Flexible AC Transmission System Market in Japan

Flexible AC Transmission System in Japan Trends and Forecast

The future of the flexible AC transmission system market in Japan looks promising, with opportunities in the utility, renewable, industrial, and railway markets. The global flexible AC transmission system market is expected to reach an estimated $2.7 billion by 2031, with a CAGR of 7.9% from 2025 to 2031. The flexible AC transmission system market in Japan is also forecasted to witness strong growth over the forecast period. The major drivers for this market are an expansion of transmission lines, an increasing need for STATCOM devices to regulate voltage, and escalating integration of renewable energy into power grids.

• Lucintel forecasts that, within the generation category, the second generation will remain the larger segment over the forecast period.
• Within the end use category, utility will remain the largest segment over the forecast period.

Emerging Trends in the Flexible AC Transmission System Market in Japan

Japanese Flexible AC Transmission System (FACTS) market is transforming with the growth of grid stability demand, renewable energy integration, and power electronics technology developments. FACTS technologies are emerging as essential solutions in meeting these demands, as they improve the efficiency, stability, and reliability of Japanese power transmission grid. The following are the emerging trends transforming this market, each of which is a critical driver in transforming the nations energy infrastructure.

• Renewable Energy Sources Integration: Japan is heavily investing in renewable energy sources, mainly solar and wind power. Since these sources are intermittent, they need sophisticated grid management solutions to ensure stability. FACTS systems like Static Var Compensators (SVCs) are used to regulate voltage and offer reactive power compensation, allowing the integration of renewable power into the grid smoothly. This is a trend that will ensure Japan reaches its target of clean energy while ensuring a secure power supply.
• Digitalization and Smart Grid: The growing emphasis on smart grids and digitalization in Japan is fueling the uptake of FACTS technologies. Smart grids need sophisticated monitoring, control, and automation systems to maximize energy distribution. FACTS devices, such as STATCOMs, enable these efforts by enabling real-time voltage regulation and overall grid performance improvement. This trend enhances the power grids efficiency, responsiveness, and reliability, enabling improved energy management in cities.
• Grid Resilience Enhancement: Given Japanese susceptibility to natural disasters, enhancing grid resilience is of utmost importance. FACTS systems contribute towards making the grid more stable by reducing voltage fluctuations and stabilizing power flow in adverse conditions. Deployment of FACTS technologies makes the power grid in Japan stronger, allowing it to recover rapidly from any network disruption due to earthquakes, typhoons, or any other natural disaster. This leads to a more secure and resilient power infrastructure.
• Distributed Energy and Decentralized Power Generation: Japan is moving toward decentralized power generation with more and more microgrids and distributed energy resources (DERs). FACTS systems facilitate the use of these DERs in the national grid through power flow control and stable voltage levels. Ubiquitous adoption of distributed generation requires efficient management of power quality, and FACTS devices supply the support required to provide a stable and efficient supply of energy from decentralized sources.
• Transport and Industrial Sector Electrification: Electrification of transport and industrial sectors is a major trend in Japan. With the emergence of electric vehicles (EVs) and electric industries, there is a growing need for stable and efficient power distribution systems. FACTS technologies are used to control the additional load and stabilize voltage fluctuations of electrification in these sectors. The trend enables Japan to move towards a more electrified economy and ensures a stable power supply to major sectors.

These new trends are transforming the FACTS market in Japan by mitigating the challenges of renewable energy integration, grid resilience, and electrification of major sectors. FACTS technologies are proving to be a vital factor in making Japanese power grid stable, efficient, and reliable while assisting in the countries transformation to a cleaner, more decentralized energy system.

Recent Developments in the Flexible AC Transmission System Market in Japan

Japanese energy infrastructure is transforming with increasing demand for more efficient, dependable, and sustainable power transmission systems. FACTS technologies play an important role in fulfilling these demands by enhancing grid stability, accommodating renewable power, and improving overall power quality. The following are some of the most important recent trends in Japanese FACTS market, showing the nations focus on sophisticated grid management and green energy systems.

