Global Power Quality Equipment Market to Reach $34.78 Billion by 2033 Driven by Industrial Automation and Renewable Energy Integration

According to Renub Research Latest Report power quality equipment market is projected to grow from USD 20.55 billion in 2024 to USD 34.78 billion by 2033, at a CAGR of 6.02% during the forecast period of 2025–2033. This growth is largely driven by the increasing reliance on sensitive electronic devices, expanding industrial automation, and growing awareness of energy efficiency. Both end-users and utilities are seeking robust solutions that ensure minimal downtime, improved energy performance, and reliability in electrical systems.

Power Quality Equipment Market Overview

Power quality equipment encompasses devices and systems designed to guarantee a consistent, reliable, and high-quality supply of electrical power. These systems help manage voltage fluctuations, harmonics, transients, and other disturbances that can negatively affect sensitive equipment and overall grid performance. Key examples of such equipment include uninterruptible power supplies (UPS), voltage regulators, surge protection devices, harmonic filters, and power quality meters.

With the surge in digitalization, industrial automation, and smart infrastructure, maintaining stable power quality is vital. Poor power quality can lead to equipment damage, operational downtime, data loss, and financial setbacks. This has accelerated the adoption of power quality equipment in sectors such as manufacturing, IT & telecom, healthcare, utilities, and commercial buildings.

The growing deployment of renewable energy sources—which introduce power fluctuations—has further heightened the need for efficient and reliable power quality solutions. Global emphasis on sustainable energy, uninterrupted operations, and energy-efficient systems continues to fuel market growth.

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Key Drivers of Market Growth

1. Industrial Automation and Digitization

The transition to Industry 4.0 has accelerated the adoption of automated manufacturing, logistics, and service processes. Industrial automation systems and precision equipment depend on reliable power to avoid operational disruptions. Even short power interruptions can cause equipment failure, data loss, and costly downtime, particularly in electronics, automotive, and pharmaceutical industries.

Power quality equipment—including UPS, voltage regulators, and harmonic filters—ensures voltage stabilization, power conditioning, and continuity of operations. Global automation trends are expected to drive significant demand for power quality equipment, particularly in high-precision industrial sectors.

In May 2025, Schneider Electric showcased software-defined automation innovations at Automate 2025, highlighting solutions that enhance U.S. industrial competitiveness through robotics, AI, and digitalization.

2. Integration of Renewable Energy

The global shift toward renewable energy sources such as solar and wind introduces grid instability, harmonics, and voltage sags due to the intermittent nature of green power generation. Power quality equipment plays a critical role in stabilizing supply and ensuring compatibility between traditional and renewable energy systems.

In February 2025, the Belize Government, in collaboration with the World Bank and the Canadian Government, announced a $58.4 million energy project to improve electricity reliability while optimizing renewable energy usage. Such initiatives highlight the increasing reliance on resilient power quality systems for grid efficiency and energy security.

3. Expansion of Data Centers and Cloud Infrastructure

With the rise of cloud computing, AI, and big data analytics, data centers require continuous, high-quality power. Power interruptions can lead to data loss, security breaches, and service outages. Consequently, power quality equipment such as UPS systems, harmonic filters, and voltage regulators has become essential in protecting critical IT infrastructure.

The global growth of hyperscale data centers and edge computing facilities is expected to significantly increase demand for power quality solutions. In May 2025, Qualcomm Technologies, Inc. and HUMAIN signed an MoU to collaborate on next-generation AI data centers and cloud-to-edge services, addressing growing AI power requirements worldwide.

Challenges in the Power Quality Equipment Market

1. High Initial Investment and Operational Costs

Despite long-term operational savings, power quality systems involve substantial upfront costs, particularly for industrial-grade installations. Expenses related to equipment procurement, installation, maintenance, and skilled labor can deter small and medium-sized enterprises. Additionally, ROI may not be immediately evident, creating resistance to adoption, especially in emerging markets with limited funding for infrastructure development.

2. Limited Awareness and Skilled Workforce

In many developing economies, there is low awareness of the importance of power quality. Power disturbances are often addressed reactively rather than proactively. Furthermore, installation and maintenance require technical expertise, which is scarce in many regions. This skill gap hampers adoption and performance, emphasizing the need for training programs and awareness campaigns to unlock the market’s potential.

