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, By Competition, 2020-2030F

Market Overview

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 refers to the industry centered around the development, deployment, and maintenance of advanced power electronics-based systems designed to enhance the controllability, stability, and efficiency of alternating current (AC) power transmission networks.

FACTS technologies play a critical role in modern power grids by dynamically managing power flow, improving voltage control, and stabilizing transmission networks under varying load conditions. These systems enable utilities to operate transmission lines closer to their thermal and stability limits without compromising reliability, thereby maximizing the utilization of existing infrastructure and deferring the need for costly grid expansion.

Key components in the FACTS market include Static Var Compensators (SVC), Static Synchronous Compensators (STATCOM), Unified Power Flow Controllers (UPFC), and Thyristor-Controlled Series Capacitors (TCSC), among others. Each of these technologies offers distinct capabilities in controlling voltage, impedance, and phase angle across transmission lines, allowing operators to mitigate issues such as voltage instability, transmission bottlenecks, and reactive power imbalances. The market is being driven by the growing demand for high-efficiency transmission systems, especially in the context of expanding renewable energy integration, which introduces intermittent and decentralized power flows that can challenge grid stability.

Key Market Drivers

Increasing Demand for Grid Stability and Reliability Amid Rising Renewable Energy Integration

The growing integration of renewable energy sources, such as solar and wind, into global power grids is a primary driver of the Flexible AC Transmission Systems (FACTS) market. Renewable sources are inherently intermittent and variable, creating challenges for grid operators in maintaining frequency, voltage, and overall power quality. As the share of renewables continues to rise, utilities are increasingly relying on FACTS technologies to enhance grid stability and compensate for fluctuations in supply and demand. Devices such as Static Var Compensators (SVC), Static Synchronous Compensators (STATCOM), and Unified Power Flow Controllers (UPFC) provide real-time reactive power compensation and dynamic voltage control, helping ensure uninterrupted and balanced power delivery across vast transmission networks.

Additionally, FACTS systems facilitate better utilization of existing infrastructure by alleviating congestion, reducing transmission losses, and increasing the capacity of existing lines without requiring significant investments in new transmission assets. This is particularly crucial in regions undergoing rapid energy transitions, where renewable capacity is expanding faster than the physical grid infrastructure. Moreover, with global targets for carbon neutrality and energy sustainability, governments and energy agencies are encouraging the modernization of grid systems with smart, adaptive technologies like FACTS that can accommodate the complexities of hybrid energy mixes.

These systems not only support renewable integration but also enhance overall power system resilience, enabling grids to quickly respond to disturbances and avoid cascading failures. The ability of FACTS to stabilize voltage in weak grid regions also makes them critical in remote areas where renewables are deployed far from urban demand centers. As power systems grow more decentralized and complex, the need for real-time control, grid flexibility, and enhanced reliability continues to accelerate the deployment of FACTS, solidifying its position as an essential component of future-ready energy infrastructure. Global renewable energy capacity reached over 3,200 gigawatts (GW) by the end of 2023, nearly tripling from about 1,100 GW in 2010. In 2022, renewable sources accounted for approximately 29% of global electricity generation, up from 20% in 2010. Solar photovoltaic (PV) capacity grew from 40 GW in 2010 to more than 1,000 GW by 2023, making it the fastest-growing renewable energy technology worldwide. Wind power capacity expanded from 160 GW in 2010 to over 830 GW by 2023, supplying around 8% of global electricity demand. Investment in renewable energy reached over USD 500 billion in 2023, more than doubling since 2010.

Expansion of High-Voltage Transmission Networks to Support Growing Power Demand

The global increase in electricity consumption, driven by urbanization, industrialization, and the electrification of sectors such as transportation and manufacturing, is prompting the expansion and upgrade of high-voltage transmission networks. This expansion is a major factor fueling the demand for Flexible AC Transmission Systems (FACTS), which are vital for optimizing power flow, improving line capacity, and maintaining system stability in long-distance, high-voltage operations. As utilities extend transmission lines over greater distances to connect generation sources with load centers, FACTS devices play a critical role in managing the challenges of power losses, voltage drops, and fluctuating load conditions.

