Static VAR Compensator Market
Report ID: SQMIG20E2144
Report ID: SQMIG20E2144
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Report ID:
SQMIG20E2144 |
Region:
Global |
Published Date: December, 2025
Pages:
172
|Tables:
65
|Figures:
70
Global Static VAR Compensator Market size was valued at USD 822.77 Million in 2024 poised to grow between USD 853.21 Million in 2025 to USD 1141 Million by 2033, growing at a CAGR of 3.7% in the forecast period (2026–2033).
These factors are driven primarily by the increasing need for voltage stability, increasing electricity demand, and the growth of renewable energy sources, including wind and solar. Moreover, with the increase in compressed discussion of some renewables such as wind and solar, the demand for reactive power control systems (like SVC) has increased to ensure step stability and reliability. Additionally, many industries play a huge role in market growth such as steel, mining, and chemical processing, which is of importance in terms of electricity consumption as electric arc furnaces and other high-power equipment can create instability of the power network. Consequently, this is leading to electric utilities or industries where the gap of electric usage is increasing adopt SVC in order to improve voltage flicker to improve power quality and reliability of deployments.
However, high costs of installation/installation of these systems are some barriers, as well as an increase in complexities of putting these systems on-line, since being able to deploy and implement advanced technologies such as modular design, significantly hybrid SVC systems, predictive maintenance, etc. will further reduce the barriers to innovative deployment that would increase their adoption or market growth in developed and developing economies.
How are AI and IoT changing the Static VAR Compensator (SVC) market?
AI and IoT technologies are changing the global static VAR compensator (SVC) market by introducing real-time monitoring, intelligent control, and predictive maintenance capabilities. IoT sensors continuously collect operational data, and AI takes these data and analyzes them in order to improve the management of reactive power and identify potential faults before they occur. The results are less down time, better voltage regulation, and grid efficiency; while both utilities and industries save time and make better, more reliable decisions, the incorporation of renewables as a driving force will contribute to an increasing dynamic performance in electric utility grids.
Recent development is the use of machine learning along with IoT, in order to assist an electric arc furnace operator with voltage regulation. In this system, operators can chunk fluctuations easily and the automatic SVC responses can be triggered faster, helping to less disturbance on the grid and maintain stability. As energy demands will continue to be higher in heavy industrial sectors, the intelligent control framework being developed should support applicants that would continue to provide the reliability they need to continue operations without compromising performance in high distress environment.
Market snapshot - 2026-2033
Global Market Size
USD 793.41 Million
Largest Segment
Thyristor-Controlled Reactor (TCR)
Fastest Growth
Mechanically Switched Capacitor
Growth Rate
3.7% CAGR
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Global Static VAR Compensator Market is segmented by Type, Component, End Use and region. Based on Type, the market is segmented into Thyristor-Based SVC and Magnetically Controlled Reactor (MCR)-Based SVC. Based on Component, the market is segmented into Power Electronics Devices, Harmonic Filter, Thyristor, Reactor, Capacitor Bank, GiS Switchgear, Phase-Shifting Transformer (PST), Surge Arrester and Control Protection System. Based on End Use, the market is segmented into Electric Utility, Renewable, Railway, Industrial and Oil & Gas. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Thyristor-Controlled reactor segment leads the global static VAR compensator market. The TCR segment has the ability to provide high speed reaction to voltage disturbance, continuous reactive power control, well proven functionality in high voltage transmission systems, and utilities have a high reliability and scalability. TCRs can be effectively used as a supplemental technology for traditional applications that requires reliable grid performance, scalable performance, and reliable integration with existing transmission infrastructure. The demand for consistent grid stability and power quality is challenged from growing demand and challenges from Energy Transition projects in the grid. There is growing urgency to adopt power electronics-based solutions such as TCRs as utilities and industry face growing challenges related to grid stability and power quality from integrating variable renewable energy sources.
Hybrid SVC systems segment is going to see the fastest growth as they provide both switched and continuous reactive power compensation services. The reason Hybrid SVCs are well positioned to be reliable enablers for sustainable energy transition and resilient smart grid requires is that, Hybrid SVCs can be utilized to integrate traditional sources and enable rapid and dynamic responses required to operate in dynamic grid environments. Hybrid SVCs can be relied on to offer rapid deployment and functionality that the evolving operational environment will demand from power electronics. The increasing focus by utilities and industry on energy transition and modernization is going to accelerate the adoption of hybrid SVC solutions.
The Electric Arc Furnace (EAF) segment in the SVC market is emerging as the fastest growing segment. This is mainly driven by the growth in demand of global steel production, and the demand for control of voltage flickers and voltage quality at steel plants. SVCs are used in all EAF applications to stabilize voltage levels and control energy efficiency in regions where an industrial area is developing.
The switched capacitor (TSC) segment has the largest share of the global SVC market because of the speed of operation of TSC reactive power support, and its use in systems that require rapid voltage stabilization. TSC systems offer proven benefits including low maintenance, high efficiency, and load variations that can more easily be managed with TSC-based solutions and are typically deployed across large industrial and utility grid networks. They are easily scalable, operate very quickly, and thus, can support the grid in enhancing performance and reliability characteristics.
