Flexible AC Transmission Systems Market Size and Outlook 2031

Report Description

Key Insights	Details
Forecast Period	2027-2031
Market Size (2025)	USD 2.92 Billion
CAGR (2026-2031)	7.95%
Fastest Growing Segment	Shunt Compensation
Largest Market	North America
Market Size (2031)	USD 4.62 Billion

Market Overview

The Global Flexible AC Transmission Systems Market is projected to grow from USD 2.92 Billion in 2025 to USD 4.62 Billion by 2031 at a 7.95% CAGR. Flexible AC Transmission Systems (FACTS) represent a family of power-electronic based devices engineered to enhance the control, stability, and power transfer capability within alternating current transmission networks. The market for these systems is primarily supported by the escalating global electricity demand, the critical need to integrate a growing proportion of renewable energy sources such as wind and solar, and the ongoing modernization of aging grid infrastructure to enhance reliability and efficiency. According to the International Energy Agency, global investment in the broader electricity sector is anticipated to reach USD 1.5 trillion in 2025, reflecting substantial capital commitments that inherently drive the demand for advanced grid enhancing technologies like FACTS.

A significant challenge impeding market expansion, however, is the considerable initial capital expenditure associated with FACTS device acquisition and complex system integration requirements, which can prolong project timelines and elevate implementation risks for grid operators.

Key Market Drivers

Rising electricity demand and grid stress
Rising global electricity consumption directly propels the demand for Flexible AC Transmission Systems as existing grids face increased pressure to efficiently deliver power. The continuous expansion of urban areas, industrialization, and the proliferation of digital infrastructure necessitate robust transmission capabilities. FACTS devices enable grid operators to optimize power flow, increase transmission capacity on existing lines, and prevent costly overloads, thereby accommodating the escalating demand without requiring extensive new line construction. According to the International Energy Agency's Electricity 2026 report, published in February 2026, worldwide electricity demand increased year-on-year by 3% in 2025, highlighting the sustained need for grid enhancement technologies to manage this growth.

Renewable energy integration and grid modernization
The integration of renewable energy sources into grids represents another critical driver for the Flexible AC Transmission Systems Market. Variable generation from sources like wind and solar introduces inherent instability and complexity to traditional AC grids, requiring advanced solutions to maintain balance and power quality. FACTS devices offer dynamic control over reactive power and voltage, effectively mitigating these fluctuations and ensuring seamless integration of renewable energy into the main transmission network. According to Siemens Energy's Annual Report 2025, published in January 2026, their Grid Technologies business area contributed to the company's record order intake of €58.9 billion in fiscal year 2025, driven by the energy transition. This reflects significant investment in the infrastructure required to support a renewable-heavy energy mix. Overall, according to the Siemens Infrastructure Transition Monitor 2025, global investment in clean energy, which includes grids, increased from US$1.9 trillion in 2023 to US$2.2 trillion in 2025.

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Key Market Challenges

The considerable initial capital expenditure associated with Flexible AC Transmission Systems device acquisition and complex system integration requirements directly impedes market expansion. Implementing these advanced technologies necessitates substantial upfront financial commitments, which can prolong project timelines and elevate implementation risks for grid operators. This financial burden, coupled with the technical intricacies of integrating FACTS devices into existing grid infrastructure, often leads to extended planning phases and delayed deployment decisions. According to a 2025 global survey by the IEEE Power and Energy Society, 52% of power and electrical engineers identified the high cost of transitioning to clean energy as a most significant challenge, reflecting broad industry apprehension regarding investment in modern grid solutions. Such substantial investment requirements and the inherent complexities of system integration constrain the rate at which grid operators can adopt and deploy FACTS solutions, thereby directly limiting the overall growth trajectory of the global market for these critical technologies.

Key Market Trends

Advancements in power electronics technology constitute a significant trend, fundamentally reshaping the capabilities and applications of Flexible AC Transmission Systems. Continuous innovation in semiconductor materials, converter topologies, and control algorithms leads to FACTS devices that are more compact, efficient, and reliable, while also offering enhanced dynamic response and power handling capacities. These technological improvements enable grid operators to deploy FACTS solutions more broadly, optimizing grid performance and stability under increasingly complex operating conditions. According to the ABB Integrated Report, February 2026, the company's total research and development investment amounted to $1.318 billion in 2025, underscoring ongoing efforts in technological progression.

