Product Code: EP 9436
The North America power factor correction market is projected to reach USD 999.1 million by 2030 from an estimated USD 734.2 million in 2025, at a CAGR of 6.2% during the forecast period (2025-2030). Rising energy costs and stringent regulations are pushing industries like manufacturing, oil & gas, and HVAC to adopt advanced PFC solutions, such as capacitors and automatic control systems, to minimize reactive power, reduce energy losses, and enhance system reliability.
Scope of the Report |
Years Considered for the Study | 2021-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | Value (USD Million) and Volume (Units) |
Segments | Type, Reactive Power, Sales Channel, Application, and Region |
Regions covered | North America |
"OEM direct is expected to be the fastest-growing segment during the forecast period."
The OEM direct segment is projected to register the highest growth in the North America power factor correction market due to its role in delivering tailored, energy-efficient solutions directly to manufacturers. With rapid industrial growth in sectors like oil & gas, manufacturing, and water treatment, OEMs are increasingly integrating advanced PFC technologies into their equipment to meet energy efficiency standards, reduce operational costs, and improve power quality, thereby driving segment growth.
"Automatic segment to be largest type in North America power factor correction market"
The automatic segment is anticipated to lead the overall power factor correction market in the North America due to its ability to dynamically adjust power factor in real-time, ensuring optimal energy efficiency across various industries. Automatic systems, such as capacitor banks with intelligent controllers, are widely adopted in sectors like oil & gas, manufacturing, and HVAC, where they minimize reactive power, reduce energy losses, and enhance system reliability, making them a preferred choice for modern power management.
"US to register highest CAGR in North America power factor correction market"
The US is projected to be the fastest-growing power factor correction market in the North America region driven by rapid industrialization, infrastructure development, and a strong focus on energy efficiency. The increasing demand for power quality in industries such as manufacturing, mining, and water treatment, along with supportive government initiatives promoting energy conservation, is fueling the adoption of advanced power factor correction solutions across the country.
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess market prospects. The distribution of primary interviews is as follows:
By Company Type: Tier 1 - 45%, Tier 2 - 30%, and Tier 3 - 25%
By Designation: C-Level - 35%, Director Levels - 25%, and Others - 40%
Note 1: Others include sales managers, engineers, and regional managers.
Note 2: The tiers of the companies are defined based on their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million.
Eaton Corporation plc (Ireland), GE Vernova (US), Schneider Electric (France), ABB (Switzerland), and Gentec (Canada) are some of the key players in the North America power factor correction market.
The study includes an in-depth competitive analysis of these key players in the North America power factor correction market, with their company profiles, recent developments, and key market strategies.
Research Coverage:
The report defines, describes, and forecasts the North America power factor correction market by type (Automatic, Fixed), by sales channel (Distributors, OEM direct), by reactive power (0-200 KVAr, 200-500 KVAr, 500-1,500 KVAr, Above 1500 KVAr), by application (Industrial, Renewable, Commercial, Data Center, and EV Charging), and by region (North America). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the North America power factor correction market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies such as contracts, investments, partnerships, collaborations, joint ventures, agreements, new product & service launches, and mergers & acquisitions; and recent developments associated with the North America power factor correction market.
Key Benefits of Buying the Report
- Analysis of key drivers (Increasing investments in clear energy projects, Rising deployment of low-voltage PFC systems in industrial facilities), restraints (High initial installation cost of PFC systems), opportunities (Introduction of incentive schemes by governments for adopting energy saving technologies, Growing inclination toward smart grid deployment, Elevating demand for electric vehicles), and challenges (Complexities associated with integrating PFC systems into existing infrastructure) influencing the growth of the power factor correction market.
- Product Development/Innovation: With a focus on energy efficiency and regulatory compliance, manufacturers in North America are advancing power factor correction (PFC) technologies. Companies are innovating by developing high-performance capacitors and control systems designed to meet the specific needs of the region's industrial and commercial sectors. These advancements aim to enhance power quality, reduce energy losses, and integrate seamlessly with modern infrastructure, driving broader adoption in applications like manufacturing and HVAC systems during the forecast period.
- Market Diversification: In August 2023, Eaton invested over USD 500 million to increase the manufacturing of electrical solutions and meet the surging demand for these solutions from the North American industries. This substantial investment aims to expedite the energy transition and digitalization in utilities, commercial, healthcare, industrial, and residential sectors.
