Global Synchronous Condenser Market, By Cooling Technology (Hydrogen Cooled Synchronous Condenser, Air-Cooled Synchronous Condenser, and Water Cooled Synchronous Condenser), Starting Method (Static Frequency Convertor, Pony Motor, and Others), Reactive Power Rating (Above 200 MVAR, 101-200 MVAR, 61-100 MVAR, 31-60 MVAR, and 0-30 MVAR), End User (Electrical Utilities and Industrial Sectors), Type (New Synchronous Condenser and Refurbished Synchronous Condenser), Design (Salient Pole Design and Cylindrical Rotor Design), No. of Poles (4 To 8, Less Than 4, and More Than 8), Excitation System Type (Static Excitation and Brushless Excitation System) - Industry Trends and Forecast to 2031.
Synchronous Condenser Market Analysis and Insights
The global synchronous condenser market is experiencing robust growth, driven by increasing demand for clean energy sources. In addition, the growing need for integrated systems in power plants is further propelling the market growth. One notable opportunity within this landscape is rising government initiatives to reduce air pollution. However, the market faces restraints, such as issues related to higher prices associated with capital and maintenance, along with stringent standards related to synchronous condensers. Some of the challenges are the availability of low-cost substitutes and involvement in a sophisticated and time-consuming installation process.
Data Bridge Market Research analyzes that the global synchronous condenser market is expected to reach USD 3.63 billion by 2031 from USD 2.65 billion in 2023, growing with a CAGR of 4.1% in the forecast period of 2024 to 2031.
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016–2021)
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Quantitative Units
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Revenue in USD Billion
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Segments Covered
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Cooling Technology (Hydrogen Cooled Synchronous Condenser, Air-Cooled Synchronous Condenser, and Water Cooled Synchronous Condenser), Starting Method (Static Frequency Convertor, Pony Motor, and Others), Reactive Power Rating (Above 200 MVAR, 101-200 MVAR, 61-100 MVAR, 31-60 MVAR, and 0-30 MVAR), End User (Electrical Utilities and Industrial Sectors), Type (New Synchronous Condenser and Refurbished Synchronous Condenser), Design (Salient Pole Design and Cylindrical Rotor Design), No. of Poles (4 To 8, Less Than 4, and More Than 8), Excitation System Type (Static Excitation and Brushless Excitation System)
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Countries Covered
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U.S., Canada, Mexico, Germany, U.K., Italy, France, Spain, Russia, Turkey, Netherlands, Belgium, Finland, Norway, Switzerland, Rest of Europe, China, Japan, India, South Korea., Australia, Singapore, Indonesia, Thailand, Malaysia, Taiwan, Philippines, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, Qatar, Oman, Bahrain, Kuwait, and Rest of Middle East and Africa
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Market Players Covered
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General Electric, ABB, Siemens Energy, Eaton, WEG, Ansaldo Energia, Shanghai Electric, INGETEAM, S.A. Hitachi Energy Ltd., Mitsubishi Electric Power Products, Inc., Baker Hughes Company, Power Systems & Controls, Inc., IDEAL ELECTRIC POWER CO., Doosan Škoda Power, and ANDRITZ among others
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Market Definition
A synchronous condenser is treated as a DC-excited synchronous motor that adjusts temperature and power according to the electric power transmission grid. Synchronous compensators, also called synchronous condensers, are designed to control the voltage level in a network area continuously. They can produce or consume reactive power depending on the value of the excitation current. Synchronous condensers are an alternative to capacitor banks for power-factor correction in power grids.
Global Synchronous Condenser Market Dynamics
This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Growing Need For Integrated Systems in Power Plants
With the rising awareness of renewable energy sources, there is an increased requirement for technologies that can enhance grid stability and power quality. Synchronous condensers play a pivotal role in power systems, providing reactive power support and voltage regulation. The integration of these condensers helps optimize power plant operations, mitigate grid fluctuations, and maintain the overall reliability of the power generation and distribution network. The adoption of synchronous condensers is expected to rise, driving the market forward as the demand for grid stability grows
- Increasing Demand for Clean Energy Sources
Clean energy refers to the energy gained from sources without the release of air pollutants. Renewable energy is power generated from sources that are constantly being replenished. Unlike fossil fuels and gas, these renewable energy resources won't run out and include wind and solar energy. However, most green energy sources are renewable. Thus, perfect green clean energy can be called renewable energy sources.
Opportunity
- Rising Government Initiatives to Reduce Air Pollution
Energy consumption has been increasing across the globe due to the rise in electricity demand. Energy production through fossil fuels is responsible for more than one-third of the world's greenhouse gas emissions, which cause pollution and climate change.
The world's energy generation depends on coal, which produces 70% of electricity and is responsible for 60% of particulate matter emissions. Thus, countries across the globe, such as India, Germany, China, and others, are creating awareness and strengthening the rules and regulations to control the emissions of greenhouse gases. Among these, initiatives towards reducing carbon content in generating electricity have increased over the years.
Restraints/Challenges
- Higher Prices Associated with Capital and Maintenance
A synchronous condenser is a conventional solution used for decades for regulating power. This type of device comprises AC synchronous motor that can provide continuous reactive power control when used with a suitable automatic exciter. This has led to an upsurge in the usage of such electrical devices over the years.
Synchronous condensers are used at both distribution and transmission voltage levels. Thus, the system involves components such as a stator, rotor, cooling system, lubrication oil supply, step-up transformer, and many others. However, voltage handling requires controlling these parameters if higher voltage or higher temperature requires higher capacity components. Thus, the requirement of handling synchronous condensers at higher voltage incurs higher costs. Hence, the power plants generating enormous power require high investment for installing synchronous condensers. For instance, it is observed that the synchronous condenser with a reactive power rating above 200 MVAR has apparent demand in the market. These condensers are used in power plants because of the efficient management of more than 900 MVA of short-circuit power developed in power plants and commission costs of more than USD 6000. However, condensers with lower reactive power ratings incur low costs. But, these types of condensers are not preferred in power plants, which is restraining the market growth.
