India STATCOM Market Key Takeaways

• The India STATCOM market was valued at USD 96.92 million in 2025 and is projected to grow from USD 109.64 million in 2026 to USD 229.78 million by 2032, registering a CAGR of 13.10% during 2026–2032.
• High Capacity (>100 MVAR) remains the dominant power-capacity segment, accounting for an estimated 54.20% share in 2026.
• Electric utilities lead the end-user segment, accounting for an estimated 48.50% share in 2026.
• The market is moderately consolidated, with the top five companies estimated to account for 70% of market revenue in 2026 collectively.

India STATCOM Market Size & Outlook

The India STATCOM market is valued at USD 96.92 million in 2025 and is projected to reach USD 229.78 million by 2032, expanding at a 13.10% CAGR during 2026–2032. The market is expected to reach USD 109.64 million in 2026, supported by rising grid-stability requirements.

The Central Electricity Authority’s draft Technical Standards for Connectivity to the Grid Regulations, 2026 require renewable energy plants, battery energy storage systems, and bulk consumers connected at 33 kV and above to maintain dynamic reactive power capability of ±0.95 power factor at the Point of Interconnection, strengthening STATCOM demand.

India’s renewable expansion is further widening the addressable market. The Ministry of New and Renewable Energy reported 283.46 GW of non-fossil power capacity as of March 31, 2026, after adding 55.29 GW during FY2025–26. Increasing variable renewable generation is driving demand for dynamic voltage and reactive power compensation.

Utility investment is also supporting near-term adoption. Power Grid Corporation of India Limited, through Powergrid Khavda PS1 and 3 Transmission Limited, secured an ISTS-TBCB scheme in November 2024 for 400 kV STATCOM-based reactive compensation, with commissioning scheduled for November 2026, demonstrating growing investment in dedicated grid-stability infrastructure.

India STATCOM Market Key Indicators

• The Ministry of Power reports the addition of 35,172 circuit km of transmission lines and 270,174 MVA of transformation capacity between FY2023–24 and FY2025–26, expanding the high-voltage infrastructure base where dynamic voltage-control and reactive-power compensation systems are deployed.
• As per the CEA data, it indicates 5,844.31 MW of renewable capacity was added during June 2026, increasing the volume of variable generation connected to the grid and strengthening demand for fast-response voltage regulation and reactive-power support at renewable-rich grid nodes.
• According to MNRE, India’s installed solar capacity reached 164.59 GW by July 2026. The expanding solar generation base is increasing the addressable requirement for high-MVAR STATCOM systems across solar parks, pooling substations, and transmission corridors.
• By the Ministry of Railways data shows broad-gauge electrification exceeded 95% in 2024, expanding electrically intensive traction networks. This supports demand for traction STATCOM applications that address phase unbalance, voltage fluctuations, and voltage sags, particularly across dedicated freight and high-load railway corridors.

India STATCOM Investment Landscape

India's STATCOM investment opportunity is supported by a substantial forward transmission-project pipeline. POWERGRID reports approximately USD 17.0 billion of projects in hand, while its management indicates an execution outlook of approximately USD 34.8 billion through 2032, including around USD 31.3 billion in inter-state transmission projects. These figures represent broader transmission investment and are not counted as STATCOM market revenue, but they establish the infrastructure spending pool from which STATCOM procurement emerges.

The TBCB mechanism provides an additional private-sector investment channel. POWERGRID secured 15 TBCB projects with a combined notified cost of approximately USD 3.6 billion during CY2025. The company also indicates that more than USD 104 billion of transmission projects remain to be allocated through 2032, creating a large future procurement pipeline for transmission equipment. STATCOM suppliers can participate where project-level power-system studies identify requirements for dynamic voltage and reactive-power compensation.

Investment opportunities therefore extend beyond complete STATCOM systems into MMC-VSC converters, converter valves, control and protection systems, transformers, cooling equipment and high-voltage testing. The expanding TBCB pipeline is particularly relevant for equipment manufacturers and EPC contractors with established utility relationships and domestic engineering capabilities.

Capital deployment is best positioned toward high-MVAR STATCOM platforms, power-electronics manufacturing, converter technology, grid-control systems and utility-scale EPC integration, with TBCB and renewable-energy transmission projects providing the strongest identifiable procurement channels.

