Flexible alternating current transmission is a power electronics based system, which is used for enhancing control and capability of power transfer of the networks. Also known as FACTS, this system is popularly used for AC transmission of electrical energy. Growth of power industry and increasing demand for high quality of power supply and network reliability are driving the global flexible AC transmission market. Increasing requirement for network reliability is also a crucial aspect influencing the global market. Technological advancements in the power market are also increasing the range of applications of FACTS, which is a great sign for the industry, which is estimated to grow at a steady rate.
Detailed analysis of all the segments of a market gives better idea about the latest trends, threats, opportunities and business prospects in the industry. All these aspects help businesses to deal with the current situation and come up with greater business strategies. Flexible AC transmission systems can be divided into three types of compensations, namely, shunt, series and shunt connected and combines series. These basic types are further classified into different sub-segments of the market.
- Shunt: Static Var Compensator (SVC) and Static Synchronous Compensator (STATCOM)
- Shunt connected and combined: Unified Power Flow Controller (UPFC) and Interline Power Flow controller (IPFC)
- Series: Fixed Series Capacitor (FSC) and Thyristor Controlled Series Capacitor (TCSC)
Apart from the types of systems, the FACTS market is also segmented based on the AC transmission systems components, their applications and geographical regions. Based on components, the flexible transmission market is segmented into power electronic devices, reactors, thyristors, capacitor banks, protection and control systems and switchgears, etc. Applications of FACTS range across different industrial verticals including electric utilities, power industry, mining, steel, railways, wind power and other industries. On the basis of geographical regions, the market is segmented into the Americas, Asia Pacific, Europe and rest of the world.
In-depth analysis of the global market for flexible AC transmission systems explains that the industry is poised to witness steady growth. Based on the trends in all the major segments, the market is expected to grow at a steady CAGR of over 7% from 2013 to 2018. Within these five years, the market is anticipated to reach past $1,386.01 Million. In 2012, the flexbible AC transmission market was worth $912.85 million. These figures explain the steady growth in the industry. increasing demand for high power supply, increasing reliability of various crucial industrial verticals like steel and electric utilities and technological advancements are the biggest drivers for the industry.
In terms of segments, SVC segment is expected to be the most popular segment, followed by FSC. Clean energy generation drive and growing governmental concern over environmental regulations are also the driving forces behind the global market.