Harmonic Filter Market Analysis, Size, Share & Forecast 2031

Report Description

Harmonic Filter Market Outlook:

The Global Harmonic Filter Market was valued at USD 1,113.9 million in 2022 and is projected to reach USD 1,835.8 million by 2031, expanding at a CAGR of 5.8% during the forecast period.

A harmonic filter is a specialized electronic component utilized within electrical systems to address the growing concern of harmonics. Harmonics denotes unwanted and distorted sinusoidal waveforms that emerge as a result of non-linear loads, such as power electronic devices. These distorted waveforms, which are typically multiples of the fundamental frequency, lead to a lot of issues, including voltage distortion, equipment overheating, and power losses.

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Harmonic filters act as instruments that selectively mitigate the harmful impact of harmonics on the power distribution network. These filters possess the capability to identify specific harmonic frequencies and subsequently generate counteracting currents that possess inverse phase angles, effectively neutralizing the undesired harmonic components.

Harmonic filters enable the restoration of the sinusoidal waveforms, thus maintaining the integrity of the electrical grid and preventing potential disruptions to sensitive equipment.

Harmonic Filter Market Dynamics

Market Driver- Integration of Variable Frequency Drives (VFDs) in Industry 4.0

Integration of Variable Frequency Drives (VFDs) in Industry 4.0 is expected to drive the global harmonic filter market. Harmonics are generated in an electric power system, due to the presence of non-linear loads, such as drives, in the system. Growing need for ensuring the quality of power and increasing use of non-linear loads that produce harmonics, such as variable-frequency drives, are driving the global harmonic filter market.

Additionally, developing countries are focusing on developing their power infrastructure. This is expected to offer ample growth opportunities to the harmonic filter market in these countries during the forecast period. Variable-frequency drives are energy-efficient, as the motor is operated at variable speeds throughout their use, unlike other drives.

However, fluctuating voltage levels in variable-frequency drives result in the generation of harmonics. Thus, the demand for harmonic filters is anticipated to increase to suppress the effect of harmonics generated by the usage of variable-frequency drives.

Market Driver- Favorable Government Regulations

Power quality and harmonics rules and regulations are driving organizations to invest in advanced harmonic filter technologies. Compliance with these regulations ensures that operations run smoothly and helps to avoid penalties and reputation damages. Companies and various governments are initiating investments that are driving the demand for harmonic filters in the market.

Regulatory guidelines and policies have been established in numerous countries. Apart from international standards and regulations, most regions and countries have their own regulatory bodies that recommend harmonic distortion limits.

International Electrotechnical Commission (IEC) and the Institute of Electrical and Electronics Engineers (IEEE) set global standards for harmonic distortions. These standards are present in most regions; however, their mandatory implementation is yet to be enforced.

Governments have enacted several laws and are imposing penalties on industries that do not comply with the power quality norms, consequently driving the harmonic filter market.

Market Restraint- High Cost & Availability of Substitutes

Price is an important factor in restraining the market growth, particularly in developing countries with price-sensitive consumers. Harmonic filters are expensive; hence, their use is restricted to limited sectors. Adoption of harmonic filters is high in sectors such as IT, textile, automotive, and paper & pulp. However, the adoption of harmonic filters is low in small enterprises, due to the availability of cost-effective substitutes.

Small companies have adopted affordable options for harmonic mitigation, such as transformers, reactors, and low-cost filters. These substitutes do not achieve perfect harmonic filtering; however, they are preferred by low-budget customers and companies in developing countries. As a result, the availability of cost-effective substitutes hampers the growth of the harmonic filter market.

Market Opportunity- Increasing Demand in IT and Data Centers

Proliferation of data centers and their reliance on high-quality power supply are expected to create opportunities for the adoption of harmonic filters to ensure uninterrupted operations and protect sensitive IT equipment. Increasing demand for power inverters and static converters in commercial applications such as data centers and cloud computing is expected to accelerate the growth of the harmonic filter market.

Growing need for ensuring power quality leads to the increased use of harmonic filters in high-end machines, UPS, routers, servers, and HVAC systems. Rising number of data centers is boosting the demand for harmonic filters in the market. According to CloudScene data6, around 8,000 data centers were in operation globally, as of January 2021.

Majority of data centers are present in six nations, including the US with 33% of the total, the UK with 5.7%, Germany with 5.5%, China with 5.2%, Canada with 3.3%, and the Netherlands with 3.4%. These factors offer opportunities for companies operating in the harmonic filter market to expand their business and cater to the increasing demand from IT and data centers.

Scope of Harmonic Filter Market Report

The report on the global harmonic filter market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Harmonic Filter Market Segmental Outlook

The Global Harmonic Filter Market is segmented on the basis of type, voltage level, phase, application, end-user, and region.
On the basis of type, the global harmonic filter market is segmented into active harmonic filters, passive harmonic filters, and hybrid harmonic filters. The passive harmonic filters segment held a major market share in 2022, as it is a cost-effective solution for mitigating harmonic distortions in electrical systems.

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On the basis of voltage level, the global harmonic filter market is segmented into low voltage (LV), medium voltage (MV), and high voltage (HV). The low voltage (LV) segment held a substantial market share in 2022, due to the demand for efficient solutions to maintain stable voltage levels increases, as industrial systems become increasingly complex and sensitive.

On the basis of the phase, the global harmonic filter market is segmented into single phase and three-phase. The three-phase segment held a substantial market share in 2022, owing to the reliance of industrial and commercial sectors on three-phase power systems. As these sectors adopt advanced machinery and technology, harmonic distortions pose risks to equipment efficiency and durability.

On the basis of application, the global harmonic filter market is segmented into variable frequency drives (VFD), power factor correction (PFC), UPS systems, welding equipment, and others.

The variable frequency drives (VFD) segment held a major market share in 2022, as VFDs are an integral part of industrial processes for motor speed control, and often generate harmonic distortions that affect power quality and equipment lifespan. Harmonic filters integrated with VFDs reduce these distortions, enhancing overall system efficiency.

On the basis of the end-user, the global harmonic filter market is segmented into industrial, commercial, residential, data centers, healthcare, others. The industrial segment held a substantial market share in 2022, due to the growing recognition of the impact of power quality on industrial productivity boosts investment in harmonic filters as essential tools to ensure smooth operations and enhance overall equipment performance.

Regional Outlook

Based on regions, the harmonic filter market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in the North America market is growing in the region, owing to the huge production of consumer electronic products in the region as well as its large population. The harmonic filter market in the US has grown significantly, due to the increasing incidence of non-linear loads in industrial and commercial sectors.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Harmonic Filter Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Harmonic Filter Market