Power Quality Equipment Market Expected to Reach $49.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Power Quality Equipment Market," The power quality equipment market size was valued at $28.5 billion in 2021, and is estimated to reach $49.6 billion by 2031, growing at a CAGR of 5.8% from 2022 to 2031.

Power quality equipment is a device, which is extensively deployed in the residential and commercial sector for regulating, providing, and maintaining uniform power quality. It is further utilized to ensure a steady voltage supply and reduce the utility of multiple devices in a system. Power quality equipment offers various benefits, such as eliminating premature aging of equipment, enhanced efficiency avoiding damages, and avoiding loss of data. In addition to this, some of the most commonly used power quality equipment include harmonic filters, isolation transformers, power quality meters and compensators.

Significant development of end-user such as industrial, commercial, and residential is fueling the growth of the power quality equipment market, owing to a rise in demand for power quality equipment to operate the machineries & equipment in industries, and is thereby expected to drive the growth of the power quality equipment market during the forecast period. In addition, increase in demand for power quality equipment for grid stabilization applications from electric utilities such as power generation plants, transmission, distribution, industries and other utilities in developing economies, is driving the growth of the market, globally. However, availability of alternatives such as solid oxide fuel cells, isolation transformers and high cost associated with power quality equipment are expected to be the key factors hampering the growth of the global power quality equipment market in the upcoming years.

Depending on equipment, the UPS segment garnered the highest power quality equipment market share of about 37.9% in 2021, and is expected to maintain its dominance during the forecast period. This is attributed to rise in demand for electricity compensation from electric utilities such as transmission system, power plants, and other industrial applications. In addition, these supplies provide stable and reliable power to critical safety-related loads such as emergency lights and medical equipment, reduce or avoid production losses, minimize or eliminate production damage, avoid product or facility damages, and reduce or avoid electricity-using equipment damages, which are anticipated to fuel the global power quality equipment market growth in the coming years.

On the basis of phase, the three-phase segment acquired the largest share in 2021, in terms of revenue, and is expected to maintain its dominance during the forecast period. This is because it is used in commercial and industrial facilities to accommodate higher loads, and it delivers power at a steady & constant rate.

On the basis of end user, the industrial segment held the largest share in 2021, in terms of revenue, and is expected to maintain its dominance during the forecast period. Moreover, the growth of this segment is driven by a rise in demand for uninterrupted power supply to machines used in manufacturing and process industries, as any interruption or breakdown can result in significant losses, due to loss of production time. Utilities are key consumers of power quality equipment, owing to the fact that sheer size of electrical networks operated by utilities is larger than the industrial and transportation electric infrastructures. This is further anticipated to drive the demand for power quality equipment in upcoming years.

On the basis of region, the market is analyzed across four major regions such as North America, Europe, Asia Pacific, and LAMEA. Asia-Pacific garnered the dominant share in 2021, and is anticipated to maintain this dominance in the power quality equipment market trend during the forecast period. This is attributed to presence of key players and a huge consumer base in the region. In addition, rapid expansion of the renewable energy sector, rise in investment toward building & construction of modern grid infrastructure, and increase in R&D efforts in the region are further anticipated to fuel the power quality equipment market growth in the upcoming years.

The global power quality equipment market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the report include ABB, Ltd., Andritz, Eaton Corporation Plc, Fuji Electric, General Electric, Ideal Electric Power Co., Mitsubishi Electric Corporation, Siemens Energy, Voith GmbH & Co. KGaA, and WEG Group.

Other players operating in the power quality equipment market forecast are Toshiba Corporation, Brush Group, Sustainable Power Systems, Inc., Power Systems & Controls, Inc., Ansaldo Energia, and Modern Power Systems.

Impact of COVID-19 outbreak on the market

The outbreak of COVID-19 has negatively impacted various industries and countries across the globe. Owing to the lockdown imposed, globally, decrease has been witnessed in the growth rate of the industries such as construction & building, transportation, oil & gas, and energy sectors. This has further declined the need for electricity, which, in turn, has hampered the growth of the power quality equipment market in the next one and two years. In Europe, economies such as Germany, France, Spain, and Italy are following stringent measures such as attaining social distance and limiting movements to prevent the spread of coronavirus.

Furthermore, halt in construction of new electric grid utility infrastructures, renewable power plants, grid network, and other power plants due to the lack of workers and increase in demand–supply gaps, is projected to hamper the market growth in the pandemic period. Thus, all these factors collectively were expected to result in sluggish growth of the global power quality equipment market in 2020.

The outbreak of COVID-19 has negatively impacted various industries and countries across the globe.In the year 2022 globally, increase has been witnessed.in the growth rate of the industries such as construction & building, transportation, oil & gas, and energy sectors. This has further increase the need for electricity, which, in turn, has shown the positive growth of the power quality equipment market in the coming years

Key findings

• By equipment, the UPS segment held the highest power quality equipment market share of about 37.9% in 2021, and is expected to maintain its dominance during the forecast period.
• By end user, in 2021, the industrial segment accounted for 57.08% market share, and is anticipated to grow at a rate of 6.0% in terms of revenue.
• By phase, in 2021, the three-phase power quality equipment segment accounted for 75.39% market share, and is anticipated to grow at a rate of 6.1% in terms of revenue.
• By region, in 2021, Asia-Pacific dominated the global power quality equipment market with 43% of the share, in terms of revenue.