Flexible AC Transmission System Market in South Korea

Flexible AC Transmission System in South Korea Trends and Forecast

The future of the flexible AC transmission system market in South Korea 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 South Korea 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 South Korea

South Korea is upgrading its energy infrastructure to accommodate the needs of a contemporary, sustainable grid. The introduction of Flexible AC Transmission Systems (FACTS) is at the core of this evolution, making it possible to integrate renewable sources of energy and improving grid stability. The following are five major emerging trends transforming the FACTS market in South Korea.

• Integration of Smart Grid Technologies: South Korea is implementing smart grid technologies into its energy network, which strengthens the operational ability of FACTS. Smart grid integration facilitates real-time control and monitoring, enhances grid efficiency, and ensures better reliability. By allowing quick reactions to disturbances on the grid, smart grids enable smooth integration of renewable sources, leading to a more resilient and flexible power network.
• Deployment of Voltage Source Converter (VSC) Technology: The transition to VSC technology for FACTS applications is taking hold in South Korea. VSCs provide enhanced power flow and voltage stability control needed for the integration of variable renewable energy. They are compact in design and scalable, which is ideal for urban areas to help the country develop its grid, enhance its modernization, and meet rising energy demands.
• Emphasis on Renewable Energy Integration: South Korea is making integrating renewable energy into its grid its top priority. FACTS technologies are vital for coping with variability from sources such as wind and solar. With the ability to stabilize voltage and frequency fluctuations, FACTS supports increased penetration of renewables in conformity with the countries vision of a cleaner mix of energy and lower greenhouse gas emissions.
• Grid Resilience Enhancement: Enhancing grid resilience to natural disasters and cyber attacks is a priority in South Korea. FACTS assist with this by enabling dynamic voltage support and quick fault response features. These ensure that the grid remains stable under disturbances, providing a secure power supply and reducing the effect of unexpected events on the energy infrastructure.
• Development of Distributed Energy Resources (DERs): The expansion of DERs such as rooftop photovoltaics and distributed energy storage is impacting the market for FACTS in South Korea. FACTS technologies allow decentralized sources to be integrated into the grid by controlling power flow and quality at the distribution level. This promotes the nations shift towards a decentralized and flexible power system with better overall efficiency.

South Korean FACTS market emerging trends are indicative of a collaborative pursuit to update the power grid, incorporate renewable sources, and bolster resilience. South Korea is pushing the energy agenda forward by committing to smart grid technologies, developing advanced converters, and embracing distributed energy resources. These advances form the key components of the efforts to have a sustainable and trustworthy energy future.

Recent Developments in the Flexible AC Transmission System Market in South Korea

The energy sector in South Korea is seeing tremendous transformation, with recent trends in the FACTS market being the key driver of change. The drivers for these developments include grid modernization, the integration of renewable energy, and enhanced energy efficiency. The following are five important trends that are affecting the FACTS market in South Korea.

• Smart Grid Initiatives implementation: The South Korean government has initiated smart grid initiatives aimed at improving grid reliability and energy efficiency. Such initiatives entail the installation of new FACTS technologies that facilitate real-time monitoring and control. These improvements in the responsiveness and responsiveness of the grid aid in integrating renewable energy as well as help to create a more sustainable power system.
• Investment in Renewable Energy Projects: Considerable investments are going into renewable energy initiatives throughout South Korea. FACTS technologies form a key part of these initiatives, providing the secure integration of variable energy sources into the grid. Through controlling voltage and frequency variations, FACTS enable the nation to transition to a greener energy mix and achieve its environmental goals.
• Development of FACTS Technology: South Korean companies are at the forefront of developing advanced FACTS technologies. Innovations such as the Unified Power Flow Controller (UPFC) and Static Synchronous Compensator (STATCOM) are being implemented to enhance grid stability and efficiency. These advancements are crucial for managing the complexities of modern power systems and accommodating the growing electricity demand.
• Expansion of High-Voltage Transmission Infrastructure: To meet the growing energy requirements, South Korea is augmenting its high-voltage transmission infrastructure. FACTS technologies are being used to manage power flow and reduce transmission loss. This increase helps ensure the efficient transmission of electricity over distances and the stable supply of power to urban and industrial zones.
• Industry-Academia Collaboration: Collaborative activities among industry players and academic institutions are promoting innovation within the FACTS market. Research and development projects are conducted collaboratively to enhance the performance and cost optimization of FACTS technologies. Such collaborative projects are vital in promoting technological advancement and sustaining the competitive position of South Korea within the international energy market.

