USD 3.2 billion
Shunt Reactor Market Size, Share, Growth Analysis, By Type (Oil-Immersed, Air-Core), By Voltage (Upto 200 Kv, 200-400 Kv), By Application (Variable Reactors, Fixed Reactors), By End-User (Electrical Utilities, Industrial Verticals), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG20E2064 |
Region:
Global |
Published Date: December, 2024
Pages:
202
|Tables:
59
|Figures:
76
Shunt Reactor Market Insights
Shunt Reactor Market size was valued at USD 25.37 Billion in 2023 and is poised to grow from USD 26.84 Billion in 2024 to USD 42.14 Billion by 2032, growing at a CAGR of 5.8% during the forecast period (2025-2032).
Some of the factors driving the global shunt reactor market are increasing demand for electricity, upgradation of aged technology in developing countries, and expansion of high-voltage transmission lines. Long-term underinvestment in transmission and distribution infrastructure has combined with increasing demand for reliable power delivery to heighten grid vulnerability. It is also acknowledged that huge and expensive investments are required to revamp the grid's aging infrastructure to prevent power outages and collapsing grids. The needs of energy remain high and continue to surge, such surging demands boosting demand for their supporting infrastructure.
Aged infrastructure and outmoded technologies characterize transmission and distribution networks even in many developed countries, like the US, UK, and Germany. Notably, a huge part of the transformers and transmission networks in developed countries were installed more than 25 years ago and are attaining the end-of-life operation. Europe and North America have been upgrading their transmission grids to efficiently supply electricity. Even Japan has privately invested in renovating and strengthening power transmission infrastructure networks.
According to T&D World magazine, global electric utilities are projected to invest USD 3.2 trillion in new and replacement transmission and distribution infrastructure. This investment is essential to meet the growing electricity demand, including intermittent renewable resources straining the grid. Some technologies, like HVDC systems, have been triggered by focal points on grid reliability and minimizing energy losses during transmission. These technologies offer much more advanced grid stabilization than traditional methods could achieve with devices such as capacitors, which are always performance- and speed-limited.
US Shunt Reactor Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Oil-immersed
Fastest Growth
Air-core
Growth Rate
5.8% CAGR
Global Shunt Reactor Market ($ Bn)
Country Share for North America Region (%)
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Shunt Reactor Market Segmental Analysis
Global Shunt Reactor Market is segmented by Type, Voltage, Application, End-User and region. Based on Type, the market is segmented into Oil-Immersed, Air-Core. Based on Voltage, the market is segmented into Upto 200 Kv, 200-400 Kv, and Above 400 Kv. Based on application, the market is segmented into Variable Reactors, Fixed Reactors. Based on end user, the market is segmented into Electrical Utilities, Industrial Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis By Product
Based on type, the market is segmented into oil-immersed and air-core.
The oil-immersed shunt reactors category is likely to dominate the global market, with USD 1.62 billion in 2023 and an expected growth at a CAGR of 5.3%. These reactors are designed to get immersed in oil for efficient cooling and insulation; they are broadly applied in high voltage transmission systems to regulate voltage levels, reduce the reactive power, and thus stabilize the grid. Oil-immersed shunt reactors have several advantages, such as high-power rating, robust construction, and reliable performance. Their applications lie mainly in utilities, substation, and power generation plants.
The air-core shunt reactor is the fastest-growing segment of the shunt reactor market and is projected to continue with a CAGR of 6.6%. These reactors use air as their cooling and insulation medium, thus skipping the presence of oil. The air-core shunt reactor is lightweight, environmentally friendly, and suitable for high-voltage applications. Basically, they are used after renewable energy projects, especially in wind farms and solar power plants, in which reactive power compensation and voltage stabilization are necessary. Growing interest in renewable energy sources and a need for control over reactive power drive demand for air-core shunt reactors.
Analysis By Application
Based on application, the market is segmented into electric utilities and industrial verticals.
The industrial verticals application segment represents a significant share of the market recording USD 1.54 billion in 2023. In industrial settings, shunt reactors are used to compensate for reactive power and maintain stable voltage levels. Industries with high power consumption, such as manufacturing, mining, oil and gas, and chemical industries, often require shunt reactors to mitigate power quality issues, improve efficiency, and reduce energy costs. Shunt reactors help these industrial verticals achieve power factor correction, voltage stabilization, and overall power system optimization. The industrial sector's demand for shunt reactors is driven by the need for improved power quality and reliable operation of electrical systems.
The electric utilities segment is the fastest growing application in the global shunt reactor market growing with a CAGR of 5.2%. Shunt reactors play a crucial role in voltage regulation and reactive power compensation in utility networks. They are extensively used in high-voltage transmission systems to maintain voltage levels within acceptable limits, enhance power factor correction, and improve grid stability. Electric utilities, including power generation companies and transmission operators, heavily rely on shunt reactors to ensure efficient and reliable power delivery. The increasing demand for electricity, upgrading of aging infrastructure, and the need to maintain grid stability contribute to the dominance of the electric utilities segment.
