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Static Synchronous Compensator Market

The market for Static Synchronous Compensator was estimated at $1.0 billion in 2024; it is anticipated to increase to $1.6 billion by 2030, with projections indicating growth to around $2.3 billion by 2035.

Report ID:DS2401045
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Power Generation
Static Synchronous Compensator
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Report Summary
Market Data
Methodology
Table of Contents

Global Static Synchronous Compensator Market Outlook

Revenue, 2024

$1.0B

Forecast, 2034

$2.1B

CAGR, 2025 - 2034

7.5%

The Static Synchronous Compensator (STATCOM) industry revenue is expected to be around $1.1 billion in 2025 and expected to showcase growth with 7.5% CAGR between 2025 and 2034. The steady increase in the synchronous compensator market showcases its continued relevance and strength in a rapidly changing environment. This growth mainly stems from key factors such as the increasing need for power and the global shift towards sustainability leading to higher use of renewable energy sources. As a result of these trends and the push for resilient grid infrastructure there is a rising demand, for advanced compensating devices. Furthermore​, increased industrialization and digital transformation are driving the demand, for top notch power supply​, which is also boosting the importance in various sectors that rely on the static synchronous compensator​.

The static synchronous compensator is a tool that helps enhance power factor and distribute the load evenly in the power grid by supplying reactive power to improve stability and efficiency overall. STATCOM units play a role in energy systems and are widely used in various sectors including power generation as well as industries like oil and gas production and automotive and transportation sectors. Their importance is growing steadily due to the rising popularity of vehicles and the implementation of smart grid technologies along, with distributed generation initiatives.

Static Synchronous Compensator market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034
Static Synchronous Compensator Market Outlook

Market Key Insights

  • The Static Synchronous Compensator market is projected to grow from $1.0 billion in 2024 to $2.1 billion in 2034. This represents a CAGR of 7.5%, reflecting rising demand across Wind Power Generation, Electric Railways, and Renewable Energy Integration.

  • ABB Ltd., GE Power, Siemens AG are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Germany are the top markets within the Static Synchronous Compensator market and are expected to observe the growth CAGR of 4.9% to 7.2% between 2024 and 2030.

  • Emerging markets including Chile, Indonesia and Turkey are expected to observe highest growth with CAGR ranging between 8.6% to 10.3%.

  • Transition like Expansion to Renewable Energy Sources is expected to add $54 million to the Static Synchronous Compensator market growth by 2030.

  • The Static Synchronous Compensator market is set to add $1.1 billion between 2024 and 2034, with manufacturer targeting Renewable Energy Integration & Power Generation Application projected to gain a larger market share.

  • With Renewable energy integration, and infrastructure Development, Static Synchronous Compensator market to expand 106% between 2024 and 2034.

static synchronous compensator market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Static Synchronous Compensator - Country Share Analysis

Opportunities in the Static Synchronous Compensator

The increasing shift towards energy indicates a significant opportunity for static synchronous compensators to help stabilize power supply fluctuations from renewable sources, like wind and solar farms more effectively.

Growth Opportunities in North America and Asia Pacific

In North America's market for Static Synchronous Compensators significant growth is observed due to the enhancements in the current power infrastructure and the implementation of Smart Grid technologies. The rise in power usage and the demand for energy management solutions have pushed for the utilization of sophisticated compensation systems such as Static Synchronous Compensators . The competitive scenario in this sector is characterized by the presence of known manufacturers, like ABB, Siemens, Toshiba and General Electric who are continuously innovating to offer comprehensive solutions. These key players prioritize the quality and success of their products to outperform competitors and grow their market presence.
In contrast in the Asia Pacific region growing industrialization and urbanization are driving the need for Static Synchronous Compensators. Notably nations such as China and India experiencing a level of development have an increasing requirement for secure and dependable power systems. Thus the Static Synchronous Compensator market expands supportive of power factor adjustment and voltage stability. Competitive tension is intense in this zone, with both local and global competitors competing for a piece of the pie. The Static Synchronous Compensator market in this region is influenced by an emphasis, on renewable energy production and the modernization of power grids. Additionally regulatory initiatives to promote energy efficiency play a role.

Market Dynamics and Supply Chain

01

Driver: Renewable Energy Integration, and Advancements in Power Electronics Technology

The worldwide shift towards energy sources is also one of the main drivers for the use of Static synchronous compensators in the market. With nations and businesses seeking energy options in mind the incorporation and consistency of renewable energy into the power grid present notable hurdles. As such there is also an increasing need for STATCOM gadgets because of their ability to enhance power efficiency minimize harmonics and maintain stability within the grid setup ultimately making it easier to integrate energy sources such, as solar and wind power. Technological advancements have also given rise to improved versions of power electronic devices, including Static synchronous compensators. Newer models offer more reliability, better performance, and greater efficiency. As these technologies continue to mature and are also adopted across various industries, it is also expected to drive the market growth for Static synchronous compensators in the years to come.
The growth of cities and quick construction of infrastructure in developing countries are also driving the demand for effective power systems to new heights. As more buildings and facilities are also being erected to meet the needs of expanding areas the requirement for top notch electricity supply has also surged. STATCOM devices play a role in ensuring a stable power supply by keeping the voltage levels steady in the power grid thus playing a key part, in advancing infrastructure development.
02

