July 24, 2024

Strong Demand From End-Use Industries To Drive Growth Of The Power Quality Equipment Market

The global Power Quality Equipment Market is estimated to be valued at Us$ 31.33 Bn or in 2023 and is expected to exhibit a CAGR Of 6.5% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Power quality equipment includes voltage regulators, surge protectors, and UPS systems that help maintain the integrity of electrical power by correcting voltage sags and swells, filtering transient spikes, and providing backup power during outages. They protect sensitive equipment like PCs, industrial controllers, and other electronics from voltage fluctuations that can cause failures or Lost productivity. Industries such as manufacturing, transportation, oil & gas, mining, and data centers rely heavily on consistent power and use power quality equipment to shield equipment and operations from disturbances.

Market key trends:

One of the major trends in the power quality equipment market is the increasing adoption of solid-state transformers. Traditional transformers use core/coil designs with limited control capabilities. Solid state transformers (SST) use power electronics to control and manage electricity flows with much greater efficiency, reliability and functionality. They eliminate issues like harmonics and provide reactive power compensation. Their ability to integrate renewable energy and energy storage makes them an attractive solution for modernizing grid infrastructures. Another trend gaining ground is the deployment of online and double conversion UPS systems in data centers. These offer higher reliability over line interactive UPS by providing pure sine wave output with no power fluctuations even during outages through their energy storage backup.

Porter’s Analysis

Threat of new entrants: The power quality equipment market requires huge capital investments for R&D and manufacturing, which acts as a barrier for new players. The established brands have strong foothold due to their wide service network and brand loyalty.

Bargaining power of buyers: The bargaining power of buyers is moderate as customers mainly look for quality, reliability and customized solutions as per their requirements. Switching costs for buyers are low.

Bargaining power of suppliers: The suppliers have moderate bargaining power due to differentiated components used and established supply partnerships between OEMs and component manufacturers.

Threat of new substitutes: There exists no close substitute for power quality equipment. Alternative solutions are differentiated and not direct replacements for power quality equipment.

Competitive rivalry: The market comprises few global brands that dominate the market. Pricing pressure exists due to tough competition between established vendors.

 

Key Takeaways

The Global Power Quality Equipment Market Demand  is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing investment in renewable energy worldwide. The market size for 2023 is estimated to be US$ 31.33 Bn.

Regional analysis:

 

Asia Pacific dominates the global market with over 35% share due to rapid industrialization and infrastructure development in China, India and other Southeast Asian countries. North America also captures significant share due to stringent norms regarding energy management in the region.

Key players analysis:

 

Key players operating in the power quality equipment market include Hitachi Energy Ltd., Siemens AG, EATON Corporation plc, Emerson Electric Company, Schneider Electric SE, General Electric Company, Toshiba Corporation, Schaffner Holding AG, MTE Corporation, Active Power Inc. and Others. Hitachi Energy leads the global market with focus on digital solutions for grid management.

 

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it