- The distribution segment is expected to hold the largest share of the volt/VAr management market, by application, during the forecast period.
- The hardware segment is expected to dominate the volt/VAr management market, by component, in 2018.
- North America is expected to be the leading market for volt/VAr management during the forecast period.
The volt/VAr management market is projected to grow from an estimated $427 million in 2019 to $568 million by 2024, at a CAGR of 5.9% during the forecast period. The need for efficiency to reduce distribution losses and optimize power factor, the complexity of distributed energy generation, and rising demand for electricity are expected to drive the market for volt/VAr management across the world.
The volt/VAr management market is dominated by a few major players that have an extensive regional presence. The leading players in the volt/VAr management market are ABB (Switzerland), Siemens (Germany), Schneider (France), GE (US), and Eaton (Ireland).
The major strategies adopted by the players include new product launches, contracts & agreements, and partnerships. Contracts & agreements were the most commonly adopted strategies from January 2016 to June 2019. These industry players also adopted new product launches and partnerships as major strategies during that period.
North America is estimated to be the largest growing market in the volt/VAR management market during the forecast period, followed by the European region. The growth of this region is driven primarily due to countries such as the US & Canada. In Europe, renewables are expected to account for four-fifths of the new capacity additions with wind power generation as the leading electricity generation source.
The fast-paced growth in the economies of South-East Asia has been responsible for over 4% of the global energy investments. China is focused on expanding its distribution networks and large-scale transmission networks, while India is focused on increasing its grids to accommodate the growing demand. This is expected to boost the demand for volt/VAr management in the region during the forecast period.
The volt/VAr management market, by application, is segmented into generation, transmission, and distribution. Distribution is the largest market segment and is projected to grow at the highest CAGR during the forecast period. Need for a reduction in distribution systems voltage and increasing power distribution network is expected to drive the demand for volt/VAr management solutions in the distribution segment. The transmission segment is the second largest segment. The need for reduction in voltage stability and optimization of the transmission network is expected to boost the demand for volt/VAr management systems in the transmission segment.
The volt/VAr management market, by component, is segmented into hardware and software & services. The hardware segment is the largest and is projected to grow at the highest CAGR during the forecast period. An increasing number of distribution management projects in substations is expected to drive the demand for hardware segment in the volt/VAr management market.
The volt/VAr management market, by end-user, is segmented into electric utility and industrial (cement, steel, metallurgy, and others). The electric utility accounted for the largest share of the volt/VAr management market because of its cost-effective flow measurement. Increase in energy consumption and reduction in operational cost are expected to drive the demand for electric utilities in the volt/VAr management market.