• Integration of Offshore Wind Power: Japan is spending large sums on offshore wind power in a bid to meet its renewable energy targets. Advanced power management systems, like FACTS, are needed for offshore wind farms to ensure that the voltage is kept stable and that the intermittent nature of the energy output is addressed. Installation of FACTS devices, including SVCs and STATCOMs, guarantees that power from offshore wind farms is incorporated into the national grid smoothly and provides consumers with stable and consistent electricity.
• Implementation of High-Voltage Direct Current (HVDC) Systems: The use of HVDC technology in Japanese transmission system is increasing, and FACTS systems are crucial in complementing these systems. HVDC links, which enable long-distance transmission of electricity with little loss, need FACTS devices to provide voltage stability and power flow control. The integration of HVDC and FACTS technologies improves the performance of the grid, allowing Japan to effectively transfer power between regions and enhancing overall transmission capacity.
• Expansion of Smart Grid Infrastructure: Japan continues to upgrade its smart grid infrastructure with advanced monitoring, control, and communication systems. FACTS devices like STATCOMs play a crucial role in ensuring voltage stability and maximizing power flow through smart grids. Installation of FACTS technologies enhances real-time monitoring and management of electricity consumption, making the power system more efficient, flexible, and responsive to shifting demand and intermittent renewable energy output patterns.
• Advancement in Power Electronics: There have been recent improvements in power electronics that have helped in improving the efficiency and cost-effectiveness of the FACTS systems. The new power semiconductors and improved control approaches have enhanced the effectiveness of FACTS devices, enabling them to function at higher efficiency ratings and lower the cost of installation and maintenance overall. These advances are opening up the use of FACTS systems for utilities in Japan, enabling the wider use of these solutions across urban as well as rural areas.
• Enhancing Grid Resilience After Disasters: Following the devastating natural disasters in recent years, Japan is prioritizing the strengthening of its power grid. FACTS technologies are integral to improving grid resilience by providing voltage support, power flow control, and fault tolerance. By deploying advanced FACTS systems, Japan can ensure that its grid can withstand natural disasters, quickly restore power, and maintain stability during recovery. This development enhances the overall security and reliability of the national energy infrastructure.

Recent trends in Japanese FACTS market are indicative of the countries efforts to build a more robust, efficient, and sustainable power system. The combination of offshore wind power, HVDC technology, and smart grids, along with advances in technology, is revolutionizing Japanese power transmission infrastructure. All these developments are making Japanese grid stable and responsive to future energy requirements and environmental issues.

Strategic Growth Opportunities for Flexible AC Transmission System Market in Japan

Japanese initiative towards energy transition and infrastructure modernization is driving robust growth opportunities for Flexible AC Transmission System (FACTS) technologies. With the country experiencing growing energy needs and a diversified power generation mix, strategic uses of FACTS are proving to be vital for power quality, stability, and efficiency. These technologies are being implemented across segments to deal with dynamic load patterns, assimilate renewables, and minimize transmission losses. The following points discuss key application-based growth opportunities that are transforming Japanese power sector through the implementation of FACTS.

• Renewable Energy Grid Integration: Japanese rapid adoption of solar and wind energy has enhanced the need for efficient grid integration tools. FACTS technologies like Static Var Compensators and STATCOMs improve voltage control and power flow regulation, which are critical for the management of variability in renewable generation. Their application in grid frequency and voltage stabilization enables large-scale renewable integration in urban as well as remote regions. This prospect improves grid resilience and supports Japanese national interest in reaching carbon neutrality by 2050 using a renewable-powered energy transition.
• Urban Infrastructure and Smart Cities: Japanese smart city development offers a strategic path for FACTS deployment. Urban cities with high-density electrical grids are enhanced by FACTS systems that enable real-time voltage regulation and enhanced energy efficiency. These technologies help achieve lower losses, load balancing, and smooth integration of distributed energy resources into smart grids. Through enabling digitalized, automated energy management, FACTS systems play a critical role in urban sustainability enhancement and scalable smart infrastructure in Japanese major cities.
• Industrial Power Quality Improvement: Japanese industries are very sensitive to power disturbances that compromise operational continuity and product quality. FACTS devices stabilize voltage oscillations, eliminate harmonics, and avoid outages in sensitive manufacturing industries like electronics and automobiles. This translates into minimized downtime and maximized energy efficiency. The use of FACTS for industrial purposes also supports Japanese emphasis on factory automation and digital manufacturing, with the assurance of high power quality to enable advanced industrial operations.
• Long-Distance Power Transmission: The geographical structure of Japan requires effective long-distance power transmission from generating locations to consumption areas. FACTS technologies increase the transmission capability of existing lines by controlling line impedance, voltage, and stability. Series compensators such as TCSC (Thyristor Controlled Series Capacitor) allow higher throughput and losses. This option facilitates the delivery of renewable energy produced in remote locations to high-density urban areas, minimizing investment in new infrastructure and increasing nationwide grid reliability.
• Peak Load Management in Urban Areas: As urban energy consumption reaches its peak during certain hours, controlling these variations becomes essential. FACTS systems offer dynamic support through reactive power regulation and voltage profile enhancement during peak hours. This prevents overloading, increases system reliability, and minimizes the requirement for expensive grid extensions. FACTS devices also allow utilities to more accurately predict and react to load fluctuations, facilitating the optimization of urban energy distribution networks and strengthening energy security in high-demand areas.

