Power Conditioner Market Overview
Power Conditioner Market size was valued at $15.4 billion in 2021 and is expected to grow at a CAGR of 3.9% during forecast period 2022-2027. The increasing demand for power conditioner from various industries, particularly automotive and semiconductor to protect the devices such as fuel cells, semiconductor unit machineries, and more are due to power fluctuation damages. To protect such electronic components from power damage, there is an increase in demand for power conditioners. Thus, the power conditioner market is being driven primarily by an increase in demand from the industrial segment for addressing electrical noise and voltage spikes as a voltage regulator and surge suppressor. Also, the increasing installation of power conditioner to safeguard the electronic equipment is further propelling the growth of the power conditioner market. For instance, in October 2020, ABB a leading electric equipment manufacturer in Switzerland supplied cutting-edge power conditioning equipment to Severn Trent, it enables the 24/7 availability of power for Melbourne water treatment works (WTW), which serves one million residential, commercial, and industrial customers in the Leicestershire area in U.K. Furthermore, other factors driving the growth of the power conditioner market include the increasing usage of power conditioners in renewable energy projects to convert power from a renewable energy system, such as a solar photovoltaic system, into a form appropriate for subsequent or later use. However, in 2020, due to the Covid-19 pandemic countries all across the world imposed stringent measures such as lockdowns, only production of essential items, and social distancing rules, impacted the power conditioner market growth. Nevertheless, in 2021 governments encouraged industrial production to curb the negative impact of the Covid-19 pandemic, this resulted benefited the power conditioner market growth.
Power Conditioner Market Report Coverage
The report: “Power Conditioner Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Power Conditioner Market Report.
By Type: Surge Protector, Isolation Transformer, Autotransformer and UPS
By Battery Type: Li-Ion Battery, VRLA Battery, VLA Battery and Others
By Topology: Standby, Line Interactive and Online
By Voltage Rating: Up to 1kVA, 1.1 to 10kVA, 10.1 to 50kVA, 50.1 to 100kVA and Above 100.1kVA
By Industry Vertical: Healthcare (Lab, Medical Instruments, Medical Cart and Others), Aerospace, Retail (POS, Convenience Stores, QSR and Others), Audio/Video (Conference Room, Entertainment Center and Others), Residential, Industrial (Semiconductor, Automotive, Food and Beverage, Chemical and Oil and Gas and Others), Energy and Power, Telecom and Others
By Phase: Single Phase, Three Phase
By Protection Type: Power Line Conditioner, AC Power Conditioner
By Geography: North America (U.S, Canada, Mexico), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, South Korea, Australia and Others), South America (Brazil, Argentina and others), and ROW (Middle East and Africa)
Key Takeaways
- In industrial setups such as semiconductor, food and beverage, and more three phase power conditioner is widely utilized as a external support system because when compared with single phase three phase power conditioner is more efficient.
- Also, three phase power conditioner protects the industrial electronic equipment from power surges, helps to correct voltage and waveform distortions, and removes external electrical noise caused by devices such as industrial motors.
- New product launches related to the three phase power conditioner is benefiting the powder conditioner market growth. For instance, in September 2020, NXT Power, a manufacturer of advanced power quality solutions, launched a 3-phase power conditioner with options ranging from 10 kVA to 300 kVA to deliver clean and reliable quality power solutions to a range of industrial applications.
Power Conditioner Market Segment Analysis - By Type
Power Conditioner Market Segment Analysis - By Application
The industrial segment held the largest share in the power conditioner market in 2021 and is anticipated to grow at a CAGR of 3.5% by revenue through the forecast period 2022-2027. In the industrial sector, power conditioners are widely employed as a system to safeguard electronic equipment and devices used in semiconductor, automotive, food and beverage, chemical, and oil and gas, among other industries, from damage caused by electrical surges. Furthermore, power conditioners can clean and control AC power by offering dynamic power adjustments and reducing surges, spikes, sags, noise, and frequency inconsistencies, all of which can damage or degrade the performance of any load. New facility development related to industrial sector including semiconductor, food and beverage, and more is anticipated to boost the power conditioner demand, which will further propel the power conditioner market growth. In November 2021, Texas Instruments Incorporated, announced its plans to begin construction its new semiconductor plants with an investment of US$30 billion in Sherman, Texas to meet the growing demand for semiconductors in the market. The production from the facilities is expected to begin from 2025.
Power Conditioner Market Segment Analysis - By Geography
The APAC segment held the largest share in the power conditioner market in 2021 and is anticipated to grow at a CAGR of 5.9% by revenue through the forecast period 2022-2027. The APAC economy is driven by the growth of the industrial sector, renewable energy, and other such sectors. With the new development projects related to semiconductor, wind energy, and other such projects, there is an increasing demand for power conditioner as a external support system to safeguard the critical electrical equipments from high power load, and fluctuations. In November 2021, TSMC announced that it will collaborate with Sony (particularly, Sony Semiconductor Solutions Corporation) on a new US$7 billion chip facility in Japan. The new plant will focus on older 22nm and 28nm processes rather than cutting-edge chips. The development of this new production facility will begin in 2022 and will be completed by 2024. Also, In 2021, construction began on US$3,030 million Golmud Solar CSP Power Plant 3300 MW, in China. The project entails building a 3300MW solar CSP power station in Golmud, Qinghai, China. The construction of this project will be completed by 2023.
