Capacitor Bank Market
Capacitor Bank Market Forecasts to 2032 - Global Analysis By Type (Fixed Capacitor Banks, Automatic (Switchable) Capacitor Banks, Detuned Capacitor Banks, Shunt Capacitor Banks, Series Capacitor Banks and Other Types), Voltage, Installation, Connection Type, Application, End User and By Geography
|
Years Covered |
2024-2032 |
|
Estimated Year Value (2025) |
US $5.1 BN |
|
Projected Year Value (2030) |
US $7.6 BN |
|
CAGR (2025- 2032) |
5.8% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
Asia Pacific |
|
Highest Growing Market |
North America |
According to Stratistics MRC, the Global Capacitor Bank Market is accounted for $5.1 billion in 2025 and is expected to reach $7.6 billion by 2032 growing at a CAGR of 5.8% during the forecast period. A capacitor bank is a group of several capacitors connected together in either series or parallel to store and manage electrical energy. Commonly used in electrical power systems, capacitor banks help improve power factor, regulate voltage, and reduce energy losses. By compensating for reactive power demand, they enhance the efficiency and stability of power supply networks. These banks are widely utilized in industrial facilities, substations, and commercial buildings to ensure optimal performance of electrical equipment. Capacitor banks can be fixed or automatic, depending on the application's requirements, and they play a vital role in modern energy management systems.
According to the Federal Energy Regulatory Commission (FERC), solar provided 49.3% of new domestic generating capacity in 2023 in the U.S., more than any other energy source.
Market Dynamics:
Driver:
Increasing demand for electricity
The rising global demand for electricity, driven by rapid industrialization, urbanization, and the growing adoption of renewable energy sources, is significantly fueling the market. These banks play a vital role in improving power factor, voltage stability, and overall energy efficiency in power systems. As utilities and industries strive to reduce transmission losses and enhance grid performance, the need for reliable energy storage and distribution solutions like capacitor banks continues to surge, making them essential components in modern electrical infrastructure.
Restraint:
Grid stability concerns due to improper operation
Grid stability concerns arising from the improper operation of capacitor banks can negatively impact the market. Poorly coordinated switching or incorrect sizing can lead to voltage fluctuations, harmonic distortion, and equipment damage. These issues compromise power quality and can result in unplanned outages or system failures, undermining trust in capacitor bank solutions. Additionally, such instability may lead to increased maintenance costs and regulatory scrutiny, discouraging potential users and slowing market adoption despite the technology’s overall benefits when properly implemented.
Opportunity:
Focus on energy efficiency and cost reduction
The market is witnessing growth driven by a strong focus on energy efficiency and cost reduction. By improving power factor and minimizing reactive power losses, capacitor banks help lower electricity bills and reduce strain on electrical infrastructure. Industries and utilities are increasingly adopting these systems to enhance operational efficiency, extend equipment life, and avoid penalties associated with poor power quality. As energy costs rise, capacitor banks offer a cost-effective solution for optimizing energy usage and ensuring sustainable power management.
Threat:
Challenges associated with disposal
The disposal of capacitor banks presents significant environmental challenges, particularly when dealing with harmful materials like PCBs (polychlorinated biphenyls) in older units. Improper disposal can lead to soil and water contamination, posing risks to public health and the environment. The rising need for safe recycling methods and adherence to environmental regulations adds operational costs for manufacturers and users. These disposal challenges can hinder the growth of the capacitor bank market, as companies face increasing pressure to implement sustainable waste management practices.
Covid-19 Impact
The COVID-19 pandemic significantly impacted the capacitor bank market, causing disruptions in manufacturing and supply chains. With industries halting operations and a decrease in construction and infrastructure projects, demand for capacitor banks initially dropped. However, as industries resumed and the push for renewable energy and grid modernization grew, the market showed signs of recovery. The increasing need for efficient energy storage solutions and power quality management has helped drive the market's growth in the post-pandemic era.
The fixed capacitor banks segment is expected to be the largest during the forecast period
The fixed capacitor banks segment is expected to account for the largest market share during the forecast period. These banks are typically installed in industrial, commercial, and utility applications to provide reactive power compensation. Unlike automatic or switched capacitor banks, fixed capacitor banks provide continuous reactive power without adjustment, offering a reliable solution for maintaining system efficiency. Their durability, low maintenance, and cost-effectiveness make them a popular choice for stabilizing voltage levels and optimizing power distribution networks.
