Power Factor Correction Market Trends
Growth Driver
- Escalating Energy Cost and Penalties for Low Power Factor - Many countries have implemented regulations or policies that penalize businesses that operate with low power factors, which can lead to higher energy costs. This has prompted businesses to invest in power factor correction systems to reduce energy bills and avoid fines. Such as, in the United States, utilities can impose penalties on industrial and commercial customers with low power factors.
- Increasing Demand for Energy Efficient Solutions - With growing concerns about climate change and energy security, there is an increasing focus on energy efficiency across all sectors. Power factor correction systems can improve energy efficiency by reducing the amount of reactive power generated, which can result in significant energy savings. Therefore, many companies are investing in power factor correction systems as part of their energy-saving initiatives. Furthermore, the application of energy efficiency norms and standards to develop public electricity and lighting systems is also expected to increase the demand for power factor correction devices in the near future times.
- Stringent Government Regulations being Implemented- Stricter rules and energy efficiency requirements are being imposed by governments and utility companies to promote the use of power factor correction technologies. Furthermore, producers and customers alike are growing more aware of sustainability and carbon footprints. Additionally, by enhancing power quality, these devices encourage the use of extra incentives. The expansion and development of the power factor correction market are being accelerated by all of these variables.
Challenges
- High Initial Investment Cost - Installing a power factor correction system can be expensive, especially for small and medium-sized businesses. Equipment, installation, and maintenance costs may deter some companies from investing in power factor correction systems, especially if they do not incur low power factor penalties.
- Lack of Awareness is Expected to Pose Limitations on the Power Factor Correction Market Growth in the Projected Period
- Shortage of Skilled Labor is Predicted to Hamper the Market Expansion in the Upcoming Period.
Power Factor Correction Market: Key Insights
Regionally, the global power factor corrector (PFC) market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific is expected to hold the largest market share of 47.07% by the end of 2028 and further attain a market revenue of USD 793264 Thousand in the same year. The market in the region is also anticipated to grow with the highest CAGR of 4.89% during the forecast period. The growth of the market in the region can be attributed to the growing demand for electricity in the region, followed by the increasing industrialization, and rapid urbanization in several countries, such as China, India, Malaysia, and others. According to the statistics by the International Energy Agency (IEA), electricity consumption in the Asia Pacific grew from 3842.1 TWh in 2000 to 11614.4 TWh in 2018.
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Moreover, the growing awareness amongst the end users for the losses caused due to fluctuating power supply, such as breakdowns or malfunctions of machines, interruption in production, and others, is anticipated to drive the demand for PFCs, and in turn accelerate the market growth in the region.
The study further incorporates Y-O-Y Growth, market opportunities, demand & supply and forecast future opportunity in North America (United States, Canada, Mexico), South America, Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.3% |
|
Base Year Market Size (2024) |
USD 2.37 billion |
|
Forecast Year Market Size (20 |
USD 4.64 billion |
|
Regional Scope |
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