India STATCOM Market Scope

India STATCOM Market Growth Driver

Grid Stabilization Mandates for Renewable Integration Accelerate Utility-Scale STATCOM Deployment

India’s accelerating renewable integration is creating a substantial requirement for dynamic reactive-power compensation across the transmission network. According to the Central Electricity Authority (CEA) Transmission System Plan for 500 GW RE by 2030, more than 30,000 MVAR of dynamic reactive-power capacity must be integrated into Inter-State Transmission System (ISTS) substations by 2027. This requirement creates a significant deployment pipeline for high-capacity STATCOM systems at renewable-rich transmission and pooling nodes.

The requirement is translating into dedicated utility procurement. Power Grid Corporation of India Limited, through Powergrid Khavda PS1 and 3 Transmission Limited, secured a dedicated ISTS-TBCB STATCOM scheme in November 2024 to address grid instability in the Northern Region arising from high renewable-energy injection from Rajasthan, with commissioning targeted for November 2026. The project demonstrates how rising renewable penetration is converting grid-stability requirements into dedicated STATCOM investments, strengthening the pipeline for high-capacity dynamic reactive-power compensation across India’s transmission network.

Recent Trend

MMC-Based STATCOM Adoption Supports Faster, More Scalable Grid Stabilization

India’s STATCOM market is increasingly shifting toward Modular Multilevel Converter (MMC)-based architectures, which provide modular scalability, flexible reactive-power control, and improved power-quality performance for renewable-heavy transmission networks. The technology is gaining relevance as utilities require faster dynamic compensation across high-voltage substations. In September 2025, Larsen & Toubro secured grid-infrastructure orders including STATCOM systems for 400 kV substations, supporting dynamic reactive-power compensation and voltage stability across transmission networks.

On the technology-supply side, domestic manufacturing capabilities are expanding for advanced STATCOM power-electronics equipment. Hitachi Energy India’s FY2024–25 disclosures confirm manufacturing, assembly, and testing of STATCOM semiconductor valves in India, with factory qualification underway for STATCOM projects. This localization supports shorter equipment lead times and strengthens domestic supply capabilities for high-voltage grid-stabilization applications, creating opportunities for suppliers of converter valves, digital controls, power electronics, and associated STATCOM services.

India STATCOM Market Opportunities and Challenges

High Capital Requirements and Procurement Constraints Create Opportunities for Flexible STATCOM Deployment

High-capacity STATCOM deployment requires substantial investment in converter systems, transformers, switchgear, protection, and substation infrastructure, creating affordability and implementation challenges for state transmission utilities. Recent grid-planning activity nevertheless shows continued unmet demand: OPTCL proposed a ±300 MVAr STATCOM at Mendhasal, following voltage instability events around Bhubaneswar and Kolkata. Such requirements indicate opportunities for solutions that reduce installation complexity while delivering high-capacity dynamic reactive-power support.

This challenge creates an opportunity for modular and flexible STATCOM configurations that can be deployed across constrained substations without requiring entirely new transmission infrastructure. For example, MSETCL issued a tender for a ±200 MVAr STATCOM with a 400 kV GIS bay at Dhule, while another tender covers a ±300 MVAr STATCOM at Lonikand-II. Increasing procurement at multiple voltage levels supports opportunities for standardized modular systems, retrofit solutions, and integrated STATCOM packages.

Segmentation Insights

High-Capacity STATCOM Systems Anchor India’s Grid-Stability Investment Cycle

High-Capacity (>100 MVAR) systems lead the power capacity segment and account for 54.20% of India’s STATCOM industry revenue in 2026, reflecting the higher capital value of 400 kV and 765 kV ISTS-class projects. Transmission utilities increasingly deploy these systems at renewable pooling and evacuation nodes, where large-scale dynamic reactive-power compensation is required to manage voltage fluctuations and maintain stability during high-volume power transfers across increasingly renewable-intensive transmission corridors.

