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Active Power Filters Market

The market for Active Power Filters was estimated at $728 million in 2025; it is anticipated to increase to $1.04 billion by 2030, with projections indicating growth to around $1.49 billion by 2035.

Report ID:DS2401039
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Power Generation
Active Power Filters
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Report Summary
Market Data
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Table of Contents

Global Active Power Filters Market Outlook

Revenue, 2025

$728M

Forecast, 2035

$1.49B

CAGR, 2026 - 2035

7.4%

The Active Power Filters (APF) industry revenue is expected to be around $728.1 million in 2026 and expected to showcase growth with 7.4% CAGR between 2026 and 2035. This trajectory reflects the growing strategic importance of Active Power Filters as critical power quality solutions, as heavy industry & manufacturing together with data centers & IT facilities now account for 61.8% of global demand, underscoring their role in safeguarding mission‑critical loads and industrial automation assets from harmonic distortion and voltage disturbances. Heightened focus on harmonic mitigation and reactive power compensation, stricter grid codes, and the rising penetration of sensitive non-linear loads are encouraging end users to replace or augment conventional passive filters with advanced, digitally controlled systems. Within this landscape, shunt Active Power Filters remain the dominant product configuration, generating approximately $319.66 million in revenue in 2025, supported by their flexibility in retrofits, superior dynamic response, and capability to address multiple power quality issues simultaneously across complex industrial power systems. Collectively, these factors are reinforcing the ongoing relevance of Active Power Filters as a cornerstone technology for optimizing energy efficiency, reducing downtime, and extending asset life in both legacy and modern electrical infrastructures.

Active Power Filters are power electronic devices designed to measure, analyze, and dynamically compensate current and voltage waveforms in real time, thereby mitigating harmonics, correcting power factor, and stabilizing voltage to maintain IEEE 519 compliance in demanding environments. Key features typically include fast-response IGBT-based converters, advanced digital control algorithms, modular and scalable architecture, and seamless integration with plant energy management systems for continuous monitoring and diagnostics. Major applications span heavy manufacturing plants, metals and mining operations, data centers and IT facilities, semiconductor fabrication, commercial buildings, and renewable energy integration, where they protect sensitive equipment, increase usable transformer capacity, and improve overall system reliability. Recent trends driving demand include the rapid expansion of high-density data centers, electrification of industrial processes, growth in inverter-based renewable generation, and deployment of smart grid infrastructure, all of which increase harmonic content and variability on networks and thereby elevate the need for sophisticated, software-driven APF solutions.

Active Power Filters market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Active Power Filters Market Outlook

Market Key Insights

  • The Active Power Filters market is projected to grow from $728.1 million in 2025 to $1.49 billion in 2035. This represents a CAGR of 7.4%, reflecting rising demand across Harmonic Filtration in Power Systems, Power Quality Improvement in Industrial Sectors, and Voltage Regulation in Renewable Energy Systems.

  • ABB, Schneider Electric SE, and Delta Electronics Inc. are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Germany are the top markets within the Active Power Filters market and are expected to observe the growth CAGR of 4.8% to 7.1% between 2025 and 2030.

  • Emerging markets including Brazil, Indonesia and South Africa are expected to observe highest growth with CAGR ranging between 8.5% to 10.2%.

  • Transition like Incorporating APF in Renewable Energy is expected to add $84 million to the Active Power Filters market growth by 2030.

  • The Active Power Filters market is set to add $759 million between 2025 and 2035, with manufacturer targeting Utilities & Data Centers & IT Facilities Application projected to gain a larger market share.

  • With

    surge in demand for improved power quality, and

    Increasing Electrification in Industrial Processes, Active Power Filters market to expand 104% between 2025 and 2035.

active power filters market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Active Power Filters - Country Share Analysis

Opportunities in the Active Power Filters

Europe’s accelerating onshore wind build‑out is also straining rural grids with fluctuating reactive power and converter‑driven harmonics, opening a premium niche for Hybrid Active Power Filters integrated at turbine strings and substations. Globally, hybrid units are the fastest‑growing type, expanding from roughly $136.16 million in 2025 to $205.69 million by 2030, an 8.6% CAGR. Players that combine hybrid Active Power Filters with condition‑monitoring analytics and energy efficiency upgrades for balance‑of‑plant systems can secure long‑term, performance‑based contracts with wind asset owners.

