Global Capacitor Bank Market Insights Forecasts to 2033

• The Global Capacitor Bank Market Size was Valued at USD 3.3 Billion in 2023
• The Market Size is Growing at a CAGR of 4.45% from 2023 to 2033
• The Worldwide Capacitor Bank Market Size is Expected to Reach USD 5.1 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Global Capacitor Bank Market Size is Anticipated to Exceed USD 5.1 Billion by 2033, Growing at a CAGR of 4.45% from 2023 to 2033.

Market Overview

A capacitor bank is made up of several capacitors with comparable ratings connected in series or parallel to each other to store electrical energy. The resulting bank is then applied to an AC power supply to compensate for or rectify a phase shift or power factor lag. They can also be used in a DC power supply to increase the power supply's capacity to withstand ripple currents or to increase the overall quantity of stored energy. Enhancing grid power factor and voltage stability is its main goal. It quickly releases or absorbs energy in response to variations in reactive power demand, making up for any shortfall or excess. By lowering line losses and preserving a steady voltage level, increases system performance and lowers energy expenses. It is frequently used in commercial and industrial environments where inductive loads are ubiquitous, such as motors and transformers. Reactive power is used to support the power system, which improves performance and dependability while reducing flicker and voltage drops. Energy-efficient solutions are becoming more and more in demand in utilities and industry, which is driving the global market. This is consistent with the growing market contribution from the increasing use of renewable energy sources, it requires power factor correction. The market has been propelled by the growing requirement for grid voltage stability and support, as well as by the integration of products in electric vehicles and charging infrastructure.

Report Coverage

This research report categorizes the market for the global capacitor bank market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global capacitor bank market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global capacitor bank market.

Driving Factors

The market is being positively impacted by the increasing product utilization in data centers and telecommunications. This is brought about by these industries' growing need for dependable and effective power management systems. Data centers need a constant power supply and the best possible power quality since they are essential hubs for processing and storing enormous volumes of data. Capacitor banks play a key role in power factor correction, voltage fluctuations reduction, power system stability enhancement, downtime minimization, and overall data center performance improvement. A primary driver of the capacitor bank industry is the increasing focus on energy efficiency and power quality. Industries and utilities are continuously looking for ways to increase energy efficiency and lower power losses due to rising electricity demand and the growing emphasis on sustainable energy practices. The provision of power factor adjustment and voltage support by capacitor banks is essential for achieving these objectives and increasing the overall effectiveness of electrical systems.

Restraining Factors

The expansion of the capacitor bank market is expected to be hampered during the projected period by price volatility for raw materials such as copper, titanium, aluminum, and other components that can lower market demand. Opportunities for key companies operating in the capacitor bank market over the projected period are expected to arise from the main players' increased use of organic growth strategies.

Market Segmentation

The global capacitor bank market share is segmented into type, application, and installation.

• The internally fused segment dominates the market with the largest market share through the forecast period.

Based on the type, the global capacitor bank market is segmented into internally fused, externally fused, and fuseless. Among these, the internally fused segment dominates the market with the largest market share through the forecast period. The primary drivers propelling the growth of the capacitor bank market are rising investments in the power production sector and high demand for capacitor banks to improve the quality of the energy supply. Due to they have an internal protection mechanism that ensures safety during operation and reduces the possibility of damage from internal faults, internally fused capacitor banks are recommended. They are used in many different industries, particularly in critical systems where dependability is essential.

• The industrial segment is anticipated to grow at the fastest CAGR growth through the forecast period.

Based on the application, the global capacitor bank market is segmented into power factor correction, harmonic filter, industrial, and others. Among these, the industrial segment is anticipated to grow at the fastest CAGR growth through the forecast period. Due to the world's rapid industrialization as well as an increase in the use of advanced technologies in production facilities to boost efficiency. Voltage regulation and power factor correction are becoming more and more necessary as industrialization and electrification increase. Capacitor banks have a significant impact on energy production, electricity cost reduction, and steady voltage supply in industries.

• The pole mounted segment accounted for the largest revenue share through the forecast period.

Based on the installation, the global capacitor bank market is segmented into pole mounted, open air substation, metal enclosed substation, and others. Among these, the pole mounted segment accounted for the largest revenue share through the forecast period. Pole mounted systems work well for spread installations, particularly in isolated or rural locations. Their small size makes it simple to integrate them onto utility poles, enhancing distribution networks' power factor and voltage regulation. Utilities can reduce line losses and improve grid stability with this type of construction.

Regional Segment Analysis of the Global Capacitor Bank Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the global capacitor bank market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the global capacitor bank market over the predicted timeframe. Significant increases in industrialization, urbanization, and infrastructure development have been seen throughout the Asia Pacific, which has contributed to a rise in power demand and the requirement for efficient power distribution networks. The need for capacitor banks is being driven by China, India, Japan, and South Korea in several industries, including manufacturing, utilities, and commercial buildings. Government initiatives that support energy efficiency and the integration of renewable energy sources also add to the governance of the Asia Pacific capacitor bank sector.

Europe is expected to grow at the fastest CAGR growth of the global capacitor bank market during the forecast period. The market for capacitor banks will rise as a result of these areas' electrical infrastructure being renovated, updated, and modernized. Many European countries are building renewable power plants instead of using conventional power generation methods to meet their electrical needs. For these projects, capacitor banks must be used. Capacitor banks are necessary for panel boards, which are utilized in modern architecture, to operate well.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global capacitor bank market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Eaton
• Comar Condensatori S.p.A
• ABB Ltd.
• Enerlux Power s.r.l.
• Hitachi Ltd.
• Circutor
• Siemens
• Toshiba Corporation
• EPCOS
• Schneider Electric SE
• General Electric Company
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In February 2024, Pole-MVar, a tuned-filter capacitor bank that Powerside introduced, is a simple post-mounted device designed to address reverberation and symphonious mutilation problems. This creative solution is intended to greatly assist engineers battling reliability issues with power frameworks, particularly when they investigate the intersection of innovation and current foundations.

• In February 2024a, Powerside, a Canadian electrical equipment supplier, has released Pole-MVar, a tuned-filter capacitor bank designed to control the opposing concerns of harmonic distortion and harmonic resonance in a compact pole-mounted unit.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Global Capacitor Bank Market based on the below-mentioned segments: 

Global Capacitor Bank Market, By Type

• Internally Fused
• Externally Fused
• Fuseless

Global Capacitor Bank Market, By Application

• Power Factor Correction
• Harmonic Filter
• Industrial
• Others

Global Capacitor Bank Market, By Installation

• Pole Mounted
• Open Air Substation
• Metal Enclosed Substation
• Others

Global Capacitor Bank Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa