U.S. Flexible AC Transmission Systems Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

Name: U.S. Flexible AC Transmission Systems Market Size, and Growth Report, 2032
Creator: P&S Intelligence
License: https://www.psmarketresearch.com/privacy-policy

This Report Provides In-Depth Analysis of the U.S. Flexible AC Transmission Systems Market Report Prepared by P&S Intelligence, Segmented by Application (Volateg Control, Power Control), Compensation Type (Series, Shunt, Combined), End User (Utilities, Industrial), and Geographical Outlook for the Period of 2019 to 2032

Report Code: 13479
Pages: 165

Market Statistics

Study Period	2019 - 2032
2024 Market Size	USD 510.5 million
2025 Market Size	USD 531.9 million
2032 Forecast	USD 757 million
Growth Rate (CAGR)	5.2%
Largest Region	Northeast
Fastest Growing Region	West
Nature of the Market	Fragmented

Growth Forecast

Key Players

U.S. Flexible AC Transmission Systems Market Companies

Key Report Highlights

Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity

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U.S. Flexible AC Transmission Systems Market Future Outlook

The U.S. flexible AC transmission systems market revenue was USD 510.5 million in 2024, and it is expected to witness a CAGR of 5.2% from 2025 to 2032, reaching USD 757 million in 2032. This is due to urbanization, which is leading to a rise in electricity demand. Additionally, the growing adoption of the electric vehicles propels demand for electricity production, further driving the adoption of flexible transmission solutions.

Furthermore, the aging power grid infrastructure across the U.S. leads to power outages and inefficiencies, which can be fixed with FACTS. This makes the grid stable and reduces the risk of failure.

In October 2023, the government allocated USD 3.46 billion to 58 grid modernization projects in 44 states. Further, in October 2024, the GRIP program invested USD 2 billion in the modernization of the aging power grid infrastructure for resilience against extreme weather conditions. Moreover, the integration of renewable energy into the grid necessitates FACTS devices for stabilizing power fluctuations.

U.S. Flexible AC Transmission Systems Market Trends & Drivers

Growing Adoption of Renewable Energy Is Key Market Trend

The increasing adoption of renewable energy sources, such as wind and solar, is a key market trend.
This move of the U.S. toward clean energy drives the focus on grid stability and efficient power transmission.
Unlike traditional power plants, renewable energy sources do not produce steady electricity, which causes frequency fluctuation, reactive power imbalance, and voltage instability and lead to inefficiencies in the power grid.
These issues related to renewable energy sources can be solved with the integration of FACTS technologies.
The U.S. government is investing heavily in the integration of renewable energy sources via the Inflation Reduction Act, which provides incentives for their development.
Moreover, with the state-level renewable portfolio standards, businesses are investing in FACTS-based grid modernization.
As per the Energy Information Administration, 894 kilowatt-hours of clean electricity were generated in the country in 2023.
The U.S. aims to raise its solar energy capacity by 45% during 2024–2026.
Among renewable sources, biomass (60%), wind (18%), hydro (10%), and solar (11%) hold the biggest shares in the country’s energy mix.
Since 2021, the government’s investment in offshore wind farms has crossed over USD 10 billion.

Growing Electricity Demand Driving Market Growth

The surge in energy consumption by sectors such as manufacturing, data centers, and electric vehicles charging infrastructure is driving the demand for FACTS technologies.
As per the EIA, electricity generation in the country in 2023 stood at 4.18 trillion kWh.
In 2023, the industrial sector of the country used 1,025 Terawatt-hours of electricity, which was 2.3% more than in 2020.
Studies forecast electricity demand in the country to rise by 50% by mid-century, necessitating a massive expansion and modernization of the grid.
FACTS technologies, such as STATCOMs and SVCs, help in managing the power flow in high-demand regions.
This helps industries in managing power flow, ensuring voltage stability for efficient energy distribution.
With the population growth and urbanization in the U.S., commercial buildings, residential units, and public transportation systems are being developed.
Grid operators are integrating FACTS solutions for the adjustment of power flow and ensuring distribution across high-demand urban areas.

U.S. Flexible AC Transmission Systems Market Segmentation and Category Analysis

Application Analysis

Voltage control is the larger category with 65% market share. FACTS is widely used for renewable energy sources, such as solar and wind energy, for improving power quality via voltage stabilization. Most renewable energy sources re unpredictable in their output and may lead to the voltage fluctuations in the transmission network. This problem can be solved by the integration of the flexible AC transmission network.

