Flexible AC Transmission System (FACTS) Market to Reach US$ 2.14 Billion by 2032 Driven by Grid Modernization and Renewable Energy Integration

According to the latest study by Persistence Market Research, the global Flexible AC Transmission System (FACTS) Market was valued at US$ 1,383.90 million in 2024 and is projected to reach US$ 2,142.0 million by 2032, expanding at a CAGR of 5.7% from 2025 to 2032. The market is witnessing strong growth as power utilities and grid operators worldwide face mounting pressure to enhance grid stability, increase transmission efficiency, and integrate large volumes of renewable energy. With transmission infrastructure becoming increasingly complex and decentralized, FACTS technologies have emerged as essential solutions that support voltage regulation, power flow control, and system reliability without requiring major physical upgrades to existing networks.

FACTS solutions-ranging from shunt and series compensators to advanced combined configurations-offer utilities the ability to respond dynamically to voltage fluctuations, congestion, and rapidly changing load conditions. These systems help strengthen the grid, reduce energy losses, and stabilize power delivery across long distances. As the shift toward smart grids, distributed generation, and high-voltage transmission networks accelerates, the need for FACTS devices is rising across both developed and emerging economies.

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response): https://www.persistencemarketresearch.com/samples/10888

Market Overview

The growth of the FACTS market is closely tied to the global push for modernization of aging transmission infrastructure. Many power networks, particularly in North America and Europe, were built decades ago and are now unable to meet today's high-capacity demands. At the same time, developing regions such as Asia-Pacific, the Middle East, and parts of Africa are rapidly expanding their power transmission networks to support industrialization and urbanization.

FACTS devices offer a compelling alternative to traditional transmission upgrades by providing voltage support, power flow optimization, and dynamic reactive power compensation. These features are critical as renewable energy sources like solar and wind are increasingly connected to the grid. Because renewables are intermittent and unpredictable, utilities rely on FACTS to maintain balance, prevent instability, and ensure uninterrupted power supply.

Moreover, the transition toward HVDC (High-Voltage Direct Current) lines, smart substations, and digital grid technologies is complementing the adoption of FACTS systems, creating a favorable ecosystem for market growth over the forecast period.

Key Market Drivers

A major driver of the FACTS market is the rising global demand for grid reliability and stability, especially in regions experiencing rapid power load growth. FACTS technologies help utilities manage high transmission volumes and prevent blackouts by enhancing dynamic power flow control.

Another significant driver is the global renewable energy transformation. Countries worldwide are expanding their solar, wind, and hydro portfolios, which increases grid variability. FACTS devices, particularly static VAR compensators (SVC) and static synchronous compensators (STATCOM), play a key role in mitigating voltage fluctuations and balancing power flow generated by renewables.

Additionally, growing investments in long-distance and cross-border transmission networks-such as inter-country power corridors in Europe, Asia, and Africa-are propelling the demand for FACTS-based solutions. Government initiatives supporting grid digitalization, smart energy systems, and reduction of transmission losses are creating new opportunities for FACTS manufacturers.

Challenges and Restraints

Despite its strong growth potential, the FACTS market faces challenges that slow adoption in some regions. The high initial cost of installation and the requirement for skilled engineers often limit deployment in developing markets. Many utilities also face budget constraints and lack the technical expertise needed for implementing complex reactive power compensation systems.

Furthermore, integrating FACTS into older transmission networks requires careful planning and coordination, which can prolong project timelines. Cybersecurity and compatibility concerns also emerge as power grids become increasingly digital and interconnected.

However, advancements in modular designs, cost-effective manufacturing, and software-driven grid management systems are expected to mitigate these challenges in the coming years. Continued investment in training programs, policy reforms, and infrastructure development will help accelerate adoption globally.

Dive deeper into the market data: https://www.persistencemarketresearch.com/market-research/facts-flexible-ac-transmission-system-market.asp

Flexible AC Transmission System (FACTS) Market Segmentation

Compensation Type:

Shunt
Series
Combined

Generation Type:

Second
First

Application:

Voltage Control

End-Use:

Power Control
Utilities
Renewables
Industrial
Railways

By Region:

North America
Europe
East Asia
South Asia and Oceania
Latin America
The Middle East and Africa

Regional Insights

North America remains a major market for FACTS technologies due to aging transmission infrastructure, increasing renewable penetration particularly from wind farms, and substantial investments in grid modernization. The United States is investing heavily in strengthening its high-voltage grid to support renewable integration from the Midwest and Southwest regions.

