Reactive power compensation device is an important equipment used to improve power factor, reduce line loss and improve voltage quality in power system. Reactive power compensation device according to the working principle and technical characteristics, mainly divided into traditional reactive power compensation (reactor, capacitor, synchronous camera),SVC(static var compensator) andSVG(static var generator) three types. Different types of reactive power compensation devices have different performance and application range, so there are different needs and competition in the market.

According to data from the Champ Consulting Group,2022China's reactive power compensation device market size reached420Billion yuan, of which high-voltage parallel reactive compensation accounted for about38%，SVCProportion28%，SVGProportion25%The rest are traditional reactive power compensation and other types.

So,2023How will the market share of China's reactive power compensation device industry change? What factors affect this change? This article will analyze the following aspects:

1. the development needs of the power industry

The power industry is the main downstream application field of the reactive power compensation device industry, and its development level and demand scale directly affect the market space of the reactive power compensation device industry. According to data from the Champ Consulting Group,2022China's power generation reached 8.64Trillion kWh, up 3.6 percent year-on-year, of which thermal power generation accounts for about 51.8 per centHydropower accounts for about 19.1 per cent of the electricity generation.Nuclear energy accounts for about 6.4 per cent of electricity generation.Wind power accounts for about 10.7 percent.Solar power generation accounts for about 11.9 percent.。expected2023By the end of the year, China's power generation will reach9.2Trillion kWh, year-on-year growth8.2%。

With the rapid development of China's economy and society, the demand for power resources will continue to grow, especially after the carbon peak and carbon neutral targets are put forward in the 14th Five-Year Plan, China will speed up the development and utilization of clean energy and promote the optimization and adjustment of energy structure. This will bring greater market demand for the reactive power compensation device industry. On the one hand, with the expansion of the scale of the power system and the improvement of the voltage level, the reactive power compensation device will play a more important role in the power grid, improve the stability and reliability of the power grid, and reduce the line loss and operating costs. On the other hand, with the rapid growth of new energy, reactive power compensation devices will play a more important role in the field of new energy power generation, solve the technical problems of new energy access to the grid, and improve the efficiency and quality of new energy power generation.

according to the prediction of the champ consulting group,2023The market size of China's reactive power compensation device industry will reach about500Billion yuan, year-on-year growth25%. Among them, the power industry will be the main market for the reactive power compensation device industry, accounting for about80%。

Rapid growth of new energy in 2.

New energy refers to renewable energy such as wind energy, solar energy, biomass energy, geothermal energy, ocean energy, and clean energy such as nuclear energy. New energy has the characteristics of clean, low-carbon and renewable, which is an important support for China to achieve the goal of carbon peak and carbon neutrality. According to data from the Champ Consulting Group,2022China's renewable energy power generation capacity exceeded 12Billion kilowatts, up 24.8 percent year-on-year, accounting for 47.3 percent of the country's installed power generation capacity. Among them, the installed capacity of wind power generation reached 3.65Billion kilowatts, up 17.7 percent year-on-year, accounting for 14.2 percent of the country's installed power generation capacityThe installed capacity of solar power generation reaches 3.93Billion kilowatts, up 51.2 percent year-on-year, accounting for 15.3 percent of the country's installed power generation capacity。expected2023By the end of the year, China's new energy power generation capacity will reach12Billion kilowatts, year-on-year growth25%, accounting for the country's installed power generation capacity28%。

New energy power generation has the characteristics of intermittent, instability and randomness, which brings great challenges to the operation of power grid. In order to ensure the smooth access and effective use of new energy power generation, it is necessary to use reactive power compensation devices to regulate the reactive power of new energy power stations, improve their power factor, improve their output waveform and harmonic content, and reduce their impact on the power grid. Reactive power compensation device has a wide application prospect in the field of new energy power generation.

according to the prediction of the champ consulting group,2023The market size of China's reactive power compensation devices in the field of new energy power generation will reach about80Billion yuan, year-on-year growth33%. Among them, the wind power generation sector will be the main market for reactive power compensation devices in the field of new energy power generation, accounting for approximately60%。

Construction and Promotion of 3. Smart Grid

Smart grid refers to the use of advanced information and communication technology, control technology, computing technology, etc. to transform and upgrade the traditional power grid to realize the automation, intelligence, interaction and comprehensive optimization of the power system. Smart grid is an important way to realize the modern power grid system with high efficiency and energy saving, low carbon environmental protection, safety and reliability, and economic rationality. According to data from the Champ Consulting Group,2021China's smart grid construction has achieved remarkable results, the total length of the country's transmission lines reached.140Ten thousand kilometers, year-on-year growth7.7%, in which500The total length of UHV transmission and transformation lines of kV and above shall reach14Ten thousand kilometers, year-on-year growth8.9%; The number of smart meters installed nationwide reached6.5Billion, year-on-year growth10.4%, accounting for the total amount of electricity meters in the country95%. expected2023By the end of the year, China's smart grid construction will be further accelerated, the total length of the national transmission lines will reach150Ten thousand kilometers, of which the total length of UHV transmission lines will reach1610,000km; the number of smart meter installations nationwide will reach7100 million, accounting for the total number of electricity meters in the country.98%。

The construction of smart grid will bring more opportunities and challenges to the reactive power compensation device industry. On the one hand, the construction of smart grid requires a large number of reactive power compensation devices to improve the flexibility and controllability of the grid, and to achieve optimal scheduling and management of the grid. On the other hand, the construction of smart grid has also improved the technical requirements and performance standards of reactive power compensation devices, requiring reactive power compensation devices to have higher response speed, control accuracy, communication capabilities and intelligent level.

