Summary

The power factor correction market is estimated to grow from USD 3.3 billion by 2030 from an estimated USD 2.4 billion in 2024, at a CAGR of 5.5% during the forecast period. Two important factors that drive the Power Factor Correction market are increasing energy efficiency and low-cost power management. First, while industries and governments across the world are concerned about reducing energy wastage in addition to improving the efficiency of power systems, PFC technologies turn out to be essential tools in optimizing power usage. Secondly, while energy costs are ever increasing, companies look for ways through which this bill can be reduced. A PFC system helps in attaining this by minimizing losses in power and also reduces the risks of penalties associated with poor power factor; hence, it is a good investment across many sectors.
“OEM Direct segment is the second largest segment of the power factor correction market, by sales channel”
The OEM Direct segment accounts for the second-largest base in the power factor correction market. This is due to a high degree of direct contacts and relationships with original equipment manufacturers. The segment has benefited from increasing demand for energy-efficient solutions that are directly built into the manufacturing stage of making machinery and equipment. The direct channels are preferred by the OEMs as the choice is important because of the offering of custom-made and high-quality components that meet specific technical requirements and ensure effective power management and energy savings in various industrial applications. It has proved to be a major factor for the significant increase in sales for this segment.
“200-500 KVAR is expected to emerge as the fastest-growing segment based on reactive power segment”
The 200-500 KVAR segment is expected to be the fastest-growing segment of the power factor correction market with respect to reactive power, as this segment offers the best balance between cost and efficiency for use in medium to large-scale industrial and commercial applications. The value of this range lies in its effective solution to the high reactive power requirements of facilities with gross electrical loads in a manner that assures improved power quality, together with reduced power operational costs. Moreover, power factor correction solutions retrievable in this KVAR range are in fast-growing demand due to an increased priority for energy efficiency and regulatory compliance in industries.
“Commercial is expected to be the second largest segment based on application”
The commercial segment is expected to rank second in application in the power factor correction market due to rising needs for energy efficiency in commercial buildings and facilities. With an increasing phenomenon of the operational cost increase and new energy regulations and policies coming into the scene, businesses have started looking towards power quality and reduction of energy waste. Commercial power factor correction solutions are applied to manage the electric power load in an efficient way, to increase the lifetime of equipment, and to avoid penalties by utility companies for poor power factor. This explains the reason this segment shows considerable growth and importance in the market.

“Europe is expected to emerge as the third largest region based on power factor correction market”
Europe will emerge as the third-largest market for the global power factor correction market in the forecast period. This can be attributed to the strong regulatory framework promoting energy efficiency and the rapid adoption of advanced technologies. The industrial sector in the region has been fueled by increasing energy costs and stringent environmental regulations. Growing attention toward the integration of renewable energy and development of smart grids further supports efficient power management demand, placing Europe as one of the major shareholders in the global market.


Breakdown of Primaries:
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:
By Company Type: Tier 1- 45%, Tier 2- 30%, and Tier 3- 25%
By Designation: C-Level- 35%, Director Levels- 25%, and Others- 40%
By Region: North America- 10%, Europe- 15%, Asia Pacific- 60%, the Middle East & Africa- 10%, and South America- 5%
Note: Others include product engineers, product specialists, and engineering leads.
Note: The tiers of the companies are defined on the basis of their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million