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The Asia Pacific region continues to lead the static VAR compensator (SVC) market internationally, as a result of aggressive industrialization, burgeoning energy demand, as well as massive investments in power infrastructure and grid modernization. Most countries across Asia Pacific are continuing to incorporate renewable energy sources and support smart grid technologies, demonstrating a large demand for innovative solutions for voltage regulation and reactive power control, including static VAR compensators (SVC).
Japan is making significant investments in grid upgrades to support its pursuit of renewable energy. With the increased penetration of solar and wind energy in Japan's energy mix, the grid is increasingly using SVC systems to manage voltage variations to maintain grid stability. Utilities throughout selected territories are upgrading their transmission infrastructure to accommodate distributed energy generation and improve power quality overall.
South Korea has an extremely mature SVC infrastructure, and facilities have already received approval from the government as part of ongoing initiatives to modernize power grids and increase the potential for renewable energy. The country has also begun to make investments in offshore wind opportunities as part of its local initiatives. Recently, SVC's digital solution was then actualized for various industrial zones and substations for improved efficiency and performance.
Europe is the fastest-growing region in the SVC market, mostly due to ambitious carbon neutrality goals, extensive renewable energy integration, and widespread investment in smart grid technology that uses SVC systems to maintain voltage stability, or transportation of power, and to address age-related issues in grid technologies.
Germany is currently experiencing an increasing deployment of SVC systems to transition to a sustainable energy supply through integrating more generation from renewables. Specifically, Germany has high levels of wind and solar, and they are responsible for most of the need to control grid operations. In addition, Germany has started a number of regional smart grid projects around the country that use SVC technology to manage power imbalances and alleviate transmission congestion.
The demand for SVC systems in France is increasing as the country tries to improve grid flexibility to manage the balance of power production from nuclear and renewable sources. In addition, grid modernization and EV proliferation are both leading to a demand for more grid management equipment. As a result, there have recently been projects to implement SVC systems in high-voltage substations to regulate voltage and ensure a constant and reliable power supply across regions.
In the UK, grid decarbonization and energy efficiency improvements are the priorities to enable renewable expansion targets. SVC systems are being utilized to stabilize the grid where wind and solar generation causes fluctuations. A more recent change included the installation of advanced compensation units in offshore wind projects to secure grid frequency, and reduce losses of power.
North America is the third largest in the worldwide SVC market, driven by ongoing investment in grid improvement, continued industrial modernization, and expanding renewable energy projects; both the US and Canada are utilizing SVC technologies for improved power quality and to maintain stable electricity throughout a variety of applications.
Significant capital investment in grid modernization and energy infrastructure resiliency is being made in the US. Demand for SVCs is seen in the steel industry, data centers, and electric utilities. Last year, major SVC systems were installed in industrial settings to combat voltage variation and for better load compensation.
In Canada, SVC growth is being driven through ongoing work to support renewables and create regulatory allowances for improved power delivery. The clean energy transition is the focus, and action in the hydro and wind sectors are the strategic goal. Recently, static compensators were deployed in remote, rural locations for stability to support long-distance energy delivery.
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Increased Requirement for Grid Reliability as Renewables are Integrated
Increased Industrialization and Urban Growth
High Initial Capital and Lifecycle Costs
Technical Complexity and Shortage of Skilled Labor
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ABB has established a powerful position in the static VAR compensator market by driving advancements in power electronics and the digital grid. Specifically, the company has manufactured and deployed modular, thyristor-based SVC systems with real-time control and predictive maintenance capabilities that utilities can easily use to manage voltage stability and reactive power. ABB is also securing large project contracts, such as multi‑MVA SVC substations in industrial steel and major utility, and by bundling SVC equipment with automation services, ABB's market position is strengthened, as well as consistent service revenue.
Merus power has emerged over the last decade as a specialist in compact, modular SVC systems for industrial and mining sectors. The startup's patented hybrid modular compensators use a modular design to fit thyristor‑switched capacitors and inductors into a reduced-size chassis, making them more affordable compared to legacy systems. In November 2023, Merus Power wound up a 110 MVAR compensator at a Polish steel mill, which reduced the voltage flicker and went from order to commissioning in under six weeks, demonstrating both speed and innovation in a targeted niche.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global static VAR compensator (SVC) market has seen high growth globally due to increasing demand for stability in the context of renewable energy integration. The SVC system plays a critical role in providing voltage regulation in dynamic electrical power networks, while the SVC is not a renewable energy system. The key restraints are high initial investment and complexity in integrating SVC systems, particularly in developing areas. North America has the largest share of SVC systems of all the regions. The U.S, in particular, has large-scale grid modernization which is a dominant factor in the SVC market. TCR types remain the significant type of SVC because of the relatively small footprint, cost, and performance reliability in providing continuous reactive power control. In addition, the general increase in global industrialization and urban infrastructure growth is driving a gradual increase in SVC systems globally to support voltage quality and limit transmission losses in periods of high load.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 822.77 Million |
| Market size value in 2033 | USD 1141 Million |
| Growth Rate | 3.7% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Static VAR Compensator Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Static VAR Compensator Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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