For instance, UPFCs and Thyristor-Controlled Series Capacitors (TCSCs) allow for the dynamic control of power flows, enabling more efficient load distribution and reducing the need for costly infrastructure duplication. In regions experiencing rapid economic growth, such as Asia Pacific, Africa, and parts of Latin America, the demand for electricity is increasing at a pace that exceeds the capabilities of existing transmission systems. FACTS technologies allow utilities in these markets to maximize the throughput of existing assets while ensuring operational reliability and power quality. Furthermore, in developed economies with aging grid infrastructure, FACTS provide a cost-effective solution for capacity enhancement and system modernization without major physical overhauls.

They also support interconnection of regional grids and cross-border power trade, which are becoming increasingly important for energy security and market efficiency. As countries focus on energy accessibility and resilience, particularly in the face of climate-related challenges, the ability of FACTS to regulate voltage, improve power factor, and mitigate system oscillations becomes indispensable. The growing emphasis on grid digitization and smart grid deployments further amplifies the demand for FACTS, as they offer real-time data exchange, predictive maintenance capabilities, and integration with digital energy management platforms. As global power networks expand in complexity and scale, FACTS technologies will continue to play a pivotal role in enabling reliable, secure, and high-capacity transmission systems. Investment in smart grid technologies surpassed USD 30 billion globally in 2023, reflecting growing efforts to modernize electricity infrastructure.

Government Policies, Grid Modernization Initiatives, and Regulatory Support

Supportive government policies, regulatory mandates, and investment in grid modernization initiatives form another key driver for the Flexible AC Transmission Systems (FACTS) market. With energy demand rising and grids becoming more complex due to the integration of distributed energy resources and renewables, many governments are enacting legislation and strategic plans to enhance grid flexibility, reliability, and efficiency. These initiatives often include significant funding allocations and policy incentives to deploy smart grid technologies—among which FACTS are a priority due to their ability to solve real-time transmission bottlenecks and voltage instability issues.

Regulatory frameworks in several countries are mandating the use of advanced grid solutions to reduce energy losses, improve transmission efficiency, and increase the resilience of energy infrastructure against natural disasters and cyber threats. In the European Union, for example, the push toward cross-border grid interconnection and energy market integration is driving the adoption of FACTS to manage variable supply and enhance cross-system compatibility. In North America, federal programs and state-level policies are supporting the implementation of grid reliability enhancements and digital grid technologies, including STATCOMs and SVCs, particularly in areas prone to power outages or with significant renewable energy penetration. Meanwhile, emerging economies are incorporating FACTS into national electrification plans, aiming to strengthen grid infrastructure to meet future demand.

International development organizations and multilateral agencies are also investing in FACTS-enabled projects to help bridge energy access gaps and support clean energy integration in developing regions. Additionally, the ongoing transformation of the utility business model—from centralized power generation to decentralized, customer-centric energy ecosystems—requires more dynamic and responsive grid control mechanisms, which FACTS are uniquely positioned to deliver. The convergence of these policy, financial, and regulatory drivers is not only creating a favorable environment for FACTS adoption but is also encouraging innovation in modular, scalable, and cost-effective FACTS solutions. As policy momentum continues to build around resilient, sustainable energy infrastructure, the role of FACTS will expand further, underpinning the next generation of smart, flexible, and future-ready transmission networks.

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Key Market Challenges

High Initial Capital Investment and Cost Sensitivity

One of the primary challenges facing the Flexible AC Transmission Systems (FACTS) market is the high initial capital investment required for the deployment of these advanced technologies. FACTS devices, including Static VAR Compensators (SVCs), Static Synchronous Compensators (STATCOMs), and Unified Power Flow Controllers (UPFCs), require significant upfront costs for engineering, equipment procurement, installation, and system integration.

This includes not only the cost of the device itself but also the supporting infrastructure such as power converters, reactors, capacitors, and advanced control systems. In many developing countries and regions with constrained budgets for power sector development, this high cost acts as a major barrier to adoption, especially when traditional methods such as network reinforcements or additional transmission lines are perceived to be more cost-effective in the short term.

Moreover, utility companies and grid operators often face budget limitations and require strong justifications and financial returns for capital expenditures. The challenge is compounded by the lack of standardized financing mechanisms and limited availability of incentives or subsidies for grid modernization projects involving FACTS. Additionally, many stakeholders may not be fully aware of the long-term benefits of FACTS technologies in terms of grid stability, improved transmission capacity, and reduced transmission losses, making them hesitant to commit to large investments. In competitive power markets, where cost optimization and return on investment are critical, the economic feasibility of FACTS deployment is often scrutinized. The absence of well-established cost-benefit analysis models tailored to various utility scales further hinders decision-making.