The power factor correction market is dominated by a few major players that have a wide regional presence. The leading players in the power factor correction market are Eaton (Ireland), ABB (Switzerland), GE Vernova (US), Schneider Electric (France), and Hitachi Energy Ltd (Switzerland)
Research Coverage:
The report defines, describes, and forecasts the power factor correction market, by reactive power, application, sales channel, type, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the smart grid market.
Key Benefits of Buying the Report
• Increasing investments in energy sector and rising number of renewable energy integration and energy effeciency attributed.
• Product Development/ Innovation: The trends such as integration of Internet of Things (IoT) technology with Power Factor Correction (PFC) systems and integration of solid-state switching devices in Power factor correction systems.
• Market Development: The global scenario of power factor correction has developed due to a global shift towards energy efficiency solutions, increased adoption of renewable sources like solar and wind power, technological advancements enhancing efficiency, and the growing demand for electric vehicles. These factors collectively propel innovation, creating a dynamic landscape for power factor correction to meet evolving energy demands.
• Market Diversification: Market diversification in the power factor correction market is a response to varied energy needs across industries and regions. As power factor correction adoption expands, diverse applications emerge, from various industries to renewable projects. Power factor correction manufacturers diversify their product offerings to cater to the specific requirements of different sectors, fostering market growth and resilience.
• Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Schnieder Electric (France), Eaton (Ireland), GE Vernova (US), ABB (Switzerland), Hitachi Energy (Switzerland), among others in the power factor correction market.

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Table of Contents

1 INTRODUCTION 25
1.1 STUDY OBJECTIVES 25
1.2 MARKET DEFINITION 25
1.3 STUDY SCOPE 26
1.3.1 MARKET SEGMENTATION AND REGIONAL SCOPE 26
1.3.2 INCLUSIONS AND EXCLUSIONS 27
1.3.3 YEARS CONSIDERED 28
1.4 LIMITATIONS 28
1.5 UNITS CONSIDERED 28
1.6 CURRENCY CONSIDERED 28
1.7 STAKEHOLDERS 29
2 RESEARCH METHODOLOGY 30
2.1 RESEARCH DATA 30
2.1.1 PRIMARY AND SECONDARY RESEARCH 30
2.2 DATA TRIANGULATION 31
2.2.1 SECONDARY DATA 32
2.2.1.1 Key data from secondary sources 33
2.2.1.2 Key secondary sources 33
2.2.2 PRIMARY DATA 33
2.2.2.1 Major primary interview participants 34
2.2.2.2 Key data from primary sources 34
2.2.2.3 Key industry insights 35
2.2.2.4 Breakdown of primaries 35
2.3 MARKET SIZE ESTIMATION 36
2.3.1 BOTTOM-UP APPROACH 36
2.3.2 TOP-DOWN APPROACH 37
2.3.3 DEMAND-SIDE ANALYSIS 38
2.3.3.1 Demand-side assumptions 38
2.3.3.2 Demand-side calculations 38
2.3.4 SUPPLY-SIDE ANALYSIS 39
2.3.4.1 Supply-side assumptions 40
2.3.4.2 Supply-side calculations 40
2.3.5 GROWTH FORECAST 40
2.4 RESEARCH ASSUMPTIONS 40
2.5 RESEARCH LIMITATIONS 41
2.6 RISK ANALYSIS 41

