The global synchronous condenser market was valued at US$ 507.64 million in 2019 and is projected to reach US$ 580.28 million by 2027; it is expected to grow at a CAGR of 2.6% during 2020-2027.

In the evolving technology landscape, companies are continuously striving to find solutions that could help them enhance overall business productivity, operational efficiency, consumer experience, and reduce the overall cost. Therefore, the demand for advanced application monitoring solutions such as synchronous condenser solutions is growing exponentially across various industries such as metal and mining, electrical utilities and grid operators, marine, and oil and gas. Existing and planned enhancements and extension of the worldwide high-voltage direct current (HVDC) network are expected to increase the demand for power factor correction devices, such as synchronous condensers, in different regions. High investments by key market players to build a strong HVDC network among major countries are fuelling the demand for synchronous condensers. For instance, Siemens received the contract for building the link between Great Britain and France. The HDVC link would offer power supply reliability across both the countries to promote integration of renewable energy sources in the power grids. Siemens would supply the two HVDC converter stations on both sides of the DC power line, which would be routed through the Channel Tunnel as a DC cable. Technological progress in HVDC transmission systems is expected to assist in minimizing wind and solar-based electricity transmission system operational problems, as the phase gap in the HVDC transmission line does not matter. Although traditional HVAC does not operate on this principle, transformers are required to fit the stage generated from a different source.

The sudden closedown of most of the industries due to the COVID-19 outbreak across the world has reduced the power demand, which is hindering the energy sector. The temporary closure of economic activities has also restricted the supply chain of all manufacturing goods, which has disrupted the manufacturing of synchronous condensers across the globe. Thus, the above-mentioned factors are restraining the growth of the market.

The synchronous condenser market is segmented on the basis of cooling type, reactive power rating, starting method, application, and geography. Based on cooling type, the market is segmented into air-cooled, hydrogen-cooled, and water-cooled. In 2019, the hydrogen-cooled segment held the largest share of the market. By reactive power rating, the market is segmented into up to 100 MVAr, 100-200 MVAr, and above 200 MVAr. The above 200 MVAr segment accounted for the largest market share in 2019. By strating method, the market is segmented into pony motor, static frequency converter, and others. In 2019, the static frequency converter segment held the largest market share. By application, the market is segmented into metal and mining, electrical utilities and grid operators, marine, oil and gas, and others. In 2019, the electrical utilities and grid operators segment held the largest share in the market. The synchronous condenser market, by geography, is segmented into North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America (SAM). In 2019, North America held the largest share of the market, followed by Europe and APAC. The market in APAC is projected to grow at the fastest CAGR during 2020-2027.

Overall size of the synchronous condenser market 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 market. The process also serves the purpose of obtaining an overview and forecast for the synchronous condenser market with respect to all the segments. 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 of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultant such as valuation experts, research analysts, and key opinion leaders, specializing in the synchronous condenser market. ABB Ltd.; BRUSH Group; Eaton Corporation PLC; Fuji Electric Co., Ltd.; General Electric; Hyundai Idela Electric Co.; Mitsubishi Electric Corporation; Siemens AG; Voith GmBH; and WEG Electric Corp are among the players profiled during this market study.