Flexible AC Transmission Systems (FACTS) market Size, Share, Growth, and Industry Analysis, By Types (Shunt Compensation, Series Compensation, Combined Series and Shunt Compensation, Others), By Applications (Electric Utilities, Renewables, Railways, Industrial, Oil & Gas) , and Regional Insights and Forecast to 2035

Flexible AC Transmission Systems (FACTS) market Size

Global Flexible AC Transmission Systems (FACTS) market size reached USD 1.43 billion in 2025 and is projected to rise to USD 1.52 billion in 2026, USD 1.62 billion in 2027 and surpass USD 2.74 billion by 2035, growing at a steady 6.73%. More than 55% of demand is driven by grid modernization, and over 48% supports renewable integration. Around 45% focuses on power quality improvement and nearly 35% reduces congestion, strengthening long-distance transmission system performance worldwide.

US Flexible AC Transmission Systems (FACTS) market growth remains strong as nearly 50% of utilities invest in advanced compensation systems to maintain voltage stability across aging and heavily loaded networks. More than 40% of renewable additions require reactive power support, and over 30% of transmission corridors depend on FACTS to unlock 15–25% transfer capability. With 60% adoption focused on reliability improvement, the US remains a priority market in North America.

Key Findings

• Market Size: USD 1.43 billion (2025), USD 1.52 billion (2026), USD 2.74 billion (2035), 6.73% growth momentum across core segments.
• Growth Drivers: Over 55% investments for grid upgrades and above 50% renewable integration push demand for voltage stability.
• Trends: More than 48% STATCOM adoption and over 40% focus on reducing power losses support utility transformation worldwide.
• Key Players: ABB, Siemens, GE Grid Solutions, Hyosung, Mitsubishi Electric & more.
• Regional Insights: Asia-Pacific leads with 33% share driven by grid expansion and renewables. North America holds 32% due to modernization needs. Europe accounts for 27% supported by cross-border stability upgrades. Middle East & Africa captures 8% with rising industrial electrification, totaling 100% global share.
• Challenges: Nearly 40% face installation complexity and more than 30% report skilled workforce shortages slowing adoption.
• Industry Impact: Grid efficiency improved by above 20% and stability gains exceed 30% across weak and renewable-heavy networks.
• Recent Developments: Over 45% launches adopt digital control upgrades and about 35% shift to modular and SiC-based systems.

FACTS solutions are becoming central to advanced power transmission as more than 60% of operators target resilient systems that can withstand extreme load fluctuations. Over 50% of high-renewable grids rely on FACTS for real-time stability support. The technology supports national grid reliability standards with reactive power control present in 70% deployments across critical substations. Utilities see FACTS as essential to enabling smarter, flexible, and future-ready electricity networks where digital monitoring and rapid dynamic response are priorities.

Flexible AC Transmission Systems (FACTS) market Trends

The Flexible AC Transmission Systems (FACTS) market is seeing strong momentum as grid operators look to improve stability and efficiency in modern power networks. With more than 45% of global utilities prioritizing advanced grid control solutions, the shift toward flexible power transmission continues to accelerate. FACTS devices are increasingly deployed to support voltage control, where over 40% of installations currently focus on enhancing reactive power compensation. Static VAR Compensators hold nearly 35% usage share in enhancing grid reliability, while STATCOM solutions are climbing above 30% adoption due to their faster response and compact setup. Around 55% of investments in this market are directed toward reducing power losses and improving transmission capacity. Renewable energy integration remains a major growth catalyst, as approximately 50% of wind and solar developers rely on FACTS to manage fluctuating power flows. Growth is notable across industrial users too, with over 33% adoption linked to heavy manufacturing and process industries to ensure uninterrupted power quality. Asia Pacific dominates the trend landscape with more than 38% share due to grid expansion initiatives, while North America and Europe together contribute above 45% focusing on modernization and smart grid upgrades. As more than 60% of utilities face congestion challenges, the demand for FACTS-based power flow control continues to expand. FACTS is becoming essential in preventing blackouts, with around 48% of utilities deploying these systems for enhanced system resilience. These trends highlight the increasing reliance on FACTS solutions to support future-ready electricity infrastructure.

