U.S. Power Factor Correction Market Size Worth USD 1,211.47 Million by 2034 | CAGR: 6.5%

The U.S. power factor correction market size is expected to reach USD 1,211.47 million by 2034, according to a new study by Polaris Market Research. The report “U.S. Power Factor Correction Market Size, Share, Trends, Industry Analysis Report By Reactive Power (0–200 KAVR, 200–500 KAVR, 500–1500 KAVR, Above 1500 KAVR), By Type, By Sales Channel, By Application – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

The U.S. power factor correction (PFC) market focuses on solutions designed to improve the efficiency of electrical power systems. This involves reducing "reactive power," which is the power that does not perform useful work but is necessary to create magnetic fields for equipment such as motors and transformers. By optimizing the balance between real power (which performs work) and reactive power, PFC systems help lower energy consumption, reduce electricity bills, and enhance the overall stability and lifespan of electrical equipment. Essentially, it ensures that a facility draws only the necessary power from the grid, avoiding waste.

The U.S. power factor correction market is experiencing steady growth, driven by a strong emphasis on energy efficiency across various sectors. Industries, commercial buildings, and data centers are increasingly investing in PFC solutions to mitigate rising electricity costs and avoid penalties imposed by utility companies for inefficient power usage. The market is seeing a notable trend toward more advanced, automatic power factor correction systems that can adapt to fluctuating electrical loads in real-time. Additionally, stricter government regulations promoting energy conservation and the integration of renewable energy sources into the grid are creating demand for these essential power quality management technologies.

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U.S. Power Factor Correction Market Report Highlights

• By reactive power, the 0–200 KVAR segment held the largest share in 2024. This is mainly due to its broad applicability across many small to medium-sized commercial and industrial settings, where such reactive power levels are common, making these systems highly accessible and a practical choice for numerous businesses.
• By type, the automatic segment held the largest share in 2024. This leadership is attributed to its ability to automatically adjust to fluctuating electrical loads in real-time, which is crucial for industries and large commercial facilities with varying power demands.
• By sales channel, the distributors segment held the largest share in 2024. Distributors offer extensive networks, local presence, and additional services such as technical support and inventory management, making them a comprehensive solution provider for a wide range of customers.
• By application, the commercial segment held the largest share in 2024. This dominance is driven by the vast number of commercial buildings that utilize various electrical equipment, leading to poor power factors, and their widespread need for energy cost reduction and overall efficiency.
• A few key players in the market include ABB Ltd., Schneider Electric SE, Eaton Corporation, Siemens AG, GE Vernova, Hitachi Energy Ltd., TCI LLC, Powerside, Controllix Corporation, and Circutor.

Polaris Market Research has segmented the U.S. power factor correction market report on the basis of reactive power, type, sales channel, and application:

By Reactive Power Outlook (Revenue – USD Million, 2020–2034)

• 0–200 KAVR
• 200–500 KAVR
• 500–1500 KAVR
• Above 1500 KAVR

By Type Outlook (Revenue – USD Million, 2020–2034)

• Automatic
• Fixed

By Sales Channel Outlook (Revenue – USD Million, 2020–2034)

• Distributors
• OEM Direct

By Application Outlook (Revenue – USD Million, 2020–2034)

• Renewable
• Commercial
• Data Center
• EV Charging