Synchronous Condenser Market By Type (New Synchronous Condenser, Others), By Cooling Type (Hydrogen-Cooled and Others), By Starting Method (Static Frequency Converter and Others), By End-User (Electrical Utilities and Industries), By Reactive Power Rating (Up to 100 MVAR, 00 MVAR–200 MVAR and Above 200 MVAR), By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 779.56 Million
CAGR (2026-2031)	4.93%
Fastest Growing Segment	New Synchronous Condenser
Largest Market	North America
Market Size (2031)	USD 1040.51 Million

Market Overview

The Global Synchronous Condenser Market will grow from USD 779.56 Million in 2025 to USD 1040.51 Million by 2031 at a 4.93% CAGR. A synchronous condenser is a DC-excited synchronous motor that operates without a mechanical load, specifically engaged to generate or absorb reactive power to regulate voltage and maintain power factor levels. The primary driver supporting this market is the global energy transition toward renewable sources, such as wind and solar, which utilize inverter-based technologies that lack the inherent physical inertia found in traditional thermal power plants. As fossil fuel-based generation retires, transmission system operators are increasingly procuring these units to provide essential system strength, short-circuit contribution, and inertia, thereby ensuring grid stability and preventing failure during frequency disturbances.

According to EirGrid, in 2024, the operator awarded contracts for new synchronous condenser projects that will collectively provide 6,963 MVA of synchronous inertia to support the integration of renewables on the Irish power system. Despite this strong demand, a significant challenge impeding broader market expansion is the high initial capital expenditure required for equipment procurement and civil works, alongside the long lead times associated with manufacturing these complex electromechanical assets.

Key Market Drivers

Accelerating Integration of Renewable Energy Sources acts as the primary catalyst for market growth. As power systems globally transition away from fossil-fuel generation, the consequential loss of electromechanical inertia poses severe risks to frequency stability. Transmission system operators are continually commissioning synchronous condensers to mimic the kinetic energy of traditional turbines, thereby enabling the safe integration of intermittent wind and solar capacity without compromising grid reliability. For instance, according to Siemens Energy, November 2024, in the 'Q4 Fiscal Year 2024 Earnings Call', the company was awarded a landmark contract by transmission operator TenneT to supply eight synchronous condensers, which represents the largest single project for this technology globally to date.

The Growing Investment in Grid Modernization and Upgradation Projects is equally critical, driven by the urgent need to reinforce aging infrastructure against modern load demands. Utilities are prioritizing substantial capital allocations to install dynamic stability assets that effectively manage voltage fluctuations and short-circuit strength. According to GE Vernova, June 2024, in the 'GE Vernova to Build Two Turn-key Synchronous Condenser Sites' press release, the manufacturer secured an order to construct two synchronous condenser facilities supporting National Grid's 'Upstate Upgrade' initiative in New York. Underscoring the significant financial scale of these modernization efforts, according to Conrad Energy, April 2024, the company secured GBP 200 million in financing specifically to fund the construction of two synchronous condenser projects in the UK.

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Key Market Challenges

The significant challenge hindering the growth of the Global Synchronous Condenser Market is the high initial capital expenditure required for equipment procurement and civil works, compounded by the long lead times associated with manufacturing these complex assets. Unlike inverter-based solutions, synchronous condensers are massive electromechanical machines that necessitate substantial upfront investment, not only for the hardware but also for the extensive engineering and site preparation required for installation. This capital intensity creates a major financial barrier for transmission system operators, often complicating the approval and financing phases of grid stability projects and slowing the overall rate of market expansion.

Moreover, the intricate manufacturing process for these heavy rotating machines results in extended delivery schedules that frequently misalign with the urgent timelines of renewable energy integration. The limited number of specialized manufacturers capable of producing such sophisticated equipment creates a supply bottleneck, further delaying critical grid reinforcement. According to the Australian Energy Market Operator (AEMO), in 2024, the organization identified that the preferred technical option to address system strength deficits in New South Wales alone would require the deployment of 14 new synchronous condensers, illustrating the immense scale of manufacturing capacity and capital allocation demanded to secure just one regional network. This combination of heavy financial burden and logistical delay directly impedes the market's ability to scale rapidly in response to the global energy transition.

Key Market Trends

Repurposing Decommissioned Thermal Generators into Synchronous Condensers is rapidly emerging as a viable strategy to preserve grid inertia while minimizing construction costs and timelines. Utilities are retrofitting retired fossil-fuel power plants by decoupling the generator from the steam or gas turbine, enabling the machine to operate freely as a synchronous condenser that provides critical short-circuit strength and reactive power without associated carbon emissions. This approach allows operators to leverage existing high-voltage interconnections and civil infrastructure, significantly reducing the capital expenditure compared to greenfield projects. For instance, according to Eaton, June 2025, in the 'Eaton Transforms Retired Coal-Fired Power Plant Into Critical Grid Reliability Asset' press release, the company commenced a project to convert the retired Bull Run Fossil Plant in Tennessee into two 605 MVAR synchronous condensers to support regional network stability.