Flexible AC Transmission Systems (FACTS) market Dynamics

OPPORTUNITY

Growing adoption for renewable integration

More than 52% of grid operators are adopting FACTS solutions to stabilize renewable power fluctuations. About 50% of new solar and wind projects now rely on reactive power management technologies to avoid voltage drops. Over 49% of distributed energy systems depend on FACTS for managing peak loads and improving system reliability. Since renewables are expected to contribute more than 40% to the global energy mix, demand for STATCOM and SVC devices continues to climb, helping utilities maintain power efficiency above 90% in expanding grids.

DRIVERS

Increasing focus on improving grid stability and minimizing losses

Over 60% of utilities face voltage instability concerns because of aging power infrastructure and rising demand. More than 45% of FACTS deployments aim to reduce transmission losses and boost operational efficiency. Voltage stabilization accounts for around 43% of FACTS implementation, especially in congested power corridors. With more than 37% of industrial users requiring uninterrupted electricity, demand for power quality enhancement is rising. Above 50% of urban networks moving toward smarter grid systems are driving investments in advanced FACTS technologies.

RESTRAINTS

"High installation complexity across traditional networks"

About 38% of utilities delay FACTS system upgrades due to integration challenges within outdated grid structures. Nearly 35% of operators struggle with compatibility issues linked to complex power electronics. Up to 42% of FACTS projects run into commissioning delays because of extensive testing and configuration needs. The shortage of trained specialists affects around 30% of utilities, increasing dependency on external expertise. These limitations slow modernization progress, especially in regions that still rely heavily on conventional transmission setups.

CHALLENGE

"Maintenance concerns and shortage of skilled workforce"

More than 40% of developing-region energy companies report limited technical expertise to operate advanced FACTS equipment. Maintenance-related expenses make up nearly 33% of long-term operational concerns among utilities. Over 36% of operators lack predictive monitoring tools, affecting system performance over time. Around 28% of installed FACTS systems require frequent updates to address changes in voltage fluctuations and dynamic load conditions. These challenges highlight the need for skilled training programs and cost-efficient service models to support continuous grid optimization.

Segmentation Analysis

The Flexible AC Transmission Systems (FACTS) market is segmented by type and application to reflect how utilities, renewables, railways, industrial, and oil & gas operators deploy grid stabilization. According to the stated baseline, the Global Flexible AC Transmission Systems (FACTS) market size was USD 1.43 Billion in 2025 and is projected to touch USD 1.52 Billion in 2026 to USD 2.74 Billion by 2035, exhibiting a CAGR of 6.73% during the forecast period. By type, shunt compensation leads as utilities target voltage control in more than 60% of constrained nodes, while series compensation addresses line loading in over 30% of high-transfer corridors. Combined solutions are selected where dynamic voltage support and power flow control must co-exist, representing above 20% of complex projects. By application, electric utilities account for the largest proportion as grid modernization spreads across transmission networks, while renewables contribute a growing share as over 50% of new variable plants require reactive power and dynamic stability support. Railways, industrial, and oil & gas each add niche yet important demand pockets with clear reliability and power-quality objectives.

By Type

Shunt Compensation

Shunt compensation dominates adoption as operators focus on voltage stability, reactive power control, and flicker mitigation. Around 42% share is linked to this class, supported by more than 55% preference in fast dynamic response environments and over 50% usage at renewable interconnections. Utilities report up to 25–35% reductions in voltage excursions where shunt assets are deployed, and more than 40% of congested substations prioritize STATCOM/SVC first to stabilize weak grids and maintain power-quality compliance above 95% of operating intervals.

Shunt Compensation held the largest share in the Flexible AC Transmission Systems (FACTS) market, accounting for USD 0.60 Billion in 2025, representing 42% of the total market. This segment is expected to grow at a CAGR of 6.1% from 2025 to 2035, driven by utility-scale voltage support, renewable grid codes, and urban network reinforcement.

Series Compensation

Series compensation addresses thermal and stability limits by increasing effective line loadability, supporting about 28% market share. Operators indicate over 30% improvement in transfer capability on targeted corridors and up to 20–25% reductions in congestion curtailments after installation. Roughly 45% of long-distance transmission projects evaluate series assets for power-flow control, while more than 35% of meshed networks apply series schemes to defer new line builds and keep N-1 security margins within acceptable thresholds over peak periods.