The growing deployment of smart grid solutions represents another pivotal trend influencing the FACTS market. Smart grids integrate advanced information and communication technologies to enable real-time monitoring, control, and automation of electricity networks. Within this intelligent infrastructure, FACTS devices are essential for providing dynamic power flow control, voltage support, and reactive power compensation, which are critical for maintaining grid stability, optimizing asset utilization, and integrating distributed energy resources. Their ability to respond rapidly to changing grid conditions is crucial for the successful operation of these digitally enhanced networks. According to a Siemens Energy news release, November 2025, the Grid Technologies business area recorded orders above €21 billion in fiscal year 2025, reflecting substantial market activity in grid modernization.

Segmental Insights

Shunt Compensation is recognized as the fastest-growing segment within the Global Flexible AC Transmission Systems Market, primarily due to its pivotal role in enhancing grid performance. This rapid expansion is driven by its effectiveness in voltage stabilization, dynamic reactive power control, and significantly increasing transmission capacity. Shunt compensation systems also offer critical benefits such as power oscillation damping, improved transient stability, and reduced transmission losses across networks. The comparatively lower installation costs and superior efficiency further contribute to its escalating adoption, especially for managing modern power grids with substantial renewable energy integration.

Regional Insights

North America stands as the leading region in the Global Flexible AC Transmission Systems Market, largely due to substantial investments in grid modernization and the aggressive integration of renewable energy sources. This dominance is further supported by favorable federal and state policies, including initiatives like the Inflation Reduction Act, which provide significant incentives for advanced transmission infrastructure. The region's mature power grid, coupled with ongoing efforts by regulatory bodies and grid operators such as the Federal Energy Regulatory Commission (FERC) and various Regional Transmission Organizations (RTOs), to upgrade aging infrastructure and enhance grid reliability, consistently drives the adoption of Flexible AC Transmission Systems to manage congestion and voltage stability.

Recent Developments

In April 2026, Hitachi Energy and Samsung C&T Engineering & Construction Group formalized an expanded strategic collaboration through a Memorandum of Understanding. This agreement aimed to deepen their joint efforts on high-voltage alternating current (HVAC) grid infrastructure projects globally. The collaboration leverages Hitachi Energy's leading expertise in grid technologies, advanced engineering, and digital solutions with Samsung C&T's extensive engineering, procurement, and construction capabilities to accelerate grid modernization and enhance the resilience and flexibility of AC transmission systems.
In October 2025, Hitachi Energy showcased its latest innovations in advanced semiconductor technology at the 8th China International Import Expo. The company highlighted how these advancements serve as critical enablers for modern grid integration solutions, facilitating the reliable transmission of large-scale renewable energy across extensive power networks. Among the featured technologies were next-generation Insulated Gate Commutated Thyristors (IGCTs) for flexible HVDC converters and the world's highest-power StakPak semiconductor device, underscoring breakthroughs in power electronics essential for Flexible AC Transmission Systems.
In May 2025, GE Vernova disclosed a substantial investment of approximately $16 million aimed at expanding its manufacturing and engineering presence in India, specifically in Chennai and Noida. This strategic expansion by the company was targeted at increasing capacity for both High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) technologies. This move signals GE Vernova's commitment to addressing the escalating demand for advanced grid infrastructure across Asia, supporting enhanced grid stability and efficient power transmission.
In March 2025, Hitachi Energy announced the successful commissioning of a significant Flexible AC Transmission Systems (FACTS) installation in Texas. This project was specifically designed to support the state's rapidly expanding renewable energy network. The deployment featured a high-capacity Static Synchronous Compensator (STATCOM) system, which was integrated with advanced digital control platforms. This FACTS solution aims to stabilize voltage fluctuations, a common challenge caused by the large-scale integration of wind and solar generation into the grid, thereby enhancing overall grid reliability and performance.

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

By Compensation Type	By Controller	By Industry Vertical	By Region
Series Compensation Shunt Compensation Combined Series-Shunt Compensation	Static Synchronous Compensator (STATCOM) Static VAR Compensator (SVC) Unified Power Flow Controller (UPFC) Thyristor Controlled Series Compensator (TCSC) Others	Oil & Gas Electric Utility Railways Others	North America Europe Asia Pacific South America Middle East & Africa

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:

Series Compensation
Shunt Compensation
Combined Series-Shunt Compensation

Flexible AC Transmission Systems Market, By Controller:

Static Synchronous Compensator (STATCOM)
Static VAR Compensator (SVC)
Unified Power Flow Controller (UPFC)
Thyristor Controlled Series Compensator (TCSC)
Others

Flexible AC Transmission Systems Market, By Industry Vertical:

Oil & Gas
Electric Utility
Railways
Others

Flexible AC Transmission Systems Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

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

Available Customizations:

Global Flexible AC Transmission Systems Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

