Flexible AC Transmission Systems Market To Reach $2.32 Billion By 2033

November 2025 | Report Format: Electronic (PDF)

Flexible AC Transmission Systems Market Growth & Trends

The global flexible AC transmission systems market size is anticipated to reach USD 2.32 billion in 2024 and is projected to grow at a CAGR of 6.24% from 2025 to 2033, according to a new report by Grand View Research, Inc. The increasing integration of renewable energy sources and the rising demand for grid reliability and transmission efficiency are key factors propelling market growth. The flexible AC transmission systems (FACTS) technologies enable dynamic voltage regulation, power flow control, and improved stability in high-voltage transmission networks, significantly enhancing the performance of existing infrastructure without major physical upgrades. Growing electricity consumption, aging transmission assets, and decarbonization commitments across developed and emerging economies are further accelerating adoption.

Technological advancements in power electronics, including voltage source converters (VSCs) and digital control systems, are enhancing the flexibility, response time, and cost-effectiveness of FACTS deployments. Utilities and transmission operators are increasingly investing in series and shunt compensation solutions to manage grid congestion, enhance power quality, and ensure the efficient integration of renewable energy. Supportive government initiatives, coupled with investments in smart grid modernization and transmission line upgrades, are expected to reinforce long-term market growth.

The series compensation segment held the largest market share, approximately 40%, in 2024, driven by its widespread use in boosting transmission capacity and stabilizing power flows across long-distance lines. By end-use, the Transmission Lines segment dominated the market, accounting for the highest share due to growing investments in cross-border interconnections and renewable grid integration.

North America led the global market, capturing around 40.0% share in 2024, supported by grid modernization initiatives, renewable integration programs, and strong regulatory frameworks in the United States and Canada. Meanwhile, the Asia Pacific region is poised to be the fastest-growing market, driven by rapid industrialization, expanding renewable generation capacity, and large-scale infrastructure development across China, India, and Southeast Asia.

The ongoing shift toward a flexible, efficient, and resilient power transmission infrastructure continues to define the global FACTS market outlook. As countries strengthen their renewable energy commitments and modernize aging grids, FACTS technologies will remain integral to enhancing stability, improving efficiency, and enabling the transition toward a low-carbon electricity ecosystem.

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Flexible AC Transmission Systems Market Report Highlights

By technology, the series compensation segment accounted for the largest market revenue share in 2024. These systems are extensively deployed to boost transmission line capacity, reduce power losses, and maintain voltage stability across long-distance power networks. Growing emphasis on efficient grid operation and the seamless integration of renewable energy sources continues to propel demand for series compensation technologies worldwide.
North America accounted for the largest market revenue share in 2024, driven by extensive grid modernization programs, renewable energy integration efforts, and the adoption of advanced transmission technologies. The United States remains a major contributor, supported by substantial investments in transmission efficiency projects, favorable federal policies, and clean energy objectives. Ongoing technological innovation and active participation from utilities are expected to sustain the region’s dominant position in the years ahead.
Leading industry participants are focusing on advancing next-generation FACTS technologies that integrate voltage source converters and digital control systems to enhance grid flexibility, reliability, and overall operational efficiency. Strategic initiatives such as partnerships, R&D investments, and the expansion of digital grid platforms are enabling manufacturers and system integrators to strengthen their global presence and address the evolving requirements of modern transmission infrastructure.