Global Power Quality Equipment Market By Equipment (Surge Arresters, Surge Protection Devices, Harmonic Filters, Power Conditioning Units, Power Distribution Units, Uninterruptable Power Supply, Synchronous Condenser, Voltage Regulator, Digital Static Transfer Switch, Static VAR Compensator, Solid Oxide Fuel Cells, Isolation Transformers, Power Quality Meters, Others), By Phase (Single Phase v/s Three Phase), By Application (Industrial & Manufacturing, Commercial, Residential, Transportation, Utilities), By Company, By Region, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 37.99 Billion
CAGR (2026-2031)	6.77%
Fastest Growing Segment	Surge Arresters
Largest Market	Asia Pacific
Market Size (2031)	USD 56.28 Billion

Market Overview

The Global Power Quality Equipment Market will grow from USD 37.99 Billion in 2025 to USD 56.28 Billion by 2031 at a 6.77% CAGR. The Global Power Quality Equipment Market consists of specialized solutions designed to monitor and condition electrical power by mitigating disturbances such as voltage sags and harmonic distortions. The market is propelled by the increasing reliance on industrial automation and the imperative to modernize grids for renewable energy integration. According to the National Electrical Manufacturers Association, in 2024, the electroindustry business confidence index for future conditions reached a reading of 84.6, signaling strong expectations for sector growth. These drivers underscore a structural demand for reliability that is distinct from broader technological trends.

Nevertheless, the market faces a significant challenge regarding the high initial investment required for advanced power quality systems. The substantial capital expenditure needed for installation and retrofitting often deters cost-sensitive enterprises from upgrading their legacy infrastructure. This financial barrier limits the widespread adoption of comprehensive power conditioning frameworks and acts as a primary impediment to market expansion in regions where budget constraints are particularly pronounced.

Key Market Drivers

The surging demand for reliable power in data centers and telecommunications significantly accelerates the adoption of power quality equipment. As hyper-scale facilities and artificial intelligence applications expand, the tolerance for voltage fluctuations or harmonics drops to near zero, necessitating robust conditioning solutions to ensure continuous uptime. This critical reliance on stable electricity drives massive capital inflows into power infrastructure capable of supporting high-density computing loads. According to Goldman Sachs, April 2024, in the 'Generational Growth' report, data center power demand is poised to grow 160% by the end of the decade. Such exponential consumption growth directly correlates with increased procurement of uninterruptible power supplies and harmonic filters to safeguard sensitive servers from electrical disturbances.

Concurrently, the modernization of aging electrical transmission and distribution infrastructure serves as a foundational market driver. Utilities are aggressively upgrading grids to accommodate intermittent renewable energy sources and manage bi-directional power flows, which introduces stability challenges that specialized equipment must mitigate. According to the International Energy Agency (IEA), June 2024, in the 'World Energy Investment 2024' report, spending on grids is set to reach USD 400 billion in 2024, reflecting a strategic pivot towards resilient network architectures. This investment wave translates into tangible industrial activity; for instance, according to Siemens Energy, November 2024, the Grid Technologies business area recorded a 34% comparable increase in orders for the fiscal year 2024. This trend highlights the essential role of power quality systems in the transition to a digitalized, low-carbon energy landscape.

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Key Market Challenges

The high initial investment required for the installation and retrofitting of advanced systems constitutes a primary impediment to the expansion of the Global Power Quality Equipment Market. Specialized conditioning solutions, such as harmonic filters and voltage regulators, demand complex engineering and significant upfront capital, creating a prohibitive financial threshold for small and medium-sized enterprises (SMEs) or industrial facilities with limited operational budgets. This financial burden frequently compels cost-sensitive organizations to defer critical infrastructure upgrades and retain legacy systems. Consequently, despite the technical necessity for reliability, market penetration remains severely restricted in sectors where capital allocation is tightly constrained.

The magnitude of the capital intensity characterizing this sector creates a structural barrier that bifurcates the market. According to the Edison Electric Institute, in 2024, U.S. investor-owned electric companies invested a record USD 178.2 billion in energy grid infrastructure. While major utility providers possess the liquidity to sustain such massive expenditure levels for modernization, smaller industrial players often lack the financial resilience to match this pace of investment. This widening disparity effectively prices budget-constrained enterprises out of the market, thereby limiting the widespread adoption of comprehensive power quality frameworks and dampening overall growth potential in non-utility segments.

Key Market Trends

The development of eco-friendly and sustainable power quality designs is reshaping the market as manufacturers aggressively eliminate hazardous substances like sulfur hexafluoride (SF6) and adopt circular economy principles. This trend is driving the engineering of "green" switchgear and highly efficient power conditioning systems that significantly reduce carbon footprints without compromising grid reliability or performance. The industry's dedication to this transition is evident in substantial capital allocation towards green innovation; according to Eaton, July 2024, in the '2023 Sustainability Report', the company has invested a cumulative USD 1.3 billion in research and development for sustainable solutions since 2020.