Series Compensation accounted for USD 0.40 Billion in 2025, representing 28% share of the market. This segment is expected to grow at a CAGR of 6.3% from 2025 to 2035, supported by corridor uprates, congestion relief, and improved stability on bulk power routes.

Combined Series and Shunt Compensation

Combined solutions are selected where grids require both dynamic voltage control and fine power-flow tuning, representing about 22% share. In hybrid topologies, more than 50% of planners cite combined schemes for multi-terminal reliability, while over 40% note improved damping of oscillations and smoother inter-area transfers. Projects adopting combined architectures report 15–30% cuts in corrective redispatch and up to 10–15% better voltage profiles during high renewable variability windows.

Combined Series and Shunt Compensation reached USD 0.31 Billion in 2025, equal to 22% share. This segment is set to expand at a CAGR of 7.8% from 2025 to 2035, propelled by complex grid nodes, renewable clusters, and multi-infeed stability needs.

Others

The “Others” category, including specialized damping devices and niche compensation modules, accounts for roughly 8% share. These deployments appear in about 15–20% of brownfield upgrades where targeted improvements are required, and over 25% of users apply them to solve site-specific power-quality issues such as harmonics and localized voltage dips. Their role is complementary, often bridging gaps where mainstream shunt or series assets would be oversized for the task.

Others represented USD 0.11 Billion in 2025, equating to 8% share, and is projected to grow at a CAGR of 5.5% from 2025 to 2035 as operators fine-tune legacy assets and address specialized reliability constraints.

By Application

Electric Utilities

Electric utilities lead demand with approximately 46% share as network operators pursue stability, loss minimization, and transfer-capacity gains. More than 60% of utilities cite voltage control as the primary objective, while 40% focus on congestion and redispatch cuts. FACTS adoption helps maintain compliant voltage profiles in over 90% of operating intervals and reduces curtailments on key paths by 15–25% where applied strategically across substations and long-haul lines.

Electric Utilities held the largest share, totaling USD 0.66 Billion in 2025, representing 46% of the market. This application segment is expected to grow at a CAGR of 5.9% from 2025 to 2035, driven by grid modernization, reliability mandates, and urban load growth.

Renewables

Renewables account for about 24% share as variable generation nodes require dynamic reactive support and grid-code compliance. More than 50% of new wind and solar plants evaluate FACTS for voltage stability at the point of interconnection, and over 35% adopt fast-response devices to manage rapid ramps. Operators report 20–30% reductions in curtailment events and improved power-quality metrics exceeding 95% compliance after deployment.

Renewables recorded USD 0.34 Billion in 2025, equal to 24% share, and is projected to grow at a CAGR of 8.4% from 2025 to 2035, supported by higher inverter-based resource penetration and stricter interconnection standards.

Railways

Railways hold around 9% share as traction power systems seek voltage stabilization and harmonic mitigation. More than 40% of electrified corridors evaluate FACTS to balance fluctuating loads at substations, and over 30% of projects report improved voltage profiles during peak acceleration and braking periods. Deployments help sustain reliability KPIs above 95% while reducing nuisance trips and feeder overloads by 10–20%.

Railways reached USD 0.13 Billion in 2025, representing 9% share, and is anticipated to grow at a CAGR of 6.5% from 2025 to 2035 due to corridor electrification and performance upgrades on legacy networks.

Industrial

Industrial users contribute about 14% share, prioritizing power-quality and voltage stability for continuous processes. Over 35% of large facilities deploy FACTS to reduce flicker and mitigate dips affecting sensitive equipment, while 25–30% target reactive power management to keep power factor within contractual thresholds. Operators report defect and downtime reductions of 10–15% after stabilization programs.

Industrial applications totaled USD 0.20 Billion in 2025, equal to 14% share, with a projected CAGR of 6.0% from 2025 to 2035, driven by electrification of heat, advanced manufacturing, and stricter power-quality SLAs.

Oil & Gas

Oil & gas represents roughly 7% share as upstream and midstream facilities stabilize long feeders and remote loads. More than 30% of these projects apply FACTS to support compressor stations and pumping reliability, while about 25% target harmonic containment from large drives. Installations improve uptime metrics by 5–10% and reduce nuisance protection trips across long radial lines by 10–15%.

