The China Flexible AC Transmission Systems (FACTS) market is experiencing robust growth driven by increased investments in smart grid infrastructure and the expanding integration of renewable energy sources. The market size was valued at USD 890 Million in 2025 and is expected to reach USD 2,140 Million by 2035, growing at a CAGR of 8.6% from 2024 to 2035.
The economic impact of tariffs on "China Flexible AC Transmission Systems (FACTS) Market".
Market Growth Drivers
Grid Modernization Initiatives: State Grid Corporation of China (SGCC) and China Southern Power Grid (CSG) are heavily investing in the modernization of transmission and distribution networks. These initiatives include the deployment of FACTS devices such as Static Var Compensators (SVCs) and Static Synchronous Compensators (STATCOMs) to enhance voltage stability and improve grid reliability. With China's power demand rising by an average of 5.2% annually, grid operators are compelled to adopt advanced transmission solutions to reduce losses and accommodate more distributed energy resources. This sustained investment is a key driver for the FACTS market.
Growth in Renewable Energy Integration: Companies like NR Electric Co., Ltd. are providing FACTS solutions to facilitate higher penetration of wind and solar power into the grid. As China targets over 1,200 GW of wind and solar capacity by 2030, variable renewable generation poses challenges for grid stability and transmission efficiency. FACTS devices play a critical role in dynamic voltage regulation and power flow control, enabling higher renewable integration and supporting China’s decarbonization goals.
Market Trends
Adoption of Modular Multilevel Converters (MMC): Leading manufacturers such as Siemens Energy and ABB have introduced MMC-based STATCOMs and SVCs to the Chinese market. These modular solutions provide superior scalability and greater efficiency, reducing installation and maintenance costs. The trend towards modular FACTS technologies is enabling utilities to deploy flexible and upgradable systems in response to evolving grid demands.
Digitalization and Remote Monitoring: The integration of digital technologies, including advanced sensors, IoT, and AI-based analytics, is gaining momentum in FACTS deployments. Companies like Hitachi Energy are offering remote monitoring and control platforms that optimize FACTS device performance, facilitate predictive maintenance, and extend asset lifespans. This digitalization trend significantly enhances operational reliability and reduces lifecycle costs.
Market Opportunities
Expansion of Ultra High Voltage (UHV) Transmission: With major UHV transmission projects led by State Grid Corporation of China, the demand for FACTS technologies is projected to surge, providing expansive opportunities for local and international equipment suppliers.
Electric Mobility Infrastructure: As China accelerates the electrification of transport, strengthening the supporting grid infrastructure will require advanced FACTS solutions, opening a lucrative avenue for market participants focused on smart grid and EV charging integration.
China FACTS Market Revenue (USD Million), 2020-2035
The revenue chart illustrates steady and robust growth in the China FACTS market, starting from USD 400 Million in 2020 and projected to reach USD 2,140 Million by 2035. Initial growth from 2020 to 2025 is moderate, reflecting early adoption and pilot projects, while accelerated growth post-2025 is driven by large-scale grid modernization and renewable integration. Strategic investments, government policies, and technological advancements underpin this upward trajectory, highlighting the market's significant potential for equipment manufacturers and service providers.
China FACTS Market Share by Region, 2025
In 2025, Eastern China holds the largest share of the FACTS market, accounting for 38%, due to high industrial demand and densely populated urban centers. Northern China follows with a 25% share, driven by robust UHV transmission networks serving Beijing and surrounding provinces. Southern China captures 18%, reflecting accelerated renewables integration, while Western and Central China account for 12% and 7% respectively, supported by ongoing grid upgrades and rural electrification initiatives. This regional distribution highlights the market concentration in areas with significant industrial activity and grid expansion projects.
Recent Developments
In February 2024, NR Electric secured a contract to deliver advanced STATCOM systems for a 750 kV UHV AC project in Shanxi Province, enhancing dynamic voltage regulation and facilitating renewable energy grid integration.
In April 2024, State Grid Corporation of China partnered with Siemens Energy to launch a pilot digital FACTS monitoring system in Jiangsu, leveraging AI-driven analytics for real-time grid stability management and predictive maintenance capabilities.
In May 2024, ABB commenced operations at its new FACTS solutions manufacturing center in Guangdong, targeting increased local production capacity and rapid response to surging demand from China’s ongoing smart grid initiatives.
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