Furthermore, market volatility in raw material prices, exchange rates, and energy policies can also affect the overall project costs, increasing financial risks and slowing adoption. To address this challenge, industry stakeholders need to develop more flexible business models, such as leasing or performance-based contracts, and promote awareness of the long-term operational benefits and reliability improvements offered by FACTS. Stronger policy support, funding programs, and public-private partnerships could also ease the financial burden and accelerate the deployment of FACTS in both mature and emerging electricity markets.

Integration Complexity and Technical Expertise Gap

Another major challenge for the Flexible AC Transmission Systems (FACTS) market is the complexity involved in integrating these advanced technologies into existing power grid infrastructure. FACTS devices are sophisticated, power-electronics-based solutions that require precise control, real-time monitoring, and seamless coordination with existing grid components to function effectively. Integrating them into aging infrastructure or diverse power systems with varied configurations often poses technical difficulties, especially in regions where grid systems are fragmented or poorly digitized.

The deployment of FACTS requires a high level of customization, site-specific engineering, and detailed system studies to ensure compatibility and performance optimization, which can significantly delay project timelines. Moreover, the lack of technical expertise and trained professionals with experience in designing, operating, and maintaining FACTS equipment remains a significant bottleneck, particularly in developing economies. This knowledge gap affects the entire project lifecycle—from system planning and procurement to commissioning and maintenance—resulting in potential risks such as suboptimal device performance, communication failures, or even operational disruptions.

Furthermore, FACTS rely on complex control algorithms and digital communication protocols, which must be integrated with supervisory control and data acquisition (SCADA) systems and energy management systems (EMS). Any misalignment or cybersecurity vulnerability in these digital layers can compromise grid stability. In many cases, utilities may be reluctant to adopt such advanced systems due to the perceived risks of integration failures and the absence of internal capability to manage and support the technology post-installation. Limited awareness and lack of training infrastructure for FACTS technologies in academic and vocational institutions further exacerbate the challenge, slowing workforce readiness.

As power grids become more decentralized with increasing penetration of renewables, the dynamic nature of power flows further complicates the effective deployment of FACTS devices. To overcome this challenge, it is crucial for industry stakeholders to invest in workforce development programs, offer specialized training, and create industry-academia partnerships to build local expertise. Additionally, developing modular, standardized, and user-friendly FACTS solutions that can be more easily integrated into existing grids would help mitigate complexity. Enhanced collaboration between technology providers, utilities, and grid operators is also essential to ensure successful deployment, system compatibility, and knowledge transfer, thereby accelerating the adoption of FACTS in both developed and developing regions.

Key Market Trends

Integration of FACTS with Renewable Energy Systems

A prominent trend shaping the Flexible AC Transmission Systems (FACTS) market is the increasing integration of these technologies with renewable energy systems to address power variability and improve grid reliability. With global energy policies strongly favoring the shift from conventional fossil-fuel-based generation to renewable energy sources like wind and solar, power grids are encountering significant challenges in balancing supply and demand, maintaining voltage stability, and ensuring power quality. These renewable sources are inherently intermittent, making it critical to incorporate grid-enhancing technologies such as STATCOMs (Static Synchronous Compensators), SVCs (Static VAR Compensators), and series compensation devices.

FACTS help stabilize voltage fluctuations, improve reactive power management, and enhance the overall transfer capability of transmission lines, thereby facilitating the reliable integration of large-scale renewables. In countries such as India, China, Germany, and the U.S., rapid solar and wind deployment is being matched by upgrades in grid infrastructure using FACTS to support clean energy transmission from remote generation sites to load centers.

Grid operators and transmission system providers are increasingly investing in modular and scalable FACTS solutions that can be tailored for renewable-rich corridors. Moreover, with the emergence of hybrid power parks—comprising both solar and wind generation facilities—FACTS are being deployed in multi-terminal, flexible configurations to manage complex power flows and reduce transmission bottlenecks.

