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The global alternating current power system market size is estimated to decline at a CAGR of 4.98% between 2022 and 2027. The size of the market is forecast to increase by USD 60.78 billion.
Governments have been concentrating on boosting power capacity and developing grid infrastructure during the last few years. As a result, a vast network of transmission lines has been built to transport power generated at stations to consumers. The electricity transmission market will grow due to ongoing utility-based transmission network growth and increased grid infrastructure renovation spending. Additionally, factors such as rising demand from the telecom industry, and increasing demand for AC power systems in power generation plants will rapidly propel the market growth.
This report extensively covers market segmentation by type (three-phase and single-phase), end-user (non-residential and residential), product (generator, switchgear, UPS, PDU, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Alternating Current Power System Market Driver
The rising demand from the telecom industry is notably driving market growth. The telecom industry has grown tremendously over the past decade, supported by advanced technologies. Telecom companies are now managing their voice networks along with data, broadband, mobile, and TV-related services. The industry has become highly disruptive, and customers' expectations continue to rise. This has emphasized the need for maintaining smooth operations and efficient management of assets for telecom operators.
Power is the basic requirement for all the equipment and components in the telecom industry, therefore, the industry is highly reliant on generators and uninterruptible power supply (UPS) systems to protect assets from power outages, as minor power outages can also lead to huge revenue losses for telecom companies. The telecom industry is growing because of factors such as a rise in mobile subscriptions due to network expansions by operators and the declining cost of smartphones. Thus, mobile subscriptions are becoming affordable for all income groups. In addition, the growing use of the IoT in the telecom ecosystem and the introduction of 4G and 5G technologies have increased the demand for power demand from the industry. Hence, these factors will boost the global AC power system market during the forecast period.
Significant Alternating Current Power System Market Trend
The growing use of e-commerce is an emerging trend in the market. The growing digitalization and e-commerce industry have compelled several vendors operating in the global market to take their products online to increase their market share and profits. Several vendors are also displaying their products on their websites. E-commerce is viewed by many companies and customers as being more effective than traditional brick-and-mortar establishments. Businesses cut costs, and customers have a wide range of product options and can purchase whenever they want, from anywhere in the world.
E-commerce benefits companies by enabling them to gather customer information. Businesses can sell their products more effectively by using consumer purchasing patterns, demographics, and preferences. Companies can lessen the risk of overstocking or understocking a product by using e-commerce data to forecast when demand for a product will be higher or lower. Additionally, businesses may utilize this data to facilitate customers' buying experiences. Thus, factors like these are expected to drive the growth of the global AC power system market during the forecast period.
Major Alternating Current Power System Market Challenge
Difficulties in keeping pace with changing customer demand are major challenges impeding market growth. AC power system manufacturers are subject to heavy cost pressures due to a demanding consumer base. With the lack of product differentiation of AC power systems, there is a marked variation in prices among manufacturers. There are multiple small and non-branded players that rival major brands. Major players such as ABB, Delta Electronics, and Lite-on Power System Solutions contribute significantly to the worldwide demand for AC power systems. These vendors have the resources to push their products to wider end-users. Major players differentiate their products by offering high quality, which increases the manufacturing cost and product price. As most customers are price-sensitive, they prefer small vendors. This acts as a challenge for vendors operating in the market as they have to balance both the quality and price of their products.
Product differentiation can only be achieved through R&D. However, major players are reluctant to invest in R&D to avoid a further rise in manufacturing costs. All the factors mentioned above reduce the profit margin of vendors. Hence, such factors will hinder the growth of the global AC power system market during the forecast period.
Key Alternating Current Power System Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Alternating Current Power System Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the alternating current (AC) power system market.
LS ELECTRIC Co. Ltd. -. The company offers solutions, systems, and devices. The key offerings of the company include alternating current power systems.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the three-phase segment will be significant during the forecast period. Three current-carrying conductors are the main component of three-phase power systems. These power supplies' circuits might be set up in a wye or delta configuration.
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The three-phase segment was valued at USD 156.60 billion in 2017 and continued to grow until 2021. There is a neutral wire in wye designs. Three sine waves, one for each conductor, with a phase difference of 1200, are used to depict a three-phase electrical system. Each phase has a frequency and amplitude that are equal. In this power system, the waves twice reach the peak voltage for each full cycle, and the net voltage never falls below zero. As a result, the load receives a consistent stream of electricity at a nearly constant rate. When carrying the same load, a three-phase power supply's efficiency is much higher than that of a single power supply. Heavy-duty industrial equipment with high power requirements uses three-phase power systems. They are frequently employed to power motors, electric heaters, pumps, and other devices. Their operation is more cost-effective. Thus, increasing high power requirements are expected to drive the growth of the segment in the global market during the forecast period.
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APAC is estimated to contribute 65% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in APAC is anticipated to grow during the forecast period due to the fact that nations such as China, India, and Japan have a strong demand for electricity. Power transmission and distribution infrastructures are receiving a major investment from governments of Asia-Pacific nations. This is expected to increase the demand for flexible AC transmission systems in the near future. The demand for power in the Asia Pacific region is also significantly influenced by consistent economic expansion, rapid urbanization, and rising living standards.
The world's largest manufacturing hub, China, has grown to be an important market for alternating current power systems. Power generation capacity increased substantially in 2020, which surged the need for power transformers, switchgear, and related accessories in the country. In addition, the country had planned to add a major amount of hydropower and wind power capacity by 2020, thereby boosting the need for alternating current power systems.
Furthermore, India contributes immensely to the AC power system market in the region. Rapid developments in both commercial and industrial infrastructures are taking place in the country. The government emphasizes the expansion of T&D networks to improve the existing infrastructure that will propel the demand for AC power systems such as power transformers and switch gears in the country during the forecast period. Moreover, programs such as Make in India are anticipated to strengthen India's industrial manufacturing and processing sectors, placing the nation as one of the most promising markets for alternating current power systems during the forecast period.
In 2020, the outbreak of COVID-19 negatively impacted the growth of the market in APAC. However, the initiation of vaccination drives and the lifting of lockdown restrictions by the end of 2020 led to the resumption of industrial operations in the region. This led to a resurgence in the demand for electricity. Therefore, these factors are expected to foster the demand for AC power systems during the forecast period. Hence, such factors are expected to drive the growth of the AC power system market in APAC during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Alternating Current Power System Market Scope |
|
Report Coverage |
Details |
Page number |
194 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 4.98% |
Market growth 2023-2027 |
USD 60.78 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.56 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 65% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advanced Energy Industries Inc., AEG Power Solutions BV, Delta Electronics Inc., Eaton Corp. Plc, EnerSys, General Electric Co., Hitachi Ltd., Infineon Technologies AG, Itech Electronic Co. Ltd., Joe Powell and Associates Inc., LITE ON Technology Corp., LS ELECTRIC Co. Ltd., MEAN WELL Enterprises Co. Ltd., Mitsubishi Electric Corp., Myers Power Products Inc., Powertek US Inc., Schaefer Inc., Schneider Electric SE, Siemens AG, Vertiv Holdings Co., Vicor Corp., Zhejiang CHINT Electrics Co. Ltd., and Fuji Electric Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Historic Market Size
6 Five Forces Analysis
7 Market Segmentation by Type
8 Market Segmentation by End-user
9 Market Segmentation by Product
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Trends
13 Vendor Landscape
14 Vendor Analysis
15 Appendix
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