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  3. Harmonic Filter Market

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Demand for Harmonic Filters Climbs High on Swelling Need for Power in Utilities

Growing concerns over the quality of power and power transmission, triggered by the swelling need for power on utilities, have boosted the demand for harmonic filters across the world, TMR’s analysis notes. The sales volume of these filter has also been climbing high on the back on increasing installation of variable frequency drives (VFDS) in the recent past. In 2015, harmonic filters gained an overall market value of US$697.2 mn, globally.

Over the next few years, the implementation of strict rules pertaining to energy consumption in industries is projected to upswing the demand for harmonic filters, specifically in IT industry and data centers. However, the dearth of consumer awareness regarding harmonic suppression will limit their application across other industries. Besides, harmonic filters are expensive and their installation and maintenance incur a significant amount as well, which also will hamper their adoption to some extent.

The global harmonic filter market is expected to rise at a CAGR of 6.50% during the period from 2016 to 2024 and reach an opportunity worth US$1.2 bn by the end of 2024.

Active Harmonic Filters to Gain Impetus

Harmonic filters are available in two types: Active and passive. Passive harmonic filters enjoy a higher demand in comparison with active harmonic filters, owing to their cost efficiency and robust design. In 2015, the passive harmonic filter segment accounted for more than a share of 75% of the overall demand. The segment is expected to remain dominant in the coming years; however, its share in the total demand is likely to drop to 74% by the end of 2024.

Active harmonic filters will gain significant impetus over the next few years, states TMR. The rising awareness regarding the benefits offered by these filters in terms of voltage stability and harmonic mitigation is projected to drive this segment at a CAGR of 8.1% from 2016 to 2024.

Asia Pacific to Remain at Center of Global Harmonic Filters Market

The market for harmonic filters stretches across Asia Pacific, Europe, Latin America, North America, and the Middle East and Africa. With a share of nearly 38%, Asia Pacific has emerged as the largest contributor to the global market in 2015. The region has suffered massive losses of energy during distribution and transmission due to poor power quality, which has compelled enterprises operating in this region to deploy harmonic filters in order to ensure improved power quality.

As the region witnesses a soaring need for electricity, the demand for harmonic filters is likely to increase extensively in the coming years. Rising at a CAGR of 6.80% during the period from 2016 to 2024, the market opportunity is estimated to increase from US$264.3 mn in 2015 to US$471.6 mn by the end of 2024.

Europe emerged second in the global harmonic filter market in 2015; however, the region is likely to experience a sluggish demand for these filters in the coming years. Thanks to the availability of high-quality power infrastructure, harmonic concerns do not amount to be a problem in Europe.

At the forefront of the global harmonic filter market are companies such as ABB Ltd., Emerson Electric Co., and Schneider Electric SE. Collectively, these three players account for a share of 41% in the overall market.

MTE Corp., Eaton Corp. Plc, TDK Corp., Crompton Greaves Ltd., Schaffner Holding AG, Baron Power Ltd., Danfoss A/S, Siemens AG, and Comsys AB are some of the other prominent participants in the highly concentrated market for harmonic filters.

Harmonics are generated in an electrical power system owing to the presence of non-linear loads such as drives in the system. The propagation of harmonic frequencies in the electrical system is one of the frequent causes of problems related to power quality. Harmonic causes misfiring in variable speed drives, heating in the system and torque fluctuations. Therefore, for ensuring optimum power quality, complete suppression of harmonics is a critical consideration. Recent advancements in solid state power converters coupled with growing significance of power quality is expected to increase the use of harmonic filters across the globe. The advancements in semiconductor technology, making harmonic filters slightly cost effective and high powered technology, has had positive impact on the growth of harmonic filters across the globe.

The growing use of non-linear loads such as the variable frequency drives that produce harmonics coupled with the increasing need to ensure power quality is boosting the growth of the global harmonic filter market. The growing importance of achieving acceptable levels of power quality is driving the growth of harmonic filters. By maintaining power quality through harmonic suppression, power losses can be extremely minimized and significant energy savings can be achieved. Increasing adoption of variable frequency drives promoting the uptake of harmonic filters. Rise in automation across different industrial and commercial applications and growing demand for electrical efficiency has increased the demand for Variable Frequency Drives (VFD), which is in turn boosting the growth of the harmonic filter market. The conjoint effect of all these drivers is set to boost the growth of the global harmonic filter market from 2016 – 2024.

Escalating demand from IT and data centers are set to offer potential growth opportunities to the global harmonic filters market. Thus, growth in the IT industry spending is expected to support the growth of high end machines and equipments with non-linear loads, giving rise to harmonics. Rising demand for ensuring optimum power quality is expected to fuel the growth of harmonic filters in IT and data center industry. Further, government regulations and penalties imposed by utilities are set to offer lucrative opportunities for the growth of harmonic filters in the near future. For example, in India (Tamil Nadu), government has set the total voltage harmonic distortion limit at 5% and total current harmonic distortion limit at 8%. If a consumer exceeds these harmonic levels, then that person is entitled to pay 15% of his respective tariff as compensation. Owing to the impact of these regulations and penalties, facilities that produce harmonics are installing harmonic filters.

The competitive profiling of the key players in the global harmonic filter market broadly across five geographic regions has been incorporated in the study. This profiling includes the recent developments in the field of harmonic filter and the various business strategies adopted by the major player. Market attractive analysis on the basis of end-use of harmonic filters has been included in the report, for providing a deep insight of global market.

An in-depth study of the market dynamics which is inclusive of market drivers, market restraints and market opportunities is included under the scope of this report. Market dynamics are the distinguishing factors which exert an impact on the growth of the global market, thereby helping to analyze the ongoing trends of the market. Thus, this report provides the forecast of the global harmonic filter market for the period from 2016 to 2024, along with offering an exhaustive study of the global market.

Some of the major players in the harmonic filter market are: ABB Ltd. (Switzerland), Baron Power Limited (India), Comsys AB (Sweden), Danfoss A/S (Denmark), Schneider Electric (France), Eaton Corporation Plc. (Ireland), Siemens AG (Germany), Crompton Greaves Limited (India), Emerson

Electric Co. (U.S.), TDK Corporation (Japan), Schaffner Holding AG (Switzerland), MTE Corporation (U.S.).

The global harmonic filter market has been segmented into:

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

  • Industrial
  • IT And Data Centers
  • Automotive
  • Oil & Gas
  • Others

Global Harmonic Filter Market, by Geography: The market is broadly segmented on the basis of geography into:

  • North America
    • U.S.
    • Rest of North America
  • Europe
    • U.K.
    • Germany
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Rest of APAC
  • Middle East & Africa (MEA)
  • Latin America