STATCOM for Renewable Energy Market is Expected to grow at a robust CAGR of 13.75% through 2030F
The increasing global STATCOM for
Renewable Energy market is driven by Integration with Energy Storage Systems,
Rising Adoption in Offshore Wind Projects during the forecast period
2026-2030F.
According to TechSci Research report, “STATCOM for Renewable Energy Market
– Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2020-2030F”, The Global STATCOM for
Renewable Energy Market was valued at USD 500.12 Million in 2024 and is
expected to reach USD 1,093.14 Million by 2030 with a CAGR of 13.75% during the
forecast period. A key trend in the STATCOM market is its growing integration
with battery energy storage systems (BESS). Combining STATCOM with storage
enhances grid flexibility, enabling both reactive power support and active
power management. In 2023, over 22% of new STATCOM installations were paired
with storage systems in hybrid configurations. This dual functionality allows
renewable plants to meet grid requirements for frequency regulation, fault
ride-through, and black-start capabilities. For example, large hybrid solar-plus-storage
plants in the U.S. and India have already demonstrated reductions in
curtailment of up to 15% due to STATCOM+BESS solutions. Additionally, the
integration of STATCOM with lithium-ion and flow battery technologies has
reduced response times to less than 50 milliseconds, making it one of the
fastest solutions for grid stabilization. Analysts project that by 2030, nearly
40% of utility-scale storage projects will feature STATCOM integration as grid
codes become stricter worldwide. This trend highlights the increasing synergy
between renewable integration, storage, and advanced compensation technologies.
Offshore wind energy, with its
large-scale generation and remote locations, is driving STATCOM demand.
Offshore projects face unique challenges such as long transmission distances
and voltage instability in submarine cables. In 2023, over 35% of offshore wind
farms in Europe integrated STATCOM solutions for reactive power support. In
Asia, where offshore capacity is expanding rapidly, more than 20 GW of new
offshore projects announced between 2024 and 2027 are expected to use STATCOM
systems. Offshore installations demand high-voltage, compact STATCOM units that
can operate in harsh marine environments. The trend is particularly strong in
China, which installed over 5 GW of offshore wind in 2023 alone, with STATCOM
playing a vital role in grid integration. As offshore wind is expected to
provide nearly 10% of global electricity by 2035, the alignment between this
sector and STATCOM technologies is becoming more pronounced.
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STATCOM for Renewable Energy Market"
Based on Type, Medium Voltage STATCOM is the
fastest growing segment in the global STATCOM for Renewable Energy market during
the forecast period, driven by the increasing integration of renewable
energy into power distribution networks. As solar, wind, and hybrid renewable
plants expand globally, the need for stable grid operations at distribution and
sub-transmission levels is intensifying. Medium voltage STATCOMs provide
essential functionalities such as reactive power compensation, voltage
regulation, and power quality improvement, which are critical for renewable
energy systems characterized by fluctuating generation patterns. These systems
are particularly suitable for renewable plants ranging between 1 MW and 50 MW,
which typically operate in rural or semi-urban areas where medium voltage grids
are prevalent. Rising investments in distributed renewable energy projects,
such as rooftop solar, wind farms, and hybrid mini-grids, are accelerating the
demand for medium voltage STATCOM solutions. Additionally, governments and
utilities are prioritizing grid modernization to enhance efficiency and reduce
losses, which further supports medium voltage STATCOM adoption.
Another growth driver is the cost-effectiveness and
scalability of medium voltage STATCOMs compared to their high-voltage
counterparts. They allow utilities, industrial users, and renewable developers
to achieve efficient grid integration at relatively lower investment levels,
ensuring higher returns. Moreover, advancements in modular STATCOM design and
digital monitoring technologies are making medium voltage systems easier to
deploy, operate, and maintain. The growing need for reliable and stable power
in industries such as manufacturing, mining, and data centers—often powered by
renewable energy—also contributes to the segment’s expansion. As global energy
transition accelerates, medium voltage STATCOMs will continue to play a pivotal
role in balancing renewable intermittency, reducing grid instability, and
ensuring a resilient energy infrastructure.
Based on region, Asia Pacific is the
fastest growing region in the Global STATCOM for Renewable Energy Market during
the forecast period driven by rapid renewable energy adoption, increasing
electricity demand, and large-scale infrastructure expansion. Countries such as
China, India, Japan, and Australia are spearheading renewable deployment,
investing heavily in wind and solar power projects to reduce carbon emissions
and achieve national energy transition goals. With renewable penetration
rising, grid stability challenges are becoming more pronounced, creating strong
demand for STATCOM solutions to manage voltage fluctuations and enhance reliability.
China, the world’s largest renewable energy market, continues to expand its
solar and wind capacity, supported by favorable government policies and
subsidies. This surge in variable renewable generation necessitates advanced
grid support technologies like STATCOM to maintain stability across large and
complex transmission networks. Similarly, India’s ambitious renewable targets
of 500 GW by 2030 are fueling grid modernization projects, with STATCOM
deployment being prioritized for renewable integration and rural
electrification. Japan and South Korea are also driving demand, as their grids
face challenges from distributed solar installations and offshore wind
projects. In Australia, the rapid growth of solar farms and hybrid renewable
projects is pushing utilities to adopt STATCOM to manage intermittency and
power quality issues in remote regions. Additionally, Asia Pacific’s expanding
industrial base and urbanization are increasing electricity consumption,
requiring robust power infrastructure. Governments and private players are
investing in smart grids and flexible transmission systems, where STATCOM plays
a critical role in enhancing dynamic response. Lower manufacturing costs and
technological expertise in countries like China and India also contribute to
competitive pricing and faster adoption of STATCOM solutions.
Key market players in the Global STATCOM
for Renewable Energy market are: -
- ABB Ltd.
- Siemens AG
- General Electric
- Mitsubishi Electric Corporation
- Hitachi Energy
- Schneider Electric
- NR Electric Co., Ltd.
- S&C Electric Company
- Ingeteam S.A.
- Bharat Heavy Electricals Limited
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“The Global STATCOM for Renewable Energy Market
presents significant opportunities with accelerating renewable integration,
especially in solar, wind, and hybrid systems. Expanding grid modernization
programs, rural electrification projects, and rising demand for reliable power
quality open pathways for STATCOM adoption. Opportunities lie in modular,
medium-voltage solutions for distributed renewables, and digital-enabled
STATCOMs offering real-time monitoring and predictive maintenance. Moreover,
growing investments in smart grids, energy storage coupling, and offshore wind
projects provide long-term prospects. Emerging markets in Asia Pacific, Africa,
and Latin America offer substantial untapped potential, supported by government
incentives, decarbonization goals, and increasing electricity consumption.Top
of Form” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global
management consulting firm.
“STATCOM
for Renewable Energy Market - Global Industry Size, Share, Trends, Opportunity,
and Forecast, Segmented By Type (Low Voltage STATCOM, Medium Voltage STATCOM,
High Voltage STATCOM), By Connectivity (On-Grid, Off-Grid), By Application
(Utilities & Grid Operators, Industrial & Commercial, Residential), By
Region, and By Competition, 2020-2030F,” has evaluated the future
growth potential of Global STATCOM for Renewable Energy Market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global STATCOM for Renewable Energy Market.
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