Synchronous Condenser Market

Market Definition

The market involves the production and deployment of rotating machines that provide reactive power and voltage support to electrical grids. These devices improve power factor, stabilize grid voltage, and enhance system reliability. 

Widely used in power transmission and distribution, synchronous condensers help integrate renewable energy sources and support long-distance power transfer, ensuring stable and efficient grid operation.The report outlines the primary drivers of the market growth, along with an in-depth analysis of emerging trends and evolving regulatory frameworks shaping the market's trajectory

Synchronous Condenser Market Overview

The global synchronous condenser market size was valued at USD 670.1 million in 2024 and is projected to grow from USD 685.9 million in 2025 to USD 849.9 million by 2032, exhibiting a CAGR of 3.11% during the forecast period. 

The market is expanding, due to greater grid integration for voltage stability and reactive power control. Power systems are evolving with the integration of renewable energy and long-distance transmission. Synchronous condensers provide essential inertia and support grid reliability & operational resilience.

Major companies operating in the synchronous condenser industry are GE Grid Solutions, LLC, ABB, Siemens Energy, Eaton, Toshiba International Corporation Pty Ltd., Mitsubishi Electric Power Products, Inc., ANDRITZ, Siemens Energy, Ansaldo Energia, Fuji Electric Co., Ltd., WEG, Eaton, Baker Hughes Company, Bharat Heavy Electricals Limited, and Hitachi Energy Ltd. 

The market is driven by the increasing adoption of high-voltage direct current (HVDC) systems, which are essential for efficient long-distance bulk power transfer. HVDC lines require significant reactive power support to maintain voltage stability and reduce losses during transmission. 

Power grids are expanding and inter-regional transfer capacity is growing. Thus, the demand for synchronous condensers is rising to provide dynamic reactive power compensation, enhance grid reliability, and stabilize voltage fluctuations caused by the integration of HVDC technology into existing networks.

• In March 2025, the Ministry of Power stated that the National Electricity Plan-Transmission details system expansions from 2023 to 2032 to support a projected peak demand of 388 GW, including expanded HVDC lines for long-distance bulk power transfer. With uneven generation resources and rising inter-regional transfer needs, the growing use of HVDC systems necessitates reactive power support, enhancing the role of synchronous condensers in maintaining grid voltage and stability.

Key Highlights:

1. The synchronous condenser market size was valued at USD 670.1 million in 2024.
2. The market is projected to grow at a CAGR of 3.11% from 2025 to 2032.
3. North America held a market share of 34.51% in 2024, with a valuation of USD 231.3 million.
4. The air-cooled segment garnered USD 199.1 million in revenue in 2024.
5. The static frequency converter segment is expected to reach USD 511.0 million by 2032.
6. The above 200 MVAR segment is anticipated to register a CAGR of 3.36% during the forecast period.
7. The utility segment is projected to hold a market share of 74.54% in 2032.
8. The market in Europe is anticipated to grow at a CAGR of 3.14% during the forecast period.

Market Driver

Rising Integration of Renewable Energy Sources and Need for Grid Stability

The market is driven by the rising integration of renewable energy sources and the resulting need for grid stability. Wind and solar generation fluctuate with weather conditions, thus, maintaining consistent voltage and frequency becomes challenging. 

Synchronous condensers address this by providing inertia and reactive power support, ensuring a stable power supply. Their ability to instantly respond to frequency deviations makes them essential in modern grids where renewable penetration is high, helping balance supply-demand and enhance overall grid reliability. 

• In October 2023, Siemens Energy integrated a synchronous condenser with a 160MWh battery energy storage system at Shannonbridge. This marks the first combined use of these technologies in a single grid connection, enhancing grid stability and renewable energy utilization. The project delivers 4000MWs inertia and supports power for 9,500 homes, advancing energy transition goals.

Market Challenge

Long Lead Times for Manufacturing and Commissioning

Long lead times for manufacturing and commissioning are a major challenge in the synchronous condenser market. These machines involve complex engineering, custom specifications, and precise assembly, often requiring months from order to deployment. 

Delays in production, logistics, and grid integration further extend timelines, affecting project schedules and utility planning. This is particularly problematic in regions rapidly expanding renewable energy, where timely voltage support is critical.

Companies are streamlining supply chains, investing in modular designs, and using digital tools for faster engineering and testing. Some firms also repurpose existing motors and generators to reduce production time and cost.

Market Trend

Integration of Synchronous Condensers

The market is registering the integration of synchronous condensers into power grids to enhance voltage stability and reactive power management. 

This trend supports the growing complexity of modern grids, especially with the expansion of long-distance transmission technologies. Synchronous condensers are being deployed to provide essential inertia, improve power quality, and support grid resilience, making them a critical component for maintaining stable &reliable electricity supply in evolving energy systems.

• In February 2025, Ansaldo Energia secured a USD 300 million order to design, supply, commission, and maintain five 250 MVAR synchronous condensers for grid stabilization in Italy over five years, raising its operational units to 13. These condensers improve voltage regulation, provide inertia via an innovative flywheel system, and enhance grid stability, supporting safe management amid increasing renewable energy integration during the energy transition.

