A new comprehensive market analysis by Reed Intelligence reveals that the Global Flexible AC Transmission System (FACTS) Market is poised for robust growth, with a projected Compound Annual Growth Rate (CAGR) of 10.2% over the 2023–2031 forecast period.

Key Market Figures

Base Year: 2023

Forecast Period: 2023–2031

Expected CAGR (2023–2031): ~10.2% 

Key Highlights

Largest Region: North America leads the market with a mature and technologically advanced grid infrastructure.

Fastest-Growing Region: Asia Pacific (APAC) is projected to witness the fastest growth, driven by rapid grid modernization and rising energy demand.

Largest Segment (by Type): Among the type segments, Shunt Compensation stands out.

Largest Application Segment: The Utilities sector remains the dominant application vertical.

Market Dynamics

Drivers:
The global Flexible AC Transmission System (FACTS) Market is being fuelled by accelerating grid modernization, with utilities worldwide striving to upgrade aging infrastructure to accommodate more flexible, efficient, and stable power transmission. The increasing integration of renewable energy sources like wind and solar amplifies the need for FACTS solutions, which help stabilize voltage, control power flow, and improve overall grid reliability. Smart grid implementation further supports this trend, as FACTS devices play a crucial role in enhancing grid responsiveness and reducing transmission losses.

Restraints & Challenges:
Despite the strong growth outlook, the market faces headwinds such as economic uncertainties and potential regulatory hurdles in different regions. Supply chain disruptions in key components (like power electronics) could also limit the pace of deployment. Additionally, the high initial cost of FACTS technologies may deter smaller utilities or emerging-market operators from large-scale investment in the near term.

Opportunities:
On the opportunity front, leveraging cost-effective installation methods and innovations that reduce the capex of FACTS systems could unlock rapid adoption, especially in undeserved regions. As system reliability and voltage regulation become more critical for renewable-heavy grids, there is strong potential for FACTS to be integrated into next-generation smart and micro-grid deployments. Companies that can offer modular, scalable FACTS solutions stand to gain a competitive edge.

Leading Market Players

The competitive landscape is dominated by several major players:

ABB

Siemens

RXPE (Rongxin Power Electronic)

Sieyuan Electric

Mitsubishi Electric

General Electric (GE)

Toshiba

AMSC (American Superconductor Corporation)

Hyosung

Market Segmentation (by Region & Sector)

By Type:

Shunt Compensation

Series Compensation

Others

By Application:

Metal Industry

Railway

Mining

Utilities

Others

By Region:

North America

Europe

Asia-Pacific (APAC)

LAMEA (Latin America, Middle East & Africa)

About Reed Intelligence
Reed Intelligence is a leading market research and intelligence firm providing in-depth industry analysis across technology, energy, and infrastructure sectors.