• Market Dynamics
• Market Trends And Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Flexible AC Transmission System (FACTS) Industry:

• Developing Electric Power Transmission Systems

The market is primarily driven by the increasing demand for electricity across the globe, which has resulted in the development of new power infrastructure and transmission lines. FACTS technology enables utilities to increase power transfer capacity and improve grid reliability, which makes it a suitable option for meeting the growing electricity demand. As populations grow and economies develop, the strain on existing power transmission infrastructure intensifies. FACTS devices offer a cost-effective solution to enhance the capacity of existing transmission lines without the need for building new infrastructure, which is both time-consuming and capital-intensive. These systems help utilities maximize the utilization of their current assets while maintaining grid stability and power quality, making them essential for modern power systems facing increasing electricity demands.

• Increasing Government Expenditure to Build Smart Grids

The increasing government expenditure to build smart grids due to the aging power grid infrastructure in many countries represents another major growth-inducing factor. FACTS systems can help upgrade the existing grid by improving its stability, reducing power losses, and enhancing the overall efficiency of the system. Governments worldwide are recognizing the critical need to modernize their power infrastructure to meet contemporary energy demands and integrate renewable energy sources effectively. Smart grid initiatives incorporate advanced monitoring, control, and automation technologies, and FACTS devices play a crucial role in enabling these capabilities. By providing real-time control of power flow, voltage regulation, and reactive power compensation, FACTS technology supports the implementation of intelligent grid management systems that can respond dynamically to changing load conditions and grid disturbances.

• Rising Adoption of Renewable Energy Sources

The increasing adoption of renewable energy sources such as wind and solar power due to the growing environmental concerns has escalated the demand for FACTS technology that can help to mitigate the intermittent nature of renewable energy by regulating power flow and improving grid stability. Renewable energy generation is inherently variable and unpredictable, creating challenges for grid operators in maintaining consistent power supply and grid stability. FACTS devices provide essential capabilities for managing power quality issues, voltage fluctuations, and frequency variations that arise from renewable energy integration. These systems enable utilities to accommodate higher penetrations of renewable energy while maintaining grid reliability, supporting global efforts to transition toward cleaner energy sources and reduce carbon emissions.

Key Trends in the Flexible AC Transmission System (FACTS) Market

• Growing Need for Controllability in Critical Industries

The surging need for controllability of power systems in oil and gas, railways, and electric utility industries is contributing to the market growth. Critical infrastructure sectors require highly reliable and controllable power systems to ensure continuous operations and prevent costly downtime. FACTS technology provides advanced control capabilities that enable precise management of power flow, voltage levels, and system stability, which are essential for industries with stringent power quality requirements. Railways particularly benefit from FACTS devices for managing traction power systems, while oil and gas facilities use them to ensure stable power supply for critical operations in remote locations.

• Strategic Mergers, Acquisitions, and Collaborations

The growing mergers and acquisitions (M&As) and collaboration among the leading market players to strengthen their foothold is creating a favorable market outlook across the globe. Industry consolidation is enabling companies to combine technological expertise, expand product portfolios, and enhance their global reach. Strategic partnerships between FACTS manufacturers, utilities, and technology providers are facilitating knowledge transfer, accelerating product development, and creating comprehensive solutions that address complex grid challenges. These collaborations are also helping companies navigate regulatory requirements, access new markets, and develop innovative applications for FACTS technology in emerging sectors.

• Advanced Power Electronics and Control Systems Integration

FACTS technology is benefiting from advancements in power electronics and control systems that enable more sophisticated and efficient solutions. Modern FACTS devices incorporate advanced semiconductors, digital controllers, and communication technologies that enhance their performance, reliability, and flexibility. These technological improvements are making FACTS solutions more cost-effective and easier to integrate with existing grid infrastructure. The development of modular FACTS devices and hybrid compensation systems is expanding application possibilities and enabling utilities to deploy customized solutions tailored to specific grid requirements and operational challenges.

Leading Companies Operating in the Global Flexible AC Transmission System (FACTS) Industry:

• Alstom
• Eaton Corporation PLC
• GE Grid Solutions (General Electric)
• Hitachi Energy Ltd.
• Mitsubishi Electric Corporation
• NR Electric Co., Ltd. (Nari Technology Co., Ltd.)
• Siemens Energy
• Toshiba Energy Systems & Solutions Corporation (Toshiba Corp.)

Flexible AC Transmission System (FACTS) Market Report Segmentation:

By Compensation Type:

• Series Compensation
• Shunt Compensation
• Combined Series-Shunt Compensation

Shunt compensation represented the largest segment as it provides essential reactive power support and voltage regulation capabilities that are fundamental requirements for most power transmission applications.

By Controller:

• Static Synchronous Compensator (STATCOM)
• Static Var Compensator (SVC)
• Unified Power Flow Controllers (UPFC)
• Thyristor Controlled Series Compensator (TCSC)
• Others

Static Synchronous Compensator (STATCOM) accounted for the largest market share due to its superior performance characteristics, faster response times, and ability to provide both reactive power support and voltage regulation in a compact footprint.

By Industry Vertical:

• Utilities
• Renewables
• Railways
• Others

Utilities represented the largest segment as they are the primary operators of power transmission infrastructure and the main adopters of FACTS technology for grid enhancement, stability improvement, and capacity optimization.

Regional Insights:

• North America (U.S., Canada)
• Europe (Germany, United Kingdom, France, Italy, Spain, and Others)
• Asia Pacific (China, India, Japan, South Korea, Indonesia, Australia, and Others)
• Latin America (Brazil, Mexico)
• Middle East Africa

North America was the largest market for flexible AC transmission system (FACTS). Some of the factors driving the North America flexible AC transmission system (FACTS) market include the increasing demand for electricity, the surging need to upgrade infrastructure, and the implementation of government regulations and initiatives.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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