3 EXECUTIVE SUMMARY 42
4 PREMIUM INSIGHTS 47
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN POWER FACTOR CORRECTION MARKET 47
4.2 POWER FACTOR CORRECTION MARKET, BY REGION 48
4.3 POWER FACTOR CORRECTION MARKET IN NORTH AMERICA,
BY SALES CHANNEL AND TYPE 48
4.4 POWER FACTOR CORRECTION MARKET, BY SALES CHANNEL 49
4.5 POWER FACTOR CORRECTION MARKET, BY TYPE 49
4.6 POWER FACTOR CORRECTION MARKET, BY REACTIVE POWER 49
4.7 POWER FACTOR CORRECTION MARKET, BY APPLICATION 50
5 MARKET OVERVIEW 51
5.1 INTRODUCTION 51
5.2 MARKET DYNAMICS 52
5.2.1 DRIVERS 52
5.2.1.1 Increasing investments in clear energy projects 52
5.2.1.2 Rising deployment of low-voltage PFC systems in industrial facilities 53
5.2.2 RESTRAINTS 54
5.2.2.1 High initial installation cost of PFC systems 54
5.2.3 OPPORTUNITIES 54
5.2.3.1 Introduction of incentive schemes by governments for
adopting energy-saving technologies 54
5.2.3.2 Growing inclination toward smart grid deployment 55
5.2.3.3 Elevating demand for electric vehicles 56
5.2.4 CHALLENGES 56
5.2.4.1 Complexities associated with integrating PFC systems into
existing infrastructure 56
5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS 57
5.4 VALUE CHAIN ANALYSIS 58
5.5 ECOSYSTEM ANALYSIS 60
5.6 INVESTMENT AND FUNDING SCENARIO 62
5.7 IMPACT OF AI/GENERATIVE AI ON POWER FACTOR CORRECTION MARKET 62
5.7.1 RATIONALE FOR IMPACT LEVELS 63
5.8 GLOBAL MACROECONOMIC OUTLOOK 64
5.8.1 INTRODUCTION 64
5.8.2 GDP TRENDS AND FORECAST 64
5.8.3 MANUFACTURING VALUE ADDED (% OF GDP) 64
5.8.4 GLOBAL ELECTRICITY PRODUCTION 65
5.9 TECHNOLOGY ANALYSIS 66
5.9.1 KEY TECHNOLOGIES 66
5.9.1.1 Internet of Things (IoT) 66
5.9.2 ADJACENT TECHNOLOGIES 66
5.9.2.1 Solid-state switching devices 66
5.10 PATENT ANALYSIS 67
5.11 TRADE ANALYSIS 71
5.11.1 EXPORT SCENARIO (HS CODE 8532) 71
5.11.2 IMPORT SCENARIO (HS CODE 8532) 73
5.12 KEY CONFERENCES AND EVENTS, 2024–2025 74
5.13 PRICING ANALYSIS 75
5.13.1 INDICATIVE PRICING TREND OF CAPACITOR BANKS USED IN
POWER FACTOR CORRECTION, BY REACTIVE POWER 75
5.13.2 AVERAGE SELLING PRICE TREND OF POWER FACTOR CORRECTION SYSTEM, BY REGION 76
5.14 TARIFF AND REGULATORY LANDSCAPE 77
5.14.1 TARIFF ANALYSIS 77
5.14.2 REGULATORY BODIES, GOVERNMENT AGENCIES,
AND OTHER ORGANIZATIONS 78
5.14.3 REGULATORY FRAMEWORK 80
5.15 PORTER’S FIVE FORCES ANALYSIS 82
5.15.1 THREAT OF SUBSTITUTES 83
5.15.2 BARGAINING POWER OF SUPPLIERS 83
5.15.3 BARGAINING POWER OF BUYERS 83
5.15.4 THREAT OF NEW ENTRANTS 83
5.15.5 INTENSITY OF COMPETITIVE RIVALRY 83
5.16 KEY STAKEHOLDERS AND BUYING CRITERIA 84
5.16.1 KEY STAKEHOLDERS IN BUYING PROCESS 84
5.16.2 BUYING CRITERIA 84
5.17 CASE STUDY ANALYSIS 85
5.17.1 SHOPPING MALL IN SYDNEY DEPLOYED SVG SYSTEM TO
IMPROVE POWER FACTOR AND REDUCE ENERGY EXPENSE 85
5.17.2 HOSPITAL IN MALAYSIA ADOPTED AUTOMATIC PFC SYSTEM FOR
RELIABLE AND UNINTERRUPTED POWER SUPPLY 85
5.17.3 MEDIUM-SIZED TEXTILE FACTORY IN INDIA IMPLEMENTED PFC
CAPACITOR TO REDUCE ENERGY BILLS AND AVOID PENALTIES 86
6 POWER FACTOR CORRECTION MARKET, BY REACTIVE POWER 87
6.1 INTRODUCTION 88
6.2 0–200 KVAR 89
6.2.1 RISING DEMAND ACROSS SMALL COMMERCIAL APPLICATIONS TO DRIVE SEGMENTAL GROWTH 89
6.3 200–500 KVAR 90
6.3.1 RISING USE IN MEDIUM-SIZED COMMERCIAL BUILDINGS AND INDUSTRIAL FACILITIES TO FUEL SEGMENTAL GROWTH 90
6.4 500–1,500 KVAR 91
6.4.1 INCREASING FOCUS OF LARGE INDUSTRIAL PLANT OWNERS ON MINIMIZING ENERGY LOSSES TO BOOST DEMAND 91
6.5 ABOVE 1,500 KVAR 92
6.5.1 PRESSING NEED TO STABILIZE VOLTAGE LEVELS ACROSS POWER GRID
TO SUPPORT SEGMENTAL GROWTH 92
7 POWER FACTOR CORRECTION MARKET, BY TYPE 94
7.1 INTRODUCTION 95
7.2 AUTOMATIC 96
7.2.1 ABILITY TO CRAFT EFFICIENT ELECTRICAL SYSTEMS TO BOOST DEMAND 96
7.3 FIXED 97
7.3.1 RISING FOCUS ON ENERGY COST REDUCTION TO SUPPORT
SEGMENTAL GROWTH 97
8 POWER FACTOR CORRECTION MARKET, BY SALES CHANNEL 98
8.1 INTRODUCTION 99
8.2 DISTRIBUTORS 100
8.2.1 ABILITY TO COVER BROADER GEOGRAPHIC AREAS AND ENTER NEW MARKETS AT FASTER RATE TO BOOST SEGMENTAL GROWTH 100
8.3 OEM DIRECT 101
8.3.1 HIGHER UPFRONT COSTS FOR TRAINING SALES TEAM TO LEAD TO SMALLER MARKET SHARE 101
9 POWER FACTOR CORRECTION MARKET, BY APPLICATION 102
9.1 INTRODUCTION 103
9.2 INDUSTRIAL 104
9.2.1 RISING USE OF POWER-INTENSIVE INDUSTRIAL EQUIPMENT TO
BOOST DEMAND 104
9.3 RENEWABLE 106
9.3.1 INTEGRATION OF RENEWABLE ENERGY SOURCES INTO POWER GRID
TO PROPEL MARKET 106
9.4 COMMERCIAL 107
9.4.1 INCREASING DEMAND FOR ENERGY EFFICIENCY AND COST REDUCTION
IN COMMERCIAL BUILDINGS TO DRIVE MARKET 107
9.5 DATA CENTER 108
9.5.1 SURGING NEED FOR EFFICIENT AND RELIABLE DATA CENTER INFRASTRUCTURE TO FUEL MARKET GROWTH 108
9.6 EV CHARGING 109
9.6.1 INCREASING INVESTMENT AND RAPID EXPANSION OF ELECTRIC VEHICLES
TO SUPPORT MARKET GROWTH 109
10 POWER FACTOR CORRECTION MARKET, BY REGION 111
10.1 INTRODUCTION 112
10.2 NORTH AMERICA 114
10.2.1 US 120
10.2.1.1 Increasing focus on sustainable energy production using
renewable sources to boost demand 120
10.2.2 CANADA 121
10.2.2.1 Rising demand from automotive sector to augment market growth 121
10.2.3 MEXICO 121
10.2.3.1 Thriving industrial sector to propel demand 121
10.3 ASIA PACIFIC 122
10.3.1 CHINA 128
10.3.1.1 Government initiatives to reduce energy consumption to boost demand 128
10.3.2 JAPAN 129
10.3.2.1 Growing adoption of renewable energy sources into power grid
to foster market growth 129
10.3.3 SOUTH KOREA 129
10.3.3.1 Rising focus on enhancing power grid efficiency to drive market 129
10.3.4 INDIA 130
10.3.4.1 Pressing need to reduce energy waste to accelerate market growth 130
10.3.5 AUSTRALIA 131
10.3.5.1 Emphasis of industrial firms on reducing energy bills to
spike demand 131
10.3.6 REST OF ASIA PACIFIC 132
10.4 EUROPE 133
10.4.1 GERMANY 138
10.4.1.1 Stringent energy regulations to fuel market growth 138
10.4.2 UK 139
10.4.2.1 Strategic path to reduce energy consumption and achieve
net-zero carbon emission to stimulate market growth 139
10.4.3 FRANCE 140
10.4.3.1 Strong need for efficient grid operations to propel market 140
10.4.4 ITALY 141
10.4.4.1 Rising demand for higher energy efficiency to drive market 141
10.4.5 RUSSIA 142
10.4.5.1 Pressing need to upgrade power transmission infrastructure to drive market 142
10.4.6 REST OF EUROPE 143
10.5 MIDDLE EAST & AFRICA 144
10.5.1 GCC 149
10.5.1.1 Saudi Arabia 150
10.5.1.1.1 Rising focus on building digital infrastructure to
boost demand 150
10.5.1.2 UAE 151
10.5.1.2.1 Increasing investment in renewable energy sector to
propel market 151
10.5.1.3 Rest of GCC 152

