Flexible AC Transmission Systems (FACTS) market is growing due to rising demand for grid stability, efficient transmission, and renewable integration in aging power infrastructure.

According to the TechSci Research report, “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 increasing need for grid stability, power quality enhancement, and efficient utilization of transmission infrastructure is driving demand for FACTS technologies. As energy systems evolve to accommodate rising loads and renewable integration, FACTS devices are emerging as indispensable solutions for modern power transmission networks.

Growing Pressures on Global Power Infrastructure

With rapid industrialization, urbanization, and digitalization, global electricity demand is expanding at an unprecedented rate. Power grids must not only support higher consumption but also ensure reliability and stability in operations. FACTS technologies such as Static VAR Compensators (SVCs), Static Synchronous Compensators (STATCOMs), and Unified Power Flow Controllers (UPFCs) play a pivotal role by optimizing power flows, regulating voltages, and addressing issues like system instability, transmission congestion, and voltage fluctuations.

Instead of relying on costly and time-consuming grid expansions, utilities are leveraging FACTS devices to maximize the performance of existing assets. This makes them highly attractive in regions constrained by financial, regulatory, and land-use challenges.

Role of FACTS in Renewable Energy Integration

The global shift toward clean energy and decarbonization is a primary growth driver for the FACTS market. Renewable sources such as wind and solar are intermittent and geographically dispersed, creating complexities in power distribution. FACTS systems address these challenges by providing:

• Dynamic reactive power compensation

• Real-time voltage regulation

• Enhanced supply-demand balance

These capabilities help stabilize grids and reduce the risks of blackouts or disruptions. As countries expand their renewable portfolios to meet climate and sustainability goals, FACTS adoption is expected to accelerate further.

Supporting the Energy Transition

FACTS technologies are closely aligned with global energy transition and modernization initiatives. They help utilities achieve:

• Reduced transmission losses

• Improved network resilience

• Greater renewable integration capacity

Emerging smart grids and digital substations are increasing demand for fast-responding, intelligent control systems. FACTS solutions complement these advanced grids by enabling precise, real-time management of bi-directional power flows and highly variable loads.

Opportunities in Developing Regions

Developing economies across Asia-Pacific, Latin America, and Africa are investing heavily in grid expansion and modernization to support rising populations and industrial activity. FACTS devices present a cost-effective and scalable solution for these regions, allowing operators to improve grid efficiency and stability without extensive new transmission construction.

Furthermore, the growth of long-distance high-voltage AC lines and cross-border power trading adds complexity to grid management. FACTS technologies provide the operational flexibility needed to handle these challenges effectively.

Rising Industrial Demand for Stable Power

Energy-intensive industries such as manufacturing, mining, and data centers are becoming significant drivers of FACTS adoption. These sectors require uninterrupted, stable power to maintain operational efficiency and prevent costly downtimes. FACTS solutions ensure:

• Stable voltage profiles

• Reduced harmonic distortion

• Protection of sensitive equipment

By doing so, they help industries enhance productivity and safeguard long-term asset performance.

Technological Advancements in FACTS

The FACTS market is benefiting from significant progress in power electronics and control systems, which is making devices:

• More compact

• Cost-efficient

• Easier to deploy

Innovations in modular designs and digital control systems are improving accessibility, enabling utilities, independent power producers, and industrial consumers to implement FACTS solutions more widely.

Oil & Gas Sector Dominance

Importance of FACTS in Oil & Gas

In 2024, the oil & gas industry accounted for the largest market share within the FACTS sector. The segment’s reliance stems from its demand for reliable, efficient, and stable power transmission to support exploration, refining, and offshore production facilities.

Oil and gas operations, often located in remote or offshore environments, require resilient grid infrastructure to avoid downtime and ensure continuous production. FACTS technologies—particularly SVCs, STATCOMs, and UPFCs—enhance voltage stability, reduce transmission losses, and improve power quality, supporting high-performance operations.

Integration of Renewables and Digitalization

Many oil and gas firms are adopting renewable energy sources to meet sustainability targets. FACTS enable these facilities to manage intermittent renewable inputs while maintaining grid stability. Additionally, digital transformation initiatives in oil & gas—such as automation, real-time monitoring, and analytics—necessitate robust and flexible power systems. FACTS provide the needed controllability and responsiveness to meet these requirements.

Offshore Electrification Opportunities

The shift toward electrification of offshore platforms traditionally reliant on diesel generators is opening new opportunities. FACTS systems are critical for maintaining voltage levels and minimizing transmission bottlenecks in subsea power systems and long-distance transmission from onshore grids to offshore rigs.

Regional Insights

Asia Pacific: Fastest-Growing Region

The Asia Pacific region is projected to be the fastest-growing market for FACTS technologies. Factors fueling this growth include:

• Expansive infrastructure investments

• Rising renewable integration

• Rapid urbanization and industrialization

• Strong government support for smart grids and efficiency measures

Countries like China, India, and Japan are deploying FACTS devices at scale to improve voltage stability, manage congestion, and enable cross-border electricity trade. With supportive regulatory frameworks and sustained demand, Asia Pacific is emerging as a hub for FACTS deployment and innovation.

Future Outlook

The Flexible AC Transmission Systems (FACTS) Market is positioned for sustained growth, driven by:

• Rising global electricity consumption

• Increasing renewable energy adoption

• Expanding industrial power demand

• Ongoing grid modernization initiatives

As energy systems become more decentralized and complex, FACTS technologies will play a pivotal role in ensuring flexible, secure, and efficient transmission networks. Their ability to extend the life of existing infrastructure while enabling integration of renewable energy aligns perfectly with the evolving needs of the global power sector.

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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