Synchronous Condenser Market Size, Share and Industry Trends Analysis By Cooling Type (Air-cooled, Hydrogen-cooled, and Water-cooled), By Starting Method (Static Frequency Converter, Pony Motors, and Others), By Power Rating (Up to 200 MVAR and Above 200 MVAR), and By Application (Utility and Industrial), and Regional Forecast, 2024-2032

The global synchronous condenser market size was valued at USD 656.30 million in 2023 and is projected to grow from USD 672.00 million in 2024 to USD 847.10 million by 2032, exhibiting a compound annual growth rate (CAGR) of 2.9% during the forecast period (2024-2032). Europe dominated the synchronous condenser market with a market share of 30.83% in 2023.

The synchronous condenser can be defined as a DC-excited synchronous motor in which the shaft is not connected to anything, and this shaft spins independently. It is used to adjust conditions on the ideal electric power transmission grid. The field of this condenser is controlled by a voltage regulator to either absorb reactive power as needed to adjust the grid's voltage or to improve the power factor correction. The installation and operation are identical to large generators and electric motors. These condensers are an alternative to capacitor banks for power-factor correction in power grids.

The global impact of COVID-19 has been unprecedented and staggering, with the power industry witnessing a negative impact across all regions amid the pandemic. The government in many countries has imposed nationwide lockdowns & restrictions in the wake of the pandemic, which has severely affected economies across the globe. The pandemic has disrupted supply chains, delayed many projects, and created a huge workforce shortage. Investment in wind and other power plants has decreased severely. Several upcoming projects were delayed or shut down due to a lack of proper resources due to the outbreak of COVID-19.

LATEST TRENDS

Increasing Use in High Voltage Direct Current (HVDC) Systems are Trending in Market

The synchronous condensers play a vital role in providing stability to the power grids and reducing the lagging power factor. These condensers are highly installed in the HVDC systems due to their various benefits in the grids. Condensers are also used to prevent the systems from short circuits. These factors make such condensers ideal to use in HVDC systems. The demand for these condensers is increasing rapidly in the global market for HVDC systems.

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MARKET DRIVERS: RENEWABLE ENERGY ADOPTION AND GRID MODERNIZATION DRIVING MARKET GROWTH

Rising Government Initiatives to Eradicate Nuclear and Fossil Fuel Power Generation to Propel Market Growth

The power generation from nuclear or fossil fuels releases toxic gases and affects the environment and human life immensely. Phasing out coal and nuclear power plants has become a primary concern for governments across many countries. The need for power correction factors is also increasing in the power sector. The penetration of renewable power generation sources is also increasing globally. These condensers are highly used in renewable power generation. Renewable energy sources do not harm the environment or human life. These condensers adjust the conditions on the electric power transmission grid. These condensers are highly suitable for renewable sources.

The government has adopted various regulations to decrease power generation from coal and nuclear power plants and balance that with renewable sources. Globally, countries focus on implementing initiatives and practices to achieve sustainable energy goals. For instance, as of July 2022, 75 countries agreed to phase out coal or new unabated coal power plants, which account for 20% of current coal-powered energy capacity. Of these countries, nearly 31 countries have adopted coal phase‐out targets with specified timelines in national plans; most are in Europe, and 80% are developed countries.

Moreover, according to the International Energy Association, over 260 GW, 63% of today's total nuclear power plants, are over 30 years old and close to the expiry of their initial operating licenses. Despite several initiatives across different countries to extend these licenses, the nuclear fleet is estimated to shrink by one-third by 2030. These factors will drive synchronous condenser market growth during the forecast period.

Increasing demand from Utility and Rising Upgrades Augmented Market Growth

There are numerous power plants in the existing networks that are aging. The governments in many countries have initiated upgrades for such plants, and they are even replacing them with renewable sources. The demand for such condensers from the electric utility sector is also increasing as they are easy to maintain and have no complicated structures. The electricity demand is increasing rapidly, increasing the loads on power grids, which causes unnecessary stress on the distribution network. However, using an improved condenser can help ensure the proper functioning of such equipment with high stability. This increases the demand for such condensers in the market.   

For instance, European countries are increasing their investment capabilities in utilities.

Despite capital expenditure and the challenging economic environment, investments have increased. Utility companies collectively called on the EU to support and strengthen renewable energy targets of 35% by 2030.

RESTRAINING FACTORS: HIGH INITIAL COSTS AND OPERATIONAL EXPENSES HAMPERING SYNCHRONOUS CONDENSER MARKET

High Initial Cost of the Product Hinders Market Expansion

The initial cost of synchronous condenser components is very high, and it involves using expensive raw materials such as copper and aluminum. These condensers also require a substantial amount of electricity to function continuously. The initial cost of new condensers and the refurbishment cost of such equipment are very high on the market. These condensers are DC-excited synchronous motors, making them more expensive than others. 

SYNCHRONOUS CONDENSER MARKET SEGMENTATION AND KEY TRENDS

By Cooling Type Analysis

Hydrogen-Cooled Segment to Dominate Market during the Forecast Period

Based on the cooling type, the market is segmented into air-cooled, water-cooled, and hydrogen-cooled. The hydrogen-cooled segment will likely dominate the market during the forecast period. It is in high demand due to its different properties, such as high specific heat, low density, and high thermal conductivity. This increases the demand for hydrogen-cooled condensers in the market.