- Availability of Low-Cost Substitutes
The synchronous condensers mainly control the reactive power by changing the field excitation. The synchronous motor can be used for many applications, such as power factor correction, VAR compensator, and loss of inertia. However, the compensator is also associated with various disadvantages such as noise production, high maintenance cost, less economical for less than 500KVAR compensation, and others.
The disadvantages associated with synchronous condensers will drive the rise of substitutes, namely SVC (Static VAR compensator), SATCOM (Static Compensator), transformer tapping, FACTS (Flexible AC Transmission System), capacitor banks, and many others. These substitutes have benefitted the operation over a certain condition. Moreover, the expenses related to these substitutes are low compared to synchronous condensers are expected to challenge the market growth.
Recent Developments
- In November 2023, Siemens has introduced a hybrid grid stabilization solution at Shannon bridge B in Ireland. This innovative system combines a synchronous condenser with flywheel technology alongside a 160 MWh battery. This marks the first integration of these two technologies into a unified grid connection solution. The primary objective is to enhance grid stability while maximizing the utilization of renewable energy sources. By leveraging this advanced hybrid system, Siemens aims to address grid challenges effectively and facilitate the transition towards a more sustainable energy infrastructure
- In November 2023, General Electric announced that a consortium comprising GE Vernova’s Power Conversion business and Eiffage Énergie Systèmes (consortium manager) has been selected by EDF SEI to provide and install a turnkey synchronous condenser system at the EDF SEI TAC Jarry Sud plant in Guadeloupe, France. This solution played a crucial role in stabilizing the island's electrical grid, addressing the growing challenges of grid instability amidst global efforts to reduce carbon emissions through increased renewable energy reliance. This benefited company to strengthen its relationship with government
Global Synchronous Condenser Market Scope
The global synchronous condenser market is segmented into eight notable segments based on cooling technology, starting method, reactive power rating, end user, type, design, no. of poles, and excitation system type. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the differences in your target markets.
Cooling Technology
- Hydrogen Cooled Synchronous Condenser
- Air-Cooled Synchronous Condenser
- Water Cooled Synchronous Condenser
On the basis of cooling technology, the market is segmented into hydrogen cooled synchronous condenser, air-cooled synchronous condenser, and water-cooled synchronous condenser.
Starting Method
- Static Frequency Convertor
- Pony Motor
- Others
On the basis of starting method, the market is segmented into static frequency convertor, pony motor, and others.
Reactive Power Rating
- Above 200 MVAR
- 101-200 MVAR
- 61-100 MVAR
- 31-60 MVAR
- 0-30 MVAR
On the basis of reactive power rating, the market is segmented into above 200 MVAR, 101-200 MVAR, 61-100 MVAR, 31-60 MVAR, and 0-30 MVAR.
End User
- Electrical Utilities
- Industrial Sectors
On the basis of end user, the market is segmented into electrical utilities and industrial sectors.
Type
- New Synchronous Condenser
- Refurbished Synchronous Condenser
On the basis of type, the market is segmented into new synchronous condenser and refurbished synchronous condenser.
Design
- Salient Pole Design
- Cylindrical Rotor Design
On the basis of design, the market is segmented into salient pole design and cylindrical rotor design.
No. of Poles
- 4 To 8
- Less than 4
- More than 8
On the basis of no. of poles, the market is segmented into 4 to 8, less than 4, and more than 8.
Excitation System Type
- Static Excitation
- Brushless Excitation System
On the basis of excitation system type, the market is segmented into static excitation and brushless excitation system.
Global Synchronous Condenser Market Regional Analysis/Insights
The global synchronous condenser market is segmented into eight notable segments based on cooling technology, starting method, reactive power rating, end user, type, design, no. of poles, and excitation system type.
The countries covered in this market report are U.S., Canada, Mexico, Germany, U.K., Italy, France, Spain, Russia, Turkey, Netherlands, Belgium, Finland, Norway, Switzerland, rest of Europe, China, Japan, India, South Korea., Australia, Singapore, Indonesia, Thailand, Malaysia, Taiwan, Philippines, rest of Asia-Pacific, Brazil, Argentina, rest of South America, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, Qatar, Oman, Bahrain, Kuwait, and rest of Middle East and Africa.
The North America region is expected to dominate the market due to increasing consumption usage of synchronous condensers for grid stability and generating higher electricity in major developing countries in the North America region. The U.S. is expected to dominate in North America due to its extensive power infrastructure, increasing renewable energy integration, and regulatory initiatives promoting grid stability. China is expected to dominate in Asia-Pacific due to its robust electrical infrastructure development, rapid industrialization, and extensive investments in renewable energy integration. Germany is expected to dominate in Europe due to its robust power infrastructure, increasing renewable energy integration, and stringent grid stability regulations.
The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts, and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands and the impact of sales channels are considered while providing forecast analysis of the country data.
Global Synchronous Condenser Market Share Analysis and Competitive Landscape
The global synchronous condenser market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, product width and breadth, application dominance, and product type lifeline curve. The above data points provided are only related to the company’s focus on the market.
Some of the major market players operating in the market are General Electric, ABB, Siemens Energy, Eaton, WEG, Ansaldo Energia, Shanghai Electric, INGETEAM, S.A. Hitachi Energy Ltd., Mitsubishi Electric Power Products, Inc., Baker Hughes Company, Power Systems & Controls, Inc., IDEAL ELECTRIC POWER CO., Doosan Škoda Power, and ANDRITZ among others.
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