China Flexible AC Transmission Systems (FACTS) Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)
China Flexible AC Transmission Systems (FACTS) Market: by Type (Shunt Compensation, Series Compensation, Combined Compensation), Application (Utilities, Industries, Railways, Renewables Integration, Others), Distribution Channels (Direct, Indirect), Technology (SVC, STATCOM, TCSC, UPFC, Others), Organization Size (Small, Medium, Large) and By China Historical & Forecast Period (2020-2035) Comprehensive Study 2025
Last Updated: 23-07-2025 | Format: PDF | Report ID:11358 | Author: Sophia
China Flexible AC Transmission Systems (FACTS) Market Size, Share, Trends and Forecast (2020–2035)
Flexible AC Transmission Systems (FACTS) are sophisticated grid management technologies that enhance the efficiency, stability, and capacity of electric power transmission networks. These systems leverage advanced electronics to control power flows, mitigate voltage fluctuations, and optimize energy distribution. In China, rising electricity demands, renewable energy integration, and grid modernization efforts have rapidly driven the adoption of FACTS solutions. As of 2025, the market is anticipated to accelerate, powered by technological advancements and ambitious government policies targeting greater grid reliability and renewable integration.
Latest Market Dynamics
Key Drivers
Rapid grid modernization initiatives supported by government policies aimed at enhancing energy efficiency across China's extensive transmission infrastructure; for example, State Grid Corporation of China is investing heavily in new FACTS installations for reliable and flexible grid operations.
Surging renewable energy penetration, particularly from wind and solar farms, driving the deployment of FACTS solutions to manage intermittent power flows, with companies like NR Electric launching advanced STATCOM systems for renewable-rich provinces.
Key Trends
Increased adoption of Static Synchronous Compensator (STATCOM) technology, with leading industry players such as Rongxin Power Electronic (RXPE) unveiling next-generation STATCOM units for grid reinforcement in 2025.
Growing demand for modular and digitalized FACTS devices that allow easy integration into existing infrastructure, as demonstrated by ABB's launch of its digitally enhanced SVC systems in China this year.
Key Opportunities
Expansion of electric vehicle (EV) charging infrastructure, creating demand for FACTS to support high-capacity, stable electricity delivery, as Siemens partners with regional utilities for FACTS-enabled charging network upgrades in 2025.
Widespread government-backed investments in ultra-high voltage (UHV) transmission projects requiring robust FACTS deployment, presenting growth prospects for suppliers like Sieyuan Electric, which secured major UHV contracts this year.
Key Challenges
High initial investment and complex integration processes, especially for legacy transmission networks, present a barrier for utilities with limited capital, highlighted by recent project delays in Western China's provincial grids.
Shortage of skilled workforce capable of managing and maintaining advanced FACTS systems, forcing industry players like General Electric to expand training and localization programs in 2025.
Key Restraints
Persistent supply chain disruptions and cost volatility for key electronic components, impacting FACTS project schedules, as evidenced by Mitsubishi Electric's delayed deliveries in Q2 2025.
Stringent regulatory compliance and technology standardization issues hindering speedy rollouts of advanced FACTS devices, which NR Electric addressed via increased R&D and compliance solutions this year.
In 2025, the Flexible AC Transmission Systems market in China is led by Shunt Compensation, accounting for the largest share, closely followed by Series Compensation and Combined Compensation. Shunt Compensation’s dominance is supported by its extensive use in voltage regulation applications and wide integration within utility networks. Series Compensation remains crucial for long-distance power transmission projects, particularly across UHV lines, while Combined Compensation solutions are increasingly adopted for applications demanding enhanced stability and power flow control. Market players are innovating to improve efficiency and scalability, further driving adoption across key types.
China’s FACTS market in 2025 sees Utilities as the leading application, contributing nearly half of the market demand. Industries, including heavy manufacturing and process plants, represent the second-largest segment as they require robust voltage stability. With the rapid rollout of large-scale wind and solar installations, Renewables Integration takes a significant share, reflecting the critical need for power flow management solutions. The sector is further buoyed by the ongoing electrification initiatives and expansion of smart grid projects, driving strong demand for FACTS across diverse applications.
China FACTS Market Revenue (USD Million), 2020–2035
The revenue for China’s Flexible AC Transmission Systems market has seen a consistent upward trend from 2020 through 2025, rising from $740 Million in 2020 to an estimated $1,195 Million in 2025. This growth is largely attributed to expanding infrastructure investments, policy-driven renewable energy projects, and upgrades of the transmission network. Looking forward, the market is projected to sustain a healthy growth trajectory, reaching approximately $2,800 Million by 2035 as adoption spreads across both urban and rural grids and technological innovation matures further.
China FACTS Market Year-on-Year Growth (%), 2020–2035
The year-on-year (YOY) growth rate of China’s FACTS market reflects momentum in grid modernization and renewable integration. After a robust 10.5% YOY increase in 2021, growth peaked at 13% in 2025 driven by major government tenders and renewable grid tie-ins. Although growth is expected to moderate to around 9% by 2030 and further to 7% by 2035, the market retains healthy expansion prospects thanks to ongoing investment, technology upgrades, and demand from electric mobility infrastructure.
East China commands the highest market share in 2025, reflecting its dense utility grid, industrial presence, and progressive adoption of grid stabilization technologies. North China follows, supported by large-scale wind installations and strong grid integration policies. South China also makes up a substantial share, thanks to ongoing investments in renewable energy and grid upgrades. The regional variation demonstrates how local government incentives and infrastructure maturity drive FACTS demand across China.
Market leadership is demonstrated by ABB, Siemens, and NR Electric in China’s FACTS space in 2025. ABB controls the largest share, leveraging extensive project experience, technological innovation, and strong local partnerships. Siemens’ expertise in large-scale industrial and utility projects contributes to its substantial share, while NR Electric stands out for custom solutions designed for China’s grid challenges. The competitive landscape sees top international vendors collaborating with domestic firms, fueling innovations and pushing the market forward.
In 2025, utilities remain the dominant buyers in China’s FACTS market, responsible for the majority of new investments and implementations as they upgrade infrastructure and meet energy reliability requirements. Industrial enterprises are the next largest buyer group, focusing on minimizing disruptions and ensuring stable energy for critical operations. The third largest group comprises renewable project developers integrating FACTS for grid compliance. The buyer structure highlights the crucial role of grid modernization and clean energy integration.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
East China, North China, South China
Segments
By Type (Shunt Compensation, Series Compensation, Combined Compensation), By Application (Utilities, Industries, Railways, Renewables Integration, Others)
In June 2024, NR Electric announced the rollout of its advanced STATCOM platform tailored for integrating high-variability renewable sources across Inner Mongolia.
Siemens signed a strategic cooperation framework with China Southern Power Grid to accelerate digital FACTS deployment, July 2024.
ABB unveiled its upgraded SVC system with digital control enhancements targeting high-load utility corridors, August 2024.
Rongxin Power Electronic (RXPE) secured a major project for UHV transmission reinforcement in Shanxi Province, September 2024.
General Electric expanded its workforce training program in Shanghai to address skilled labor shortages for FACTS O&M, October 2024.
Frequently Asked Questions
About the Author
Sophia
Lead Industry Analyst
Sophia is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Semiconductor & Electronics. Sophia brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Sophia has helped organizations translate data into actionable growth strategies.