10.5.2 SOUTH AFRICA 153
10.5.2.1 Rising electricity costs to spur demand 153
10.5.3 REST OF MIDDLE EAST & AFRICA 153
10.6 SOUTH AMERICA 154
10.6.1 BRAZIL 159
10.6.1.1 Increasing adoption of clean energy sources to propel market 159
10.6.2 ARGENTINA 159
10.6.2.1 Strong need for efficient grid operations to fuel market growth 159
10.6.3 REST OF SOUTH AMERICA 160
11 COMPETITIVE LANDSCAPE 162
11.1 OVERVIEW 162
11.2 KEY PLAYER STRATEGIES/RIGHT TO WIN, 2020–2024 162
11.3 MARKET SHARE ANALYSIS, 2023 164
11.4 REVENUE ANALYSIS, 2019–2023 167
11.5 BRAND/PRODUCT COMPARISON 168
11.6 COMPANY VALUATION AND FINANCIAL METRICS, 2024 169
11.7 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023 170
11.7.1 STARS 170
11.7.2 EMERGING COMPANIES 170
11.7.3 PERVASIVE PLAYERS 170
11.7.4 PARTICIPANTS 170
11.7.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023 172
11.7.5.1 Company footprint 172
11.7.5.2 Reactive power footprint 173
11.7.5.3 Application footprint 174
11.7.5.4 Type footprint 175
11.7.5.5 Region footprint 176
11.8 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2023 177
11.8.1 PROGRESSIVE COMPANIES 177
11.8.2 RESPONSIVE COMPANIES 177
11.8.3 DYNAMIC COMPANIES 177
11.8.4 STARTING BLOCKS 177
11.8.5 COMPETITIVE BENCHMARKING: STARTUPS/SMES, 2023 179
11.8.5.1 Detailed list of key startups/SMEs 179
11.8.5.2 Competitive benchmarking of key startups/SMES 179
11.9 COMPETITIVE SCENARIO 180
11.9.1 PRODUCT LAUNCHES 180
11.9.2 OTHER DEVELOPMENTS 180