The air-cooled segment is estimated to register growth significantly during the forecast period. The demand and adoption of such condensers are increasing significantly in the market.

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By Starting Method Analysis

Static Frequency Converter Segment is Likely to Dominate the Market due to its Numerous Technological Advantages.

Based on the starting method, the market is segmented into static frequency converters, pony converters, and others. The static frequency converter segment will likely dominate the market during the forecast period. The static frequency converter is independent of supply voltage and load variations and has a low installation cost. The static frequency converter has low noise characteristics and is highly reliable. This increases the demand for static frequency converters in the market. 

The pony motors segment is expected to foresee growth during the forecast period. This motor is small and mostly an induction motor, preferred for running the rotor near the synchronous speed. Due to such advantages, this motor is in high demand in the market.

By Application Analysis

An increase in Grid Infrastructure Leads Utility Segment to Dominate the Market

Based on the application, the market is segmented into utility and industrial. The utility segment is likely to dominate the market during the forecast period. These condensers are highly used in utility as they help achieve grid reliability, inertia, and stability. Investment in the utility segment is rapidly increasing, and the installation of such condensers is increasing in the utility segment. The utility segment is highly needed to increase grid stability and control voltage fluctuations; synchronous condensers help achieve this. This drives growth in the utility segment during the forecast period. 

The industrial segment is likely to witness growth during the forecast period. The demand for this type of condenser is increasing in the industrial segment. Industrialization is rapidly growing across major regions, and investment is also increasing in expanding the industrial segment.

By Power Rating Analysis

Above 200 MVAR Segment to Dominate Market During Forecast Period

Based on the power rating, the market is segmented into up to 200 MVAR and above 200 MVAR. The above 200 MVAR segment will likely dominate the market during the forecast period. The installation of above 200 MVAR condensers is increasing widely in the market as these condensers are highly efficient and compatible with different applications.

The category of up to 200 MVAR segments is estimated to grow significantly during the forecast period. The demand for such condensers is increasing in electric utilities and industries as they are highly reliable for small-scale applications.

REGIONAL ANALYSIS OF THE SYNCHRONOUS CONDENSER MARKET

Geographically, the global synchronous condenser market has been analyzed across five key regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

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Asia Pacific region has dominated the market during the forecast period owing to the increasing utility investments and expansion across these regions. Industrialization is also increasing in this region. The demand for such condensers is increasing in this region as new installations are installed.

North America region is estimated to register growth significantly during the forecast period. This region is experiencing high demand for such condensers due to the increasing trend of converting old power plants to this condenser. Condensers help enhance the power line voltage regulation in power generation plants.

Europe region is likely to witness growth during the forecast period. Europe is experiencing a high requirement to control voltage fluctuations in power plants, increasing the demand for such condensers in this region.

The Latin America region is estimated to witness growth during the forecast period. The demand and adoption of such condensers are high in this region due to rising energy demand within the region, and the demand from the utility segment is increasing for such condensers in the market.

The Middle East & Africa region will likely witness growth during the forecast period. The demand for these condensers is increasing in this region as the government is increasing regulations to encourage renewable sources and decreasing nuclear and fossil fuel energy sources.  

COMPETITIVE LANDSCAPE

Key Players Focus on Increasing Their Production Capacity by Introducing Highly Efficient Products

The global market is fragmented due to many companies in developed and developing countries. ABB, Eaton, General Electric, Siemens, Andritz, and WEG are leading players in the market. These companies are expanding their presence and condenser products. Also, focusing on the new contract is one of the preferred strategies by companies.

LIST OF KEY COMPANIES PROFILED:

• Andritz AG (Austria)


• General Electric (US.)


• Siemens (Germany)


• Voith GmbH & Co. Kgaa (Germany)


• AnsaldoEnergia (Italy)


• Fuji Electric (Japan)


• WEG (Brazil)


• Eaton (Ireland)


• BRUSH (UK)


• BHEL (India)


• Sustainable Power System (US.)

KEY DEVELOPMENTS IN THE SYNCHRONOUS CONDENSER MARKET:

• February 2021- ABB won a major turnkey contract from Statkraft to design, manufacture, and install two high inertia synchronous condenser systems for the Lister Drive Greener Grid project at Liverpool in Northwest England. This project will significantly stabilize the local grid to handle more solar and wind power.


• January 2021- Andritz AG has announced that it will receive an order from Secure Energy. The scope of the supply includes designing, manufacturing, delivery, and technical consulting during the installation and commissioning of four 120 MVA salient pole synchronous condensers for the power plants in New South Wales. The company will start its first shipment in 2022.


• October 2020- Siemens announced that it had received a contract from Welsh Power for the grid stabilization facility in South Wales. The company will use its advanced technologies, including flywheel and synchronous condensers, which will provide inertia to the grid and short-circuit power to ensure reliable operations.


• February 2020- AnsaldoEnergia and ABB have announced that they will win an order from Trena, an Italian transmission system operator. The contract is worth USD 70 million. The scope of the supply includes design, supply, commissioning, and maintenance for three synchronous condensers of 250 MVAR each for installation in Southern and Central Italy.

REPORT COVERAGE

The global synchronous condenser market research report includes a detailed industry analysis focusing on key aspects such as leading companies and product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several drivers contributing to the market's growth over recent years.

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