Global Harmonic Filter Market 2024–2033

Reports Description

Global Harmonic Filter Market size was valued at USD 1,343.6 Million in 2024 and is expected to reach USD 3,119.6 Million by 2033 at a CAGR of 8.99% from 2024 to 2033.

Harmonic Filter is a device that reduces distortion by diverting harmonic currents in low-impedance paths. They are a series of parallel resonant circuits built to block the harmonic currents. Harmonic filters prevent equipment damage, reduce downtime, decrease operating costs, and maintain a reliable electrical system.

The main purpose of the harmonic filter is to prevent the harmonic current from flowing through the network impedance and, as such, reduce or eliminate the harmonic voltage or eliminate the harmonic current entirely. The popularity of the harmonic filtering is increasing among the consumers and network operators.

Harmonic Filter Market: Growth Factors

Growing Demand for High Power Quality and Reliability

The growing demand for high-power quality equipment coupled with reliable power due to increasing industrialization & automation and stringent regulations on the power quality standards. The growing utilization of various advanced technologies such as automation, emerging technologies such as IoT technologies, artificial intelligence, etc. is boosting the demand for reliable and efficient power quality solutions to prevent costly downtime and equipment damage.

Thus, many end-use industries, such as residential and commercial, are adopting the harmonic filter to reduce the harmonic currents flowing in the power system from the source and thereby reduce the harmonic voltage distortion in the system.

Furthermore, harmonic filters improve the quality of the power supply by reducing reactive power consumption and line transformer losses. The growing adoption of harmonic filters to reduce the damage to electrical equipment by reducing the amount of heat generated in transformers, motors, and other electrical equipment. Thus, factors above are expected to drive the overall market growth during the forecast period.

Increasing Adoption of the Variable Frequency Drives (VFDs)

The adoption of the variable frequency drives is increasing across the various end use applications such as power generation, infrastructure, oil & gas, food & beverages and mining. Thus, growing demand for VFDs is expected to boost the adoption of harmonic filters because they are mainly used to reduce the amount of harmonic current and voltage distortion on the mains.

Variable frequency drives can produce harmonics that cause problems for the power system and equipment.  Furthermore, the growing demand for enhancing energy efficiency is bolstering the adoption of variable frequency drives.  Growing emphasis on increasing digitalization across the government and private sectors and increasing automation in the various end use industries is expected to boost the adoption of VFDs.

For instance, the government of India has launched the Digital India mission to digitalize the various operations and processes of the government and private organizations. Thus, such policies are expected to spur the adoption of VFDs, thereby driving the demand for harmonic filters.

Growing adoption of smart connected devices in various end use applications such as industrial, commercial and residential applications is boosting the demand for the variable frequency drive (VFD). The increasing demand for HVAC systems due to growing industrialization and infrastructure to improve the energy output is boosting the demand for the VFD, thereby creating a harmonic filter. The VFDs offer various advantages, such as increasing torque control and improved energy efficiency are, mainly boosting their adoption across various applications, thereby driving the demand for harmonic filters.

Harmonic Filter Market: Restraint

High Cost of the Harmonic Filters

The Harmonic Filter comprises various components such as resistors, inductors, and capacitors, and is designed to deflect unwanted harmonic currents. The prices of these components are very high and increasing continuously due to increasing inflation and supply chain disruptions.

Thus, such factors are increasing the overall manufacturing cost of the harmonic filter. Furthermore, the harmonic filter installation is very costly as it requires skilled labors and highly advanced equipment. It also requires the constant maintenance and monitoring, evaluation and inspection, which increases the overall maintenance and operation cost.

The lack of skilled labourers and engineers in many countries for operation and maintenance is restraining its market growth in many developing and underdeveloped countries.  Thus, such factors restrain the entry of new players and discourage investment in the market. Thus, factors above are restraining the market growth.

Availability of the Substitutes and Complex Regulatory Process

The harmonic filters are very expensive, so their adoption is limited to big end use applications such as IT, automotive, textile, and pulp & paper. The many scale industries are opting for cost-effective substitutes such as static var generators, budget-friendly filters, reactors, transformers, and capacitor banks.

These alternatives are emerging as cost effective and popular for customers in developing economies. Thus, the easy availability of substitutes restraining the adoption of harmonic filters in many end-use applications, thereby restraining market growth.

Furthermore, the complex and stringent regulatory framework also retrains the overall market growth. Every region and country has its own set of rules and regulations about the production and usage of harmonic filters. The key players and other stakeholders operating in the market are finding it very difficult to comply with such complex and dynamic regulatory process and requirements. Thus, such factors discourage the overall investment in the market, thereby restraining the market growth.

Harmonic Filter Market: Opportunity

Technological Advancements in the Harmonic Filter

The major key players operating in the harmonic filter market are heavily investing in product innovations, technological advancements, and research and development activities. Technological advancements such as high-speed digital signal processing technology and adaptive filtering algorithms, solid state devices, sensor technology, integration of emerging technologies, digital signal processing technology and power electronic devices are mainly creating the lucrative opportunities for the harmonic filter market during the forecast period.

The automated harmonic filters contain high speed digital signal processing technology and adaptive filtering algorithms, which can monitor the state of the power grid in real time and adjust the filtering parameters automatically, thus realising efficient harmonics filtering.

The smart sensor technologies and AI integrated the harmonic filters analyze and monitor the devices on a real-time basis and improves the operational efficiency and productivity of the electronic devices. Thus, the above-mentioned technological innovations are expected to create lucrative opportunities for the market during the forecast period.

The Growing Adoption of Harmonic Filters in Commercial Applications

The usage of various electronic devices such as inverters, electronically commutated (EC) motors, LEDs, electronic ballasts, and voltage stabilizers is increasing across various commercial applications such as banking, healthcare, shopping centres, airports, railway stations, financial services, commercial constructions and retail industries, which in turn driving the demand for the harmonic filters.