Strategic uses of FACTS technologies are greatly transforming Japanese energy landscape. From renewable integration to industrial power quality and urban load management, every opportunity addresses particular grid challenges while fostering sustainability, efficiency, and resilience. These focused applications are releasing new value in energy infrastructure, driving market growth, and aligning FACTS adoption with national energy and environmental goals.

Flexible AC Transmission System Market in Japan Driver and Challenges

Japanese Flexible AC Transmission System market is influenced by technological, regulatory, and economically varied dynamics. Drivers like renewable integration, aging infrastructure, and efforts towards grid modernization are pushing FACTS deployment at a faster rate. At the same time, the market also faces challenges like high costs, low awareness, and regulatory hurdles. The synergy and tension between drivers and challenges are affecting the deployment pace and extent of FACTS in Japanese energy infrastructure. A knowledge of these dynamics is necessary for stakeholders to operate in this dynamic market environment efficiently.

The factors responsible for driving the Flexible AC Transmission System market in Japan include:
• Renewable Energy Expansion: Japanese increasing dependence on solar and wind energy brings about grid variability, and sophisticated technologies are needed to ensure voltage stability and reactive power control. FACTS systems mitigate these issues by offering dynamic support and improving grid flexibility. Their use guarantees seamless integration of renewable energy, which is essential in ensuring Japanese clean energy aspirations. This driver is complemented by government subsidies and investment in renewable infrastructure, rendering FACTS a critical enabler in bringing about a sustainable energy future.
• Power Aging Infrastructure: A lot of Japanese transmission networks are old and approaching capacity ceilings. FACTS technologies enable optimized use of assets without requiring vast new construction work. They optimize line efficiency, reduce losses, and prolong system life. This driver is particularly applicable in cities and industrial areas where infrastructure replacement is expensive and disruptive. FACTS systems represent a cost-efficient option for revitalizing legacy grids and maintaining uninterrupted operational reliability.
• Smart Grid Modernization: Japanese pursuit of intelligent energy management through smart grids is accelerating the need for advanced grid technologies. FACTS devices enable real-time control, improved energy flow, and integration of distributed energy resources. Their compatibility with digital platforms and automation systems supports the transformation of the electric grid into a responsive, data-driven system. This driver promotes operational agility and energy optimization, making FACTS a cornerstone of Japanese smart grid strategy.
• Government Policies and Incentives: Encouraging government policies for decarbonization and grid resiliency are driving demand for FACTS technologies. Subsidies, energy policy changes, and commitments to reduce emissions provide a positive regulatory climate. It is a driver that gets utilities and private industries to invest in FACTS solutions, particularly in renewable and grid modernization initiatives. Government support lowers the risk of adoption and fosters long-term implementation of FACTS as part of a national energy agenda.
• Power Reliability Demand from Industry: Japanese high-tech industries require stable and high-quality power to facilitate precise manufacturing processes. FACTS systems increase power stability by minimizing voltage sags, surges, and harmonics, thereby avoiding disruptions. With the rise in automation and digitalization, the demand for assured energy supply is even greater. This driver further enhances the position of FACTS in protecting industrial productivity and competitiveness in Japanese high-tech manufacturing industries.