The recent South Korean FACTS market developments demonstrate the nations dedication to the establishment of an efficient, sustainable, and modern energy infrastructure. Through technological improvement, investment in renewable energy, infrastructure development, smart grid measures, and collective efforts, South Korea is boosting the reliability and resilience of its power system. These developments are crucial to ensuring the realization of the countries energy objectives as well as advancing economic growth.

Strategic Growth Opportunities for Flexible AC Transmission System Market in South Korea

With South Korea accelerating its energy transition drive, Flexible AC Transmission Systems (FACTS) are gaining importance in meeting grid modernization demands. FACTS is creating new paths for strategic use in various industries, ranging from renewable energy integration to urban grid resilience. Five significant growth opportunities for FACTS in South Korea are identified through this section based on primary application fields facilitating the nations drive for smarter and more reliable power distribution.

• Grid Integration of Renewable Energy: As South Korea heavily invests in solar and wind power, FACTS technologies provide essential support for power flow management and voltage regulation. They improve grid stability, enabling increased penetration of renewable energy without sacrificing performance. Their function in load and supply balancing enables utilities to provide stable service while progressing toward national carbon neutrality targets, generating long-term demand for high-end transmission solutions in new and growing renewable energy projects.
• Urban Infrastructure Modernization: South Korean cities are being upgraded with infrastructure to enable increased energy usage and smart city development. FACTS technologies play a critical role in maximizing power distribution in city grids with high population density, where space and dependability are at a premium. By reducing losses and maintaining voltage control, such systems help ensure more efficient and reliable energy grids. With electric transportation and IoT infrastructure becoming mainstream in cities, the need for dependable power transmission solutions is also on the increase.
• Industrial Load Management: South Korean industrial-driven economy offers a robust application base for FACTS in industrial load management. Electronics, automotive, and shipbuilding industries need quality, uninterruptible power. FACTS technology facilitates managing varied industrial loads, reducing harmonics, and enhancing the power factor, cutting down on operating costs and increasing production efficiency. With increasing industrial automation, so will the demand for transmission systems capable of providing consistent and quality power delivery.
• Support for Cross-Border Power Exchange: With regional energy cooperation as South Korea searches for, FACTS can assist in secure and stable cross-border electricity exchange. These devices ensure reliable and safe power transfers while regulating voltage and power flow along international transmission lines. This applies particularly to the case of envisioned power-sharing with neighboring nations or integration into regional markets. FACTS improve transmission capacity, lower congestion, and enhance energy trading opportunities in a future grid of interconnected systems.
• Support for Energy Storage Systems: FACTS performs a supporting function in addition to energy storage systems by improving power quality and stability. They mitigate rapid load fluctuations and assist with frequency control. As South Korea increases the implementation of battery energy storage solutions, particularly around renewable sources and city centers, FACTS technologies are invaluable in matching output and preserving grid balance. Such coordination enhances the overall reliability and efficiency of energy storage uses.

These application-driven opportunities show the growing significance of FACTS in South Korean shifting energy environment. From renewable integration to industrial efficiency, the systems are proving crucial in guaranteeing stable, flexible, and future-proof transmission systems. With national infrastructure planning transforming, FACTS technologies are poised to be at the forefront of innovation and energy security.

Flexible AC Transmission System Market in South Korea Driver and Challenges

South Korean FACTS market is shaped by a variety of technological innovations, economic objectives, and regulatory systems. The energy transition, grid resilience, and industrial upgrading initiatives of the country drive the implementation of FACTS. Nevertheless, growth in the market is hindered by barriers including high capital expenses and technical intricacy. The subsequent section presents five drivers and three hindrances that shape the present and future of the FACTS market in South Korea.