The harmonic filters offer benefits in commercial applications such as enhanced air quality, reduced risk of power equipment damage, improvement in energy efficiency, reduced risk of electrical system malfunctions, and improved safety and security. These advantages are boosting its adoption in many commercial applications, thereby creating lucrative market opportunities for the stakeholders operating in the market.

Harmonic Filter Market: Segmentation Analysis

The Global Harmonic Filter market is segmented by product, phase, voltage, end-use, and by region. By product, the market is segmented into active, passive, and hybrid harmonic filters. Among all of these, the passive segment dominated the market and is expected to keep its dominance during the forecast period owing to its growing adoption in various end-use applications such as residential, commercial, and industrial.

The passive harmonic filters are integrated into electronic devices to mitigate harmonics and protect the equipment from disruptions. Passive harmonic filters are largely employed in uninterruptible power supply (UPS) devices, VFDs for motors, transformers, and rectifiers due to their cost-effectiveness.

The growing adoption of the passive harmonic filters in the industrial applications and the renewable energy systems such as wind and solar power is expected to create the lucrative opportunities for market during the forecast period.

Active harmonic filter systems are expected to grow at the fastest CAGR during the forecast period owing to growing adoption in semiconductors, data centres, and other high-end use applications. Active Harmonic Filter (AHF) provides an effective means to mitigate harmonics, reduce process-related voltage fluctuations and improve equipment operating life and system capacity.

By phase, the global harmonic filter market is segmented into single and three phases. Among all these, three phase segments dominated the market and are expected to keep its dominance during the forecast period owing to its growing adoption in many industrial applications.

Factors such as rapidly expanding industrial end use industries, increasing investment in the various industries for energy efficiency and growing high-capacity energy demand are mainly driving the three-phase harmonic filter market.

The growing usage of the three-phase harmonic filter in high-power systems for decreasing voltage distortion and for power factor correction is expected to create lucrative opportunities for the market during the forecast period.

By end use industry, the global harmonic filter market is segmented into residential, commercial and industrial. Among all these, the industrial segment dominated the market and is expected to keep its dominance during the forecast period owing to the growing adoption of the harmonic Filter in industrial applications.

The growing stringent regulations pertaining to the installation of harmonic filters in industrial applications to control and remote monitoring are expected to fuel the usage of harmonic filters across this end-use industry.  The growing use of non-linear loads, and economic benefits associated with improved energy efficiency and uninterrupted workflows are projected to drive growth for this segment.

The commercial applications segment is expected to grow at the fastest CAGR during the forecast period owing to the growing implementation of harmonic filters in the various commercial end-use applications such as banking, hospital, airport, and retail applications.

Report Scope

Harmonic Filter Market: Regional Analysis

By Region, Harmonic Filter market is segmented into North America, Asia Pacific, Europe, Middle East & Africa and Latin America.

Among all these, North America held the largest market share in 2023 and is expected to maintain its dominance during the forecast period owing to the rapidly expanding end-use industries and increasing investment by global companies in the region.

Key countries such as the U.S., Canada, and Mexico are mainly driving the market growth of this region. Various factors such as the presence of well-established end-use industries, growing research and development activities in the power supply sector, increasing investment by the companies in product development, and supportive government policies are mainly driving the market growth of this region.

Additionally, increasing adoption of the harmonic filters in the commercial applications, growing stringent regulations about harmonic filter installations and growing adoption of the various emerging technologies such as artificial, internet of things is expected to create lucrative opportunities for key players in this region.

Asia Pacific region is expected to grow at the fastest CAGR during the forecast period owing to the rapid adoption of harmonic filters in this region. Key countries such as China, India, Japan, South Korea, and Australia are mainly driving the market growth of this region.

Various factors, such as the growing presence of global companies in the region due to the easy availability of raw materials and skilled workforce at low wages, rapidly growing end-use industries, and increasing digitalization in the private and government sectors, are mainly driving the market growth of this region.

China is a major country in this region and is expected to keep its dominance during the forecast period owing to the presence of a well-developed value chain in China and the growing production and sales of harmonic filters in this region.

Harmonic Filter Market: Recent Developments

• In January 2023, Danfoss launched the advanced harmonic filters. These filters have technology which includes mitigation based on active front-end technology. The Advanced Active Filter identifies harmonic distortion in the system and injects a counter-current to cancel the electric noise.

• Recently, Enerdoor launched a NEW Passive Harmonic Filter named the FINHRM5C.  This state-of-the-art technology for harmonic solutions has very low power loss and is ultra-compact – being one of the smallest passive harmonic filters on the market.

Harmonic Filter Market: Competitive Landscape

The key players operating in the market are adopting various organic and inorganic growth strategies such as merger & acquisition, collaboration, product innovation, new product launches, expansion, strategic alliances, and joint ventures to enhance their market presence and business operations.

The key players in the Global Harmonic Filter Industry are:

• ABB
• Schneider Electric
• Siemens
• Emerson Electric Co
• Danfoss A/S
• Enerdoor
• Schaffner Holding AG
• TDK Corporation
• Eaton
• Comsys AB
• MTE Corporation
• Baron Power
• LPI-NZ Ltd
• Mesta Electronic Inc.
• Reo AG
• Baron Power Ltd
• TCI LLC
• Others

The Harmonic Filter Market is segmented as follows:

By Product

• Active
• Passive
• Hybrid

By Phase

• Single Phase
• Three Phase

By Voltage

• Low Voltage
• Medium Voltage
• High Voltage

By End Use

• Industrial
• Commercial
• Residential

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America