The voltage stabilization segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the voltage stabilization segment is predicted to witness the highest growth rate. By providing reactive power compensation, capacitor banks reduce voltage fluctuations caused by varying loads, ensuring stable operation of electrical equipment. This is especially crucial in industries with high-power demands, such as manufacturing and utilities. The use of capacitor banks for voltage stabilization enhances the efficiency and longevity of electrical systems while preventing potential damage from voltage instability or surges.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share driven by rapid industrialization, urbanization, and a rising demand for efficient energy systems across countries like China, India, Japan, and South Korea. Capacitor banks play a crucial role in power factor correction, voltage stabilization, and integrating renewable energy sources into the grid. The market is further supported by government initiatives promoting energy efficiency and smart grid technologies.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR. This growth is driven by the need to modernize aging grid infrastructure, integrate renewable energy sources, and enhance power quality. Low-voltage capacitor banks (<10 kV) are the dominant segment, owing to their widespread use in residential and commercial applications. Technological advancements, such as fuse-less designs and pole-mounted systems, are further boosting market adoption.
Key players in the market
Some of the key players profiled in the Capacitor Bank Market include Siemens AG, S&C Electric Company, Schneider Electric, Toshiba Corporation, ABB Ltd., Mitsubishi Electric Corporation, Eaton Corporation, Nissin Electric Co., Ltd., General Electric (GE), Bharat Heavy Electricals Limited (BHEL), Emerson Electric Co., Eaton Power Quality, Larsen & Toubro Limited (L&T), Fuji Electric Co., Ltd., CG Power and Industrial Solutions Limited and Nissin Electric Co., Ltd.
Key Developments:
In April 2025, Bharat Heavy Electricals Limited (BHEL), in consortium partnership with Hitachi Energy India Limited, has signed a contract with Rajasthan Part I Power Transmission Limited, a 100% subsidiary of Adani Energy Solutions Limited (AESL), to design and execute 6,000 MW, ±800 kV, bi-pole and bi-directional high-voltage direct current (HVDC) terminals to transmit renewable energy from Bhadla in Rajasthan to the industrial and transport hub in Fatehpur, Uttar Pradesh.
In August 2024, KEPCO, South Korea's largest electric utility, and ABB have signed an agreement to install the country's first synchronous capacitor coupled to a high inertia flywheel on Jeju Island. The project aims to maintain the stability and reliability of the island's power grid as it increases its share of renewable energies.
Types Covered:
• Fixed Capacitor Banks
• Automatic (Switchable) Capacitor Banks
• Detuned Capacitor Banks
• Shunt Capacitor Banks
• Series Capacitor Banks
• Other Types
Voltages Covered:
• Low Voltage (<10 kV)
• Medium Voltage (10 kV – 69 kV)
• High Voltage (>69 kV)
Installations Covered:
• Metal Enclosed Substation
• Pole Mounted
• Open Air Substation
Connection Types Covered:
• Star Connection
• Delta Connection
Applications Covered:
• Power Factor Correction
• Voltage Stabilization
• Harmonic Filtering
• Renewable Energy Integration
• Grid Support
• Reactive Power Compensation
• Other Applications
End Users Covered:
• Commercial
• Industrial
• Residential
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Capacitor Bank Market, By Type