Power Conditioner Market Drivers
Burgeoning Semiconductor Industry
The semiconductor industry is critical because semiconductors are the primary building blocks for many vital electronic products as depicted in the graph about 32.3% and 31.2% of demand for semiconductors comes from computer and communication sector respectively. In the semiconductor sector, power protection is critical. Many facilities, products including power devices, processors, sensors, optoelectronics, and displays, and procedures can be harmed by power fluctuations. Power conditioners are widely utilized in semiconductor facilities because It does not rely on energy storage to compensate for sags and surges in order to ensure that semiconductor facilities receive clean power with less fluctuations. The new facility development related to the semiconductors manufacturing to cater the growing demand from the industries such as automotive, electronics and electrical, and other such industries is providing an opportunity for the semiconductor industry growth. For instance, in November 2021, semiconductor manufacturer Texas Instruments announced the construction of its new 300-mm semiconductor wafer fabrication plants in Texas, U.S, the construction of this plant will start in 2022 and is anticipated to be completed by the start of 2025.
Growing adoption of Power Conditioners in Electric Vehicles
Power conditioners are employed in electric vehicles components such as auxiliary power units, fuel cells, and more to stabilize and control the current fluctuations.
The production of electric vehicles is growing due to factors such as increasing government subsidies, increasing demand from consumers, and the development of a new electric vehicle manufacturing setup to boost the production of electric vehicles.
For instance, according to International Energy Agency (IEA), as shown in the graph in the year 2019 the total production of battery-based cars at the global level was 1,502,985, and in 2020 it was 2,089,366, there was an increase in the production of battery-based cars by about 39% when compared to 2019. Moreover, as illustrated in the graph in the year 2019 the total production of plug-in hybrid cars worldwide was 526,101, and in 2020 it was 984,850, with an increase of 87.2% in comparison with the year 2019. Also, increasing government initiatives are strengthening the production of electric vehicles. For instance, according to European Union, in 2021 it proposed a legislation Fit for 55 that aims to reduce CO2 emissions from vehicles by 55% and vans up to 50% by 2030. It also suggests that by 2035, all emissions from vehicles and vans be eliminated. To meet these targets, a major rise in the use of electric vehicles will be required, and for this, the production of electric vehicles needs to be increased. Thus, it is anticipated that with the increasing electric vehicle production, there will be an upsurge in power conditioners for stabilization of power in electric vehicles. Hence, there will be an increase in demand for power conditioners, which will further propel the market growth..
Power Conditioner Market Challenges
High Price of Power Conditioners
The price of power conditioners are high due to multiple factors such as high production cost, highly skilled professionals, and other such factors resulting in increasing the price of the power conditioners. The power conditioner manufacturing process includes sophisticated manufacturing and power conditioners such as transformer are heaver and has multiple features which are crucial for the power conditioners, this adds to the cost of the power conditioners. Apart from this highly skilled and professional manpower is required for the designing, manufacturing, and operation of a power conditioner, as a result, manpower has to go through extensive training, which results in a higher cost of power conditioners. The installation cost is also quite expensive because power conditioners such as transformers are heaver. Moreover, according to Mr. Electric a global franchise organization providing electrical installation and repair services provider states that the average price of a power conditioner range from US$80 to US$3,000 depending upon the quality and type of power conditioner, the average price of a power conditioner is higher when compared with power stabilizer.
Power Conditioner Market Landscape
Product launches, acquisitions and R&D activities are the key strategies adopted by players in the Power Conditioner market. The Power Conditioner top 10 companies are:
- LeGrand
- Schneider Electric
- Fuji Electric
- Eaton
- Mitsubishi Electric
- Emerson
- Toshiba
- Furman Power
- ABB
- Delta Electronics
Recent Developments
- In March 2021, Eaton acquired Tripp Lite to expand Eaton’s power quality business in the Americas and increase the breadth of the distributed IT product portfolio, edge computing, and to enhance the single-phase UPS business.
- In March 2021, Toshiba launched 650V Super Junction Power MOSFETs in TOLL Package, in order to improve the efficiency of high current equipment. The new MOSFETs are utilized for power supplies for industrial equipment such as photovoltaic power conditioners and data centers.
- In January 2020, Mitsubishi Electric Corporation announced that it had developed new miniaturization and energy-efficient technologies for electric vehicle (EV) power conditioners, which will greatly facilitate the domestic use of the electricity stored in EV batteries.
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