Growth Opportunities in Asia-Pacific and North America

In Asia-Pacific, the Active Power Filters market is anchored by heavy industry & manufacturing, where accelerating automation and smart factories demand advanced power quality management to control harmonic distortion and safeguard three-phase power systems. Top opportunities arise from large-scale retrofit programs in metal, cement, and electronics clusters, where harmonic mitigation and reactive power compensation can be bundled with digital monitoring as differentiated, high-margin solutions. Competition is intense from regional mid-tier vendors offering low-cost filters, making product positioning around reliability, lifecycle service, and integration with plant energy management systems essential to defend share and support industrial energy efficiency mandates. Key demand drivers include stricter grid codes, rapid capacity additions in data center power and rail electrification, and utility pressure to maintain voltage stability without costly network reinforcements, creating scope for partnerships with EPCs and OEMs across the grid modernization value chain.
In North America, Active Power Filters adoption is led by data centers & IT facilities, followed closely by utilities, as operators seek superior power quality management to mitigate harmonic distortion from high-density computing, EV charging, and inverter-based resources. The strongest opportunities lie in premium, digitally enabled solutions for hyperscale data center power, semiconductor fabs, and mission-critical healthcare sites, where customers value advanced monitoring, remote diagnostics, and seamless integration into existing three-phase power systems. Competitive dynamics feature established multinational brands and specialized niche players, pushing new entrants to focus on application-specific designs, modular platforms, and service-based contracts that guarantee harmonic mitigation and uptime. Regulatory drivers around energy efficiency, incentives for grid modernization, and the rapid integration of distributed renewable assets are accelerating investments in reactive power compensation and voltage stability support, opening investment avenues in utility substation retrofits, microgrids, and behind-the-meter power quality upgrades for industrial energy efficiency.

Market Dynamics and Supply Chain

01

Driver: Growing Industrial Electrification and Rising Harmonic Disturbances in Power Networks

The increasing electrification of industries is also a key driver for active power filters. Modern industrial plants are also integrating advanced machinery, variable frequency also drives, and high-capacity motors, all of which introduce nonlinear loads into the electrical network. These nonlinear loads generate harmonics, resulting in inefficient power delivery and potential equipment damage. Simultaneously, the rise of smart grids and automated production facilities has also intensified the need for harmonic mitigation solutions. Shunt and hybrid active power filters are also deployed to cancel harmonic currents in real time, improving system efficiency. By addressing these growing challenges, APFs enhance equipment lifespan, reduce operational losses, and ensure stable voltage and current profiles across industrial and utility networks, meeting the rising demand for reliable, high-quality power.
The rapid adoption of renewable energy sources, including solar PV and wind turbines, is also creating a strong demand for active power filters. These energy systems are also prone to voltage fluctuations and power quality disturbances due to their intermittent generation. Hybrid APFs and inverter-based compensation solutions help maintain voltage stability, regulate reactive power, and mitigate harmonics injected into the grid. Grid operators and energy developers are also increasingly deploying these filters to protect sensitive equipment, ensure compliance with grid codes, and maintain efficient power delivery. This trend is also accelerating the adoption of advanced APF technologies in modern renewable energy projects worldwide.
02

Restraint: High Initial Investment and Complex Integration Requirements Increase Adoption Barriers

A key restraint in the active power filter market is the high upfront cost and complex integration requirements. Advanced APF systems involve sophisticated power electronics, sensors, and control units, making them more expensive than passive alternatives and creating financial hurdles, especially for cost‑sensitive small and medium enterprises. Many facilities face increased installation costs when integrating APFs into legacy electrical systems due to the need for system analysis, custom configuration, and specialized expertise. This complexity leads some end users to delay upgrades or opt for cheaper passive solutions, slowing revenue growth and broader adoption.
03

Opportunity: Shunt Active Power Filters for Indian Automotive Component Manufacturers and Series and UPQC APF for Latin American Data Centers

Rapidly electrifying Indian automotive component plants are deploying variable‑speed drives, robots, and welding lines that intensify harmonic distortion and voltage flicker, exposing an underserved need for advanced Active Power Filters. Shunt configurations will dominate here, aligned with their global rise from about $319.66 million in 2025 to $450.44 million by 2030 at 7.1% CAGR. Vendors that bundle shunt APF with industrial automation retrofits and power factor correction audits for Tier‑2 and Tier‑3 suppliers can capture high‑margin, first‑mover service contracts.
Cloud, fintech, and content providers are driving a wave of hyperscale data centers across Brazil, Mexico, and Chile, where weak grids and frequent disturbances demand advanced APF as core power quality solutions. Series and UPQC configurations are set to grow fastest in this niche, with series units globally increasing from about $184.22 to $262.02 million by 2030 at 7.3% CAGR, ahead of UPQC’s 6.79% rise. Vendors offering smart grid‑ready architectures and turnkey redundancy engineering can win regional co‑location leaders.
04

Challenge: Lack of Awareness and Technical Expertise Limits Market Penetration and Scale

Another significant restraint is the limited awareness of APF benefits and the shortage of skilled professionals for installation and maintenance. Many potential buyers, particularly in developing regions, do not fully understand long‑term benefits such as improved power quality, reduced equipment wear, and lower energy costs, which hinders proactive investment. This knowledge gap and the technical complexity of APFs for tasks such as calibration and tuning increase reliance on external support and deter adoption. Consequently, market expansion is constrained as some industries continue using outdated or less effective power quality solutions.

