In 2020, the global static VAR compensator market size was more than $648 million. During the forecast period from 2021-2027, the global static VAR compensator market is forecast to grow at a compound annual growth rate (CAGR) of more than 3%. 

The static VAR compensation assembly utilizes a fixed shunt capacitor in parallel with a controlled reactor. Static VAR compensators can further stabilize the bus voltage factor by manipulating the inductive current output. In addition, the device achieves zero time delay by reducing reactive power over extended ranges.   

Factors Affecting the Market

• As the population grows, a wide variety of consumer products demand rises, consequently, makes the industrial manufacturing sector flourish.
• According to Trading Economics, India's industrial production rose by 13.6% year-over-year in June 2021, driving the increase in demand for primary metals, refined petroleum products, motor vehicles, and other advanced materials. 
• Heavy fluctuations in the power supply can hinder the operation of these large-scale industries, especially steel. Static VAR compensators are electrical devices that stabilize voltage output for industrial applications in order to maintain specific voltage parameters. It has led to several industrial sectors, including steel, cement, and power utilities, using static VAR compensators to compensate for voltage. This combination of factors contributes to the growth of the static VAR compensator market on a global level.
• VAR compensators have one or more banks of fixed shunt reactors and capacitors, such as thyristor controlled reactors (TCR), thyristor switched capacitors (TSC), mechanically switched reactors, or capacitors, harmonic filters, and others. Small industries find static VAR compensators expensive because of the combination of this equipment. During the forecast period, this factor will restrain the growth of the static VAR compensator market.
• The new advanced digital control algorithm for the SVC system has already revolutionized critical control software in sectors of power grids, aviation, renewable energy, and others. Therefore, advancement in digital control and automated control SVC systems will likely open up new market opportunities. 

Covid-19 Impact

• Coronavirus caused an incomparable global pandemic that spread to several countries and has resulted in death and economic damage worldwide. 
• The market for static VAR compensators has seen negative effects in the wake of the COVID-19 pandemic because it is reliant on electric utility, railways, steel and metal, mining, heavy industry, oil and gas, and other industries. 
• The National Bureau of Statistics of China released a report showing that production in the large-scale manufacturing industry declined by 20% in March 2020. 
• There have been instances in which companies that use static VAR compensators as voltage stabilizers have shut down or minimized operations due to an increased risk of infection among the workforce. In the aftermath of COVID-19, static VAR compensator sales have temporarily slowed down. 
• Additionally, the falling income of customers and travel restrictions imposed by both local and state governments on special trains on selected routes have resulted in a decline in the demand for static VAR compensators. 
• According to a report published by Energy and Economic Growth Survey, the oil and gas sector experienced an average contraction of -2.8% in 2020. There has been a decrease in the demand for static VAR compensators for voltage compensation applications in the oil and gas sector. In a number of countries, traders have temporarily stopped buying unnecessary products, affecting the demand-supply chain for COVID-19 solutions and static VAR compensators. 

Regional Overview of the Asia-Pacific Market

In 2020, Asia-Pacific held the largest share of the static VAR compensators market. Over the forecast period, Asia-Pacific will experience the fastest growth in the static VAR compensator market. The Asia-Pacific region uses static VAR compensators in sectors such as steel and metal, electric utilities, and railways. In China and India, the overwhelming demand for steel and metal products in the building & construction, automotive, and other sectors is fueling the sales of static VAR compensators.

Key Players

The leading companies in the global static VAR compensators market are: 

• American Superconductor Corporation
• Eaton, General Electric
• Hitachi ABB Power Grids
• Mitsubishi Electric Corporation
• Nidec Industrial Solutions
• Nissin Electric Co., Ltd.
• NR Electric Co., Ltd.
• Rongxin Power Ltd.
• Siemens AG
• Other Prominent Players

Aim of the Report

The global static VAR compensator market segmentation focuses on Type, Component, End-Use, and Region.

Segmentation based on Type

• Thyristor-based
  • TCR-FC
  • TCR-TSC
• MCR-Based

Segmentation based on Component

• Power Electronic Device
• Harmonic Filter
• Thyristor
• Reactor
• Capacitor Bank
• GIS Switchgear
• Control Protection System
• Others

Segmentation based on End-Use

• Electric Utility
• Railways
• Industrial
  • Steel and Metal
  • Mining
  • Heavy Industrial
• Oil and Gas

Segmentation based on Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Brazil
  • Argentina
  • Rest of South America