These systems are not only enabling better grid balancing but are also contributing to reducing curtailment of renewable energy output, which is a growing issue in high-penetration markets. Furthermore, as offshore wind farms expand across Europe and North America, FACTS technologies are playing a vital role in managing long-distance submarine transmission, helping ensure stability and efficient power injection into onshore grids. In tandem with battery energy storage systems and grid-forming inverters, FACTS devices are being integrated into smart grid frameworks to enable greater flexibility, automation, and real-time control of electricity flow, supporting the global energy transition agenda.

Growing Deployment in Emerging Economies Due to Grid Modernization Initiatives

The Flexible AC Transmission Systems market is experiencing rapid expansion in emerging economies due to widespread grid modernization and infrastructure development efforts. Countries across Asia Pacific, Latin America, Africa, and the Middle East are investing in large-scale power transmission projects to support industrial growth, urbanization, and rural electrification. These regions often face challenges such as aging grid infrastructure, high transmission losses, unstable power quality, and frequent voltage fluctuations—making them ideal candidates for FACTS deployment.

As these countries aim to enhance the capacity, reliability, and efficiency of their transmission networks, utilities and governments are increasingly adopting FACTS technologies to defer the need for new transmission lines while maximizing the usage of existing assets. The ability of FACTS devices to dynamically control voltage, impedance, and phase angle allows for more stable power delivery across long distances and complex terrain. Additionally, multilateral development banks and global financing institutions are supporting grid reliability programs by funding FACTS installations in countries with rapidly growing electricity demand. In markets like India, Indonesia, Brazil, and South Africa, FACTS are being deployed in conjunction with large generation projects to manage grid congestion, mitigate harmonics, and ensure balanced load distribution.

These devices are also instrumental in improving grid resilience in areas with high susceptibility to climatic extremes and natural disasters, enabling faster power restoration. Moreover, the proliferation of industrial zones and special economic regions has triggered demand for dedicated high-quality power delivery systems, further driving FACTS adoption. Vendors are responding by offering cost-effective, compact, and standardized FACTS solutions optimized for mid-tier transmission systems.

As digitalization accelerates, developing countries are also deploying digitally enabled FACTS with advanced control and diagnostic capabilities to allow for better remote monitoring, predictive maintenance, and integration with SCADA systems. Overall, the modernization of electrical infrastructure in emerging markets is creating sustained demand for FACTS as a foundational component of resilient, future-ready power grids.

Advancements in Modular and Digitally Enabled FACTS Technologies

Another key trend transforming the Flexible AC Transmission Systems market is the technological evolution toward modular, scalable, and digitally integrated FACTS devices. Traditional FACTS systems, while effective, often required complex installations, high capital investment, and long commissioning times. However, advancements in power electronics, control systems, and digital interfaces have led to the development of next-generation FACTS solutions that are compact, modular, and easier to deploy and maintain. These systems utilize cutting-edge semiconductors such as IGBTs (Insulated Gate Bipolar Transistors) and SiC (Silicon Carbide) components, which enhance efficiency, switching speed, and thermal performance.

Additionally, modern FACTS devices now come equipped with built-in digital intelligence, including IoT-based sensors, machine learning algorithms, and cloud-based monitoring platforms that enable predictive analytics and remote control. These capabilities provide operators with real-time data on grid conditions, device performance, and power quality, allowing for faster response to disturbances and optimized asset utilization. Furthermore, modular FACTS solutions offer a plug-and-play architecture, enabling utilities to incrementally scale their grid-support systems based on evolving demand and budget constraints. These systems are particularly beneficial in brownfield projects where space constraints and downtime limitations restrict the deployment of traditional FACTS setups.

Digital twin technology is also gaining traction, allowing for virtual simulations and testing of FACTS deployment scenarios to reduce implementation risk and improve system design. Another innovation gaining ground is the integration of FACTS with wide-area monitoring systems (WAMS) and phasor measurement units (PMUs), enhancing grid visibility and enabling dynamic response capabilities.

As smart grid ecosystems evolve, FACTS technologies are being embedded into automated demand response programs and advanced distribution management systems (ADMS), further enhancing their value proposition. The convergence of FACTS with digital technologies not only improves operational efficiency but also enables a faster return on investment for utilities, thus accelerating adoption. As utilities increasingly shift toward decentralized and flexible grid models, the demand for intelligent, adaptable, and interoperable FACTS solutions is expected to rise significantly in the coming years.

