Latest News: Alternating Current Power System Market 2024-2028: APAC Leads Market Growth

Technavio, a leading provider of market research reports, has released its latest study on Alternating Current Power System Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges. In the global business landscape, governments worldwide are driving the energy sector towards emission reduction and carbon neutrality targets, accelerating the transition to renewable energy sources. The International Renewable Energy Agency (IRENA) reports that renewable energy must significantly expand beyond its current 14% share of total energy consumption to over 40% by 2030, as per the IPCC recommendation. This growth will require an annual tripling of renewable energy additions, according to the Intergovernmental Panel on Climate Change. The falling cost of Distributed Energy Resources (DERs) is a significant catalyst for this transformation.

Key Highlights

Growth Projections

The global alternating current power system market  size is estimated to grow by USD 64.4 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  5.04% during the forecast period. Increasing use of AC in high-voltage power transmission is driving market growth, with a trend towards rising integration of renewable energy sources with grid  However, several disadvantages of using ac power transmission systems  poses a challenge.Key market players include ABB Ltd., Advanced Energy Industries Inc., AEG Power Solutions BV, Delta Electronics Inc., EnerSys, General Electric Co., Hitachi Ltd., Infineon Technologies AG, Itech Electronic Co. Ltd., Joe Powell and Associates Inc., LITE ON Technology Corp., LS ELECTRIC Co. Ltd., MEAN WELL Enterprises Co. Ltd., Mitsubishi Electric Corp., Schaefer Inc., Schneider Electric SE, Siemens AG, Vertiv Holdings Co., Vicor Corp., and Zhejiang CHINT Electrics Co. Ltd.

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Major Findings

• The Alternating Current (AC) power system market is witnessing significant growth due to the increasing adoption of AC technology in high-voltage power transmission. This trend is driven by several factors, including the advantages of AC systems over Direct Current (DC) systems for long-distance power transmission, the expansion of power grids, and the ongoing electrification of various industries and transportation sectors. AC power systems enable efficient and reliable transmission of electricity over long distances, making them an essential component of modern power infrastructure. The global market for AC power systems is expected to continue its robust growth trajectory in the coming years.


• The Alternating Current (AC) Power System market is experiencing significant growth, driven in part by the increasing demand from the telecommunications industry. This sector's expansion is fueled by the rising number of mobile phone users and the deployment of 5G technology, which requires substantial power resources to support their infrastructure. The AC power system's ability to efficiently transmit and distribute electricity makes it a preferred choice for telecom companies seeking to expand their networks and meet the surging power demands.


• While Alternating Current (AC) power transmission systems are widely used due to their numerous advantages, they also present certain disadvantages. One major disadvantage is the need for expensive transformers at substations to step up or step down voltage levels for efficient transmission and distribution. Additionally, AC systems are more susceptible to power quality issues such as voltage fluctuations and harmonic distortion, which can negatively impact sensitive electrical equipment. Furthermore, AC systems require complex synchronization mechanisms to ensure seamless integration of multiple power sources, increasing the overall complexity and cost of the power system.


• The Alternating Current (AC) power system market is experiencing significant growth, despite the increasing demand for Direct Current (DC) power systems. This trend can be attributed to the widespread adoption of AC technology in various applications, such as transmission and distribution networks, due to its efficiency and scalability. Additionally, the extensive infrastructure already in place for AC power systems continues to drive their demand. However, the rise of DC microgrids and renewable energy sources may present challenges to the AC power system market in the future.

Market Research Overview

The global Alternating Current (AC) Power System Market is a significant segment of the larger electrical components and equipment market. This market encompasses businesses involved in the production of various electrical equipment, including water heaters and accessories, motors, motor control devices, encoders and amplifiers, automation solutions, electrical distribution and protection equipment, small generators, wire and cable accessories, power supplies and conditioners, sensors, meters and indicators, recorders and loggers, process safety systems, instrumentation, test and measurement equipment, switches, transmitters and receivers, HVAC systems, and safety components. Moreover, the market size is determined by the consolidated revenue generated from the manufacturing and rental or leasing of these electrical components and equipment to diverse industries such as industrial, commercial, and residential sectors.

The Alternating Current Power System Market is experiencing significant growth, fueled by the Increasing use of AC in high-voltage power transmission. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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Regional Insights

The Alternating Current (AC) Power System Market represents a significant business opportunity for technology providers and utilities. This market is driven by the increasing demand for reliable and efficient power transmission and distribution systems. Key trends include the adoption of smart grids, advancements in power electronics, and the integration of renewable energy sources. Market size is projected to grow steadily, offering lucrative prospects for businesses specializing in AC power system solutions.

Research Analysis Overview

The Alternating Current (AC) Power System Market is witnessing significant growth due to the increasing demand for reliable and efficient power solutions in various sectors, including telecommunications. Static Synchronous Compensators (STATCOMs) and Static Var Compensators (SVCs), powered by power electronic devices, play a crucial role in maintaining power flow stability and voltage regulation in AC power systems. The integration of renewable energy sources like solar, wind, and hybrid power plants into the grid poses challenges in terms of reliability and controllability. To address these issues, advanced telecom power solutions, such as diesel-solar, diesel-wind, and diesel-battery systems, are being adopted. These systems not only ensure uninterrupted power supply but also reduce carbon footprint. The growing demand for connectivity infrastructure, including 5G networks, Wi-Fi power, and LTE networks, is driving the need for efficient and reliable power systems. Power disruptions can lead to significant data consumption losses and service disruptions. Therefore, the integration of digital disruptive technologies, such as smart grids, is essential to ensure the reliability and controllability of AC power systems. Telecom towers in remote locations require power solutions that are efficient, reliable, and easy to install. Cell power systems, including wireless broadband access, are being explored to address these challenges. The integration of AC power systems with telecommunication services is essential to ensure the reliability and efficiency of communication networks. Overall, the AC power system market is expected to grow significantly in the coming years due to the increasing demand for reliable and efficient power solutions in various sectors.

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