The factors responsible for driving the Flexible AC Transmission System market in South Korea include:
• Government Support for Grid Modernization: The government of South Korea actively promotes grid modernization to address energy needs and sustainability goals. National energy policies focus on the implementation of cutting-edge transmission technologies, such as FACTS, to enable high-efficiency grids. Subsidies, pilot projects, and R&D spending are building a conducive market for suppliers and integrators. Policy-led demand for stable, smart grids is driving the adoption of FACTS solutions, particularly in renewable-abundant areas and strategic industrial areas.
• Increasing Need for Renewable Energy Integration: The growing adoption of solar and wind power in South Korea calls for a reliable transmission infrastructure. FACTS allow for more seamless integration of variable renewable energy through stabilizing the voltage and controlling power flow. This is critical to avoid grid disturbances and energy losses. As the nation raises its targets for renewable energy, utilities are looking to FACTS technologies to ensure power quality and allow smooth renewable feeds into the national grid.
• High Urban Electricity Demand: Urban regions in South Korea are threatened by growing electricity usage with population concentration, and technological development. FACTS ensures efficient handling of such loads and saves losses during transmission while enhancing the voltage profile. Demand is further complemented by urban growth centered on smart mobility, data centers, and tall buildings, all requiring a high-strength and flexible power supply. FACTS devices are best suited for improved reliability in high-load, space-limited conditions.
• Technological Progress in Power Electronics: Continued research in power electronic devices is leading to more compact, efficient, and cost-effective FACTS solutions. They minimize operational losses and increase FACTS applications from urban distribution to offshore renewable projects. Enhanced control systems and automation features further improve grid responsiveness. This technological progress enhances the appeal of FACTS to both utility companies and private sector operators in search of scalable transmission solutions.
• Emphasis on Industrial Energy Efficiency: South Korean manufacturing industries are investing in technologies that save energy and are more reliable. FACTS devices improve power quality, minimize voltage sag, and optimize load flow, resulting in enhanced continuity of operation. In energy-consuming industries like semiconductor fabrication, FACTS provide a competitive advantage by facilitating stable power conditions. With industries looking for energy-saving upgrades, FACTS will be a strategic solution to modernize their electrical systems.

Challenges in the Flexible AC Transmission System market in South Korea are:
• High Installation and Operating Costs: Despite all the advantages, FACTS systems require high initial capital investment and maintenance. This is enough to discourage adoption, particularly by smaller utility operators or in low-density areas. The cost aspect remains a key impediment to wider market uptake in South Korea.
Financial incentives and cost-saving mechanisms are necessary to facilitate wider market penetration in South Korea.
• Complexity in Integration and Design: FACTS systems have intricate design and interface with the installed grid infrastructure. Specialized professionals are required to install, code, and service these systems. The availability of skilled experts can push out deployment schedules and reduce the volume of successful projects. Utilities might also experience difficulty integrating conventional grid architectures to interface with new FACTS technologies.
• Regulatory and Approval Delays: FACTS deployment commonly involves traversing protracted regulatory processes and approval schemes. Environmental reviews, land-use permits, and coordination with utilities may delay project implementation. Uncertainty of regulatory routes or variance in enforcement of standards may complicate FACTS implementation further in both private and public sectors.

While South Korean FACTS market is spurred by robust demand for renewable integration, urban power reliability, and industrial efficiency, it also has to contend with cost, complexity, and regulatory issues. Strategic cooperation among government, industry, and technology providers will be critical to overcome these challenges and realize the full potential of FACTS technologies.

List of Flexible AC Transmission System Market in South Korea 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 South Korea by Segment

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

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

• First Generation
• Second Generation

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

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

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

• Voltage Control
• Power Control

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

• Utilities
• Renewables
• Industrial
• Railways
• Others

Features of the Flexible AC Transmission System Market in South Korea

Market Size Estimates: Flexible AC transmission system in South Korea market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Flexible AC transmission system in South Korea market size by generation, product, end use, and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different generations, products, end uses, and applications for the flexible AC transmission system in South Korea.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the flexible AC transmission system in South Korea.
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 South Korea?
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 South Korea 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 South Korea, Flexible AC Transmission System Market In South Korea Size, Flexible AC Transmission System Market In South Korea Growth, Flexible AC Transmission System Market In South Korea Analysis, Flexible AC Transmission System Market In South Korea Report, Flexible AC Transmission System Market In South Korea Share, Flexible AC Transmission System Market In South Korea Trends, Flexible AC Transmission System Market In South Korea Forecast, Flexible AC Transmission System Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.