Power Quality Equipment Market Size, Share & Trends Analysis Report By Equipment (Uninterruptable Power Supply (UPS), Harmonic Filters, Static VAR Compensator, Power Quality Meters, Other Equipment Types), By Phase (Single Phase, Three Phase), By End-Users (Industrial and Manufacturing, Commercial, Other End Users) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global power quality equipment market size was valued at USD 14.46 billion in 2021, presumed to reach USD 25.79 billion, expanding at a CAGR of 7.5% during the forecast period.

The power quality used in various electrical equipment is essential for multiple reasons. First off, superior power is more effective. It enables the machinery to operate with optimal energy usage. This lowers overall energy usage and, as a result, the carbon footprint while saving money on the electricity bill. Optimizing power by minimizing the "wear and tear" on machinery lowers the danger of equipment failure or overheating and the frequency at which maintenance work will be needed. Power quality equipment is a unique tool to control power and provide consistent power quality. These devices can handle many disturbances, including transients, harmonics, voltage dips, flicker, current, and power. To assess the data and be better prepared to take the necessary action, these devices are also employed to monitor such disturbances. Only when they are provided with a constant source of voltage that falls within a specific range can electrical equipment perform at its best. Any departure from the range can result in a shorter equipment lifetime, resulting in early failure, more downtime, reduced capacity, production waste, and unfavorable financial effects.

In many nations, the majority of the power-related infrastructure is outdated. Since the bulk of the problems with power quality is caused by either the generation source or the transmission and distribution network, governments can play a significant role in finding solutions. Transmission failures are more likely to affect a more substantial number of end users; even if distribution problems are more common, their impact is typically more limited. The transmission and distribution system's susceptibility to weather conditions is a major contributor to poor power quality. The second significant contributing factor to the issue is the rise in dispersed microgrids brought on by the increased adoption of renewable energy sources in developed economies. These situations have raised the demand for power quality improvement products, mainly from end users.

Market Dynamics

Global Power Quality Equipment Market Drivers

• The Growing Demand for Power Quality in Industrial and Manufacturing Segments

The primary power users are industrial processing and manufacturing, followed by the transportation, residential, and commercial sectors. The market for power quality equipment is primarily driven by steadily rising power consumption. Global industrial manufacturing and the consistently expanding processing industry are crucial market growth drivers. The economy of the operations is the primary justification for power quality monitoring, significantly when significant process loads are negatively impacted. 

Mis-operation, damage, disruption of the process, and other abnormalities are examples of these consequences on the equipment and process activities. Such disruptions are expensive since a profit-based operation is abruptly stopped and needs to be restarted to resume production. In industrial operations and manufacturing, poor power quality can negatively impact severely. Industrial processes have different power quality requirements, each having particular needs regarding power quality features. Machine downtime, product quality, equipment failure, and clean-up expenses are critical factors in power quality for industrial end users in terms of costs. 

A rise in the demand for continuous power supply to equipment used during process and manufacturing industries is another factor driving the growth of the manufacturing sector. Any breakdown or interruption can result in significant losses owing to the loss of production time. Depending on the nature of the problem, the rating, and the electromechanical performance characteristics of the industrial equipment, the costs of power quality problems and remedies might vary considerably. As a result of these variables, the market for power quality equipment is now necessary to cut downtime expenses, remove inefficiencies, and protect expensive equipment from technical failures caused by power disturbances.

Global Power Quality Equipment Market Restraints

• The Cost Associated with Such Equipment

The primary objective of Power Quality (PQ) equipment is to reduce the number of devices utilized by a system. Additionally, it provides databases where data may be collected, analyzed, and saved instantly and measure and analyze data needed for a brief period. Businesses are impacted by power quality in a variety of short-, mid-, and long-term ways. An insufficient level of electricity quality frequently causes financial losses, adverse societal effects, and inappropriate use of resources. Various functions, including disturbance detection and location, harmonic distortion analysis, high-speed transient detection, automatic alarm setup, flicker detection, and localization, along with antialiasing, are included in high-end power quality equipment. As a result, this equipment is pricey and requires costly installation. The overall expansion of the power quality equipment market share is anticipated to be constrained by the high costs of high-end equipment.

Global Power Quality Equipment Market Opportunities

• Incorporating Renewable Energy Sources with Power Grids

An essential component of integrating renewable energy is power quality. Voltage and frequency fluctuations, brought on by the uncontrollable variability of renewable energy sources, are one of the main issues with power quality. Due to the change in energy generating sources, wind and solar power generation are intermittent and call for additional steps to maintain system balance. The supply-side variability needs to be taken into account. Equipment for power quality is consequently required. It is necessary to strike a balance between generation levels and loads using strategies that promote grid flexibility. Harmonics, generated by power electronic equipment used for renewable energy generation, is another problem with power quality caused by the integration of renewable energy. Therefore, balancing loads to prevent electrical equipment from tripping presents lucrative growth potential for the market for power quality equipment.