- Market Development: The power factor correction market is driven by increasing emphasis on energy efficiency, regulatory compliance, and sustainable power management. Supportive government policies promoting reduced energy consumption and the rising adoption of PFCs in industrial and commercial applications, such as oil & gas and manufacturing are driving the power factor correction market.
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players such as Eaton Corporation plc (Ireland), GE Vernova (US), Schneider Electric (France), ABB (Switzerland), and Gentec (Canada), among others, in the North America power factor correction market.
TABLE OF CONTENTS
1 INTRODUCTION
- 1.1 STUDY OBJECTIVES
- 1.2 MARKET DEFINITION
- 1.3 STUDY SCOPE
- 1.3.1 MARKET SEGMENTATION AND REGIONAL SCOPE
- 1.3.2 INCLUSIONS AND EXCLUSIONS
- 1.3.3 YEARS CONSIDERED
- 1.4 LIMITATIONS
- 1.5 UNITS CONSIDERED
- 1.6 CURRENCY CONSIDERED
- 1.7 STAKEHOLDERS
2 RESEARCH METHODOLOGY
- 2.1 RESEARCH DATA
- 2.1.1 PRIMARY AND SECONDARY RESEARCH
- 2.2 DATA TRIANGULATION
- 2.2.1 SECONDARY DATA
- 2.2.1.1 Key data from secondary sources
- 2.2.1.2 Key secondary sources
- 2.2.2 PRIMARY DATA
- 2.2.2.1 Major primary interview participants
- 2.2.2.2 Key data from primary sources
- 2.2.2.3 Key industry insights
- 2.2.2.4 Breakdown of primary interviews
- 2.3 MARKET SIZE ESTIMATION
- 2.3.1 BOTTOM-UP APPROACH
- 2.3.2 TOP-DOWN APPROACH
- 2.3.3 DEMAND-SIDE ANALYSIS
- 2.3.3.1 Demand-side assumptions
- 2.3.3.2 Demand-side calculations
- 2.3.4 SUPPLY-SIDE ANALYSIS
- 2.3.4.1 Supply-side assumptions
- 2.3.4.2 Supply-side calculations
- 2.3.5 GROWTH FORECAST
- 2.4 RESEARCH ASSUMPTIONS
- 2.5 RESEARCH LIMITATIONS
- 2.6 RISK ANALYSIS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
- 4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN NORTH AMERICA POWER FACTOR CORRECTION MARKET
- 4.2 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY SALES CHANNEL AND TYPE
- 4.3 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY SALES CHANNEL
- 4.4 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY TYPE
- 4.5 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY REACTIVE POWER
- 4.6 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY APPLICATION
5 MARKET OVERVIEW
- 5.1 INTRODUCTION
- 5.2 MARKET DYNAMICS
- 5.2.1 DRIVERS
- 5.2.1.1 Increasing investments in clean energy projects
- 5.2.1.2 Rising deployment of low-voltage PFC systems in industrial facilities
- 5.2.2 RESTRAINTS
- 5.2.2.1 High initial installation cost of PFC systems
- 5.2.3 OPPORTUNITIES
- 5.2.3.1 Introduction of incentive schemes by governments for adopting energy-saving technologies
- 5.2.3.2 Growing inclination toward smart grid deployment
- 5.2.3.3 Elevating demand for electric vehicles
- 5.2.4 CHALLENGES
- 5.2.4.1 Complexities associated with integrating PFC systems into existing infrastructure
- 5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS
- 5.4 VALUE CHAIN ANALYSIS
- 5.5 ECOSYSTEM ANALYSIS
- 5.6 INVESTMENT AND FUNDING SCENARIO
- 5.7 IMPACT OF AI/GENERATIVE AI ON NORTH AMERICA POWER FACTOR CORRECTION MARKET