The Development of Dedicated Greener Grid Stability Parks represents a structural shift toward constructing standalone facilities designed exclusively for ancillary services rather than active power generation. These specialized parks utilize high-inertia synchronous condensers, often augmented with heavy flywheels, to deliver concentrated voltage control and frequency regulation in specific zones with high renewable penetration. This model enables transmission operators to strategically site stability assets at weak grid nodes independent of where power is actually generated, decoupling grid strength from energy production. Highlighting the scale of such developments, according to Statkraft, November 2025, in the 'Statkraft invests over £100 million in its largest grid stability scheme to date' press release, the company began construction on the Necton Greener Grid Park, which will provide approximately 4 GW.s of inertia, an amount comparable to a large conventional gas-fired power station.

Segmental Insights

The new synchronous condenser segment currently emerges as the fastest-growing category within the global market. This expansion is primarily driven by the worldwide transition toward renewable energy, which necessitates the replacement of decommissioning thermal power plants that previously provided essential grid inertia. As transmission networks integrate higher levels of variable wind and solar generation, system operators such as National Grid ESO are implementing stability programs that mandate robust short-circuit strength and reactive power support. Consequently, utilities prioritize investing in new units over refurbished alternatives to ensure long-term reliability and compliance with evolving grid codes, thereby fueling demand.

Regional Insights

North America currently holds the leading position in the global synchronous condenser market, primarily driven by the transition from conventional thermal power to renewable energy sources. As utilities retire fossil-fuel plants, the grid loses essential inertia required for stability. Consequently, operators install synchronous condensers to maintain voltage control and system reliability. The North American Electric Reliability Corporation (NERC) enforces strict grid standards, compelling energy providers to invest in these stability solutions. This regulatory focus on grid resilience supports the continued expansion of the market across the region.

Recent Developments

• In May 2025, Siemens Energy received a major order to supply and install seven synchronous condensers for the Central-West Orana Renewable Energy Zone in New South Wales, Australia. The contract was awarded by the consortium developing the nation's first renewable energy zone and included a five-year service agreement covering maintenance and cybersecurity protections. These units were equipped with flywheels to provide critical system inertia and voltage control, services traditionally supplied by coal-fired power plants. This infrastructure project was a pivotal step in enabling the stable connection of gigawatts of new solar and wind generation capacity to the Australian national electricity market.
• In February 2025, Ansaldo Energia was awarded a tender by the Italian transmission grid operator to supply five synchronous condensers, each with a capacity of 250 MVAR. The agreement encompassed the design, manufacturing, commissioning, and maintenance of the units, which were scheduled for deployment over the subsequent five years to enhance national grid security. These machines featured an innovative flywheel system housed in a vacuum chamber to minimize mechanical losses while maximizing rotational inertia. This technology was selected to stabilize the grid against voltage and frequency fluctuations resulting from the massive integration of renewable energy sources, bringing the company's total installed units in the region to fifteen.
• In June 2024, GE Vernova announced that it had been awarded a contract by a major utility provider to supply and construct two turnkey synchronous condenser sites in upstate New York. The company agreed to install three synchronous condenser machines along with generator step-up transformers at the Coffeen and Taylorville substations to support grid stability. These installations were designed to manage reactive power and voltage levels, providing the necessary short-circuit strength to integrate intermittent renewable energy sources. The project aligned with state-level decarbonization targets, ensuring a reliable flow of electricity for local homes and businesses while strengthening the regional grid infrastructure.
• In June 2024, ABB secured four orders from the Spanish transmission system operator to supply synchronous condensers for the Canary and Balearic Islands. The company provided an integrated solution capable of delivering the essential inertia and short-circuit current required to maintain power supply stability as fossil-fuel generation was phased out. This collaboration supported the operator’s strategic network development plan, which aimed to integrate a high percentage of renewable energy into the islands' generation mix. The scope of the project included the delivery of electrical and automation equipment designed to ensure the reliability and continuity of these isolated power grids during their green energy transition.

Key Market Players

• Siemens Energy AG
• General Electric Company
• ABB Ltd.
• Mitsubishi Electric Corporation
• Eaton Corporation plc
• Voith GmbH & Co. KGaA
• WEG S.A.
• Andritz AG
• Toshiba Energy Systems & Solutions Corporation
• Hyundai Electric & Energy Systems Co., Ltd.

By Type	By Cooling Type	By Starting Method	By End-User	By Reactive Power Rating	By Region
New Synchronous Condenser Others	Hydrogen-Cooled and Others	Static Frequency Converter and Others	Electrical Utilities and Industries	Up to 100 MVAR 00 MVAR-200 MVAR and Above 200 MVAR	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Synchronous Condenser Market, By Type:

• New Synchronous Condenser
• Others

• Synchronous Condenser Market, By Cooling Type:

• Hydrogen-Cooled and Others

• Synchronous Condenser Market, By Starting Method:

• Static Frequency Converter and Others

• Synchronous Condenser Market, By End-User:

• Electrical Utilities and Industries

• Synchronous Condenser Market, By Reactive Power Rating:

• Up to 100 MVAR
• 00 MVAR-200 MVAR and Above 200 MVAR

• Synchronous Condenser 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