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China's Power Capacitor Industry in 2024: Steady Growth Fueled by New Energy and Grid Modernization
An analysis based on data from the China Electrical Equipment Industry Association and the China Electricity Council (CEC), focusing on key applications in power factor correction and reactive power compensation.
This report provides a comprehensive analysis of the operational status and future outlook of China's power capacitor industry in 2024. Leveraging the latest data from authoritative industry associations, we explore the sector's growth drivers, with a special emphasis on the critical role of metallized film capacitors in power factor correction (PFC) and reactive power compensation.
The industry demonstrated robust and stable growth in 2024, underpinned by strong demand across various sectors. Metallized film capacitors, essential for reactive power compensation devices, were a standout segment.
Industrial Output Value: Expected to reach ¥72 billion, a 9% year-on-year (YoY) increase. Capacitors for power factor correction and harmonic control contributed significantly.
Sales Output Value: Projected to hit ¥73 billion, also a 9% YoY growth. Demand for metallized film capacitors used in high-voltage reactive power compensation devices showed a consistent upward trend.
Order Volume: Remained strong at approximately ¥87 billion, indicating sustained market confidence. Demand for low-voltage capacitors and intelligent capacitor compensation modules maintained stable growth.
The industry's technological landscape is characterized by a plateau in core materials but vibrant innovation in application-specific solutions, particularly for reactive power compensation.
Material Science Plateau: The core BOPP dielectric film technology, fundamental to power factor compensation capacitors, has seen no disruptive breakthroughs in nearly three decades. While academic research is active, a significant gap remains between lab achievements and commercial production.
Progress in Supply Chain Localization: Driven by State Grid and China Southern Power Grid, the full-chain localization (from raw granules to coated film) for capacitors used in advanced SVG and STATCOM devices has achieved milestones. Some intelligent capacitor products have entered small-batch grid operation.
Emerging Applications as Growth Drivers:
Capacitors for Active Power Filter (APF) Devices: Demand is surging as key components for harmonic suppression and reactive power compensation, driven by escalating power quality requirements.
New Energy Power Stations: Application in power factor adjustment for photovoltaic and wind farms is expanding rapidly, fueling demand for high-voltage capacitors.
Industrial Users: Stricter power factor adjustment tariffs are motivating industrial enterprises to invest heavily in intelligent capacitor compensation cabinets, leading to explosive market growth.
Source: Power Capacitor Branch of the China Electrical Equipment Industry Association, "2024 Industry Development Status"
The demand for metallized film capacitors is directly correlated with overall electricity consumption and grid investment, creating strong long-term momentum.
Rising Electricity Demand: CEC forecasts a 5%-6% YoY growth in total electricity consumption for 2025, providing a stable foundation for the reactive power compensation market.
Changing Load Profiles: Rapid growth in high-tech manufacturing and the digital economy—loads highly sensitive to power quality—is directly driving demand for APF capacitors and dynamic compensation devices like SVGs.
Energy Transition Acceleration: With non-fossil energy capacity exceeding 50%, the grid integration of renewables necessitates massive deployment of reactive power compensation solutions to maintain stability and voltage control.
Stringent Power Factor Policies: Nationally raised power factor assessment standards and associated tariff penalties are compelling industrial users to invest in capacitor compensation systems.
Opportunities
Solid Demand Growth: Steady growth in electricity consumption and the financial impact of power factor tariffs create a rigid, growing market for compensation devices.
New Energy Catalyst: The construction of new power systems presents structural growth opportunities for high-end products like SVG and STATCOM capacitors.
Favorable Policies: Continuously tightening national standards for power factor are proactively stimulating market upgrades.
Challenges
Technological Evolution: The rapid advancement of reactive power compensation technology demands continuous R&D investment from manufacturers.
Intensifying Competition: Attractive market prospects are attracting new entrants, increasing pressure to enhance product performance, reliability, and cost-effectiveness.
In 2024, China's power capacitor industry maintains steady growth in traditional markets while capitalizing on unprecedented opportunities from the energy transition. For manufacturers of metallized film power capacitors, the strategic imperative is to align with cutting-edge trends such as intelligent compensation and active filtering. By focusing on high-growth fields like reactive power compensation for new energy stations and industrial power factor correction, companies can position themselves to thrive amidst the historic modernization of China's power system.
