According to a new report from Intel Market Research, the global Flexible AC Transmission Systems (FACTS) market was valued at USD 1,376 million in 2024 and is projected to reach USD 1,918 million by 2032, growing at a CAGR of 5.0% during the forecast period (2024–2032). This growth is propelled by increasing demand for grid stability, renewable energy integration, and efficient power transmission infrastructure.

What are Flexible AC Transmission Systems (FACTS)?

A flexible alternating current transmission system (FACTS) is a system composed of static equipment used for the AC transmission of electrical energy. It is meant to enhance controllability and increase power transfer capability of the network. It is generally a power electronics-based system.

FACTS is defined by the IEEE as "a power electronic based system and other static equipment that provide control of one or more AC transmission system parameters to enhance controllability and increase power transfer capability."

According to Siemens "FACTS Increase the reliability of AC grids and reduce power delivery costs. They improve transmission quality and efficiency of power transmission by supplying inductive or reactive power to the grid."

The leading manufacturers mainly are ABB, Siemens, RXPE, Sieyuan Electric, Mitsubishi Electric, GE, Toshiba, AMSC and Hyosung. ABB is the largest manufacturer; its revenue of global market exceeds 31%.

We have surveyed the Flexible AC Transmission Systems (FACTS) companies, and industry experts on this industry, involving the revenue, demand, product type, recent developments and plans, industry trends, drivers, challenges, obstacles, and potential risks.

This report aims to provide a comprehensive presentation of the global market for Flexible AC Transmission Systems (FACTS), with both quantitative and qualitative analysis, to help readers develop business/growth strategies, assess the market competitive situation, analyze their position in the current marketplace, and make informed business decisions regarding Flexible AC Transmission Systems (FACTS).

Key Market Drivers

1. Renewable Energy Integration and Grid Modernization

The global shift toward renewable energy sources like wind and solar has created an urgent need to stabilize power grids. FACTS devices help manage the intermittent nature of renewable energy by providing reactive power support, voltage control, and power flow control, making them essential in modern grid infrastructure.

In regions with high renewable energy penetration, such as Europe and North America, utilities are increasingly investing in FACTS to prevent grid instability and reduce transmission losses.

2. Growing Electricity Demand and Industrialization

Rapid industrialization in developing countries has led to increased electricity consumption. FACTS devices help optimize existing transmission infrastructure, delaying or eliminating the need for building new power lines, which is both cost-effective and environmentally friendly.

Countries like China and India are investing heavily in FACTS to support their growing industrial sectors and reduce transmission losses in their extensive power networks.

3. Grid Reliability and Power Quality Requirements

Modern digital economies require extremely reliable power delivery. Industries such as data centers, semiconductor manufacturing, and healthcare facilities cannot tolerate power interruptions or voltage fluctuations. FACTS devices provide the necessary power quality improvements to support these sensitive loads.

Market Challenges

• High initial investment: FACTS devices represent significant capital expenditure, which can be a barrier for utilities in developing regions.
• Technical complexity: Designing and implementing FACTS solutions requires specialized expertise that may not be readily available in all markets.
• Regulatory frameworks: In some regions, the regulatory environment has not kept pace with technological advancements, creating uncertainty for potential investors.

Opportunities Ahead

The global transition toward digitalization, electrification, and sustainable infrastructure presents significant opportunities. Regions such as Asia-Pacific, Latin America, and Middle East & Africa are witnessing growing momentum through:

• Grid modernization initiatives: Governments worldwide are investing in smart grid technologies.
• Renewable energy integration targets: Countries are setting ambitious renewable energy targets, driving demand for grid stabilization solutions.
• Infrastructure development programs: Emerging economies are investing in their power infrastructure to support economic growth.

Notably, leading manufacturers like ABB, Siemens, and General Electric have announced expansion plans in emerging markets, focusing on:

• Localized manufacturing to reduce costs
• Training programs to develop local expertise
• Partnerships with local utilities and industrial players

Market Segmentation

By Product Type

• Shunt Compensation (e.g., STATCOM, SVC)
• Series Compensation (e.g., SSSC, TCSC)
• Combined (hybrid) solutions
• Others (power conditioning devices, active filters)

By Application

• Electric Utilities
• Railways and Metro Systems
• Industrial Sector (metals, mining, manufacturing)
• Renewable Energy Farms (wind, solar parks)
• Data Centers and Critical Infrastructure

By End User

• Electric Utilities
• Industrial Sector
• Commercial Sector
• Railways and Transport

Regional Market Insights

• North America: Mature market with replacement and upgrade demand. The U.S. and Canada have extensive FACTS deployments, particularly in renewable energy integration and grid modernization projects.
• Europe: Leader in renewable energy integration, with countries like Germany, UK, and Spain investing heavily in grid stability solutions to support their energy transition goals.
• Asia-Pacific: Fastest growing market due to rapid industrialization and urbanization. China and India are the largest markets, investing heavily in power infrastructure.
• Latin America, Middle East & Africa: Emerging markets with growing investments in power infrastructure, though at earlier stages of adoption.

Competitive Landscape

The global FACTS market is moderately consolidated, with the top 5 players accounting for approximately 60% of the market share. However, the market has a long tail of regional and specialized players offering niche solutions.

Key competitive strategies include:

• Product innovation and portfolio expansion
• Geographic expansion into emerging markets
• Strategic partnerships and acquisitions
• Focus on lifecycle services and digital solutions

About Intel Market Research

Intel Market Research is a leading provider of strategic intelligence, offering actionable insights in energy, power systems, and industrial automation. Our research capabilities include:

• Market sizing and forecasting for power equipment
• Technology trend analysis
• Competitive intelligence and benchmarking
• Policy and regulatory analysis

Trusted by Fortune 500 companies, our insights empower decision-makers to drive innovation with confidence.

🌐 Website: https://www.intelmarketresearch.com
📞 International: +1 (332) 2424 294
Asia-Pacific: +91 9169164321
LinkedIn: Follow Us

📥 Download Sample Report: Flexible AC Transmission Systems (FACTS) Market - View in Detailed Research Report

Get Full Report: Flexible AC Transmission Systems (FACTS) Market - View in Detailed Research Report