Shunt Reactor Market Size & Growth Analysis to 2030

The global shunt reactor market size is anticipated to register a significant CAGR of > 5% during the forecast period from 2023 to 2030. The significant growth in the distribution network of high-voltage transmission lines across the world is a primary factor driving the industry growth. Furthermore, the growing demand for electricity and the replacement of the aging distribution network is anticipated to boost the market growth. Moreover, rapid growth in urbanization, growing industrialization in developing economies, and the rising need for efficient and reliable power solutions are expected to fuel market growth over the forecast period.

Market Snapshot:

Market Drivers:

Increasing Demand for Electricity: The rising demand for electricity worldwide is one of the primary driving factors for the shunt reactor market. As the global population grows and industrialization continues, there is a significant increase in power consumption. Shunt reactors are essential components of electrical power systems that help regulate voltage levels and improve power factor correction, making them crucial for meeting the growing electricity demand.

Growing Renewable Energy Integration: The integration of renewable energy sources, such as wind and solar, into the power grid has been accelerating in recent years. However, these renewable energy sources often exhibit intermittent and variable power output, leading to voltage fluctuations and power quality issues in the grid. Shunt reactors play a vital role in stabilizing voltage levels and maintaining grid stability when integrating renewable energy sources, thereby driving the demand for shunt reactors.

Grid Expansion and Upgradation: The expansion and upgradation of electrical grids, especially in developing regions, contribute to the growth of the shunt reactor market. As countries invest in the development of transmission and distribution infrastructure, there is a need for reactive power compensation to ensure the reliable and efficient operation of the grid. Shunt reactors are widely used in grid expansion projects to enhance voltage stability and maintain power quality.

Increasing Focus on Power Quality and Efficiency: Power utilities and industrial sectors are increasingly emphasizing power quality and efficiency in their operations. Shunt reactors help improve power factor correction, reduce line losses, and enhance voltage regulation in electrical systems. The growing awareness of the benefits of power quality improvement and the need for energy conservation drive the demand for shunt reactors.

Grid Interconnection and HVDC Systems: The interconnection of regional and national grids, as well as the deployment of high-voltage direct current (HVDC) transmission systems, is growing globally. HVDC systems require reactive power compensation to maintain system stability and voltage control. Shunt reactors are utilized in HVDC projects to provide reactive power support, enabling efficient power transmission over long distances. The expansion of grid interconnection and HVDC systems contributes to the demand for shunt reactors.

Aging Power Infrastructure: The aging power infrastructure in many countries requires modernization and retrofitting to improve system reliability and performance. Shunt reactors are often installed in existing power networks to mitigate voltage fluctuations, reduce transmission losses, and enhance overall grid stability. The need for upgrading and refurbishing aging power infrastructure drives the demand for shunt reactors.

Government Initiatives and Regulations: Government initiatives and regulations aimed at improving power system efficiency, reducing carbon emissions, and enhancing grid stability also play a significant role in driving the shunt reactor market. Various countries have implemented policies and standards that encourage the deployment of shunt reactors for reactive power compensation and voltage control. Government support and favorable regulatory frameworks create market opportunities for shunt reactor manufacturers.

Technological Advancements: Technological advancements in shunt reactor design and manufacturing techniques contribute to market growth. Manufacturers are developing advanced shunt reactors with improved efficiency, reduced losses, and compact designs. These innovations allow for easier installation, better performance, and enhanced reliability of shunt reactors, driving their adoption in various power system applications.

Market Insights:

By type, the oil-immersed segment held the largest market share of the global shunt reactor industry in 2022

The global shunt reactor market is bifurcated into type, phase, rating, application, and geography. On the basis of type, the market is further segmented into air-core and oil immersed. The oil-immersed segment dominated the global market in the benchmark year and is expected to hold the largest revenue share of over 1/2 of the market by the end of the analysis period. The growing electricity distribution and transmission network is one of the prominent factor driving the segment growth globally. Furthermore, the increasing demand for electricity and the increasing investment in transmission and distribution networks to fulfill the growing electricity demand are expected to propel the segment growth over the forecast period.

By application, the residential segment is estimated to dominate the global market by the end of the analysis period

On the basis of application, the market is segmented into residential and industrial applications. The residential segment dominated the global shunt reactor market in the benchmark year and expected to hold the largest revenue share over the forecast period. The rapid growth in urbanization in developing economies coupled with the growing demand for the electricity industry is a prominent factor driving the segment growth. Furthermore, the increasing adoption of renewable energy sources and the growing investment in the distribution network is anticipated to fuel the segment growth over the forecast period.

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The global shunt reactor market report explores the critical analysis of the industry using key parameters. The report covers investment strategies, the need for investment in the industry, and several benefits for investors. Significantly, this report sets out major changes in the global technical regulations for the market, as well as how economic and non-economic constraints are helping the market to grow. Furthermore, the report analyzes the historic and forecasted market size at the global, regional, and country-level. The report also provides a comprehensive analysis of key investment proposals, competitor positions, porter’s five force analysis, SWOT analysis, pestel analysis, value chain analysis, etc.

The shunt reactor market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Type:

• Air-core
• Oil Immersed

By Phase:

• Single Phase
• Three Phase

By Rating:

• Fixed Shunt Reactor
• Variable Shunt Reactor

By Application:

• Residential
• Industrial

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

By region, the Asia Pacific is estimated to hold the largest market share in the benchmark year

On the basis of region, the Asia Pacific dominated the global shunt reactor market in 2022 and is expected to maintain its dominance over the forecast period. The increasing investment and growing replacement of aging transmission and distribution networks coupled with the growing demand for electricity is one of the key factor driving the industry growth in the region. Furthermore, the increasing investment in electric utilities, growing adoption of renewable energy sources, and the installation of high voltage transmission networks are further anticipated to propel the market growth in the Asia Pacific.

Geographically, the shunt reactor market report comprises dedicated sections centering on the regional market revenue and trends. The shunt reactor market has been segmented on the basis of geographic regions into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The shunt reactor market has been extensively analyzed on the basis of various regional factors such as demographics, gross domestic product (GDP), inflation rate, acceptance, and others. Shunt reactor market estimates have also been provided for the historical years 2020 & 2021 along with forecasts for the period from 2023 – 2030.

Competitive Assessment:

Some of the major market players operating in the global shunt reactor market are ABB Ltd., Siemens AG, CG Power and Industrial Solutions Limited, Mitsubishi Electric Corporation, and Fuji Electric Co. Companies are exploring markets through expansion, new investments, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• ABB Ltd.
• Siemens AG
• CG Power and Industrial Solutions Limited
• Mitsubishi Electric Corporation
• Fuji Electric Co.
• Hitachi ABB Power Grids
• Hyosung Corporation
• Trench Group
• TBEA Co. Ltd.
• Hyundai Heavy Industries Co. Ltd.
• Alstom SA

Key Questions Answered by Shunt Reactor Market Report

• Global shunt reactor market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Shunt reactor submarket forecasts from 2023-2030 covering the market by type, phase, rating, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level shunt reactor markets from 2023-2030
• Competitive Landscape and market positioning of the top 10 players operating in the market