POWER QUALITY EQUIPMENT MARKET ANALYSIS

Global Power Quality Equipment Market size was valued at US$ 29.74 Bn in 2022, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2023 to 2030.

Power Quality Equipment refers to devices and systems that are designed to monitor, analyze and improve the quality of electrical power supplied to various electrical and electronic systems. These devices are used to maintain a stable, reliable and efficient supply of electricity, ensuring optimal performance of electrical equipment and minimizing the risk of damage, premature wear and tear of equipment, production loss, sudden equipment malfunctions, unexpected shutdowns and capacitor bank failures. Power quality equipment are usually used in power grids for ensuring continuous and stable power supply. Different kind of power equipment include power quality analyzers, voltage regulators, uninterrupted power supply (UPS), harmonic filters, etc. The industrial and manufacturing sectors require a continuous and stable supply of power in order to carry the daily operations. Hence, the demand for power quality equipment to ensure an efficient power supply is high in these sectors which can provide the necessary boost for the global power quality equipment market to grow. Moreover, the expansion of grid infrastructure in various parts of the world is driving the demand for the power quality equipment devices and systems fueling the growth of the global power quality equipment market.

Global Power Quality Equipment Market- Regional Analysis Asia Pacific held a dominant position in the Global Power Quality Equipment market in 2022, followed by the regions of Europe and North America.           

Figure 1. Global Power Quality Equipment Market Share (%), By Region, 2022

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Asia Pacific held a dominant position in the Global Power Quality Equipment market in 2022, owing to factors like rapid expansion of the industrial sector, growing population and increase in the number of power generation plants to cater to the increasing need of power supply. The countries in the region like China, India and Japan are few of the top countries in terms of electricity consumption across the world. These countries have presence of manufacturing plants and corporate offices which require efficient supply of electricity. Hence, the devices and systems that ensure the stable power supply are in high demand in the region. Moreover, the governments in the region are working actively towards developing the power infrastructure with development of power grids and improving the systems that govern the distribution and supply of electricity to avoid production losses occurring due to equipment failures. These factors are expected to boost the market growth for Asia Pacific power quality equipment market during the forecast period.

North America is another strong market for the global power quality equipment market. The factors like a highly evolved technological sector with the presence of huge global corporations operating majorly in technological sector have resulted in the growing need for power for the operations of data centers throughout the country. Moreover, the domestic consumption of electricity per capita is also one of the highest in U.S. This increases the demand for power quality equipment significantly in the region. This high demand has resulted in the emergence of the region as a strong market for power quality equipment.

Global Power Quality Equipment Market- Segmentation

The Global Power Quality Equipment market is classified into following segments based on equipment, phase and end-users.

Based on equipment, the uninterruptable power supply (UPS) segment in the Global Power Quality Equipment market held the dominant position in the year 2022. The UPS is a type of continual power system that provides backup electricity power to the connected devices when the main power supply is cut off or fails. The UPS devices are used in varied applications ranging from use in industrial sector on large scale to household usage for ensuring uninterrupted supply of electricity to key electronic devices. Due to its extensive scope of application, the UPS segment is expected to enjoy a significant market share and continue its dominance during the forecast period.

Based on the end users, the industrial and manufacturing segment holds a dominant market share over other segments of end-users. The industrial and manufacturing sectors naturally require a continuous power supply to carry out the operations in factory premises as well as the administrative offices. Any interruption in a stable electricity supply can lead to huge production losses. Hence, to avoid the risk of losses, the usage of power quality equipment is vital for the businesses. Moreover the devices and systems used in the industrial and manufacturing sectors are meant for large scale applications as a result their market value is naturally higher. These factors allow the industrial and manufacturing segment to enjoy a dominant position in the global power quality equipment market.  

Figure 2. Global Power Quality Equipment Market Share (%) Analysis and Forecast, By Equipment, 2022

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Global Power Quality Equipment market was valued at US$ 29.74 Billion in 2022 and is expected to reach US$  48.71 Billion by 2030, exhibiting a CAGR of 6.5% between 2023 and 2030.

Global Power Quality Equipment Market- Key Competitors

Major players operating in the Global 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.

Global Power Quality Equipment Market- Recent Developments

1. In June 2021, Hitachi Energy Ltd., a global company operating in the power sector was awarded the contract to provide the largest battery unit for Teollisuuden Voima Oyj, a Finland based nuclear-power company. The new 90 Mega-Watt system will provide energy backup for the entire energy network in case of a potential disturbance in power supply.
2. In December 2021, General Electric, a global provider of equipment, solutions and services related to energy announced a collaboration with Statkraft, a Norway based power generation company. The collaboration was done with the objective to decarbonize the power sector in United Kingdom and provide the power stability to the grid.
3. In December 2020, Enel X, the Enel Group’s advanced energy service business division and Eaton, an America based multinational power management company announced the collaboration for microgrid development in Puerto Rico. .