Challenges in the Flexible AC Transmission System market in Japan are:
• High Initial Investment Expenses: Though their long-term advantages, FACTS technologies entail high initial capital expenditures in the form of equipment, integration, and maintenance. Such high capital outlays discourage utilities and small operators from investing. Budget constraints and undefined return on investment horizons are primary economic hurdles. Redressing cost concerns by offering incentives, financing options, and longer-term savings calculations is essential to ensure wider application.
• Limited Technical Expertise: The technology-specific nature of FACTS devices means that there are requirements for specialized personnel for installation, operation, and maintenance. Lack of availability of trained engineers and technical experts in Japan may cause delays in implementation and compromise system performance. This issue reflects the importance of having focused training programs and knowledge transfer schemes. Developing local capacity will increase the markets ability to implement and operate FACTS infrastructure effectively.
• Complex Regulatory Environment: Japanese power regulations tend to be complicated and inert in the face of new technology. Ambiguous standards and overlengthy approval procedures slow the implementation of FACTS. This issue impacts investor trust and extends project lead times. Simplifying regulatory processes and harmonizing policy frameworks with technological developments is required in order to facilitate FACTS market development.

The Japanese Flexible AC Transmission System market is powered by revolutionary energy aspirations and the compelling imperative to modernize grids. Although development is driven by renewable energy, smart grid development, and industrial application, hurdles of cost and regulation must be overcome. These tensions must be harmonized in order to release the complete potential of FACTS technology to reshape Japanese stable, efficient, and future-oriented power infrastructure.

List of Flexible AC Transmission System Market in Japan Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, flexible AC transmission system companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the flexible AC transmission system companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7

Flexible AC Transmission System Market in Japan by Segment

The study includes a forecast for the flexible AC transmission system market in Japan by generation, product, end use, and application.

Flexible AC Transmission System Market in Japan by Generation [Analysis by Value from 2019 to 2031]:

• First Generation
• Second Generation

Flexible AC Transmission System Market in Japan by Function [Analysis by Value from 2019 to 2031]:

• Voltage Control
• Network Stabilization
• Transmission Capacity
• Harmonic Suppression

Flexible AC Transmission System Market in Japan by Application [Analysis by Value from 2019 to 2031]:

• Voltage Control
• Power Control

Flexible AC Transmission System Market in Japan by End Use [Analysis by Value from 2019 to 2031]:

• Utilities
• Renewables
• Industrial
• Railways
• Others

Features of the Flexible AC Transmission System Market in Japan

Market Size Estimates: Flexible AC transmission system in Japan market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Flexible AC transmission system in Japan market size by generation, product, end use, and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different generations, products, end uses, and applications for the flexible AC transmission system in Japan.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the flexible AC transmission system in Japan.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the flexible AC transmission system market in Japan?
Answer: The major drivers for this market are an expansion of transmission lines, an increasing need for STATCOM devices to regulate voltage, and escalating integration of renewable energy into power grids.
Q2. What are the major segments for flexible AC transmission system market?
Answer: The future of the flexible AC transmission system market looks promising with opportunities in the utility, renewable, industrial, and railway markets.
Q3. Which flexible AC transmission system market segment will be the largest in future?
Answer: Lucintel forecasts that, within the generation category, the second generation will remain the larger segment over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the flexible AC transmission system market in Japan by generation (first generation and second generation), function (voltage control, network stabilization, transmission capacity, and harmonic suppression), application (voltage control and power control), and end use (utilities, renewables, industrial, railways, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Flexible AC Transmission System Market In Japan, Flexible AC Transmission System Market In Japan Size, Flexible AC Transmission System Market In Japan Growth, Flexible AC Transmission System Market In Japan Analysis, Flexible AC Transmission System Market In Japan Report, Flexible AC Transmission System Market In Japan Share, Flexible AC Transmission System Market In Japan Trends, Flexible AC Transmission System Market In Japan Forecast, Flexible AC Transmission System Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.