Regional Analysis

The region-wise segmentation of the global power quality equipment market includes North America, Europe, Asia Pacific, and the Rest of the World. 

The Asia Pacific Will Dominate the Regional Market

The Asia Pacific will command the market with the largest share. The Asia-Pacific region is still developing, and several nations, including Malaysia, Cambodia, and the Philippines, experience frequent blackouts and unpredictable power supplies. The region's expanding industrial and manufacturing, telecom, and commercial sectors are some of the significant end-users of power quality equipment. The fundamental force behind economic growth is the manufacturing sector in the Asia-Pacific region, with China accounting for most of the world's manufacturing production. While Vietnam, Malaysia, and Singapore are also anticipated to grow in their share throughout the projection period, Japan, India, South Korea, and Indonesia are a few other vital contributors to the Asia-Pacific region.

Many nations in this region, including India and South Korea, are advancing the manufacturing sector with various measures. The "Make in India" and "Production Linked Incentive (PLI)" schemes in India have significantly boosted the manufacturing industry in several industries, and the India Brand Equity Foundation estimates that by 2025, India's manufacturing sector might exceed USD 1 trillion. Similarly, South Korea announced in 2021 that it would devote USD 451 billion to domestic semiconductor production over the following ten years. This money would come from a combination of tax breaks, government assistance programs, and commitments from private companies. All of this suggests that the Asia-Pacific region's manufacturing sector is anticipated to grow significantly during the forecast year, which is expected to result in a sizable increase in demand for power quality equipment.

Segmental Analysis

The global power quality equipment market is classified based on equipment, Phase, end-users, and region. 

By Equipment Analysis

Based on equipment, the categories include Uninterruptable Power Supply (UPS), Harmonic Filters, Static VAR Compensator, Power Quality Meters, and Other Equipment Types. 

The Uninterruptable Power Supply (UPS) section is projected to hold the largest market share during the forecast period. Uninterruptible Power Supply (UPS) is a power quality device that gives a vital system load constant and reliable power. The device guards against any potential incoming distribution system power quality problems, like interruptions, voltage sags, swells, harmonics, and noise that could impair the functionality of delicate electronic components and other electrical equipment. It isolates the essential load from problems with power quality in the incoming supply and guards against interruptions for equipment vulnerable to changes in power quality. A UPS keeps electricity going to essential equipment. At the same time, the backup source, such as a standby generator set, is still operational or gives computers ample time to shut down properly and save important data. Recent advancements in UPS technology include the development of more durable UPS system components, such as electronic switches, sophisticated communications protocols, like the single network management protocol (SNMP), and data-based risk analysis systems. This is anticipated to lower operational costs and enhance demand during the projected period.

By Phase Analysis

Based on the Phase, the categories include Single Phase and Three Phase. 

The three-phase section is projected to hold the largest market share. Due to the widespread use of three-phase by consumers worldwide, utilities, industrial, and transportation industries all require three-phase power quality equipment. It provides electricity to power grids, data centers, ships, airplanes, and other electronic devices requiring more than 1,000 watts. Large industrial equipment can run more effectively thanks to it because it is the most effective method for distributing power across vast distances. The main distinction between single-phase and three-phase power systems is how effectively a three-phase system can handle heavier loads. Commercial and industrial loads demand a three-phase power supply because they can run bigger loads more readily and demands more heavy electronic loads. Since it has enough phase difference to provide initial torque for the motor to start, three-phase motors used in large businesses do not need any starters.

By End-Users Analysis

Based on end-users, the categories include Industrial & Manufacturing, Commercial, and Other End-Users. 

The industrial & manufacturing section is projected to hold the largest market share. Most electricity used in industrial and manufacturing operations comes from power grids. Yet, many parts of industrial and manufacturing equipment are susceptible to power quality issues such as disruption, imbalance, distortion, voltage variation, and voltage flicker. The commercial and industrial sector uses constant voltage transformers, filters, static distribution compensators, VAR compensators, noise filters, and many more to prevent such power quality issues. The demand for uninterrupted power supply to equipment used in manufacturing and process industries is increasing, driving the expansion of this market segment. Any interruption or breakdown can result in significant losses due to the loss of production time. Because the scale of the electrical networks managed by utilities is greater than that of the industrial and transportation electric infrastructures, utilities are the primary consumers of power quality equipment.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments