Flexible AC Transmission Systems Market is expected to Grow with a CAGR of 7.93% through 2030

The Flexible AC Transmission Systems (FACTS) market is driven by increasing demand for grid stability, efficient power transmission, and integration of renewable energy sources into aging and congested electrical infrastructure.

According to TechSci Research report, “Flexible AC Transmission Systems Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the Flexible AC Transmission Systems Market was valued at USD 1.32 Billion in 2024 and is expected to reach USD 2.11 Billion by 2030 with a CAGR of 7.93%.  The Flexible AC Transmission Systems (FACTS) market is significantly driven by the global demand for enhanced power quality, improved grid stability, and efficient utilization of existing transmission infrastructure.

As energy consumption continues to rise due to rapid industrialization, urbanization, and digitalization, power grids are under increasing pressure to manage growing loads while maintaining reliability and stability. FACTS devices, such as static VAR compensators (SVC), static synchronous compensators (STATCOM), and unified power flow controllers (UPFC), play a crucial role in optimizing power flow, regulating voltage, and mitigating issues such as voltage fluctuations, system instability, and transmission bottlenecks.

These advanced technologies enable utilities and grid operators to increase the capacity and efficiency of aging infrastructure without the need for extensive upgrades, which is particularly vital in regions facing land, regulatory, and financial constraints. Additionally, the shift toward renewable energy integration, especially wind and solar power, is further accelerating the adoption of FACTS systems. As these sources are intermittent and geographically dispersed, they introduce complexities in grid management and stability. FACTS solutions provide dynamic reactive power compensation and real-time voltage control, helping to balance supply and demand while minimizing the risk of blackouts or grid disruptions.

Furthermore, the global push toward decarbonization and energy transition is prompting utilities to modernize their transmission and distribution networks, aligning with sustainability goals and regulatory mandates. FACTS systems support this transformation by enabling better integration of renewable energy, reducing transmission losses, and improving overall grid resilience. The emergence of smart grids and digital substations is also reinforcing demand for FACTS technologies, as these advanced systems require precise, fast-responding control mechanisms to manage bi-directional energy flows and fluctuating loads.

Moreover, developing economies in Asia Pacific, Latin America, and Africa are investing in expanding and modernizing their grid infrastructure to meet the demands of growing populations and economic development. In such regions, FACTS solutions offer a cost-effective and scalable approach to strengthen grid performance while delaying or avoiding the need for new transmission lines. Additionally, the growing number of long-distance high-voltage AC lines, as well as cross-border electricity trading, is increasing the complexity of grid operations, which FACTS devices can help streamline. Rising awareness of power quality and grid efficiency among industrial consumers, especially in sectors like manufacturing, mining, and data centers, is further fueling market growth.

These industries demand reliable and stable power to avoid costly downtime and ensure operational efficiency, making investment in FACTS technology a strategic necessity. Technological advancements and cost reductions in power electronics and control systems are also making FACTS devices more accessible and financially viable for utilities and independent power producers. As the need for grid modernization intensifies, and energy systems become increasingly complex and decentralized, FACTS technologies are expected to play an essential role in ensuring flexible, secure, and efficient power transmission. Altogether, the confluence of rising electricity demand, renewable integration, regulatory pressures, and grid infrastructure challenges is positioning the FACTS market for sustained and robust growth across global energy landscapes.

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Based on the Industry Vertical, Oil & Gas segment held the largest Market share in 2024. The Flexible AC Transmission Systems (FACTS) market in the oil and gas segment is driven by the growing demand for reliable, efficient, and stable power transmission infrastructure essential to support complex exploration, production, and refining operations. Oil and gas facilities, especially those located in remote or offshore areas, often operate under harsh environmental conditions and require highly stable power systems to ensure continuous operations and avoid costly downtimes. FACTS technologies—such as Static VAR Compensators (SVC), Static Synchronous Compensators (STATCOM), and Unified Power Flow Controllers (UPFC)—play a critical role in enhancing voltage stability, minimizing transmission losses, and improving power quality, all of which are vital for high-performance operations in the energy sector.

As global energy demand rises and oil & gas companies push into more challenging environments with high electrical loads and longer transmission distances, the need for advanced grid-supporting infrastructure has become increasingly pronounced. FACTS devices help regulate fluctuating power demands, manage reactive power, and reduce harmonic distortion, thereby protecting sensitive equipment and ensuring operational efficiency across upstream, midstream, and downstream operations. Additionally, with many oil and gas facilities integrating renewable energy sources such as solar or wind to reduce emissions and meet sustainability targets, FACTS offer an ideal solution for managing intermittent energy supply and ensuring grid stability.

Moreover, the digital transformation in the oil and gas industry, including automation, real-time monitoring, and data analytics, demands highly resilient electrical systems. FACTS technologies enhance grid controllability, enabling more flexible and responsive power networks that align with the dynamic operational needs of modern oil and gas facilities. Furthermore, as governments and environmental agencies tighten regulations on energy efficiency, emissions, and operational safety, oil and gas companies are under pressure to optimize their power infrastructure. Deploying FACTS solutions not only aids in regulatory compliance but also contributes to long-term cost savings by reducing energy losses and enhancing asset utilization.

In addition, the increasing focus on electrification of offshore platforms and remote drilling sites, which traditionally depended on diesel generators, is creating new opportunities for FACTS adoption. The integration of subsea power systems and long-distance transmission lines from shore-based grids to offshore rigs requires advanced technologies capable of maintaining voltage levels and reducing transmission bottlenecks, both of which FACTS systems address effectively.

As capital investments in oil and gas infrastructure projects increase globally—especially in regions like the Middle East, Asia-Pacific, and North America—demand for advanced power transmission solutions continues to rise. Technological advancements in modular and compact FACTS devices are also making these systems more accessible and easier to deploy in space-constrained oil and gas installations. Altogether, these factors are accelerating the adoption of FACTS in the oil and gas sector, positioning them as a critical enabler of operational stability, energy efficiency, and grid modernization in one of the world’s most energy-intensive and mission-critical industries.

Based on region, Asia Pacific is the fastest-growing region in the Flexible AC Transmission Systems (FACTS) market, driven by expansive infrastructure investment, rapid grid modernization, and the rising integration of renewable energy. Governments across China, India, Japan, and Southeast Asia are prioritizing reliable, adaptable power networks to support rapid industrial expansion and urbanization. FACTS solutions—such as STATCOMs, SVCs, and UPFCs—are being rapidly deployed to enhance voltage stability, manage congestion, and facilitate cross-border power exchange. Additionally, regional smart grid initiatives and supportive regulatory frameworks, including incentives for grid resilience and efficiency, are further accelerating FACTS adoption, positioning Asia Pacific as a central hub for advanced transmission technology implementation.

Major companies operating in the Global Flexible AC Transmission Systems Market are:

• Siemens Energy AG
• General Electric (GE) Grid Solutions
• Mitsubishi Electric Corporation
• ABB Ltd.
• Toshiba Energy Systems & Solutions Corporation
• NR Electric Co., Ltd.
• American Superconductor Corporation (AMSC)
• Hyosung Heavy Industries
• Rongxin Power Electronic Co., Ltd. (RXPE)
• Adani Transmission Limited

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“The Global Flexible AC Transmission Systems Market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The Flexible AC Transmission Systems (FACTS) market is positioned for significant growth, driven by the urgent need to modernize aging electrical infrastructure and integrate large-scale renewable energy sources. As utilities face increased grid volatility from intermittent solar and wind power, FACTS technologies—including SVCs, STATCOMs, and UPFCs—offer scalable solutions to enhance voltage regulation, system stability, and transmission efficiency without extensive infrastructure overhaul. Rising electrification, regional power trading, and the expansion of smart grid initiatives are accelerating adoption across mature and developing markets. Furthermore, favorable regulatory policies and investment incentives aimed at strengthening grid reliability and operational efficiency are creating strong market expansion opportunities. Therefore, the Market of Flexible AC Transmission Systems is expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Flexible AC Transmission Systems Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Compensation Type (Series Compensation, Shunt Compensation, Combined Series-Shunt Compensation ), By Controller (Static Synchronous Compensator (STATCOM), Static VAR Compensator (SVC), Unified Power Flow Controller (UPFC), Thyristor Controlled Series Compensator (TCSC), Others), By Industry Vertical (Oil & Gas, Electric Utility, Railways, Others), By Region &Competition, 2020-2030F”, has evaluated the future growth potential of Global Flexible AC Transmission Systems Market and provides statistics & information on the Market size, structure, and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global Flexible AC Transmission Systems Market.

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