- 5.7.1 RATIONALE FOR IMPACT LEVELS
- 5.8 NORTH AMERICA: MACROECONOMIC OUTLOOK
- 5.8.1 INTRODUCTION
- 5.8.2 GDP TRENDS AND FORECAST
- 5.8.3 MANUFACTURING VALUE ADDED (% OF GDP)
- 5.8.4 ELECTRICITY PRODUCTION
- 5.9 TECHNOLOGY ANALYSIS
- 5.9.1 KEY TECHNOLOGIES
- 5.9.1.1 Internet of Things (IoT)
- 5.9.2 ADJACENT TECHNOLOGIES
- 5.9.2.1 Solid-state switching devices
- 5.10 PATENT ANALYSIS
- 5.11 TRADE ANALYSIS
- 5.11.1 EXPORT SCENARIO (HS CODE 8532)
- 5.11.2 IMPORT SCENARIO (HS CODE 8532)
- 5.12 KEY CONFERENCES AND EVENTS, 2024-2025
- 5.13 PRICING ANALYSIS
- 5.13.1 AVERAGE SELLING PRICE TREND OF POWER FACTOR CORRECTION SYSTEM, BY NORTH AMERICA
- 5.14 TARIFF AND REGULATORY LANDSCAPE
- 5.14.1 TARIFF ANALYSIS
- 5.14.2 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS
- 5.14.3 REGULATORY FRAMEWORK
- 5.15 PORTER'S FIVE FORCES ANALYSIS
- 5.15.1 THREAT OF SUBSTITUTES
- 5.15.2 BARGAINING POWER OF SUPPLIERS
- 5.15.3 BARGAINING POWER OF BUYERS
- 5.15.4 THREAT OF NEW ENTRANTS
- 5.15.5 INTENSITY OF COMPETITIVE RIVALRY
- 5.16 KEY STAKEHOLDERS AND BUYING CRITERIA
- 5.16.1 KEY STAKEHOLDERS IN BUYING PROCESS
- 5.16.2 BUYING CRITERIA
- 5.17 CASE STUDY ANALYSIS
- 5.17.1 ELIMINATING ENERGY PENALTIES THROUGH STRATEGIC POWER FACTOR CORRECTION
- 5.18 IMPACT OF 2025 US TARIFF - NORTH AMERICA POWER FACTOR CORRECTION MARKET
- 5.18.1 INTRODUCTION
- 5.18.2 KEY TARIFF RATES
- 5.18.3 PRICE IMPACT ANALYSIS
- 5.18.4 IMPACT ON NORTH AMERICA
6 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY REACTIVE POWER
- 6.1 INTRODUCTION
- 6.2 0-200 KVAR
- 6.2.1 RISING DEMAND ACROSS SMALL COMMERCIAL APPLICATIONS TO DRIVE SEGMENTAL GROWTH
- 6.3 200-500 KVAR
- 6.3.1 RISING USE IN MEDIUM-SIZED COMMERCIAL BUILDINGS AND INDUSTRIAL FACILITIES TO DRIVE SEGMENTAL GROWTH
- 6.4 500-1,500 KVAR
- 6.4.1 INCREASING FOCUS OF LARGE INDUSTRIAL PLANT OWNERS ON MINIMIZING ENERGY LOSSES TO BOOST DEMAND
- 6.5 ABOVE 1,500 KVAR
- 6.5.1 PRESSING NEED TO STABILIZE VOLTAGE LEVELS ACROSS POWER GRID TO SUPPORT SEGMENTAL GROWTH
7 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY TYPE
- 7.1 INTRODUCTION
- 7.2 AUTOMATIC
- 7.2.1 ABILITY TO CRAFT EFFICIENT ELECTRICAL SYSTEMS TO BOOST DEMAND
- 7.3 FIXED
- 7.3.1 RISING FOCUS ON ENERGY COST REDUCTION TO SUPPORT SEGMENTAL GROWTH
8 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY SALES CHANNEL
- 8.1 INTRODUCTION
- 8.2 DISTRIBUTORS
- 8.2.1 ABILITY TO COVER BROADER GEOGRAPHIC AREAS AND ENTER NEW MARKETS AT FASTER RATE TO BOOST SEGMENTAL GROWTH
- 8.3 OEM DIRECT
- 8.3.1 HIGHER UPFRONT COSTS FOR TRAINING SALES TEAM TO LEAD TO SMALLER MARKET SHARE
9 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY APPLICATION
- 9.1 INTRODUCTION
- 9.2 INDUSTRIAL
- 9.2.1 RISING USE OF POWER-INTENSIVE INDUSTRIAL EQUIPMENT TO BOOST DEMAND
- 9.3 RENEWABLE
- 9.3.1 INTEGRATION OF RENEWABLE ENERGY SOURCES INTO POWER GRID TO PROPEL MARKET
- 9.4 COMMERCIAL
- 9.4.1 INCREASING DEMAND FOR ENERGY EFFICIENCY AND COST REDUCTION IN COMMERCIAL BUILDINGS TO DRIVE MARKET
- 9.5 DATA CENTER
- 9.5.1 SURGING NEED FOR EFFICIENT AND RELIABLE DATA CENTER INFRASTRUCTURE TO DRIVE MARKET GROWTH