Concurrently, the widespread adoption of IoT-enabled smart power quality monitoring is transforming traditional electrical infrastructure into connected, data-rich assets. This integration allows for the continuous capture of critical performance metrics, enabling facility managers to utilize real-time analytics for identifying voltage instabilities and shifting from reactive to predictive maintenance strategies. The market's rapid acceptance of these digital capabilities is accelerating financial growth for technology providers; according to Siemens, December 2024, in the 'Smart Infrastructure Sets Higher Ambitions' press release, the Smart Infrastructure division more than doubled its digital business revenue to EUR 1.7 billion over the previous four years.

Segmental Insights

The Surge Arresters segment represents the fastest-growing category in the Global Power Quality Equipment Market, driven by the critical need to protect infrastructure from voltage transients. This rapid expansion is primarily fueled by the extensive integration of sensitive electronics and renewable energy systems which require robust shielding against electrical surges to prevent costly operational failures. Furthermore, compliance with rigorous safety mandates established by entities such as the International Electrotechnical Commission compels industries to adopt these protective devices. These factors collectively ensure that surge arresters remain essential for maintaining grid reliability and safeguarding industrial assets.

Regional Insights

Asia Pacific dominates the global power quality equipment market, primarily driven by rapid industrialization and significant investments in transmission infrastructure. The region experiences high demand for reliable electricity to support expanding manufacturing hubs and the large-scale integration of renewable energy sources. Governments in major economies like China and India are prioritizing grid modernization to reduce transmission losses and ensure stability. This focus compels industries to adopt equipment that maintains voltage standards. Consequently, the reliance on sensitive machinery in the electronics and automotive sectors further cements the region's leading market position.

Recent Developments

• In December 2025, ABB secured a significant contract to deliver the complete electrical infrastructure for Vulcan Energy’s Phase One Lionheart project in Germany. As part of this agreement, the company will supply a range of power quality and distribution equipment, including uninterruptible power supplies, medium- and low-voltage switchgear, and variable speed drives. This collaboration ensures a stable and efficient flow of electricity for the renewable energy-powered lithium extraction facility. The project highlights the critical role of robust power quality systems in supporting industrial operations and the transition to sustainable battery supply chains for electric vehicles.
• In February 2025, Eaton introduced the 9395 XR uninterruptible power supply system during the Elecrama exhibition, reinforcing its position in the power quality equipment sector. This advanced power backup solution was designed to maximize energy efficiency and enhance system reliability for mission-critical applications, including data centers and industrial operations. The launch highlighted the company's strategy to provide sustainable and robust power management technologies that ensure seamless operational flow in demanding environments. By expanding its offering with this high-performance UPS, Eaton aimed to address the growing need for dependable power infrastructure in rapidly developing markets.
• In December 2024, Schneider Electric unveiled the Galaxy VXL, a new modular three-phase uninterruptible power supply system, as part of its strategic focus on supporting energy-efficient digital infrastructure. The launch coincided with the company's announcement of a collaboration with NVIDIA to develop liquid-cooled data center reference designs for AI clusters. The Galaxy VXL is engineered to provide high power density and supports efficient operating modes to reduce energy consumption in large-scale data centers and industrial facilities. This development underscores the company's commitment to advancing power quality solutions that cater to the escalating energy demands of accelerated computing workloads.
• In July 2024, Vertiv expanded its portfolio in the global power quality equipment market by introducing the Trinergy uninterruptible power supply (UPS) system. Designed to address the high power density and fluctuating load requirements of data centers hosting artificial intelligence and high-performance computing applications, this new UPS platform offers capacities ranging from 1500 to 2500 kVA. The system features a modular architecture with physically segregated cores, ensuring that each power module operates independently to maintain continuous power delivery. This launch aims to enhance resilience and uptime for mission-critical digital infrastructure, exceeding standard Tier IV availability metrics.

Key Market Players

• ABB Ltd.
• Siemens AG
• Schneider Electric SE
• Eaton Corporation plc
• General Electric Company
• Emerson Electric Co.
• Mitsubishi Electric Corporation
• Toshiba Corporation
• Honeywell International Inc.
• Legrand SA

By Equipment	By Phase	By Application	By Region
Surge Arresters Surge Protection Devices Harmonic Filters Power Conditioning Units Power Distribution Units Uninterruptable Power Supply Synchronous Condenser Voltage Regulator Digital Static Transfer Switch Static VAR Compensator Solid Oxide Fuel Cells Isolation Transformers Power Quality Meters Others	Single Phase v/s Three Phase	Industrial & Manufacturing Commercial Residential Transportation Utilities	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Power Quality Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power Quality Equipment Market, By Equipment:

• Surge Arresters
• Surge Protection Devices
• Harmonic Filters
• Power Conditioning Units
• Power Distribution Units
• Uninterruptable Power Supply
• Synchronous Condenser
• Voltage Regulator
• Digital Static Transfer Switch
• Static VAR Compensator
• Solid Oxide Fuel Cells
• Isolation Transformers
• Power Quality Meters
• Others

• Power Quality Equipment Market, By Phase:

• Single Phase v/s Three Phase

• Power Quality Equipment Market, By Application:

• Industrial & Manufacturing
• Commercial
• Residential
• Transportation
• Utilities

• Power Quality Equipment 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