According to a new report from Intel Market Research, the global Flexible AC Transmission Systems (FACTS) market was valued at USD 1,376 million in 2024 and is projected to reach USD 1,918 million by 2032, growing at a CAGR of 5.0% during the forecast period (2024β2032). This growth is propelled by increasing demand for grid stability, renewable energy integration, and efficient power transmission infrastructure.
A flexible alternating current transmission system (FACTS) is a system composed of static equipment used for the AC transmission of electrical energy. It is meant to enhance controllability and increase power transfer capability of the network. It is generally a power electronics-based system.
FACTS is defined by the IEEE as "a power electronic based system and other static equipment that provide control of one or more AC transmission system parameters to enhance controllability and increase power transfer capability."
According to Siemens "FACTS Increase the reliability of AC grids and reduce power delivery costs. They improve transmission quality and efficiency of power transmission by supplying inductive or reactive power to the grid."
The leading manufacturers mainly are ABB, Siemens, RXPE, Sieyuan Electric, Mitsubishi Electric, GE, Toshiba, AMSC and Hyosung. ABB is the largest manufacturer; its revenue of global market exceeds 31%.
We have surveyed the Flexible AC Transmission Systems (FACTS) companies, and industry experts on this industry, involving the revenue, demand, product type, recent developments and plans, industry trends, drivers, challenges, obstacles, and potential risks.
This report aims to provide a comprehensive presentation of the global market for Flexible AC Transmission Systems (FACTS), with both quantitative and qualitative analysis, to help readers develop business/growth strategies, assess the market competitive situation, analyze their position in the current marketplace, and make informed business decisions regarding Flexible AC Transmission Systems (FACTS).
1. Renewable Energy Integration and Grid Modernization
The global shift toward renewable energy sources like wind and solar has created an urgent need to stabilize power grids. FACTS devices help manage the intermittent nature of renewable energy by providing reactive power support, voltage control, and power flow control, making them essential in modern grid infrastructure.
In regions with high renewable energy penetration, such as Europe and North America, utilities are increasingly investing in FACTS to prevent grid instability and reduce transmission losses.
2. Growing Electricity Demand and Industrialization
Rapid industrialization in developing countries has led to increased electricity consumption. FACTS devices help optimize existing transmission infrastructure, delaying or eliminating the need for building new power lines, which is both cost-effective and environmentally friendly.
Countries like China and India are investing heavily in FACTS to support their growing industrial sectors and reduce transmission losses in their extensive power networks.
3. Grid Reliability and Power Quality Requirements
Modern digital economies require extremely reliable power delivery. Industries such as data centers, semiconductor manufacturing, and healthcare facilities cannot tolerate power interruptions or voltage fluctuations. FACTS devices provide the necessary power quality improvements to support these sensitive loads.
High initial investment: FACTS devices represent significant capital expenditure, which can be a barrier for utilities in developing regions.
Technical complexity: Designing and implementing FACTS solutions requires specialized expertise that may not be readily available in all markets.
Regulatory frameworks: In some regions, the regulatory environment has not kept pace with technological advancements, creating uncertainty for potential investors.
The global transition toward digitalization, electrification, and sustainable infrastructure presents significant opportunities. Regions such as Asia-Pacific, Latin America, and Middle East & Africa are witnessing growing momentum through:
Grid modernization initiatives: Governments worldwide are investing in smart grid technologies.
Renewable energy integration targets: Countries are setting ambitious renewable energy targets, driving demand for grid stabilization solutions.
Infrastructure development programs: Emerging economies are investing in their power infrastructure to support economic growth.
Notably, leading manufacturers like ABB, Siemens, and General Electric have announced expansion plans in emerging markets, focusing on:
Localized manufacturing to reduce costs
Training programs to develop local expertise
Partnerships with local utilities and industrial players
By Product Type
Shunt Compensation (e.g., STATCOM, SVC)
Series Compensation (e.g., SSSC, TCSC)
Combined (hybrid) solutions
Others (power conditioning devices, active filters)
By Application
Electric Utilities
Railways and Metro Systems
Industrial Sector (metals, mining, manufacturing)
Renewable Energy Farms (wind, solar parks)
Data Centers and Critical Infrastructure
By End User
Electric Utilities
Industrial Sector
Commercial Sector
Railways and Transport
North America: Mature market with replacement and upgrade demand. The U.S. and Canada have extensive FACTS deployments, particularly in renewable energy integration and grid modernization projects.
Europe: Leader in renewable energy integration, with countries like Germany, UK, and Spain investing heavily in grid stability solutions to support their energy transition goals.
Asia-Pacific: Fastest growing market due to rapid industrialization and urbanization. China and India are the largest markets, investing heavily in power infrastructure.
Latin America, Middle East & Africa: Emerging markets with growing investments in power infrastructure, though at earlier stages of adoption.
The global FACTS market is moderately consolidated, with the top 5 players accounting for approximately 60% of the market share. However, the market has a long tail of regional and specialized players offering niche solutions.
Key competitive strategies include:
Product innovation and portfolio expansion
Geographic expansion into emerging markets
Strategic partnerships and acquisitions
Focus on lifecycle services and digital solutions
Intel Market Research is a leading provider of strategic intelligence, offering actionable insights in energy, power systems, and industrial automation. Our research capabilities include:
Market sizing and forecasting for power equipment
Technology trend analysis
Competitive intelligence and benchmarking
Policy and regulatory analysis
Trusted by Fortune 500 companies, our insights empower decision-makers to drive innovation with confidence.
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