Supply Chain Landscape

1

Component Supply

Infineon Technologies AGMitsubishi Electric Corporation
2

Active Power Filters Manufacturing

ABB Ltd.Schneider Electric SE
3

Power Quality Solutions Integration

Delta Electronics Inc.Trinity Energy Systems Pvt. Ltd
4

End-User Applications

Industrial power quality managementCommercial buildings energy efficiency
Active Power Filters - Supply Chain

Use Cases of Active Power Filters in Harmonic Filtration in Systems & Voltage Regulation in Renewable Energy Systems

Harmonic Filtration in Power Systems : Active power filters are extensively used in power systems to mitigate harmonics generated by nonlinear loads such as variable frequency drives, UPS systems, and industrial motors. Shunt APFs are the most commonly deployed type, as they inject compensating currents to cancel harmonic distortions. Utility providers and large-scale industrial plants rely on these filters to ensure stable voltage and current waveforms, reduce harmonic-related equipment heating, and prevent malfunctions. By improving system power quality, APFs enhance overall grid efficiency, prolong the lifespan of electrical equipment, and reduce operational losses in both commercial and industrial electrical networks.
Power Quality Improvement in Industrial Sectors : In industrial sectors, active power filters are crucial for maintaining high-quality electrical power in environments with heavy machinery, arc furnaces, and other nonlinear loads. Series APFs and hybrid configurations are often preferred to compensate for both current and voltage disturbances simultaneously. Industrial operators use these filters to prevent downtime, avoid production losses, and maintain compliance with power quality standards. By minimizing voltage sags, flickers, and harmonics, APFs enable consistent operation of sensitive equipment, reduce maintenance costs, and improve overall energy efficiency in manufacturing plants, refineries, and other industrial facilities.
Voltage Regulation in Renewable Energy Systems : Active power filters play a key role in renewable energy systems such as solar PV and wind farms by stabilizing voltage and reactive power fluctuations caused by intermittent generation. Hybrid APFs integrated with STATCOM or inverter-based solutions are commonly used to provide dynamic voltage support. Energy developers and grid operators use these systems to maintain consistent power output, enhance grid stability, and protect sensitive downstream equipment. By regulating voltage and compensating for harmonics, APFs help improve the efficiency and reliability of renewable energy integration while enabling compliance with grid codes and standards.

Recent Developments

Recent developments in active power filters show a strategic shift toward intelligent power quality solutions that integrate real‑time monitoring and predictive control. Vendors are embedding AI and machine learning into APF systems to enhance harmonic mitigation, voltage stabilization, and adaptive reactive power compensation. A key market trend is the rise of smart grid compatibility, where APFs work with distributed energy resources and renewable integration to maintain clean power delivery. These innovations improve energy efficiency, reduce downtime, and support flexible grid management in industrial and utility networks.

December 2025 : ABB finalized its acquisition of the power electronics business of Gamesa Electric from Siemens Gamesa, including converter and inverter technologies that support APF‑related power quality and renewable integration solutions. This deal expands ABB’s power electronics and grid support portfolio while establishing a supply and services agreement with Siemens Gamesa to broaden renewable infrastructure offerings. The acquisition brings new engineering resources and production capacity to ABB’s APF ecosystem and strengthens its market position.
June 2024 : Schneider Electric announced a strategic partnership with Delta Electronics to co‑develop and market integrated active power filter modules and cabinets for industrial and EV charging applications. This collaboration focuses on enhancing harmonic mitigation and power quality performance while expanding product reach across global industrial markets, illustrating a key supply and innovation alliance in the APF sector.

Impact of Industry Transitions on the Active Power Filters Market

As a core segment of the Power Generation industry, the Active Power Filters market develops in line with broader industry shifts. Over recent years, transitions such as Incorporating APF in Renewable Energy and Digitalization and Smart Grid Systems have redefined priorities across the Power Generation sector, influencing how the Active Power Filters market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Incorporating APF in Renewable Energy

The integration of APF into renewable energy systems is becoming a decisive growth driver, with this transition alone projected to add approximately $84 million to the APF market by 2030. As solar power plants and wind farms scale, APF solutions are increasingly deployed for harmonic mitigation, reactive power compensation, and power quality management, ensuring grid stability under variable generation conditions. By reducing harmonic distortion and voltage fluctuations, APF significantly enhance energy efficiency and reliability, enabling higher penetration of green energy assets without compromising network performance. This shift positions APF technologies as critical enablers of modern renewable integration strategies, transforming them from optional add-ons into core infrastructure investments that directly support utility resilience, regulatory compliance, and long-term operational cost optimization.
02

Digitalization and Smart Grid Systems

The active power filter industry is undergoing a significant transformation driven by the rise of digitalization and smart grid systems. Advanced technologies such as artificial intelligence, machine learning, and Big Data analytics are being integrated into power monitoring and control systems, enabling real-time detection and compensation of harmonic distortions and voltage fluctuations. For example, industrial facilities and data centers now use AI-enhanced APFs to optimize energy flow, reduce equipment stress, and improve operational efficiency. Similarly, smart grids leverage these advanced filters to maintain power quality across distributed networks and renewable energy installations. This technological shift not only increases the demand for intelligent APF solutions but also supports more efficient, sustainable, and reliable energy delivery across manufacturing, utility, and commercial sectors.