Segment Analysis

UPS (Uninterruptible Power Supply)

UPS systems provide backup power and protect sensitive equipment in data centers, hospitals, banks, and telecom facilities from power loss and voltage fluctuations. Growing dependence on digital infrastructure and innovations such as modular and energy-efficient UPS models are boosting adoption in both industrial and small commercial applications.

Power Quality Meters

Power quality meters monitor electrical parameters, detect anomalies, and enable real-time corrective actions. Utilities, manufacturers, and commercial facilities increasingly rely on these devices to enhance efficiency and reduce equipment damage. With the growth of IoT-enabled smart grids, these meters are becoming more intelligent and precise, supporting predictive maintenance and regulatory compliance.

Single-Phase Power Quality Equipment

Single-phase units are primarily used in residential and small commercial settings. With the rise of smart homes and connected devices, voltage stabilizers, filters, and surge protectors safeguard sensitive equipment, ensuring efficiency and longevity.

Commercial Power Quality Equipment

Commercial buildings, including malls, offices, and educational institutions, require stable power for lighting, HVAC systems, elevators, and IT infrastructure. Power quality devices ensure uninterrupted operations, energy efficiency, and reduced maintenance costs. The trend toward green buildings and intelligent infrastructure is driving rapid adoption in urban commercial spaces.

Transportation Power Quality Equipment

Modern transportation systems—including electric railways, metro networks, and EV charging stations—depend on reliable power. Distortions or interruptions can lead to system malfunctions, safety risks, and service delays. Devices like harmonic filters and voltage regulators are critical for maintaining power reliability. Increasing investment in urban transport infrastructure and EV networks is expanding demand in this segment.

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Regional Outlook

United States

The U.S. market benefits from digitalized infrastructure, aging grids, and a strong focus on industrial automation. Investments in renewable energy, expanding data centers, and government policies supporting energy efficiency and smart grids further fuel demand. For instance, in March 2025, JST Power Equipment began production at a new padmount transformer facility in Wytheville, Virginia, complementing their Nogales, Mexico expansion.

France

France is accelerating renewable energy integration and smart grid deployment. Increasing renewable penetration and industrial automation drive demand for UPS devices, power quality meters, and voltage regulators, particularly in manufacturing, telecom, and utility sectors. In June 2023, Hitachi Energy secured a contract for four HVDC converter stations connecting France and Spain via a subsea cable project.

India

Frequent grid instability and rapid urbanization in India are increasing demand for power quality equipment across industries, IT parks, and residential areas. Government initiatives such as “Make in India” support infrastructure development and private-sector investment in reliable power solutions. In October 2024, Hitachi Energy introduced the Relion REF650, an all-in-one protection and control relay optimized for India’s dynamic grid requirements.

Saudi Arabia

Saudi Arabia’s Vision 2030 initiative drives energy diversification and infrastructure modernization. Investment in smart cities, industrial parks, and renewable energy necessitates high-quality power supply, boosting demand in oil & gas, manufacturing, and data centers. In April 2025, the SEC launched Phase 2 of its Battery Energy Storage System (BESS) project, adding 2.5 GW of storage capacity across five locations to support renewable energy integration.

Market Segmentation

Equipment: UPS, Surge Protection Devices, Voltage Regulators, Power Quality Meters, Harmonic Filters, Others

Phase: Single Phase, Three Phase

End Use: Industrial & Manufacturing, Commercial, Utilities, Transportation, Residential

Regions: North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key Players: Hitachi Energy Ltd, Siemens AG, EATON Corporation Plc, Emerson Electric Company, Schneider Electric SE, General Electric Company, Toshiba Corporation, Schaffner.

These companies lead through technological innovation, energy-efficient solutions, and global distribution networks, ensuring market leadership in a competitive landscape.

Conclusion

The power quality equipment market is poised to reach USD 34.78 billion by 2033, fueled by industrial automation, renewable energy adoption, and digital infrastructure expansion. Rising reliance on sensitive electronic equipment and uninterrupted operations underscores the importance of reliable power quality systems.

While high capital costs and limited technical expertise present challenges, innovations in UPS systems, power meters, and voltage regulators, coupled with renewable energy integration, are creating growth opportunities. Regions including the U.S., France, India, and Saudi Arabia are expected to be key drivers due to industrial expansion, smart grid deployment, and energy infrastructure investments.

Companies investing in advanced, energy-efficient, and intelligent power quality solutions are well-positioned to meet rising global demand, contributing to grid reliability, operational efficiency, and sustainable energy management worldwide.

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