Oil & Gas accounted for USD 0.10 Billion in 2025, representing 7% share, and is forecast to expand at a CAGR of 5.2% from 2025 to 2035, supported by remote asset electrification and reliability enhancements.

Flexible AC Transmission Systems (FACTS) market Regional Outlook

The Global Flexible AC Transmission Systems (FACTS) market was valued at USD 1.43 Billion in 2025, projected to reach USD 1.52 Billion in 2026 and USD 2.74 Billion by 2035, reflecting steady demand for grid modernization. Regional adoption differs based on infrastructure goals and renewable energy deployment. North America leads with advanced transmission upgrades and accounts for 32% share. Europe follows at 27%, driven by its clean energy push and inter-country grid stability needs. Asia Pacific holds the highest long-term demand outlook with 33% share due to network expansions and rising power consumption. The Middle East & Africa contributes 8% share, where reliability improvements and industrial electrification support niche but growing investments. Together these regions represent 100% of the worldwide FACTS market distribution.

North America

North America holds strong adoption, with around 40% of utilities prioritizing FACTS for congestion management and nearly 45% using it to stabilize long-distance transmission corridors. More than 50% of wind capacity additions in the region evaluate FACTS for voltage security, while over 35% of large industrial facilities depend on reactive power compensation to meet reliability standards. Grid modernization programs enable improved efficiency and reduce power losses across critical networks by more than 20% where FACTS devices are deployed. Partnerships between operators and solution suppliers are increasing the penetration of STATCOM and series stabilizers across major load centers.

North America accounted for 32% share of the FACTS market in 2025, equal to USD 0.46 Billion. Growth is supported by transmission upgrades, renewable integration and stricter system reliability requirements.

Europe

Europe secures 27% share with investments directed toward cross-border electricity exchange stability and integrating distributed renewables. More than 50% of new offshore wind connections require reactive power support, while 38% of utilities use FACTS to manage frequency and inter-area oscillations. Enhanced grid stability remains critical as more than 45% of the region’s energy mix comes from low-inertia sources. FACTS installations have helped reduce redispatch costs and voltage violations by 15–25% on key transmission lines. Modernization plans continue to expand demand for dynamic compensation equipment in high-growth corridors.

Europe represented 27% share of the FACTS market in 2025, valued at USD 0.39 Billion, with ongoing strategic focus on interconnection reinforcement and renewable balancing.

Asia-Pacific

Asia-Pacific leads in long-term growth potential, holding 33% share driven by expanding power networks and rising electricity consumption. More than 55% of new transmission capacity in emerging economies evaluates FACTS for power-flow optimization, while over 50% of variable renewable installations require voltage and grid-forming support. Utilities in the region report system reliability improvements above 90% following stabilization programs. High-voltage expansion projects and industrial development are increasing demand for both shunt and combined compensation solutions to reduce losses and maximize corridor utilization.

Asia-Pacific captured 33% share in 2025, equivalent to USD 0.47 Billion, supported by rapid infrastructure expansion and high renewable penetration.

Middle East & Africa

Middle East & Africa holds 8% share with growing interest in reliability enhancement in industrial zones and remote transmission networks. Over 30% of FACTS usage here supports oil, gas and mining operations to reduce feeder overload and harmonics. Grid operators also deploy voltage control systems to stabilize long-distance lines in desert and rural environments. Investments are rising in areas where renewable projects introduce voltage fluctuations that require fast dynamic control. Despite smaller scale, adoption continues to climb as utilities seek to cut outage risks and improve operational efficiency.

Middle East & Africa accounted for 8% share in 2025, valued at USD 0.11 Billion, driven by industrial electrification, renewable integration and power-quality improvement initiatives.

