Flexible AC Current Transmission System Market to Double by 2035, Driving Grid Stability and Future Growth

The global Flexible AC Current Transmission System (FACTS) market is on a trajectory of remarkable growth, projected to expand from USD 1.7 billion in 2025 to USD 3.8 billion by 2035, advancing at a robust 8.5% compound annual growth rate. This expansion underscores the mounting demand for technologies that can stabilize modern power systems, support renewable integration, and enhance transmission efficiency. For manufacturers, this is not just a market projection—it is a call to action to align with one of the most transformative growth sectors in energy infrastructure.

Why Manufacturers Should Pay Attention

Electric grids worldwide are under pressure from surging electricity demand, renewable energy variability, and the need to cut transmission losses. FACTS technologies provide the solution by ensuring voltage stability, reactive power compensation, and system security. Manufacturers supplying components, systems, or advanced control technologies are positioned to capitalize on this rapid shift toward smarter grids.

Advancements in power electronics, modular designs, and digital monitoring are creating opportunities for manufacturers to develop solutions that not only improve performance but also reduce maintenance and lifecycle costs for utilities and industrial customers. As governments push for energy efficiency and grid resilience, the demand for FACTS systems will only intensify.

Click Here for More Information:- https://www.futuremarketinsights.com/reports/flexible-ac-current-transmission-system-market

STATCOM Leading the Way

Among the various compensation technologies, the Static Synchronous Compensator (STATCOM) is set to dominate with 21.3% of the market share in 2025. Its ability to deliver real-time voltage regulation and enhanced grid stability makes it the technology of choice for modern networks. Manufacturers with expertise in power electronics and control systems will find significant growth potential by catering to this segment.

Shunt Controllers at the Core

On the component side, shunt controllers are expected to capture 29.2% of the market in 2025, reinforcing their role as the backbone of FACTS deployment. Their critical function in managing voltage stability and optimizing transmission efficiency makes them indispensable across grid modernization projects. Manufacturers providing modular and digitally compatible shunt controllers can help utilities upgrade seamlessly while ensuring long-term reliability.

Electric Utilities: The Largest Application Segment

The electric utilities sector will hold 26.7% of the market in 2025, making it the largest application area for FACTS. Utilities are under mounting pressure to integrate renewable sources, manage peak loads, and improve grid quality. For manufacturers, this translates into ongoing demand for scalable, adaptable systems that can be integrated without major infrastructure overhauls.

Regional Hotspots for Growth

Asia-Pacific is projected to emerge as the most lucrative region for FACTS between 2025 and 2035, supported by large-scale renewable energy initiatives in China and India. Programs like India’s Production Linked Incentive scheme for solar energy are already boosting demand for advanced transmission solutions.

Meanwhile, North America is investing heavily in infrastructure projects such as railway network expansions, creating strong demand for FACTS systems to stabilize voltage and enhance efficiency. Europe continues to drive growth through grid modernization and renewable integration policies. For manufacturers, these regions represent fertile ground for expanding market share.

Challenges to Overcome

While the opportunities are substantial, challenges remain. High initial installation costs and competition from lower-cost alternatives such as phase-shifting transformers can hinder adoption. Additionally, complexities in installation and system compatibility present barriers that manufacturers must address through innovation, cost optimization, and customer education.

Competitive Landscape

The market is highly competitive, with global players such as ABB, Siemens, Alstom, General Electric, Mitsubishi Electric, Toshiba, Eaton, Xian Electric Engineering, and America Superconductor Corporation driving innovation. This environment offers manufacturers both challenges and opportunities: differentiation through product performance, modularity, and cost efficiency will be key to gaining a foothold.

Get Sample Report: - https://www.futuremarketinsights.com/reports/sample/rep-gb-445

Country-Level Insights

China is expected to post the fastest growth at a CAGR of 11.5%, followed closely by India at 10.6%. Germany, France, and the UK remain strong contributors in Europe, while the U.S. is forecasted to grow steadily at 7.2%, with market value projected to double from USD 604.7 million in 2025 to USD 1.2 billion by 2035. For manufacturers, these numbers highlight where investments, partnerships, and localized production strategies can yield the strongest returns.

A Market Built on Innovation and Resilience

The future of the Flexible AC Current Transmission System market is deeply tied to innovation, regulatory support, and the global shift toward renewable energy. Manufacturers that embrace digitalization, modular design, and customer-centric solutions will not only support utilities in stabilizing grids but will also secure their own long-term growth.

As urbanization and industrialization continue to accelerate, FACTS will become indispensable for energy stability. Manufacturers that position themselves at the intersection of performance, affordability, and adaptability will find themselves at the heart of this USD 3.8 billion opportunity by 2035.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analystsworldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

Contact Us:

Future Market Insights Inc.

Christiana Corporate, 200 Continental Drive,

Suite 401, Newark, Delaware – 19713, USA

T: +1-347-918-3531

For Sales Enquiries: sales@futuremarketinsights.com

Website: https://www.futuremarketinsights.com

LinkedIn| Twitter| Blogs | YouTube