Capacitor Bank Market Statistics to Strike $6.8 Billion by 2033, Growing at 4.8% CAGR

🔋 Global Capacitor Bank Industry Expands with Rising Grid Modernization & Power Stability Needs

WILMINGTON, DE, UNITED STATES, November 7, 2025 /EINPresswire.com/ --

According to a new report published by Allied Market Research titled “Capacitor Bank Market”, the global capacitor bank market size was valued at $4.3 billion in 2023 and is projected to reach $6.8 billion by 2033, growing at a CAGR of 4.8% from 2024 to 2033.

A capacitor bank is a group of capacitors connected in series or parallel to store and discharge electrical energy efficiently. These devices are vital for improving power factor, reducing transmission losses, and stabilizing voltage levels across power systems. Widely used in industrial, commercial, and utility applications, capacitor banks enhance the efficiency and reliability of electrical grids by compensating for reactive power.

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The growth of the capacitor bank market is driven by the urgent need to enhance power quality, reduce transmission losses, and improve system efficiency across utility and industrial networks. Capacitor banks play a critical role in power factor correction, voltage regulation, and reactive power compensation—supporting efficient grid operations.

Increasing adoption of renewable energy, expansion of industrial facilities, and rising investments in smart grid modernization are boosting demand for both low- and high-voltage capacitor banks. Additionally, digital monitoring and automation technologies are helping utilities improve reliability and predictive maintenance.

💡 Market Outlook and Key Insights

The 10 kV–69 kV voltage range accounted for over one-third of market share in 2023.

The industrial application segment is projected to grow at 5.1% CAGR through 2033.

Asia-Pacific continues to lead, driven by grid modernization and renewable adoption.

The star connection type remains dominant due to its operational efficiency and simplicity.

🌏 Regional Insights

The Asia-Pacific region led the global capacitor bank market in 2023, holding over one-third of the total revenue and expected to grow at the fastest pace during the forecast period.

Rapid industrialization, infrastructure expansion, and renewable power development in countries such as India, China, Japan, and Australia have fueled regional demand. Solar and wind farms across APAC increasingly use capacitor banks for voltage stability and power factor improvement, ensuring grid reliability.

🔋 Role and Importance in Power Systems

In modern power networks, power factor correction (PFC) is a key function enabled by capacitor banks. A low power factor leads to increased energy losses and higher operational costs. Capacitor banks counteract reactive power, improving the overall energy efficiency of the grid.

They are essential in power distribution systems, helping stabilize voltage, reduce energy losses, and improve electricity supply quality. By maintaining a stable power factor, capacitor banks contribute to the smooth operation of sensitive industrial systems, reducing downtime and equipment wear.

🌞 Market Dynamics

Key Growth Driver – Rise in Renewable Energy Integration

The rapid integration of renewable energy sources such as solar and wind has been a major catalyst for the capacitor bank market growth. Variations in renewable energy generation can cause voltage instability in power grids, which capacitor banks effectively counteract by compensating for reactive power.

In Australia, the Clean Energy Finance Corporation (CEFC) allocated over one-third of its $1 billion Household Energy Upgrades Fund in 2024 to support capacitor bank installations that enhance renewable grid integration. Similarly, Larsen & Toubro (L&T) expanded its Digital Energy Solutions business across India, the Middle East, and North America, focusing on Hybrid Energy Management and Control Systems (HECS) for solar and wind energy stabilization.

As renewable energy becomes a larger share of the global electricity mix, capacitor banks will continue to play a vital role in ensuring grid reliability and efficiency.

Challenge – Competition from Advanced Technologies

Despite strong growth prospects, the availability of advanced reactive power technologies such as Static VAR Compensators (SVC) and Static Synchronous Compensators (STATCOMs) presents a challenge. These power-electronics-based solutions offer faster response times and better adaptability than traditional capacitor banks.

For instance, POWERGRID India installed a ±300 MVAR STATCOM at the 400 kV Lucknow Substation in 2023 under the Northern Region transmission improvement initiative. While these alternatives may limit some market share, traditional capacitor banks remain the most cost-effective and reliable option for many grid operators.

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⚙️ Segmentation Analysis

The capacitor bank market is segmented based on voltage, type, installation, connection type, application, and region.

By Voltage:

Less than 1 kV

1 kV to 10 kV

10 kV to 69 kV (Fastest growing segment, CAGR 5.1%)

More than 69 kV

The 10 kV to 69 kV segment dominates the market as capacitor banks at this voltage range are critical for distribution networks. They help maintain steady voltage levels, reduce I²R losses, and ensure smooth operations for data centers, hospitals, and automated industries.

By Type:

Externally Fused

Internally Fused (Fastest growing, CAGR 5.0%)

Fuseless

Internally fused capacitor banks are gaining popularity for their low maintenance and high reliability. Their automatic fuse protection reduces downtime and enhances system resilience, making them ideal for large-scale industrial applications.

By Installation:

Pole Mounted

Open Air Substation

Metal Enclosed Substation (Fastest growing segment)

Others

Metal enclosed substations are factory-assembled, compact systems housing capacitor banks, switchgear, and transformers within a metallic structure. These systems are ideal for industrial and utility use, providing safety, reduced maintenance, and efficient reactive power control.

By Connection Type:

Star Connection (Dominant, CAGR 5.0%)

Delta Connection

By Application:

Power Factor Correction

Industrial

Harmonic Filter

Others

The industrial segment accounted for more than one-fourth of global revenue in 2023, growing at a CAGR of 5.1%. Industries rely heavily on capacitor banks to maintain voltage stability and energy efficiency in heavy machinery operations.

🏭 Competitive Landscape

Key players in the capacitor bank market include:

Circutor

Toshiba Corporation

Vishay Intertechnology Inc.

Siemens AG

Enerlux Power s.r.l.

Comar Condensatori S.p.A.

Hitachi Ltd.

ABB Ltd.

Eaton Corporation

EPCOS (TDK Group)

These companies focus on technological innovation and product expansion to stay competitive. For example, Powerside launched the Pole-MVar in 2024 — a pole-mounted capacitor bank designed to address harmonic distortion. Similarly, Kyocera AVX introduced high-capacity supercapacitor banks meeting UL 810A standards for enhanced performance and safety.

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🧭 Conclusion

The capacitor bank market is witnessing steady growth as global energy systems evolve toward renewable integration, digitalization, and efficiency optimization. While competition from advanced power electronics exists, capacitor banks remain indispensable for cost-effective reactive power management.

With the market expected to reach $6.8 billion by 2033, continued investments in smart grids, renewable energy, and industrial automation will further amplify demand for capacitor banks worldwide.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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