Global Power Quality Equipment Market- Drivers:

Increase in demand for power quality in industrial and manufacturing sectors:

Industrial processing and manufacturing sectors are one of the biggest consumers of electricity. These sectors require a continuous and reliable supply of power throughout their operations. The disruption in the power supply can lead to huge losses for the players operating in the industrial and manufacturing sector. To avoid the risk of power disruption due to equipment failure and to ensure the entire power supply system works efficiently, the power quality equipment are used to monitor the power supply systems for potential damages. Moreover, power back-up devices are also installed in case of a power cut. For instance in August 2022, Hitachi Energy, a global company operating in power sector has invested INR 1,000 million to double the capacity to produce power quality equipment in anticipation of rising demand for the same. This shows that the demand for power quality equipment is increasing significantly and the market players are responding to this growing demand by expanding their production and thus leading the way for the global power quality equipment market to grow further.

Advancement in telecommunication sector and expansion of data centers:

In the past few decades, the telecommunications sector has experienced a significant growth and expansion. In addition to voice communication systems, the concepts like IoT has increased the need for data transmission in the telecom sector. The emergence of data centers and their huge consumption of power has paved a way for power quality equipment market to serve the rising needs of the sector. To ensure the efficient functioning of the data centers, the companies are making extensive use of power quality equipment and systems increasing their demand significantly. For instance, on July 6, 2023, Center3, a company managing data centers in the Kingdom of Saudi Arabia announced the expansion of Khurais Riyadh data center to drive the growth of innovation in the region. Such, expansions in data centers would increase the demand for power quality equipment and lead to the growth of global power quality equipment market during the forecast period.

Global Power Quality Equipment Market- Restraint

High cost of Power Quality Equipment:

Power quality equipment are used to ensure the stable and reliable supply of electricity to power grids, data centers, manufacturing plants, industrial processing sites, and several other applications. The devices used for power quality include uninterruptable power supply (UPS), harmonic filters, multimeters, disturbance analyzers, earthing and grounding systems, etc. The cost of these equipment is usually high. For example, the harmonic filters used in various business and commercial applications are sold in the price range of INR 250,000 to 1.5 million based on the scale of their operations. Such high cost of the power quality equipment might not be affordable for the small and medium industries and such enterprises may avoid installing such equipment in their facilities which may affect the demand for power quality equipment devices and hinder the growth of global power quality equipment market during the forecast period.

Global Power Quality Equipment Market- Opportunity

Rise in the number of power grids:

Power grid is the network of power stations, transmission lines, electricity towers and individual distribution lines. The power grids are used to distribute the electricity to the end-users. These power grids are highly complex and consist of different types of devices, components and systems used in the distribution of power supply to the end-users. These complex systems need to be monitored from time-to-time in order to avoid equipment failure and loss of production. Any disruption in the supply of power can lead to catastrophic losses for the commercial users. Hence, the use of power quality equipment to effectively monitor the power grids is an essential aspect of ensuring the smooth supply of electricity to households as well as the commercial users. For instance, on April 10, 2023, Tata Power, a subsidiary of Tata Group, an Industrial Group operating in several sectors like automobile, power supply, FMCG, etc. announced that the company has signed a deal to enhance power distribution system in Delhi through grid enhancement. This development shows that the major market players are realizing the importance of power grid infrastructure and taking efforts to improve them. This would increase the demand for power quality equipment used in the power grids and provide an opportunity for the global power quality equipment market to grow during the forecast period.

Global Power Quality Equipment Market- Impact of COVID-19:

The Covid-19 pandemic disrupted the business world because of the country-wide lockdowns and strict social distancing norms. The supply chain of majority of the industries was disrupted as procurement of materials and carrying out the production activities was not possible due to factors like stagnancy of cross border trade and lockdowns. The global power quality equipment also experienced the similar challenges with respect to the production of equipment which hampered the growth rate of the market significantly. Moreover, as the governments were entirely focused on dealing with the effects of pandemic on healthcare sector, all the non-essential activities were halted. This meant that the new power projects that the government authorities across the world undertook did not witness a significant development during the pandemic period. This affected the supply side of the market significantly due the halt in production facilities of companies operating in global power quality equipment. Hence, the covid-19 pandemic cab be considered to have hampered the growth of the global power quality equipment market negatively.   

*Definition: Power Quality Equipment are used in power grids for ensuring continuous flow of stable and reliable power. These equipment perform the tasks of monitoring the critical system components so that timely action could be taken to avoid potential system failure.