STATCOM Market Size to Surpass USD 1.24 Billion by 2033 | Research by SNS Insider

The U.S. STATCOM (Static Synchronous Compensator) market was valued at USD 0.17 billion in 2025E and is projected to reach USD 0.29 billion by 2033, registering a CAGR of 6.69% during 2026–2033. Growth is driven by demand for fast voltage stabilization, rising renewable integration, grid modernization, expanding industrial loads, and stricter reliability standards.

Austin, Jan. 08, 2026 (GLOBE NEWSWIRE) -- STATCOM Market Size & Growth Insights:

According to the SNS Insider, “The STATCOM Market Size is estimated at USD 0.72 billion in 2025 and is expected to reach USD 1.24 billion by 2033, growing at a CAGR of 7.12% from 2026-2033.”

Increasing Integration of Renewable Energy Sources to Augment Market Growth Globally

The need for sophisticated voltage control systems has increased dramatically due to the increased variability and instability in power grids caused by the quick growth of wind and solar installations. Fast-acting technologies, such as STATCOM systems, are necessary for utilities to maintain voltage stability, provide dynamic reactive power, and enhance overall power quality as renewable energy sources fluctuate owing to shifting weather conditions. These solutions support increased penetration of renewable energy sources, minimize interruptions, and guarantee smooth grid functioning.

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Leading Market Players with their Product Listed in this Report are:

• ABB Ltd.
• Siemens Energy AG
• Mitsubishi Electric Corporation
• Hitachi Energy (Hitachi Ltd.)
• GE Grid Solutions ( General Electric )
• Toshiba Energy Systems & Solutions Corporation
• Rongxin Power Electronic Co., Ltd. (RXHK)
• Ingeteam Power Technology, S.A.
• American Superconductor Corporation (AMSC)
• Eaton Corporation plc
• S&C Electric Company
• NR Electric Co., Ltd.
• Hyosung Heavy Industries
• Siemens Gamesa / Siemens Transmission Solutions
• Schneider Electric SE
• Trinity Energy Systems Pvt. Ltd.
• Adani Transmission / Adani Energy Solutions Ltd. (FACTS solutions)
• KEPCO Engineering & Construction (KEPCO E&C)
• Merus Power Oyj
• Power Quality Systems / Power Electronics Group

STATCOM Market Report Scope:

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High Initial Capital Investment May Limit STATCOM Systems’ Adoption Globally

Due to the high cost of power electronics, transformers, sophisticated control systems, and specific installation requirements, STATCOM systems demand a large initial investment. Due to these costs, STATCOMs are significantly more costly than conventional reactive power compensation systems, which presents problems for industrial facilities, small utilities, and grid operators with limited resources. The requirement for specialized engineering knowledge and site preparation also raises the overall cost of the project.

Key Segmentation Analysis

By Connection Type

In 2025, Shunt Connection led the market with 88% share as it is the most widely used configuration for voltage stabilization, reactive power compensation, and grid support. Series-Shunt Connection is expected to grow fastest from 2026–2033 due to rising demand for advanced hybrid compensation systems capable of improving both voltage stability and power flow.

By Technology

In 2025, Insulated Gate Bipolar Transistor (IGBT)-Based STATCOM led the market with 72% share and is expected to grow fastest from 2026–2033 as IGBT technology delivers superior switching efficiency, compact design, and enhanced dynamic response. 

By Rated Power Outlook

In 2025, Medium Power STATCOM (20–100 MVAR) led the market with 41% share due to strong deployment in transmission networks, industrial grids, and utility substations that require stable voltage regulation. High Power STATCOM (greater than 100 MVAR) is expected to grow fastest from 2026–2033 due to the expanding renewable integration, larger transmission corridors, and modern high-capacity grids require robust reactive power support.

By End Use Outlook

In 2025, Utility led the market with 38% share as utilities face increasing pressure to maintain grid stability, support rising electricity demand, and integrate variable renewable power. Renewable Energy is expected to grow fastest from 2026–2033 due to expanding solar and wind installations that require dynamic reactive power compensation. 

Regional Insights:

Due to large investments in grid modernization, growing integration of renewable energy sources, and the growing requirement for voltage management across aging transmission networks, North America maintained a dominant position in the STATCOM market in 2025.

Asia Pacific dominated the STATCOM Market with a 38% share in 2025 due to rapid expansion of renewable energy installations, rising grid instability, and strong government initiatives to modernize transmission infrastructure. Asia Pacific is expected to grow at the fastest CAGR of about 8.24% from 2026–2033, driven by accelerated renewable energy integration, large-scale solar and wind capacity additions, and rising need for voltage stabilization across rapidly expanding power networks.

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Recent Developments:

• April 2024: ABB published a new “Digital Substations in the News” item noting its digital-substation technologies being deployed, which tie into its grid-stability and power-electronics efforts.
• In 2024: The story “Germany’s bold move to reinvent grid stability” covers the world’s first E-STATCOM using supercapacitors for voltage and frequency support.

Exclusive Sections of the STATCOM Market Report (The USPs):

• GRID MODERNIZATION MANDATE TRACKER – helps you assess the share of smart grid, HVDC, and renewable integration projects globally that mandate STATCOM deployment as part of grid-stability upgrades.
• FACTS-BASED INVESTMENT TREND ANALYSIS – helps you identify capital flow patterns by tracking global investments in FACTS technologies for voltage regulation, reactive power control, and grid resilience.
• RENEWABLE CURTAILMENT REDUCTION BENCHMARKS – helps you quantify system-level efficiency gains by measuring the amount of renewable energy (MWh) preserved through STATCOM-enabled voltage and frequency stabilization.
• REGULATORY COMPLIANCE IMPACT METRICS – helps you understand deployment drivers by evaluating how fault ride-through (FRT), voltage stability, and reactive power standards influence STATCOM adoption across regions.
• POLICY-DRIVEN GRID STABILITY READINESS INDEX – helps you compare regional preparedness by linking regulatory frameworks and grid-code enforcement with STATCOM implementation intensity.
• UTILITY-LED MODERNIZATION PIPELINE INSIGHTS – helps you forecast near-term demand by analyzing policy-backed grid reinforcement programs prioritizing STATCOM in high-renewable and weak-grid environments.

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