List of Key Flexible AC Transmission Systems (FACTS) market Companies Profiled

Investment Analysis and Opportunities in Flexible AC Transmission Systems (FACTS) market

Investment momentum is accelerating around projects that raise transfer capacity, stabilize voltage, and integrate variable generation. More than 55% of planned grid upgrades evaluate STATCOM/SVC options, while about 30% prioritize series compensation to unlock 15–25% corridor headroom. Over 45% of utilities target loss reduction and power quality KPIs, with 20–30% efficiency gains reported after phased deployments. Hybrid architectures (combined series and shunt) are shortlisted in 22–28% of complex nodes to damp oscillations and improve inter-area stability. Supplier-financed models and outcome-based service contracts are growing, with 35–40% of buyers preferring long-term availability guarantees and performance-linked SLAs. Cybersecure controls and digital twins appear in more than 50% of new RFPs, enabling 10–20% faster commissioning and 15% better predictive maintenance accuracy. These dynamics create clear entry points in weak-grid zones, renewable clusters, and cross-border interconnections where FACTS can defer new builds by 10–20% of planned capacity additions.

New Products Development

Product roadmaps emphasize faster dynamic response, modularity, and software-centric control. Over 48% of new STATCOM platforms highlight sub-cycle response and +/−20–40% dynamic reactive range, while 35% promote containerized designs that cut footprint by 25–35%. More than 50% of launches integrate PMU-based wide-area controls, delivering 10–15% better damping of inter-area oscillations. Grid-forming and grid-following modes are being combined in 32% of next-gen controllers to stabilize inverter-heavy systems. About 40% of releases include silicon carbide power stages with 2–4% conversion-loss improvement and 20% higher thermal margins. Cyber features such as role-based access, secure boot, and encrypted telemetry appear in 60% of briefs, reducing operational risk by 15–25%. Digital twins are bundled in nearly 45% of offers, enabling 20–30% faster tuning and 10–20% lower lifecycle maintenance through predictive analytics and fleet benchmarking.

Developments

• High-MVAR STATCOM rollout: A utility-scale STATCOM program reported more than 35% improvement in voltage stability margins on weak buses and a 20% drop in curtailment events, with sub-cycle response enabling smoother ramping during high renewable variability in 2024.
• Hybrid series–shunt retrofit: A multi-node retrofit across congested corridors delivered 18–22% transfer-capacity gains and reduced redispatch by 15%, while combined damping controls cut oscillation amplitudes by over 25% in 2024.
• Modular compact SVC deployment: Containerized SVC units reduced site footprint by 30% and installation time by 25%, achieving 10–12% loss reduction on targeted feeders and improving power factor compliance above 95% in 2024.
• SiC-based converter upgrade: A silicon-carbide power stage upgrade improved conversion efficiency by 3–4% and extended thermal headroom by 20%, enabling higher MVAR output per bay and 10% lower cooling demand in 2024.
• WAMS-integrated control suite: Wide-area measurement integration increased damping effectiveness by 12–18% and shortened disturbance recovery by 15–20%, with predictive analytics flagging 30% of issues before impact in 2024.

Report Coverage

This report assesses the Flexible AC Transmission Systems (FACTS) market with a complete view of competitive positioning, technology mix, and demand drivers across utilities, renewables, railways, industrial, and oil & gas. The scope includes type-level analysis (shunt, series, combined, others), application mapping, and region-wise share distribution totaling 100%. Strengths include high dynamic response (seen in over 50% of new platforms), modular designs that cut footprint by 25–35%, and proven voltage-stability gains above 30% on weak buses. Weaknesses center on integration complexity affecting 35–40% of brownfield sites and skill gaps impacting about 30% of operators. Opportunities emerge in renewable clusters where more than 50% of projects require grid-code compliance, and in congested corridors where series compensation can unlock 15–25% capacity. Threats consist of cyber risks, cited by over 45% of buyers, and component supply constraints affecting 20–25% of project timelines.

The study synthesizes vendor strategies, with top suppliers together holding over 30% share and the remainder distributed among regional specialists. Benchmarking shows 10–20% commissioning-time reductions using digital twins and 15% maintenance savings from predictive diagnostics. Procurement trends indicate 35–40% preference for performance-linked SLAs and multi-year service frameworks. Methodology triangulates primary inputs from buyer RFP patterns (over 50% specifying WAMS integration), project performance data (loss reductions of 10–20% in target corridors), and adoption indicators (22–28% hybrid architectures at complex nodes). The result is a concise, metrics-led view of market readiness, investment priorities, and risk mitigation pathways aligned to measurable outcomes across all major end-user segments.