Segmental Insights

Compensation Type Insights

The Series Compensation segment held the largest Market share in 2024. The Series Compensation segment is a key driver in the growth of the Flexible AC Transmission Systems (FACTS) market, primarily due to its crucial role in enhancing power transfer capability, system stability, and overall transmission efficiency in modern power networks. As global electricity demand continues to rise, utilities and grid operators are increasingly challenged to deliver more power over existing transmission lines without investing in costly and time-consuming infrastructure expansion. Series compensation provides a highly effective solution by reducing the net reactance of transmission lines, thereby increasing their power transmission capacity, improving voltage stability, and minimizing transmission losses.

This becomes particularly valuable in long-distance, high-voltage transmission systems where line impedance becomes a limiting factor for power flow. With the integration of renewable energy sources—such as wind and solar—at remote locations, series compensation becomes even more essential in ensuring reliable power delivery to urban load centers. It enables the efficient transfer of bulk power across long distances while mitigating issues such as voltage collapse, subsynchronous resonance, and power oscillations, which can threaten grid stability. Moreover, series compensation supports the dynamic response of the grid by enhancing damping of power swings and enabling better control over power flows, especially in meshed or heavily loaded transmission networks.

These capabilities are especially important in regions experiencing rapid grid expansion and modernization, such as Asia Pacific, Latin America, and the Middle East. Governments and utilities in these regions are investing in smart grid technologies and grid reinforcement programs to address aging infrastructure, growing electricity demand, and the need for integrating intermittent renewable energy. Series compensation technologies, including Thyristor-Controlled Series Capacitors (TCSC) and Fixed Series Capacitors (FSC), are increasingly being deployed to improve the reliability and performance of existing transmission corridors without the need for additional right-of-way or new line construction.

Additionally, the trend toward interregional and cross-border power trading is placing more emphasis on strengthening transmission interconnections, further driving demand for series compensation solutions that can enhance power flow control and prevent bottlenecks. Advancements in power electronics and digital control systems are also contributing to the growth of the series compensation segment, allowing for more responsive, scalable, and efficient FACTS devices with improved monitoring and diagnostic capabilities.

These innovations are reducing maintenance requirements and enhancing the lifecycle performance of series compensation systems, making them more cost-effective and attractive for utilities seeking to maximize grid reliability and operational flexibility. Furthermore, regulatory support for grid efficiency and the decarbonization of power systems is encouraging investment in technologies that enable optimal utilization of existing assets, where series compensation plays a pivotal role.

As grid congestion, renewable integration, and electrification continue to intensify, the demand for solutions that enhance transmission system performance without large-scale infrastructure expansion is expected to grow substantially. In this context, the Series Compensation segment will remain a vital enabler of grid modernization and operational efficiency, positioning it as a key contributor to the ongoing expansion of the Flexible AC Transmission Systems market globally.

Controller Insights

The Static Synchronous Compensator (STATCOM) segment held the largest Market share in 2024. The Flexible AC Transmission Systems (FACTS) market is experiencing robust growth, particularly in the Static Synchronous Compensator (STATCOM) segment, driven by the escalating demand for grid stability, power quality enhancement, and integration of renewable energy sources.

As modern power grids evolve to accommodate increasing loads and intermittent renewable power, utilities and transmission operators face mounting challenges related to voltage fluctuations, reactive power imbalance, and grid congestion. STATCOM systems provide an advanced solution for dynamic reactive power compensation, offering faster response times and improved voltage regulation compared to traditional devices like Static Var Compensators (SVCs).

These capabilities are critical in maintaining grid reliability and stability, especially during high load variations and fault conditions. One of the key drivers propelling STATCOM adoption is the global shift toward renewable energy integration, particularly solar and wind, which introduce volatility into power networks. STATCOMs help mitigate this variability by ensuring stable voltage profiles and minimizing power quality disturbances such as flicker, harmonics, and unbalanced loads. Their ability to operate efficiently under low-voltage conditions and provide both capacitive and inductive compensation makes them essential in renewable-heavy grids. Moreover, STATCOMs are becoming increasingly favored in industrial applications, including steel manufacturing, mining, and electric railways, where sensitive equipment requires consistent voltage levels to operate safely and efficiently.

Additionally, growing investments in transmission and distribution (T&D) infrastructure modernization, particularly in developing economies, are further supporting STATCOM deployment. Governments and regulatory bodies across regions such as Asia Pacific, North America, and Europe are actively promoting grid upgrades and expansion to meet rising electricity demand, address grid congestion, and support the electrification of various sectors. The compact footprint and modular design of STATCOMs make them suitable for installation in space-constrained substations and urban settings, offering a strategic advantage in infrastructure planning.