Europe is another leading region, driven by strong regulatory mandates supporting renewable energy, inter-country grid connectivity, and widespread adoption of advanced transmission solutions. Countries such as Germany, the UK, Denmark, and the Netherlands are rapidly deploying FACTS systems to manage the variability in wind and solar generation.

East Asia, led by China, Japan, and South Korea, is experiencing massive growth due to large-scale grid expansion projects, high electricity demand, and advancements in regional transmission networks. China, in particular, is making significant investments in HVDC lines and flexible AC transmission solutions to support long-distance energy transport.

South Asia and Oceania, especially India and Australia, are emerging as hotspots for FACTS deployment. India's rapid renewable energy expansion and increasing grid congestion create strong opportunities for STATCOMs and SVCs. Australia's remote renewable installations depend heavily on FACTS for maintaining grid stability.

Latin America is gradually adopting FACTS solutions, supported by grid reinforcement programs and renewable energy projects in Brazil, Chile, and Mexico. Meanwhile, the Middle East and Africa are investing in FACTS technologies to support industrialization and increased power transmission demands in regions like Saudi Arabia, the UAE, and South Africa.

Company Insights

Key players operating in the global flexible AC transmission system market include:

✦ ABB Ltd.
✦ Siemens Energy AG
✦ Mitsubishi Electric Corporation
✦ GE Grid Solutions
✦ Toshiba Energy Systems & Solutions Corporation
✦ Hitachi Energy (formerly Hitachi ABB Power Grids)
✦ Adani Transmission Ltd.
✦ NR Electric Co., Ltd.
✦ American Superconductor Corporation (AMSC)
✦ Hyosung Heavy Industries

These companies are heavily investing in research and development, digital grid transformation, and expanded manufacturing capabilities. Many are launching advanced FACTS devices integrated with AI and real-time monitoring systems, enabling more accurate and efficient power control. Partnerships with utilities, long-term service contracts, and renewable project collaborations are shaping the future competitive landscape.

For Customized Insights on Segments, Regions, or Competitors, Request Personalized Purchase Options: https://www.persistencemarketresearch.com/request-customization/10888

Technological Advancements

Advancements in FACTS technologies are transforming grid management capabilities. Modern STATCOMs now offer higher efficiency, faster response times, and improved voltage regulation. Digital control systems and AI-driven grid analytics are helping utilities predict energy fluctuations and optimize FACTS device performance.

Meanwhile, hybrid FACTS systems that combine multiple compensation functions are gaining popularity, as they provide enhanced flexibility and operational reliability. The integration of FACTS with smart grids, IoT-based monitoring, and cloud-enabled control platforms is expected to play a pivotal role in next-generation power systems.

Future Outlook

The future of the FACTS market looks promising as global electrification, shifting energy demands, and the transition to renewable energy reshape the power landscape. Renewable power installations-particularly wind and solar-will continue to surge, increasing the need for advanced grid stabilization technologies.

As governments prioritize grid resilience, cross-border power trading, and carbon reduction goals, FACTS systems will become essential tools for ensuring efficient, reliable, and flexible electricity transmission. With rising investments in digital grids, smart substations, and HVDC infrastructure, the market is expected to maintain strong momentum through 2032.

Explore the Latest Trending Research Reports:

• Deodorant Antiperspirant Ingredients Market Analysis - https://www.persistencemarketresearch.com/market-research/deodorant-antiperspirant-ingredients-market.asp
• Isononanol Market Analysis - https://www.persistencemarketresearch.com/market-research/isononanol-market.asp
• Polyoxymethylene Market Analysis - https://www.persistencemarketresearch.com/market-research/polyoxymethylene-market.asp

Contact Us:

Persistence Market Research
Second Floor, 150 Fleet Street,
London, EC4A 2DQ, United Kingdom
USA Phone: +1 646-878-6329
UK Phone: +44 203-837-5656
Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

This release was published on openPR.