according to the prediction of the champ consulting group,2023The market size of China's reactive power compensation devices in the smart grid sector will reach approximately60Billion yuan, year-on-year growth20%. Among them, the UHV power transmission and transformation sector will be the main market for reactive power compensation devices in the smart grid sector, accounting for approximately70%。

4. technological innovation and product upgrading

Technological innovation and product upgrading are the core driving forces of the reactive power compensation device industry, and also the key factors for the reactive power compensation device industry to maintain its competitive advantage and market position. With the development of reactive power compensation device industry and the change of user demand, the technology and products of reactive power compensation device are constantly improving and improving. From a technical point of view, the reactive power compensation device changes from the traditional passive type to the active type, from the analog control to the digital control, from the single function to the multi-function, from the single point of control to the network control. From the product point of view, reactive power compensation device from a single type to a diversified type of development, from low voltage to high voltage development, from large to small development, from fixed to mobile development.

Technological innovation and product upgrades will affect the market share distribution and competitive landscape of the reactive power compensation device industry. On the one hand, technological innovation and product upgrades will improve the performance and efficiency of reactive power compensation devices, and expand their application scope and market demand. On the other hand, technological innovation and product upgrades will also intensify the competition and elimination of the reactive power compensation device industry, and promote the survival of the fittest and structural adjustment of the reactive power compensation device industry.

According to the analysis of the Champ Consulting Group,2023China's reactive power compensation device industry will show the following trends in technological innovation and product upgrades:

SVG will become the main force of market growth.SVGIt is an active reactive power compensation device based on inverter technology. It has the advantages of fast response, high control accuracy, strong harmonic suppression ability, small size and high reliability.SVGIt has a wide range of applications in industry, commerce, transportation, communications and other fields. According to the prediction of the Champ Consulting Group,2023Year-round ChinaSVGThe market size will reach about150Billion yuan, year-on-year growth50%, accounting for the market share of reactive power compensation devices.30%。

High-voltage parallel reactive power compensation will maintain steady growth. High-voltage parallel reactive power compensation is a passive reactive power compensation device based on capacitors and reactors, which has the advantages of low cost, simple maintenance and high reliability. High-voltage parallel reactive power compensation plays an important role in the power system, mainly used to improve the transmission capacity and voltage stabilization capacity of the power grid. According to the prediction of the Champ Consulting Group,2023China's high-voltage parallel reactive power compensation market will reach about200Billion yuan, year-on-year growth20%, accounting for the market share of reactive power compensation devices.40%。

SVC will face challenges and opportunities.SVCIt is an active reactive power compensation device based on thyristor technology, which has the advantages of fast response, high control accuracy and strong harmonic suppression ability.SVCIt plays an important role in the power system, mainly used to improve the dynamic stability and transient stability of the power grid. however,SVCThere are also shortcomings such as high cost, large volume and low reliability, facingSVGThe competition and substitution of new reactive power compensation devices. According to the prediction of the Champ Consulting Group,2023Year-round ChinaSVCThe market size will reach about100Billion yuan, year-on-year growth10%, accounting for the market share of reactive power compensation devices.20%。

5. policy support and market competition

Policy support and market competition are the external environmental factors of reactive power compensation device industry, and also the development opportunities and challenges of reactive power compensation device industry. Policy support refers to the support and encouragement of the state and local governments to the reactive power compensation device industry, including laws and regulations, standards and norms, financial funds, tax incentives, project bidding and so on. Market competition refers to the internal and external competitive pressure of reactive power compensation device industry, mainly including product quality, technical level, price strategy, service ability, brand influence and so on.

Policy support and market competition will affect the development speed and direction of the reactive power compensation device industry. On the one hand, policy support will provide favorable development conditions and guarantees for the reactive power compensation device industry, promote the standardization and standardization of the reactive power compensation device industry, and stimulate the innovation and progress of the reactive power compensation device industry. On the other hand, market competition will bring greater development momentum and challenges to the reactive power compensation device industry, promote the optimization and upgrading of the reactive power compensation device industry, and improve the efficiency and effectiveness of the reactive power compensation device industry.

According to the analysis of the Champ Consulting Group,2023China's reactive power compensation device industry will be affected by the following policy support and market competition:

The state will increase policy support for the development of clean energy, promote the construction and operation of new energy power generation projects such as wind and solar energy, and provide more market opportunities for reactive power compensation devices in the field of new energy power generation.

The state will speed up the formulation and improvement of relevant laws, regulations and standards, regulate the market access and supervision of the reactive power compensation device industry, improve the quality and safety of reactive power compensation devices, and ensure the normal operation and maintenance of reactive power compensation devices.

The state will increase the support of financial funds and tax incentives for the construction of smart grid, promote the implementation and operation of smart grid projects, and provide more market opportunities for reactive power compensation devices in the field of smart grid.

Reactive power compensation device industry will face fierce competition from home and abroad, reactive power compensation device enterprises will increase product quality, technical level, price strategy, service capabilities, brand impact and other aspects of investment and improvement, improve the market competitiveness and share of reactive power compensation devices.

To sum up,2023China's reactive power compensation device industry will be affected by the development needs of the power industry, the rapid growth of new energy, the construction of smart grid, technological innovation and product upgrading, policy support and market competition, the market share will show high-voltage parallel reactive power compensation,SVCandSVGtripartite pattern, whichSVGIt is expected to become the main force of market growth. Shangpu Consulting believes that the reactive power compensation device industry will usher in a period of rapid development and change. Reactive power compensation device companies should seize opportunities, respond to challenges, continue to innovate and progress, and improve the performance and efficiency of reactive power compensation devices. Contribute to the stable operation and clean development of the power system.