Flexible AC Transmission Systems (FACTS) Market is growing due to rising demand for grid stability, efficient power flow, and renewable energy integration from 2026–2030F.

According to the TechSci Research report titled “Flexible AC Transmission Systems Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F,” the Global Flexible AC Transmission Systems (FACTS) Market was valued at USD 1.32 billion in 2024 and is projected to reach USD 2.11 billion by 2030, growing at a CAGR of 7.93% during the forecast period.

The market growth is fueled by the increasing need for enhanced grid stability, better power quality, and efficient utilization of existing transmission infrastructure. As global electricity demand rises due to rapid industrialization, urban development, and digital transformation, utility providers and grid operators face mounting pressure to manage larger and more variable power loads. FACTS technologies offer critical solutions for addressing voltage fluctuations, transmission bottlenecks, and reactive power issues, without the need for expensive and time-consuming grid overhauls.

Core FACTS components—including Static VAR Compensators (SVCs), Static Synchronous Compensators (STATCOMs), and Unified Power Flow Controllers (UPFCs)—are enabling grid operators to increase the efficiency, flexibility, and reliability of aging electrical infrastructure. These devices dynamically control power flow and voltage levels, making it possible to optimize grid operations and meet modern electricity demands even in constrained environments.

One of the most significant factors driving FACTS adoption is the global shift toward renewable energy. Solar and wind power are being integrated into the grid at unprecedented levels, especially in Europe, North America, and Asia-Pacific. These renewable sources are intermittent and decentralized, creating new challenges for voltage regulation and power balancing. FACTS devices address these issues by delivering real-time voltage support and dynamic reactive power compensation, helping to stabilize grids that incorporate variable energy inputs.

Simultaneously, the rise of smart grid initiatives and digital substations is increasing the demand for precision control and real-time responsiveness in power systems. FACTS technologies are well-suited to this environment, offering the speed and accuracy needed to handle bi-directional energy flows, distributed generation, and advanced grid analytics.

Developing economies across Asia-Pacific, Latin America, and Africa are increasingly adopting FACTS to modernize aging or underdeveloped transmission infrastructure. These regions are witnessing growing populations and surging industrial activity, which require scalable and efficient power solutions. FACTS systems offer a cost-effective alternative to building new transmission lines by enhancing the performance of existing ones. Furthermore, cross-border energy trading and the proliferation of long-distance high-voltage AC transmission lines are adding complexity to regional grids—challenges that FACTS systems are uniquely equipped to address.

Industries such as mining, manufacturing, and data centers are also fueling demand for FACTS technologies due to their high reliance on stable and reliable electricity. These industries stand to benefit from reduced downtime and increased energy efficiency enabled by voltage control and reactive power management.

Technological advancements in power electronics and automation have lowered the cost of FACTS systems, improving their accessibility and adoption across a broader range of applications. As energy networks become more decentralized and interdependent, FACTS technologies are expected to play a crucial role in ensuring grid resilience, sustainability, and operational efficiency.

Market Segmentation by Industry Vertical

In 2024, the Oil & Gas sector held the largest share of the global FACTS market. The energy-intensive nature of oil and gas operations—from upstream drilling to midstream transportation and downstream refining—requires highly reliable power systems. Many facilities are located in remote or offshore regions where maintaining voltage stability is especially challenging. FACTS devices offer solutions for managing these complex electrical loads by improving voltage regulation, minimizing losses, and safeguarding against harmonic distortion.

With the industry increasingly integrating renewable energy sources such as offshore wind and solar to reduce carbon footprints, FACTS systems have become even more critical for managing intermittent supply and stabilizing power distribution. Additionally, oil and gas operations are undergoing a digital transformation, adopting real-time monitoring, automation, and advanced analytics—applications that require uninterrupted, high-quality power. The deployment of STATCOMs and UPFCs enhances grid flexibility and ensures system resilience.

Electrification of offshore platforms and remote drilling sites is also creating new opportunities for FACTS deployment. These locations traditionally relied on diesel generators, but the transition to grid-connected power—via long-distance subsea cables—necessitates advanced power control technologies. FACTS devices are essential for managing voltage levels and addressing power flow challenges in such high-stakes environments.

As capital investments in energy infrastructure rise in the Middle East, North America, and Asia-Pacific, the oil and gas segment is expected to maintain its lead in FACTS adoption. The development of modular, compact, and scalable FACTS solutions is further enhancing feasibility for deployment in constrained installations.

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Regional Insights

Asia-Pacific has emerged as the fastest-growing region in the Flexible AC Transmission Systems Market and is expected to maintain this momentum through 2030. Rapid industrialization, urban growth, and infrastructure expansion across China, India, Japan, and Southeast Asia are driving unprecedented electricity demand. Governments in these countries are prioritizing smart grids, clean energy integration, and modern transmission networks as part of broader economic and environmental agendas.

China and India, in particular, are heavily investing in grid modernization and renewable energy. China’s commitment to becoming carbon-neutral by 2060 and India’s National Smart Grid Mission are accelerating the deployment of STATCOMs, SVCs, and other FACTS devices. These technologies are being used to enhance voltage regulation, manage peak loads, and facilitate the seamless flow of electricity across large geographic areas.

Additionally, Asia-Pacific’s leadership in high-voltage AC transmission projects and regional electricity trade is increasing the need for advanced power flow management solutions. Supportive government policies, financial incentives, and strong public-private collaboration are further contributing to FACTS market growth in the region.

Technological collaborations between global power solution providers and local utility companies have also expanded access to advanced grid infrastructure. As countries in Asia-Pacific push for renewable integration and sustainable energy solutions, FACTS technologies are poised to play a central role in shaping the region’s energy future.

Major companies operating in the Global Flexible AC Transmission Systems Market are:

Siemens Energy AG
General Electric (GE) Grid Solutions
Mitsubishi Electric Corporation
ABB Ltd.
Toshiba Energy Systems & Solutions Corporation
NR Electric Co., Ltd.
American Superconductor Corporation (AMSC)
Hyosung Heavy Industries
Rongxin Power Electronic Co., Ltd. (RXPE)
Adani Transmission Limited

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“The Global Flexible AC Transmission Systems Market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The Flexible AC Transmission Systems (FACTS) market is positioned for significant growth, driven by the urgent need to modernize aging electrical infrastructure and integrate large-scale renewable energy sources. As utilities face increased grid volatility from intermittent solar and wind power, FACTS technologies—including SVCs, STATCOMs, and UPFCs—offer scalable solutions to enhance voltage regulation, system stability, and transmission efficiency without extensive infrastructure overhaul. Rising electrification, regional power trading, and the expansion of smart grid initiatives are accelerating adoption across mature and developing markets.

Furthermore, favorable regulatory policies and investment incentives aimed at strengthening grid reliability and operational efficiency are creating strong market expansion opportunities. Therefore, the Market of Flexible AC Transmission Systems is expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Flexible AC Transmission Systems Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Compensation Type (Series Compensation, Shunt Compensation, Combined Series-Shunt Compensation ), By Controller (Static Synchronous Compensator (STATCOM), Static VAR Compensator (SVC), Unified Power Flow Controller (UPFC), Thyristor Controlled Series Compensator (TCSC), Others), By Industry Vertical (Oil & Gas, Electric Utility, Railways, Others), By Region &Competition, 2020-2030F”, has evaluated the future growth potential of Global Flexible AC Transmission Systems Market and provides statistics & information on the Market size, structure, and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global Flexible AC Transmission Systems Market.

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