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Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Flexible AC Transmission Systems Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Compensation Type (Series Compensation, Shunt Compensation, Combined Series-Shunt Compensation)

5.2.2. By Controller (Static Synchronous Compensator (STATCOM), Static VAR Compensator (SVC), Unified Power Flow Controller (UPFC), Thyristor Controlled Series Compensator (TCSC), Others)

5.2.3. By Industry Vertical (Oil & Gas, Electric Utility, Railways, Others)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Flexible AC Transmission Systems Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Compensation Type

6.2.2. By Controller

6.2.3. By Industry Vertical

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Flexible AC Transmission Systems Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Compensation Type

6.3.1.2.2. By Controller

6.3.1.2.3. By Industry Vertical

6.3.2. Canada Flexible AC Transmission Systems Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Compensation Type

6.3.2.2.2. By Controller

6.3.2.2.3. By Industry Vertical

6.3.3. Mexico Flexible AC Transmission Systems Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Compensation Type

6.3.3.2.2. By Controller

6.3.3.2.3. By Industry Vertical

7. Europe Flexible AC Transmission Systems Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Compensation Type

7.2.2. By Controller

7.2.3. By Industry Vertical

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Flexible AC Transmission Systems Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Compensation Type

7.3.1.2.2. By Controller

7.3.1.2.3. By Industry Vertical

7.3.2. France Flexible AC Transmission Systems Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Compensation Type

7.3.2.2.2. By Controller

7.3.2.2.3. By Industry Vertical

7.3.3. United Kingdom Flexible AC Transmission Systems Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Compensation Type

7.3.3.2.2. By Controller

7.3.3.2.3. By Industry Vertical

7.3.4. Italy Flexible AC Transmission Systems Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Compensation Type

7.3.4.2.2. By Controller

7.3.4.2.3. By Industry Vertical

7.3.5. Spain Flexible AC Transmission Systems Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Compensation Type

7.3.5.2.2. By Controller

7.3.5.2.3. By Industry Vertical

8. Asia Pacific Flexible AC Transmission Systems Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Compensation Type

8.2.2. By Controller

8.2.3. By Industry Vertical

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Flexible AC Transmission Systems Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Compensation Type

8.3.1.2.2. By Controller

8.3.1.2.3. By Industry Vertical

8.3.2. India Flexible AC Transmission Systems Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Compensation Type

8.3.2.2.2. By Controller

8.3.2.2.3. By Industry Vertical

8.3.3. Japan Flexible AC Transmission Systems Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Compensation Type

8.3.3.2.2. By Controller

8.3.3.2.3. By Industry Vertical

8.3.4. South Korea Flexible AC Transmission Systems Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Compensation Type

8.3.4.2.2. By Controller

8.3.4.2.3. By Industry Vertical

8.3.5. Australia Flexible AC Transmission Systems Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Compensation Type

8.3.5.2.2. By Controller

8.3.5.2.3. By Industry Vertical

9. Middle East & Africa Flexible AC Transmission Systems Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Compensation Type

9.2.2. By Controller

9.2.3. By Industry Vertical

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Flexible AC Transmission Systems Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Compensation Type

9.3.1.2.2. By Controller

9.3.1.2.3. By Industry Vertical

9.3.2. UAE Flexible AC Transmission Systems Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Compensation Type

9.3.2.2.2. By Controller

9.3.2.2.3. By Industry Vertical

9.3.3. South Africa Flexible AC Transmission Systems Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Compensation Type

9.3.3.2.2. By Controller

9.3.3.2.3. By Industry Vertical

10. South America Flexible AC Transmission Systems Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Compensation Type

10.2.2. By Controller

10.2.3. By Industry Vertical

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Flexible AC Transmission Systems Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Compensation Type

10.3.1.2.2. By Controller

10.3.1.2.3. By Industry Vertical

10.3.2. Colombia Flexible AC Transmission Systems Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Compensation Type

10.3.2.2.2. By Controller

10.3.2.2.3. By Industry Vertical

10.3.3. Argentina Flexible AC Transmission Systems Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Compensation Type

10.3.3.2.2. By Controller

10.3.3.2.3. By Industry Vertical

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Flexible AC Transmission Systems Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Siemens Energy AG

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. General Electric (GE) Grid Solutions

15.3. Mitsubishi Electric Corporation

15.4. ABB Ltd.

15.5. Toshiba Energy Systems & Solutions Corporation

15.6. NR Electric Co., Ltd.

15.7. American Superconductor Corporation (AMSC)

15.8. Hyosung Heavy Industries

15.9. Rongxin Power Electronic Co., Ltd. (RXPE)

15.10. Adani Transmission Limited

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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