Restraint: High Initial Installation Cost

The STATCOM device is a power quality solution called the static synchronous compensator that enhances grid efficiency significantly; nonetheless its expensive initial setup cost may hinder widespread usage. Because it relies on power electronics for real time voltage control acquiring and installing this technology might be financially burdensome, for newcomers and small power distribution firms. This financial aspect could lead to market demand ultimately influencing market conditions.
03

Opportunity: Strong Demand in Emerging Economies and Technological Innovations and Strategic Collaborations

The growing focus on using electricity and the need for effective power distribution systems in developing nations presents a promising market opportunity. In nations such as China, India and Brazil where industrialization and urban development are rapidly expanding, utilizing STATCOM for voltage control, in power grids could offer significant advantages.
Groundbreaking progress in the synchronous compensator field could open up new possibilities through thoughtful partnerships, between industry stakeholders. For example; by investing in research and development efforts to improve the performance and longevity of synchronous compensators; these technological innovations have the potential to drive market expansion.
04

Challenge: Lack of Awareness and Skilled Workforce

A key restraint affecting the STATCOMs market is the limited awareness among potential end-users regarding its operational advantages, grid stabilization benefits, and strategic value in modern power systems. This challenge is compounded by a shortage of trained professionals proficient in installing, operating, and maintaining these complex power electronics systems, which can delay adoption, increase operational risks, and limit market growth potential across emerging and developed regions.

Supply Chain Landscape

1

Raw Material Suppliers

ToshibaABB
2

Equipment Production

GE PowerSiemens
3

Distribution & Installation

EATONSchneider Electric
4

End Users

Power GenerationOil and Gas
Static Synchronous Compensator - Supply Chain

Use Cases of Static Synchronous Compensator in Wind Power Generation & Electric Railways

Wind Power Generation : Static synchronous compensators are extensively used in wind power generation to regulate and stabilize the grid voltage. Primarily, a Statcom-based wind power system is deployed given its unique advantage of providing dynamic voltage support to reduce or eliminate fluctuations. Key players capitalizing on this application include Siemens, ABB, and GE, highlighting their strengths in providing technologically advanced solutions for efficient power generation.
Electric Railways : In electric railway systems, STATCOM are used to manage the reactive power and maintain the quality of electric supply. Typically, medium capacity Statcom is utilized in such setups due to its capability to mitigate voltage sags and maintain consistent railway operations. Major players like Mitsubishi Electric and Schneider Electric stand out in this application domain for their innovative and reliable railway electrification solutions.
Renewable Energy Integration : STATCOM also play a crucial role in the integration of renewable energy systems into the grid. High voltage STATCOM is mostly used in this application for its ability to aid in the smooth interconnection of renewable energy sources, such as solar and wind, to the main power grid. Companies like Infineon Technologies and Eaton are leading in this application, providing top of the line components and services to enhance grid interoperability and support the shift towards renewable energy sources.

Recent Developments

The Static Synchronous Compensator market been exposed to considerable innovation and change. Technological advancements and increasing customer demand have resulted in a significant upswing in the development and use of this advanced power system stabilizer. Power system operators across the globe are increasingly adopting STATCOM to effectively manage power quality and improve stability in the electricity grid.

December 2024 : General Electric announced the launch of an advanced static synchronous compensator, enhancing the stability and reliability of power transmission networks
November 2024 : ABB secured a multimillion-dollar contract to deliver its state-of-the-art static synchronous compensators for a major electric utility grid in Europe
October 2024 : Siemens stormed the market with its innovative static synchronous compensator technology for integrating renewable energy into the power grid efficiently.

Impact of Industry Transitions on the Static Synchronous Compensator Market

As a core segment of the Power Generation industry, the Static Synchronous Compensator market develops in line with broader industry shifts. Over recent years, transitions such as Expansion to Renewable Energy Sources and Technological Advancements in Grid Infrastructure have redefined priorities across the Power Generation sector, influencing how the Static Synchronous Compensator market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Expansion to Renewable Energy Sources

STATCOM has played a role in the power industry by aiding in the integration of renewable energy sources into the grid as a response to the increasing need for clean and sustainable energy solutions The utilization of STATCOM in wind and solar power plants improves grid stability and reliability by offering accurate compensation, for reactive power needs. The growing utilization of energy has made the STATCOM a vital tool, for managing power fluctuations and grid issues in the renewable industry.
02

Technological Advancements in Grid Infrastructure

The adoption of STATCOMs is playing a pivotal role in the modernization of electrical grids, driving transformative impacts across multiple technologies and industries. By providing rapid, flexible reactive power support, voltage stabilization, and adaptability to varying system conditions, STATCOMs enhance grid reliability and operational efficiency. Utilities and industrial operators are increasingly deploying this technology to strengthen grid resilience, reduce downtime, and integrate renewable energy sources more effectively. The ability to respond dynamically to fluctuations in demand and supply not only improves energy quality but also supports broader modernization initiatives, positioning STATCOMs as a critical enabler of smart and stable power networks.