The power control category will grow at the higher CAGR, of 5.5%, during the forecast period, due to the rapid increase in the adoption of long-distance transmission solutions. FACTS devices, such as thyristor-controlled series capacitors (TCSCs) and unified power flow controllers (UPFCs), are becoming popular as they improve power flow and transmission efficiency.

U.S. Flexible AC Transmission Systems Market Segmentation Analysis

Based on application, the market has the following categories:

Voltage Control (Larger Category)
Power Control (Faster-Growing Category)

Compensation Type Insights

Shunt held the largest market share, of 60%, in 2024, this category will also have the highest CAGR, of 6%, during the forecast period. This is primarily owing to the widespread adoption of shunt compensation for the voltage stability and reactive power. For this, static VAR compensators (SVCs) and static synchronous compensators (STATCOMs) are highly popular among utilities. Furthermore, the integration of AI and IoT in shunt compensation enables real-time voltage regulation.

Based on compensation type, the market has the following categories:

Series
- Thyristor-controlled series capacitor (TCSC)
- Thyristor-controlled series reactor (TCSR)
- Thyristor-switched series capacitor (TSSC)
- Static synchronous series compensator (SSSC)
Shunt (Largest and Fastest-Growing Category)
- Static synchronous compensator (STATCOM)
- Static VAR compensator (SVC)
  - Thyristor-switched reactor (TSR)
  - Thyristor-switched capacitor (TSC)
  - Thyristor-controlled reactor (TCR)
Combined
- Unified power flow compensator UPFC (series–shunt)
- Interline power flow compensator IPFC (series–series)

End User Analysis

Utilities held the largest market share of 55%, in 2024. This is due to the widespread adoption of FACTS technologies for grid stability, voltage regulation, and power flow management. The electric power sector produced over 95% of the country’s utility-scale electricity in 2023, says the EIA. Additionally, grid modernization initiatives promote the adoption of advanced power management solutions.

In October 2024, the Department of Energy announced plans to invest USD 1.5 billion investment in four major transmission projects to enhance grid resilience. The projects focus on the integration of FACTS devices for improved transmission efficiency and power quality.

Based on end user, the market has the following categories:

Utilities (Largest Category)
Industrial (Faster-Growing Category)
Others

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U.S. Flexible AC Transmission Systems Market Geographical Analysis

The Northeast region is the largest market with 35% market share in 2024. This is due to the high population density of the region and the expansion of offshore wind projects. Additionally, the states of New York, Massachusetts, and Pennsylvania have an aging power grid infrastructure, which necessitates FACTS solutions for ensuring grid stability.

The market has been categorized into the following regions:

Northeast (Largest Regional Market)
Midwest
West (Fastest-Growing Regional Market)
South

U.S. Flexible AC Transmission Systems Market Competitive Landscape

The market is consolidated due to a few major companies, such as General Electric (GE) Grid Solutions, Siemens Energy, Mitsubishi Electric Corporation, Hitachi Energy, and ABB Ltd., holding major shares. Market entry requires high capital investments, specialized engineering expertise, and regulatory compliance. Due to this, new market players find it difficult to emerge and sustain. Moreover, since most customers are well-funded utilities, only major electrical equipment companies register substantial sales. They offer comprehensive solutions, often on an EPC and build–operate–maintain model, further making it nearly impossible for newcomers to have any say.

U.S. Flexible AC Transmission Systems Companies:

ABB Ltd.
Siemens AG
General Electric (GE) Grid Solutions
Mitsubishi Electric Corporation
Hitachi Energy Ltd.
Eaton Corporation PLC
NR Electric Co., Ltd.
Alstom SA
Hyosung Heavy Industries
American Superconductor Corporation (AMSC)
Toshiba Energy Systems & Solutions Corporation
LS Power

U.S. Flexible AC Transmission Systems Market News & Updates

In December 2024, ABB Ltd. agreed to acquire to power electronics business of Siemens Gamesa to improve the renewable power conversion technology of ABB.
In October 2024, NR Electric launched a new series of advanced FACTS controllers designed to enhance grid stability and support renewable energy integration.