Technological advancements in power electronics, such as the use of insulated-gate bipolar transistors (IGBTs) and digital control systems, are enhancing the performance and reliability of STATCOM systems, thereby increasing their acceptance among utilities and grid operators. Furthermore, the transition toward smart grid technologies and digital substations is fostering the integration of STATCOMs into wider grid automation frameworks, enabling real-time monitoring, diagnostics, and remote operation.

Another key market driver is the increasing emphasis on grid code compliance and power factor correction, particularly in industrial and commercial facilities, where utilities impose penalties for poor power quality. STATCOMs help such facilities avoid these penalties by maintaining the desired power factor and ensuring grid-friendly operations.

As power systems become more complex and demand for electricity continues to rise, the need for fast-acting, efficient, and scalable voltage support solutions will intensify. STATCOMs, with their superior performance metrics and adaptability to modern grid challenges, are positioned as a critical technology in the future of electric power transmission. As awareness grows and costs continue to decline, the STATCOM segment within the FACTS market is expected to witness sustained growth, driven by the confluence of renewable energy expansion, industrial automation, and infrastructure development across global markets.

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Regional Insights

Largest Region

The North America region held the largest market share in 2024. The Flexible AC Transmission Systems (FACTS) market in the North America region is being strongly driven by the region's growing need to modernize aging power infrastructure, integrate renewable energy sources, and enhance grid stability and efficiency. As the demand for electricity continues to rise due to population growth, electrification of transportation, and digitalization of industries, North American utilities are under increasing pressure to deliver reliable, high-quality power. FACTS technologies play a crucial role in addressing these challenges by improving the controllability and power transfer capabilities of AC transmission networks.

The United States and Canada, in particular, are experiencing a surge in renewable energy integration, especially from wind and solar farms, which often operate far from load centers and can introduce variability and congestion into the grid. FACTS devices such as Static Var Compensators (SVCs), Static Synchronous Compensators (STATCOMs), and Unified Power Flow Controllers (UPFCs) are essential in managing voltage stability, reducing transmission losses, and enabling smoother integration of these intermittent energy sources. Additionally, North America’s emphasis on grid resilience in the face of extreme weather events, cyber threats, and increasing peak load conditions further accelerates the demand for dynamic and flexible grid solutions like FACTS.

Government initiatives, such as the U.S. Infrastructure Investment and Jobs Act, are injecting substantial funding into grid modernization projects, creating a favorable policy environment for the deployment of advanced power electronics and transmission control technologies. Moreover, regulatory bodies including FERC (Federal Energy Regulatory Commission) are pushing for increased grid reliability standards and encouraging investments in technologies that support real-time system control and reactive power compensation—both key functions enabled by FACTS devices. The region’s shift toward decentralized and distributed energy systems, including energy storage and microgrids, also benefits from FACTS technologies, which help balance supply and demand while optimizing power flow across complex transmission and distribution networks.

Market players in North America are collaborating with utilities and grid operators to implement advanced FACTS systems tailored to regional grid needs, supporting both retrofitting of legacy infrastructure and integration into new transmission lines. The presence of leading technology providers, strong R&D capabilities, and a well-established utility sector further strengthen the regional market landscape. Additionally, FACTS contribute to the deferral of expensive grid upgrades by maximizing the capacity of existing transmission lines, providing a cost-effective alternative for utilities facing budget constraints or permitting challenges for new infrastructure.

With continued growth in renewable capacity, increasing electrification trends, and the urgency to enhance grid flexibility and resilience, the North American FACTS market is expected to expand steadily. As utilities seek intelligent solutions to handle the dynamic challenges of modern energy systems, the role of FACTS in ensuring voltage control, minimizing outages, and enabling reliable power flow becomes increasingly critical, making it a key driver of growth in the region’s evolving energy landscape.

Emerging region:

South America is the emerging region in Flexible AC Transmission Systems Market. The Flexible AC Transmission Systems (FACTS) market in South America's emerging region is witnessing increasing momentum, driven by the urgent need to modernize aging power infrastructure, enhance grid stability, and support the growing integration of renewable energy sources.

