The rising demand for power quality, increasing adoption of variable frequency by the end users, growing demand from IT and data centers, government regulations, and awareness regarding the potential damage from harmonic are some of the dominant factors driving the global harmonic filter market. Whereas, the forces restraining the growth of harmonic filter market include high cost, availability of substitute products and lack of consumer awareness about the harmonic suppression.

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Power quality problems generally occur due to propagation of harmonic frequencies in electrical systems. The excess of harmonic voltage and harmonic current in an electrical design leads to various harmful effects on the performance of transformer; and can also lead to failure of transformer. The most widely adopted harmonic limit standards are IEEE STD 519 (1992), AS/NZS 61000.3.2 (2007) and AS/NZS 61000.3.6 (2001).

The global harmonic filter market can be categorized on the basis of product type as hybrid harmonic filters, active harmonic filters, and passive harmonic filters. The types of passive harmonic filters include tuned passive harmonic filters and de-tuned passive harmonic filters. Hybrid harmonic filter is the combination of both active and passive harmonic filters.

Passive harmonic filter is used for static loads of an electrical installation and active harmonic filter is used to diminish the harmonics produced by variable loads. On the basis of voltage level, the harmonic filter market can be categorized as low voltage, medium voltage and high voltage harmonic filters. Based on end user industry of the global harmonic filter, the market can be categorized as data centers, oil and gas, industrial, water treatment, and automotive industry.

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North America was the largest market for harmonic filters in 2014. The market dominance of North America is attributed to high consumer awareness and stringent government regulation in the region. Asia-Pacific and Latin America are two of the fastest growing harmonic filter market and they are expected to witness even healthier growth in coming years.

The fast growth in these regions is attributed to development in power generation and distribution in developing countries, such as China and India. Brazil is one of the largest and fastest growing markets of harmonic filter in Latin America region. Germany, Italy, France, and the U.K., are some of the major harmonic filter market of Europe.

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Some of the competitors of harmonic filter market are Baron Power Ltd., Danfoss A/S, EPCOS AG, MTE Corporation, Schaffner Holding Ag, Eaton Corp Plc, Comsys AB, ABB Ltd., Crompton Greaves Ltd., Emerson Network Power, Inc., Janitza Electronics GmbH, Schneider Electric SE, and Siemens AG.