Devices that are used to reduce the harmonics in certain equipment are known as harmonic filters. Harmonic frequencies tend to occur in most electrical systems and cause problems associated with the quality of power. If these problems go ignored, transformers and conductors can overheat, and electrical equipment’s efficiency can be negatively impacted. Excessive harmonics lead to situations such as computer lock-ups, PLC related issues, and even spurious variable frequency drives (VFD) alarms.
The growing use of non-linear loads, such as the VFDs that produce harmonics, coupled with the increasing need to ensure power quality, is boosting the growth of the global harmonic filter market.
Rise in automation across different industrial and commercial applications has increased the demand for VFDs. Meanwhile, achieving acceptable levels of power quality is also becoming increasingly important. By maintaining power quality through harmonic suppression, power losses can be minimized and significant energy savings can be achieved.
Escalating demand from IT and data centers is expected to support the growth of high end machines and equipment with non-linear loads, giving rise to harmonics. This will necessitate the use of harmonic filters not only to optimize power quality, but to meet government regulations and avoid penalties imposed by utilities on harmonic distortion. Besides IT and data centers, the other end users in the global harmonic filter market are food processing, oil and gas, packaging, automotive, and water treatment.
According to Transparency Market Research, the global market for harmonic filters is likely to grow to $1.2 billion USD by 2024, rising at a compound annual growth rate of 6.50 percent between 2016 and 2024. In 2015, it had attained a valuation of $697.2 million USD worldwide. Currently, passive harmonic filters attract higher demand than active harmonic filters. However, the latter is expected to gain impetus over the next few years. While low voltage harmonic filters are likely to hold the majority of the market share, medium voltage harmonic filters will register the fastest growth rate over the forecast period.
Asia Pacific emerged the largest regional market for harmonic filters with a share of nearly 38 percent in 2015. It is likely to grow almost 1.8 times over the forecast period to reach $471.6 million USD by the end of this term.
The future of harmonic filters will be shaped by the trends in power quality management. Leading companies are focusing aggressively on the expansion of their product lines in this field. The key companies operating in the global harmonic filter market are Schneider Electric, Schaffner Holding AG, Siemens AG, MTE Corporation, Janitza Electronics GMBH, Epcos AG, Emerson Network Power, Eaton Corporation, Danfoss A/S, Crompton Greaves Ltd., Baron Power Ltd., and ABB Ltd., among others.
The stiff competition between ABB Ltd., Emerson Electric Co., and Schneider Electric SE characterizes the competitive landscape of the global harmonic filter market. Collectively, these three players account for a share of 41 percent in this highly concentrated market. As the industrial sector consumes the highest number of these filters at present, ABB Ltd., which supplies harmonic filters to utilities, metal processing, and manufacturing industries, has gained prominence, accounting for 17.7 percent of the market.