The power quality equipment market is expected to grow at a CAGR of 6.56%, from 2017 to 2022, to reach a market size of USD 40.85 Billion by 2022. Non-uniform power quality and network reliability issues, rise in alternative energy programs, and power quality standardization are the major drivers of the power quality equipment market.
The report segments the power quality equipment market, by equipment, into surge arresters, surge protection devices, harmonic filters, power conditioning units, power distribution units, uninterruptable power supply, synchronous condenser, voltage regulator, digital static transfer switch, static VAR compensator, solid oxide fuel cells, isolation transformers, and power quality meters. The uninterruptable power supply segment is projected to dominate the power quality equipment market. The growing demand for primary protection of critical equipment from voltage interruption is driving the market for uninterruptable power supply.
The report segments the power quality equipment market, by end-user, into industrial and manufacturing, utilities, transportation, residential, and commercial. The commercial segment is expected to grow at the fastest rate during the forecast period. The Industry 4.0 initiative is being applied to vehicles and electrical machinery in order to facilitate remote diagnostics, remote maintenance, and remote data capture. Such initiatives have increased the need for data centers, servers, and communication systems. With the increasing use of electronic equipment, the need for protection systems for such critical equipment has been increasing. This is driving the market for power quality equipment in the commercial segment, which is expected to create new revenue pockets for the power quality equipment market during the forecast period.
The market in Asia-Pacific is expected grow at the highest CAGR during the forecast period. The region is moving towards clean energy on a large scale in order to meet its growing energy needs in an efficient way. India, China, and Singapore are some of the potential growing markets in the power and utilities sector. Asia-Pacific also offered the biggest potential gains for foreign direct investment and attracted 45% of all the capital investment, globally, in 2015. Increased investments in modernizing infrastructure and urbanizing populations, especially in developing economies such as China and India, is expected to drive the Asia-Pacific power quality equipment market.
Although some cost bearing constraints in the installation of power quality equipment are observed, but emerging economies are expected to create better opportunities for the power quality equipment market. Cost and other related issues are expected to be the major challenges for growth in the power quality equipment market.