5.1 Introduction
5.2 Fixed Capacitor Banks
5.3 Automatic (Switchable) Capacitor Banks
5.4 Detuned Capacitor Banks
5.5 Shunt Capacitor Banks
5.6 Series Capacitor Banks
5.7 Other Types
6 Global Capacitor Bank Market, By Voltage
6.1 Introduction
6.2 Low Voltage (<10 kV)
6.3 Medium Voltage (10 kV – 69 kV)
6.4 High Voltage (>69 kV)
7 Global Capacitor Bank Market, By Installation
7.1 Introduction
7.2 Metal Enclosed Substation
7.3 Pole Mounted
7.4 Open Air Substation
8 Global Capacitor Bank Market, By Connection Type
8.1 Introduction
8.2 Star Connection
8.3 Delta Connection
9 Global Capacitor Bank Market, By Application
9.1 Introduction
9.2 Power Factor Correction
9.3 Voltage Stabilization
9.4 Harmonic Filtering
9.5 Renewable Energy Integration
9.6 Grid Support
9.7 Reactive Power Compensation
9.8 Other Applications
10 Global Capacitor Bank Market, By End User
10.1 Introduction
10.2 Commercial
10.3 Industrial
10.4 Residential
10.5 Other End Users
11 Global Capacitor Bank Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Siemens AG
13.2 S&C Electric Company
13.3 Schneider Electric
13.4 Toshiba Corporation
13.5 ABB Ltd.
13.6 Mitsubishi Electric Corporation
13.7 Eaton Corporation
13.8 Nissin Electric Co., Ltd.
13.9 General Electric (GE)
13.10 Bharat Heavy Electricals Limited (BHEL)
13.11 Emerson Electric Co.
13.12 Eaton Power Quality
13.13 Larsen & Toubro Limited (L&T)
13.14 Fuji Electric Co., Ltd.
13.15 CG Power and Industrial Solutions Limited
13.16 Nissin Electric Co., Ltd.
List of Tables
1 Global Capacitor Bank Market Outlook, By Region (2024-2032) ($MN)
2 Global Capacitor Bank Market Outlook, By Type (2024-2032) ($MN)
3 Global Capacitor Bank Market Outlook, By Fixed Capacitor Banks (2024-2032) ($MN)
4 Global Capacitor Bank Market Outlook, By Automatic (Switchable) Capacitor Banks (2024-2032) ($MN)
5 Global Capacitor Bank Market Outlook, By Detuned Capacitor Banks (2024-2032) ($MN)
6 Global Capacitor Bank Market Outlook, By Shunt Capacitor Banks (2024-2032) ($MN)
7 Global Capacitor Bank Market Outlook, By Series Capacitor Banks (2024-2032) ($MN)
8 Global Capacitor Bank Market Outlook, By Other Types (2024-2032) ($MN)
9 Global Capacitor Bank Market Outlook, By Voltage (2024-2032) ($MN)
10 Global Capacitor Bank Market Outlook, By Low Voltage (<10 kV) (2024-2032) ($MN)
11 Global Capacitor Bank Market Outlook, By Medium Voltage (10 kV – 69 kV) (2024-2032) ($MN)
12 Global Capacitor Bank Market Outlook, By High Voltage (>69 kV) (2024-2032) ($MN)
13 Global Capacitor Bank Market Outlook, By Installation (2024-2032) ($MN)
14 Global Capacitor Bank Market Outlook, By Metal Enclosed Substation (2024-2032) ($MN)
15 Global Capacitor Bank Market Outlook, By Pole Mounted (2024-2032) ($MN)
16 Global Capacitor Bank Market Outlook, By Open Air Substation (2024-2032) ($MN)
17 Global Capacitor Bank Market Outlook, By Connection Type (2024-2032) ($MN)
18 Global Capacitor Bank Market Outlook, By Star Connection (2024-2032) ($MN)
19 Global Capacitor Bank Market Outlook, By Delta Connection (2024-2032) ($MN)
20 Global Capacitor Bank Market Outlook, By Application (2024-2032) ($MN)
21 Global Capacitor Bank Market Outlook, By Power Factor Correction (2024-2032) ($MN)
22 Global Capacitor Bank Market Outlook, By Voltage Stabilization (2024-2032) ($MN)
23 Global Capacitor Bank Market Outlook, By Harmonic Filtering (2024-2032) ($MN)
24 Global Capacitor Bank Market Outlook, By Renewable Energy Integration (2024-2032) ($MN)
25 Global Capacitor Bank Market Outlook, By Grid Support (2024-2032) ($MN)
26 Global Capacitor Bank Market Outlook, By Reactive Power Compensation (2024-2032) ($MN)
27 Global Capacitor Bank Market Outlook, By Other Applications (2024-2032) ($MN)
28 Global Capacitor Bank Market Outlook, By End User (2024-2032) ($MN)
29 Global Capacitor Bank Market Outlook, By Commercial (2024-2032) ($MN)
30 Global Capacitor Bank Market Outlook, By Industrial (2024-2032) ($MN)
31 Global Capacitor Bank Market Outlook, By Residential (2024-2032) ($MN)
32 Global Capacitor Bank Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
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