The MEA synchronous condenser market is expected to grow from US$ 38.09 million in 2019 to US$ 45.72 million by 2027; it is estimated to grow at a CAGR of 3.2% from 2020 to 2027.
Upgrading the existing synchronous generators into synchronous condensers is expected to upsurge the MEA synchronous condenser market. The demand for traditional power generating sources is declining with aging power generation plants, decommissioning, environmental regulations, increasing competition from gas-fired turbines, and renewable energy sources. Several aged coal-fired power plants across the MEA region are being shut down owing to these factors. Withdrawing a power generation unit decreases a plant's capacity for reactive power. There is a growing trend of turning aging power plants into synchronous condensers to stabilize the grid systems. These synchronous condensers provide the reactive power needed for areas previously reliant on large thermal power plants. A more affordable and efficient approach is to turn the current synchronous generators into synchronous condensers. Thus, the above-mentioned factors are expected to drive the MEA synchronous condenser market. Other factors, such as burgeoning high-voltage direct current network, are also expected to drive the MEA synchronous condenser market.
Furthermore, in case of COVID-19, countries in the region, especially Saudi Arabia, the UAE, Egypt, Morocco, and Kuwait, are highly affected. The retail industry across the Middle East was severely impacted due to the pandemic in the beginning of the year 2020. However, in order to combat the huge economic impact, countries, such as the UAE, have taken necessary steps to continue economic activities across the region. However, the supply chain across the country has been greatly affected, which is causing the unavailability of manufacturing parts or finished condenser supply across the country. Thus, the above-mentioned factors are expected to negatively impact the market over the years.
Based on starting method, the static frequency converter segment led the MEA synchronous condenser market in 2019. Compared to pony motors, static frequency converters provide superior control for starting synchronous condensers and offer better accuracy and ability to start multiple condensers. Due to these factors, in all segments, static frequency converters are expected to lead the market segment and grow at the fastest rate. In addition, with low installation costs, a static frequency converter is independent of supply voltage and load variations. It has a small volume, high accuracy, and low noise characteristics. Therefore, its characteristics and advantages, such as low cost, superior control, and better accuracy, are likely to raise the demand for static frequency converter, thereby driving the MEA synchronous condenser market.
The overall MEA synchronous condenser market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the MEA synchronous condenser market. The process also serves the purpose of obtaining overview and forecast for the MEA synchronous condenser market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, synchronous condenser market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the MEA synchronous condenser market. ABB Ltd.; Brush Group; Eaton Corporation plc; FUJI ELECTRIC CO., LTD.; General Electric Company; Siemens AG (Siemens Energy); Voith GmbH & Co. KGaA; and WEG ELECTRIC CORP. are among key players operating in the MEA synchronous condenser market.