The segment’s revenue leadership is reinforced by the Khavda Phase-IV (Part C) transmission scheme, which incorporates a ±200 MVAR STATCOM alongside 765 kV/400 kV transmission lines and reactors. Such ISTS projects are procured as large, integrated transmission packages, giving each STATCOM installation substantially higher project value than smaller distribution-level systems. This concentrated capital deployment enables high-capacity equipment to maintain revenue leadership despite potentially lower unit volumes. Based on power capacity, the industry is segmented into:

• Low Capacity (< 20 MVAR)
• Medium Capacity (20 MVAR to 100 MVAR)
• High Capacity (> 100 MVAR)

Electric Utilities Emerge as India's Largest STATCOM Revenue Pool

Electric Utilities hold the largest market share by end user, accounting for an estimated 48.50% of industry revenue in 2026, driven by high-voltage transmission expansion, renewable energy evacuation and utility grid-strengthening requirements. CEA identifies 20 STATCOM/SVC installations already commissioned, 13 under implementation, and 2 planned across transmission systems, demonstrating the concentration of dynamic reactive-power compensation within utility infrastructure. Current POWERGRID procurement further includes 300 MVAR STATCOM systems at renewable energy pooling and transmission substations, reinforcing the utility segment's higher-value project profile.

Electric Utilities generate the highest revenue because utility-scale STATCOM projects combine large MVAR ratings with high-voltage substation integration, converter equipment, transformers, protection, control and commissioning requirements. POWERGRID's current 300 MVAR Kurnool-V STATCOM supports renewable-energy integration through the Kurnool-V REZ, while comparable 300 MVAR systems are also specified for Ananthapuram-III and Tumkur-II. The continued expansion of renewable-energy evacuation infrastructure therefore creates sustained opportunities for high-capacity STATCOM systems, particularly across 400 kV and 765 kV transmission networks. Based on End User, the industry is segmented into: Based on End User, the industry is segmented into:

• Electric Utilities
• Transmission Utilities
• Distribution Utilities
• Renewable Energy Developers
• Solar
• Wind
• Hybrid Renewable Energy
• Steel & Metals
• Mining
• Railways & Metro Transportation
• Other Industrial Users

India STATCOM Market Competitive Analysis

The India STATCOM market is moderately consolidated, with the top five companies estimated to collectively command 70% of 2026 market revenue. Siemens Energy India Limited, Hitachi Energy India Limited, GE T&D India Limited, ABB India Limited, and Bharat Heavy Electricals Limited (BHEL) represent the leading competitive group.

Top Companies in the India STATCOM industry:

• Siemens Energy India Limited
• ABB India Limited
• Bharat Heavy Electricals Limited (BHEL)
• Hitachi Energy India Limited
• GE T&D India Limited
• Larsen & Toubro Limited
• KEC International Limited
• Mitsubishi Electric India Pvt. Ltd.
• Sterlite Power Transmission Limited
• Kalpataru Projects International Limited

Industry News and Recent Developments

May 2025: GE Vernova Announces USD 16 Million India Expansion for HVDC and STATCOM Manufacturing

GE Vernova announced an approximately USD 16 million investment in India covering expansion of its Chennai manufacturing capability and establishment of a Noida engineering and testing facility. The Chennai line is designed to manufacture LCC-HVDC valves and VSC STATCOM valves, while the Noida facility supports design validation and testing. The development is targeted at advanced transmission and FACTS requirements associated with renewable integration.

Impact Analysis: The investment strengthens local converter-component capability and reduces dependence on imported power-electronics components. It improves the ability of domestic suppliers to participate in high-value STATCOM and HVDC projects as Indian utilities expand high-voltage renewable-evacuation infrastructure.

May 2026: POWERGRID Advances 300 MVAR STATCOM Procurement for Kurnool-V REZ

POWERGRID continued procurement activity for a 300 MVAR STATCOM at Kurnool-V Pooling Station associated with Phase-I integration of the Kurnool-V renewable-energy zone. The package is connected with a 765/400 kV transmission configuration and uses the TBCB procurement route. The project demonstrates continuing movement from renewable-generation additions toward dedicated grid-support infrastructure.

Impact Analysis: The project reinforces high-capacity transmission STATCOMs as a direct beneficiary of renewable-zone development. It also increases the addressable market for suppliers capable of executing large-MVAR systems alongside high-voltage AIS/GIS substations and renewable-evacuation infrastructure.