The power quality equipment market is moving into a decisive growth phase as global power infrastructure adapts to digitalization, electrification, and sustainability priorities. Valued at US$ 33.23 billion in 2024, the market is projected to reach US$ 50.33 billion by 2031, expanding at a CAGR of 6.5% during 2025–2031. This growth outlook presents compelling opportunities for investors, manufacturers, utilities, and end users alike.

In this ninth blog of the series, we provide a detailed market forecast, investment outlook, and strategic recommendations to help stakeholders navigate opportunities and risks in the power quality equipment market.

Market Forecast Overview: 2025–2031

The power quality equipment market is expected to maintain steady, resilient growth through 2031, supported by structural changes in how electricity is generated, distributed, and consumed.

Key forecast highlights:

• Strong demand from industrial and manufacturing sectors
• Accelerated adoption in commercial facilities and data centers
• Rising investment in grid modernization and renewable integration

The forecast reflects not only replacement demand in mature markets but also greenfield opportunities in emerging economies.

Forecast by Equipment Type

Uninterruptable Power Supply (UPS)

UPS systems will remain the largest and most stable revenue-generating segment in the power quality equipment market. Growth will be driven by:

• Expansion of hyperscale and edge data centers
• Increasing automation in manufacturing
• Rising need for mission-critical power reliability

Advanced, energy-efficient, and modular UPS systems are expected to outperform traditional models over the forecast period.

Harmonic Filters

The harmonic filters segment is forecast to grow steadily as nonlinear loads continue to proliferate. Industrial applications, renewable energy systems, and large commercial facilities will drive sustained demand.

Active harmonic filters are expected to gain a larger share due to superior performance and adaptability.

Static VAR Compensators (SVC)

SVCs represent a high-value growth segment tied closely to infrastructure investment cycles. Forecast growth will be supported by:

• Transmission and distribution upgrades
• Grid stability requirements
• Large industrial and mining projects

Demand may be cyclical but remains strategically important for utilities and heavy industries.

Power Quality Meters

Power quality meters are forecast to experience above-average growth as monitoring, compliance, and analytics become essential components of power management strategies.

Digitalization and regulatory reporting requirements will further accelerate adoption across both industrial and commercial end users.

Forecast by Phase and End User

Three-phase power quality equipment will continue to dominate market revenues due to extensive use in industrial and manufacturing environments. Single-phase solutions will grow steadily, supported by commercial and localized applications.

From an end-user perspective, the industrial and manufacturing segment will remain the primary revenue contributor, while the commercial segment will post faster growth rates due to data center expansion and smart building adoption.

Regional Forecast Insights

Asia Pacific

Asia Pacific is expected to contribute the largest share of incremental growth through 2031. Industrial expansion, urbanization, and infrastructure investments in China, India, and Southeast Asia will underpin strong demand.

North America and Europe

These mature markets will see stable growth driven by replacement demand, grid modernization, and digital upgrades. Investment will focus on efficiency improvements and smart power quality solutions.

Emerging Regions

The Middle East, Africa, and South America will offer selective high-growth opportunities linked to infrastructure development and rising awareness of power quality benefits.

Investment Outlook: Where Capital Is Flowing

Investment activity in the power quality equipment market is increasingly focused on:

• Digital and software-enabled power quality solutions
• Energy-efficient and sustainable technologies
• Modular and scalable equipment designs
• Service-based and lifecycle management offerings

Private equity and strategic investors are showing interest in companies with strong technology differentiation and recurring revenue models.

Risk Factors and Investment Considerations

Despite positive fundamentals, investors must consider potential risks, including:

• High capital intensity and long project cycles
• Price sensitivity in emerging markets
• Rapid technological change requiring continuous R&D investment

Balancing innovation with cost competitiveness will be critical to sustaining profitability.

Strategic Recommendations for Stakeholders

For Manufacturers

• Prioritize R&D in digital, AI-enabled power quality solutions
• Expand presence in high-growth Asia Pacific markets
• Develop flexible pricing and financing models

For Investors

• Focus on companies with strong software and service capabilities
• Evaluate exposure to high-growth end-user segments such as data centers
• Assess long-term sustainability and ESG alignment

For End Users

• View power quality investments as long-term risk mitigation tools
• Adopt monitoring and analytics-driven solutions
• Integrate power quality planning into broader energy strategies

Outlook: A Resilient Market Through 2031

The power quality equipment market offers a compelling blend of stability and growth. As power reliability becomes mission-critical across industries and commercial sectors, investment momentum is expected to remain strong.

With the market advancing from US$ 33.23 billion in 2024 to US$ 50.33 billion by 2031, stakeholders that align capital, innovation, and strategy with market fundamentals will be well positioned for long-term success.

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