- 9.6 EV CHARGING
- 9.6.1 INCREASING INVESTMENT AND RAPID EXPANSION OF ELECTRIC VEHICLES TO SUPPORT MARKET GROWTH
10 NORTH AMERICA POWER FACTOR CORRECTION MARKET, BY REGION
- 10.1 NORTH AMERICA
- 10.1.1 US
- 10.1.1.1 Increasing focus on sustainable energy production using renewable sources to boost demand
- 10.1.2 CANADA
- 10.1.2.1 Rising demand from automotive sector to augment market growth
- 10.1.3 MEXICO
- 10.1.3.1 Thriving industrial sector to drive demand
11 COMPETITIVE LANDSCAPE
- 11.1 OVERVIEW
- 11.2 KEY PLAYER STRATEGIES/RIGHT TO WIN, 2019-2023
- 11.3 MARKET SHARE ANALYSIS, 2023
- 11.4 REVENUE ANALYSIS, 2019-2023
- 11.5 BRAND/PRODUCT COMPARISON
- 11.6 COMPANY VALUATION AND FINANCIAL METRICS, 2024
- 11.7 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023
- 11.7.1 STARS
- 11.7.2 EMERGING COMPANIES
- 11.7.3 PERVASIVE PLAYERS
- 11.7.4 PARTICIPANTS
- 11.7.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023
- 11.7.5.1 Company footprint
- 11.7.5.2 Reactive power footprint
- 11.7.5.3 Application footprint
- 11.7.5.4 Type footprint
- 11.8 COMPETITIVE SCENARIO
- 11.8.1 PRODUCT LAUNCHES
- 11.8.2 OTHER DEVELOPMENTS
12 COMPANY PROFILES
- 12.1 KEY PLAYERS
- 12.1.1 SCHNEIDER ELECTRIC
- 12.1.1.1 Business overview
- 12.1.1.2 Products offered
- 12.1.1.3 Recent developments
- 12.1.1.4 MnM view
- 12.1.1.4.1 Key strengths
- 12.1.1.4.2 Strategic choices
- 12.1.1.4.3 Weaknesses and competitive threats
- 12.1.2 EATON
- 12.1.2.1 Business overview
- 12.1.2.2 Products offered
- 12.1.2.3 Recent developments
- 12.1.2.4 MnM view
- 12.1.2.4.1 Key strengths
- 12.1.2.4.2 Strategic choices
- 12.1.2.4.3 Weaknesses and competitive threats
- 12.1.3 GE VERNOVA
- 12.1.3.1 Business overview
- 12.1.3.2 Products offered
- 12.1.3.3 Recent developments
- 12.1.3.4 MnM view
- 12.1.3.4.1 Key strengths
- 12.1.3.4.2 Strategic choices
- 12.1.3.4.3 Weaknesses and competitive threats
- 12.1.4 ABB
- 12.1.4.1 Business overview
- 12.1.4.2 Products offered
- 12.1.4.3 MnM view
- 12.1.4.3.1 Key strengths
- 12.1.4.3.2 Strategic choices
- 12.1.4.3.3 Weaknesses and competitive threats
- 12.1.5 HITACHI ENERGY LTD.
- 12.1.5.1 Business overview
- 12.1.5.2 Products offered
- 12.1.5.3 Recent developments
- 12.1.5.4 MnM view
- 12.1.5.4.1 Key strengths
- 12.1.5.4.2 Strategic choices
- 12.1.5.4.3 Weaknesses and competitive threats
- 12.1.6 GENTEC
- 12.1.6.1 Business overview
- 12.1.6.2 Products offered
- 12.1.6.3 Recent developments
- 12.1.7 TCI, LLC
- 12.1.7.1 Business overview
- 12.1.7.2 Products offered
- 12.1.8 POWERSIDE
- 12.1.8.1 Business overview
- 12.1.8.2 Products offered
- 12.1.9 COS PHI
- 12.1.9.1 Business overview
- 12.1.9.2 Products offered
- 12.1.10 CONTROLLIX CORPORATION
- 12.1.10.1 Business overview
- 12.1.10.2 Products offered
- 12.1.11 CIRCUTOR
- 12.1.11.1 Business overview
- 12.1.11.2 Products offered
13 APPENDIX
- 13.1 INSIGHTS FROM INDUSTRY EXPERTS
- 13.2 DISCUSSION GUIDE
- 13.3 KNOWLEDGESTORE: MARKETSANDMARKETS' SUBSCRIPTION PORTAL
- 13.4 CUSTOMIZATION OPTIONS
- 13.5 RELATED REPORTS
- 13.6 AUTHOR DETAILS