Published: Nov, 2016
Accounting for over 41% share in the global harmonic filter market, Emersion Electric Co., ABB Ltd., and Schneider Electric SE emerged as the dominant players. As the industrial segment exhibits a higher consumption of harmonic filters, ABB Ltd., which provides harmonic filter to manufacturing, metal processing, and other industries, has gained lead with over 17.7% of the global market, finds Transparency Market Research (TMR) in a new study.
TMR forecasts the global harmonic filter market to exhibit a CAGR of 6.5% between 2016 and 2024. The overall valuation of the market, which was pegged at US$697.2 mn in 2015, is thus projected to reach US$1.2 bn by the end of 2024. Regionally, the harmonic filter market in Asia Pacific was valued at US$264.3 mn in 2015. The dominance of this region is likely to continue through the forecast period.
Among the various areas of application, the IT industry and data centers are emerging as a strong segment, reporting increased usage of harmonic filters in HVAC and UPS systems. However, over the course of the forecast period from 2016 to 2024, the industrial sector will continue to remaining the dominant sector based on end use. It held approximately 32% of the global harmonic filter market in 2015.
Demand for Automation and High-end Equipment to Fuel Deployment of Harmonic Filters
The rising automation across industries is the key factor encouraging uptake of harmonic filters. The demand for automation is spurred alongside the need for achieving electrical efficiency. This has resulted in the increased sales of variable frequency drives (VFDs). Other crucial factors driving the demand for VFDs include the rising energy prices, awareness about the benefits they offer, and stringent regulations aimed at curbing electricity wastage at both domestic and national level. These are the primary factors bolstering growth opportunities for the global harmonic filters market.
“The surging demand for power across utilities have created concerns pertaining to the quality of transmission. This has been fuelling the demand for harmonic filters to ensure complete suppression of harmonics, thereby preventing heating or torque fluctuations in the system,” added a lead TMR analyst.
High Price and Inadequate Consumer Awareness Pose Challenge to Market
“On the flip side, lack of consumer awareness about harmonic suppression and low product differential are the key factors posing threat to the market,” observed the TMR report’s author. Among these product differentiation is the fundamental challenge faced by the market at present. The absence of advanced technology is a major factor keeping product differentiation low in the global harmonic filter market.
The manufacturers of harmonic filters are unable to provide products at a competitive pricing, which can stagnate the market’s growth in the forthcoming years. Besides low awareness and inadequate product differentiation, the high cost of the equipment is thus inhibiting its widespread adoption especially across developing and underdeveloped regions. These factors could result in the sluggish growth of the market.
Favorable Government Regulations to Support Market’s Growth
Despite the aforementioned challenges, the market is witnessing considerable growth opportunities, boosted by the high demand from the IT industry and data centers. The phenomenal growth of the IT industry witnessed worldwide has spurred the deployment of machines such as routers, servers, and other high-end equipment. These machines are among the primary sources of harmonic distortion. Rising consumer awareness about the same has compelled IT organizations invest in harmonic filter, thus creating lucrative potential for the market’s growth.
Besides this, the market is also expected to gain from favorable regulations implemented to curb energy and electricity wastage. Many government authorities and institution also impose penalties is harmonic levels increase a certain limit. This also encourages industries to deploy harmonic filter, to prevent distortions.
This review is based on information published by TMR in a report, titled “Harmonic Filter Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2024.”
The report segments the global harmonic filter market as:
Global Harmonic Filter Market, by Type
- Active Harmonic Filters
- Passive Harmonic Filters
- Tuned Passive Harmonic Filters
- De-Tuned Passive Harmonic Filters
Global Harmonic Filter Market, by Voltage Level
- Low Voltage Harmonic Filters
- Medium Voltage Harmonic Filters
- High Voltage Harmonic Filters
Global Harmonic Filter Market, by End-Use
- IT And Data Centers
- Oil & Gas
Global Harmonic Filter Market, by Geography
- North America
- Asia Pacific
- Middle East & Africa (MEA)
- Latin America
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