By Shubhuti Kiran Ghimire, Research Associate, Critical Power and Energy Storage

The harmonic filters market is estimated to record a compound annual growth rate (CAGR) of 7.2% from 2017 to 2024. The latest technological advances and upgrade of infrastructural reforms in regions such as Asia-Pacific, Latin America, Middle East, and Africa have led to the establishment of harmonic filters as tools for harmonic distortion mitigation.

The market for harmonic filters has been primarily driven by the increasing availability and adoption of variable frequency drives (VFDs). The VFD market is forecast to reach $27.12 billion by 2023. With electric drives accounting for about 70% of global power generation, variable speed drives are being incorporated into power systems to minimize overall energy consumption. However, utilization of variable speed drives leads to harmonic distortions in the power system that can create energy losses. This acts as a major driver for the installation of harmonic filters in power networks.

Market Application of Filters and their Role in Industrial and Commercial Sectors

Harmonic filters are an integral component of electrical power systems. These filters minimize the disturbances created due to the presence of nonlinear loads. Utilization of these filters contributes to a much more efficient power system with reduced voltage losses and extended equipment life. Significant harmonic distortions created in power systems can lead to malfunctioning and reduced efficiency of equipment in industrial and commercial establishments.

The harmonic filters available in the market include active and passive filters. Active filters are a type of analog electronic filters used in multiple active components such as voltage amplifiers or buffer amplifiers. These filters are designed using the latest power electronic designs. Passive filters are electronic filters that are made from passive elements. Use of passive filters is common in speaker crossover design, power distribution networks, and power supply bypassing as well as in home circuits. Passive filters are designed to target a specific band of harmonic frequencies and help mitigate distortions. Due to their ease of use, active filters are preferred in the industrial and commercial sectors.

Information and communications technology (ICT) is expected to account for more than $1.500 trillion in the consumer market as of 2018. The increasing application of ICT in wireless and satellite communication, radar, and radio frequency has led to the increased allocation of government budget for this vertical. Unites States, China, Japan, United Kingdom, and Germany are ranked as the top five countries for ICT spending in 2018. Moreover, countries such as Philippines, India, and Peru are expected to record maximum growth in the ICT vertical with a CAGR of 6.5% from 2016 to 2021.

In the APAC region, China, Taiwan, South Korea, Japan, Indonesia, Malaysia, Bangladesh, Sri Lanka, and India have the highest adoption prospects in terms of power electronic products and solutions. Continuous demand for effective power systems plays a crucial role in the adoption of harmonic filters in these regions.

Consumer Electronic Products and Power Quality Establishments

With the ever increasing utilization of data centers and cloud computing, power inverters and converters have become crucial for the commercial sector. These sectors require efficient power dissemination and are highly dependent on the efficient and uninterrupted operation of equipment. The necessity of effective power quality among these verticals directly attributes to the installation of power equipment that mitigates harmonic distortions.

Integration of renewable energy sources such as wind and solar to the grids has rapidly increased in the past decade. With a global investment of $241.61 billion in 2016 for the renewable energy sector, the demand for power electronics is expected to surge. Furthermore, wind and solar energy sources account for 45% and 32% of this total investment respectively.

European countries such as Germany, UK, and France are projected to witness growth in their power electronics market as well. According to IRENA, Europe has set a target to achieve a 27% share for renewable energy in its total energy mix by 2030. With an investment of $350 million in Spain and $3.70 billion in Sweden for renewable energy generation, European countries are in need of efficient and effective power quality equipment. The connection of these renewable energy sources to the grid creates voltage fluctuations. These fluctuations in the electrical systems contribute to 20% of power loss. Growth in the alternative energy market drives growth in the harmonic filters market.

There is a similar trend in the Asia-Pacific region. The United Nations has identified China as the world’s largest investor in renewable energy sources, with an investment of $126.60 billion. The Association of Southeast Asian Nations (ASEAN) has also set a target to meet 23% of its total energy demand from renewable sources by 2025. Similarly, the Indian government has set a target of achieving renewable energy production of 175 gigawatts (GW) by 2022. This drive toward renewable energy integration leads to the increased deployment of harmonic filters, as these filters ensure better power quality while minimizing energy and thermal losses.

Implementing Regulatory Policies for Enhanced Power Quality

Regulatory guidelines and policies have been established in numerous countries. Although there are international standards and regulations, regions and countries have their own regulatory bodies when it comes to the harmonic distortion limits. International Electrotechnical Commission (IEC) and Institute of Electrical and Electronics Engineers (IEEE) set the global standards for harmonic distortions. While these standards are present in most regions, their mandatory implementation is yet to be enforced.

Countries Regulatory Standards
International Standard Regulation IEC 61000-2-4, Rev. 2002
IEEE 519-1992.
Germany VDE 0839 Teil 2-4
UK G5/3 & G5/4
Norway NVE 1557
Colombia CREG 047
China GB/T 14549-93
India The Central Electricity Authority (GRID Standards) Regulation, 2010
CEA (Technical Standards for Connectivity to the Grid) Amendment Regulation, 2013
CERC (Indian Electricity Grid Code) Regulations, 2010

 

Conclusion

The need for efficient power quality has driven the customer demand for effective power solution equipment. Emerging markets have a relative advantage toward the adoption of new technologies for mitigating harmonic distortion issues. Key opportunity markets are located in Latin America, Middle East, and Asia-Pacific. Companies should move toward the identification of challenges, start building on strategies to improve their product portfolios, and focus on key services that need to be provided to the customers. Moreover, alliances through acquisitions or mergers with local manufacturers are highly recommended for global market players to establish their presence in the local markets. The demand for effective power quality equipment such as harmonic filters is poised for growth in the emerging economies.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

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