12 COMPANY PROFILES 181
12.1 KEY PLAYERS 181
12.1.1 SCHNEIDER ELECTRIC 181
12.1.1.1 Business overview 181
12.1.1.2 Products offered 182
12.1.1.3 Recent developments 184
12.1.1.3.1 Developments 184
12.1.1.4 MnM view 184
12.1.1.4.1 Key strengths/Right to win 184
12.1.1.4.2 Strategic choices 184
12.1.1.4.3 Weaknesses/Competitive threats 185
12.1.2 EATON 186
12.1.2.1 Business overview 186
12.1.2.2 Products offered 187
12.1.2.3 Recent developments 189
12.1.2.3.1 Developments 189
12.1.2.4 MnM view 189
12.1.2.4.1 Key strengths/Right to win 189
12.1.2.4.2 Strategic choices 189
12.1.2.4.3 Weaknesses/Competitive threats 189
12.1.3 GE VERNOVA 190
12.1.3.1 Business overview 190
12.1.3.2 Products offered 191
12.1.3.3 Recent developments 192
12.1.3.3.1 Deals 192
12.1.3.4 MnM view 193
12.1.3.4.1 Key strengths/Right to win 193
12.1.3.4.2 Strategic choices 193
12.1.3.4.3 Weaknesses/Competitive threats 193
12.1.4 ABB 194
12.1.4.1 Business overview 194
12.1.4.2 Products offered 195
12.1.4.3 MnM view 197
12.1.4.3.1 Key strengths/Right to win 197
12.1.4.3.2 Strategic choices 197
12.1.4.3.3 Weaknesses/Competitive threats 197
12.1.5 HITACHI ENERGY LTD. 198
12.1.5.1 Business overview 198
12.1.5.2 Products offered 199
12.1.5.3 Recent developments 201
12.1.5.3.1 Developments 201