Synchronous Condenser Market Report Snapshot

Segmentation	Details
By Cooling Type	Air-cooled, Water-cooled, Hydrogen-cooled
By Starting Method	Static Frequency Converter, Pony Motors, Others
By Power Rating	Up to 200 MVAR, Above 200 MVAR
By Application	Utility, Industrial
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Cooling Type (Air-cooled, Water-cooled, Hydrogen-cooled): The air-cooled segment earned USD 199.1 million in 2024, due to its lower installation and maintenance costs combined with suitability for regions facing water scarcity.
• By Starting Method (Static Frequency Converter, Pony Motors, Others): The hydrogen-cooled segment held 45.09% share of the market in 2024, due to its superior cooling efficiency and enhanced performance in high-capacity synchronous condensers.
• By Power Rating (Up to 200 MVAR, above 200 MVAR): The above 200 MVAR segment is projected to reach USD 526.8 million by 2032, due to the growing demand for high-capacity reactive power compensation in expanding and complex power grids.
• By Application (Utility, Industrial): The utility segment held 74.54% share of the market in 2032, due to large-scale grid stabilization requirements and extensive deployment of synchronous condensers in transmission networks.

Synchronous Condenser Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America accounted for a market share of around 34.51% in 2024, with a valuation of USD 231.3 million. North America's dominance in the synchronous condenser market is reinforced by continued investments in advanced grid infrastructure to support decarbonization targets and ensure grid stability. 

The region is registering substantial deployment of synchronous condenser facilities to enhance voltage regulation and reactive power management across aging transmission networks. 

These efforts align with broader regulatory mandates aimed at reducing carbon emissions and increasing renewable integration, positioning North America as a key player in driving technological adoption and strengthening grid resilience.

• In June 2024, GE Vernova announced a contract with National Grid’s upstate New York division to deliver and construct two 115 kV synchronous condenser facilities at Coffeen and Taylorville substations. Each site will feature three synchronous condenser units and Prolec GE GSU transformers, supporting grid stability and enhancing reactive power management in alignment with New York’s decarbonization objectives.

The synchronous condenser industry in Europe is poised for significant growth at a CAGR of 3.14% over the forecast period. The market in Europe is driven by the region’s strategic shift toward energy independence and grid synchronization. 

The demand for technologies that provide inertia, voltage regulation, and fault-level support has increased as countries reduce reliance on external power systems and expand renewable integration. Synchronous condensers play a critical role in maintaining grid stability during this transition, especially in nations disconnecting from legacy networks and aligning with the Continental European grid for enhanced reliability and security.

Regulatory Frameworks

• In the U.S., synchronous condensers are regulated primarily by the Federal Energy Regulatory Commission (FERC) and regional entities like the North American Electric Reliability Corporation (NERC), which oversee grid reliability, standards, and market operations involving reactive power and voltage control.
• In India, synchronous condensers are regulated by the Central Electricity Authority (CEA), which sets technical standards, and the Central Electricity Regulatory Commission (CERC), which oversees grid operations & tariff regulations and ensures reliability & stability of the electricity transmission system.
• In Europe, synchronous condensers are regulated by the European Network of Transmission System Operators for Electricity (ENTSO-E), alongside national regulatory authorities, which establish grid codes, technical standards, and ensure system reliability & stability across interconnected power networks.

Competitive Landscape

Companies operating in the synchronous condenser market are actively pursuing strategic initiatives to strengthen their market position. Key players are engaging in mergers and acquisitions to expand their technological capabilities and geographic reach. Additionally, product launches and project deployments are being undertaken to address evolving grid stability requirements. 

These actions reflect a competitive landscape characterized by continuous innovation, capacity expansion, and collaborative ventures aimed at meeting the growing demand for advanced grid-support solutions across global transmission networks.

• In October 2024, Litgrid launched Lithuania’s first of three synchronous condensers at the Telšiai substation, marking a major step toward full energy independence. This move supports the country's plan to disconnect from the Russian-controlled BRELL system and synchronize with the Continental European grid , reinforcing national energy security and alignment with the European Union’s energy infrastructure.

List of Key Companies in Synchronous Condenser Market:

• GE Vernova Group’s
• ABB
• Siemens Energy
• Eaton
• Toshiba International Corporation Pty Ltd.
• Mitsubishi Electric Power Products, Inc.
• ANDRITZ
• Siemens Energy
• Ansaldo Energia
• Fuji Electric Co., Ltd.
• WEG
• Baker Hughes Company
• Bharat Heavy Electricals Limited
• Hitachi Energy Ltd 

Recent Developments (Partnerships/Product Launches)

• In January 2025, Quinbrook Infrastructure Partners announced the completion and operational launch of its Rothienorman synchronous condenser project in North East Scotland. As the first Pathfinder II project to go live under the National Energy System Operator’s program, it strengthens critical UK transmission infrastructure and supports national targets for grid stability and the transition to a net zero energy system.
• In July 2024, GE Vernova secured a contract with Transelec Holdings Rentas Ltd to deliver four synchronous condensers and a 220 kV high-voltage substation for Chile’s Ana María and Monte Mina projects. These initiatives support the country’s decarbonization strategy by enhancing grid stability and enabling renewable integration, with commercial operations targeted for 2027.
• In March 2024, ABB expanded its partnership with SEV to deploy a third synchronous condenser on Borðoy island, enhancing grid stability for 5,000 residents as fossil-fueled plants are phased out. The 8 MVA unit will support SEV’s goal of 100% renewable electricity by providing critical inertia, fault current, and voltage regulation in the isolated Faroe Islands grid.