Countries such as Brazil, Argentina, Chile, and Colombia are experiencing rising electricity demand due to industrial expansion, urbanization, and population growth, which is placing pressure on existing transmission networks. FACTS technologies offer an efficient and scalable solution to improve power flow control, enhance transmission capacity, and maintain voltage stability across long distances, especially in regions with geographically dispersed generation and consumption centers.

As South America invests heavily in wind, solar, and hydroelectric energy, the intermittent nature of renewables is creating challenges related to grid reliability, frequency control, and congestion management—areas where FACTS systems, including SVC (Static Var Compensators), STATCOM (Static Synchronous Compensators), and series compensators, play a critical role. Furthermore, many South American countries are actively working to reduce transmission and distribution losses, which remain a significant issue due to underdeveloped grid infrastructure and outdated equipment.

The deployment of FACTS technologies allows utilities to optimize the use of existing transmission lines rather than undertaking costly new infrastructure projects, making them especially attractive in cost-sensitive emerging economies. Moreover, regulatory support and regional energy integration initiatives, such as cross-border electricity trade and interconnection projects, are encouraging the adoption of advanced grid technologies like FACTS to ensure seamless and efficient energy exchange between countries. The need to improve power quality in industrial zones, mining operations, and remote areas further underscores the demand for FACTS solutions that can maintain voltage profiles, suppress harmonics, and increase system stability under dynamic load conditions.

Additionally, the region's susceptibility to environmental challenges such as heavy rainfall, high humidity, and geographic diversity necessitates flexible and resilient grid management tools. The growth of smart grids and digital substations across South America is also creating a favorable ecosystem for FACTS deployment, supported by advancements in automation, real-time monitoring, and remote control technologies. Investment from international development banks and private-sector participation in the energy sector is further accelerating modernization efforts, with FACTS systems seen as critical enablers of efficient, reliable, and sustainable power transmission.

As the region continues to prioritize energy access, reliability, and sustainability, the demand for FACTS technologies is expected to rise steadily, offering a robust solution for overcoming grid limitations, integrating distributed energy resources, and supporting the broader goals of energy security and decarbonization. Collectively, these factors establish a strong foundation for the expansion of the Flexible AC Transmission Systems market in South America’s emerging economies, where the balance between economic growth, environmental responsibility, and technological innovation is shaping a dynamic and opportunity-rich power sector landscape.

Recent Developments

• In June 2024, LS Cable & System commenced mass production of 525 kV High Voltage Direct Current (HVDC) cables designated for TenneT’s 2 GW grid connection systems, BalWin4 and LanWin1.
• In May 2024, the Port of Tyne in the United Kingdom entered exclusive negotiations with LS Eco Advanced Cables regarding a long-term lease for a proposed HVDC cable manufacturing facility at the Tyne Renewables Quay site in northeast England. The planned investment, valued at approximately USD 1.19 billion, underscores LS Eco Advanced Cables’ strategic interest in expanding its HVDC manufacturing footprint in Europe. An exclusivity agreement was signed to facilitate focused lease discussions. 
• In August 2024, GE Vernova’s Grid Solutions introduced a new addition to its rebranded FACTSFLEX STATCOM portfolio: the FACTSFLEX GFMe. This advanced solution integrates STATCOM technology with supercapacitor-based energy storage, delivering enhanced grid stability and reliability during voltage and frequency fluctuations. By offering virtual inertia and grid-forming capabilities, FACTSFLEX GFMe is particularly suited for regions with weaker grid infrastructure or a high penetration of renewable energy. Designed for global deployment, the system supports the ongoing transition to cleaner energy by enabling more resilient and efficient grid operations.

Key Market Players

• 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

Report Scope:

In this report, the Global Flexible AC Transmission Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Flexible AC Transmission Systems Market, By Compensation Type:

o   Series Compensation

o   Shunt Compensation

o   Combined Series-Shunt Compensation  

• Flexible AC Transmission Systems Market, By Controller:

o   Static Synchronous Compensator (STATCOM)

o   Static VAR Compensator (SVC)

o   Unified Power Flow Controller (UPFC)

o   Thyristor Controlled Series Compensator (TCSC)

o   Others  

• Flexible AC Transmission Systems Market, By Industry Vertical:

o   Oil & Gas

o   Electric Utility

o   Railways

o   Others  

• Flexible AC Transmission Systems Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Flexible AC Transmission Systems Market.

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