12.1.5.4 MnM view 201
12.1.5.4.1 Key strengths/Right to win 201
12.1.5.4.2 Strategic choices 202
12.1.5.4.3 Weaknesses/Competitive threats 202
12.1.6 GENTEC 203
12.1.6.1 Business overview 203
12.1.6.2 Products offered 203
12.1.6.3 Recent developments 204
12.1.6.3.1 Developments 204
12.1.7 TCI, LLC 205
12.1.7.1 Business overview 205
12.1.7.2 Products offered 205
12.1.8 POWERSIDE 206
12.1.8.1 Business overview 206
12.1.8.2 Products offered 206
12.1.9 COS PHI 208
12.1.9.1 Business overview 208
12.1.9.2 Products offered 208
12.1.10 CONTROLLIX CORPORATION 209
12.1.10.1 Business overview 209
12.1.10.2 Products offered 209
12.1.11 CIRCUTOR 211
12.1.11.1 Business overview 211
12.1.11.2 Products offered 211
12.1.12 NEPTUNE INDIA LIMITED 213
12.1.12.1 Business overview 213
12.1.12.2 Products offered 213
12.1.13 ENERLUX POWER S.R.L 214
12.1.13.1 Business overview 214
12.1.13.2 Products offered 214
12.1.14 LIFASA 216
12.1.14.1 Business overview 216
12.1.14.2 Products offered 216
12.1.14.3 Recent developments 217
12.1.14.3.1 Developments 217
12.1.15 DUCATI ENERGIA SPA 218
12.1.15.1 Business overview 218
12.1.15.2 Products offered 218
12.1.16 ORTEA SPA 220
12.1.16.1 Business overview 220
12.1.16.2 Products offered 220

12.1.17 RTR ENERGIA SRL 222
12.1.17.1 Business overview 222
12.1.17.2 Products offered 222
12.1.18 POWERCAP CAPACITORS PVT. LTD. 224
12.1.18.1 Business overview 224
12.1.18.2 Products offered 224
12.1.19 ZEZ SILKO, S.R.O. 225
12.1.19.1 Business overview 225
12.1.19.2 Products offered 225
12.1.20 TREFFER 226
12.1.20.1 Business overview 226
12.1.20.2 Products offered 226
12.2 OTHER PLAYERS 227
12.2.1 SHARDA ELECTRONICS & CO. 227
12.2.2 YUHCHANG ELECTRIC CO., LTD. 227
12.2.3 WHATOOP 228
12.2.4 POWER FACTOR CORRECTION GROUP 228
12.2.5 C. J. ENERGETICS 229
13 APPENDIX 230
13.1 INSIGHTS FROM INDUSTRY EXPERTS 230
13.2 DISCUSSION GUIDE 230
13.3 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 235
13.4 CUSTOMIZATION OPTIONS 237
13.5 RELATED REPORTS 237
13.6 AUTHOR DETAILS 238