Global Shunt Reactor Market By Type
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Shunt Reactor Market Regional Insights
North American emerged as the leading market in shunt reactor market. Owing to the increasing demand for reliable and efficient power transmission and distribution infrastructure propelling the adoption of shunt reactors across the region. With the growing emphasis on grid stability and voltage regulation, utilities and grid operators are investing in shunt reactors to enhance power system performance in industrial verticals. The US market is projected to hold the most substantial share of 86.27% in the North American market. As of 2023, the US stands as a dominant player in the shunt reactors market and is projected with a CAGR of 5.8% from 2024 to 2031. Owing to the increasing demand for reliable and efficient power transmission and distribution infrastructure propelling the adoption of shunt reactors across the region.
Asia-Pacific is the fastest growing region in the shunt reactor market. The Asia-Pacific region is experiencing a surge in the demand for shunt reactors, driven by factors like rapid urbanization and industrialization across countries like China, India, and Southeast Asian nations. As of 2023, China stands as a dominant player in this region in the shunt reactor market, projected to hold the most substantial share of 35.65% in the market. Shunt reactors play a crucial role in enhancing power system stability and reducing transmission line losses, thereby catering to the growing energy needs efficiently.
Global Shunt Reactor Market By Region
- Largest
- Fastest
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Shunt Reactor Market Dynamics
Shunt Reactor Market Drivers
Integration of Renewable Energy Sources:
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Fast-growing renewable energy sources should be integrated into the grid with efficiency. The shunt reactor compensates for the reactive power and stabilizes voltage, thereby permitting the heightened penetration of renewable energy sources into a grid and sustaining the rise of clean energy generation.
Growing Demand for Electricity and its Usage:
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The growing global population and industrialization create burgeoning demands for electricity; in such a scenario, modernization and optimization of the power grid infrastructure become imperative. In view of this projection tce go overshoot their generation by two times until 2050, Smart Grids feature as solutions of great neediness for the efficient and sustainable distribution of electricity. This sea change towards the adoption of smart grids thus not only cements grid resilience but paves the long way towards an environment-friendly energy ecosystem in times to come.
Shunt Reactor Market Restraints
Development of Alternative Technologies:
-
The emergence of alternative technologies, such as Flexible AC Transmission Systems (FACTS) and High-Voltage Direct Current (HVDC) systems, presents a challenge to the shunt reactor market. These technologies offer advanced voltage control and reactive power compensation capabilities, potentially replacing or reducing the demand for traditional shunt reactors.
Growing Adoption of DERS will Limit the Market Growth:
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The growing adoption of Distributed Energy Resources (DERs) such as rooftop solar panels and microgrids poses a significant challenge for the global shunt reactor market. These decentralized energy solutions generate electricity closer to the point of consumption, thereby reducing the need for extensive transmission and distribution infrastructure, including shunt reactors. The increasing penetration of DERs is reshaping the dynamics of the global energy landscape.
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Shunt Reactor Market Competitive Landscape
The global shunt reactor market is very competitive, with many players competing for market space. Players in the shunt reactor market execute several strategies like product development, partnerships, collaborations, and acquisitions to capture higher market share. The overall market is highly competitive, rapidly developing technologically, and intent on efficient and effective solutions. Key players in the global shunt reactor market are known to invest heavily in research and development activities for the introduction of new products and enrichment of product lines. Such companies try to serve changing customer needs and further help the power sector to improve grid stability, voltage regulation, and improving power quality. Moreover, the players market their business more in terms of geographical footprint by entering new markets and working on regional needs. Strategic alliances with utilities, grid operators, and other stakeholders help in getting better market positioning and enlarge the customer base. Increasingly challenging competitive environment characterizes the global shunt reactor market, primarily based on technological developments, product differentiation, pricing strategies, and customer service. Parallelly, these market players are striving continuously to offer better performance with cost-effective solutions than their competitors.
Shunt Reactor Market Top Player’s Company Profile
- ABB (Hitachi Energy)
- Siemens Energy AG
- General Electric Company (GE)
- Mitsubishi Electric Corporation
- Toshiba Corporation
- Hyosung Heavy Industries
- Fuji Electric Co., Ltd.
- Nissin Electric Co., Ltd.
- Bharat Heavy Electricals Limited (BHEL)
- TBEA Co., Ltd.
- TDK Corporation
- JiangSu HuaPeng Transformer Co., Ltd.
- Meidensha Co., Ltd.
- Voltamp Transformers Ltd.
- Shreem Electric Limited
- GETRA S.p.A.
- Prolec GE
- Hyundai Electric & Energy Systems Co., Ltd.
Shunt Reactor Market Recent Developments
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In December 2023, The National Transmission and Despatch Company Limited (NTDC) completed the installation of a shunt reactor on the 500 kV Guddu-Rahim Yar Khan Transmission Line to improve power system stability. The NTDC teams effectively installed the reactor on Bay-02 of the Guddu-RYK transmission line, which was energized without any issues.
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In September 2023, TenneT entered into an agreement valued at nearly €2 billion for the construction of substations in Germany and the Netherlands, pointing at accelerating the energy transition. The Dutch transmission system operator finalized agreements with Siemens Energy, Hitachi Energy, GE Grid, and Royal SMIT to procure 110 shunt reactors and 160 power transformers. Each supplier was awarded roughly a quarter of the total volume.
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In September 2023, Hitachi Energy provided transformers and reactors to TenneT's transmission grid development program in Germany. This strategic partnership intends to facilitate the energy transition by providing high-performing and sustainable equipment to modernize infrastructure, increase capacity, and improve grid stability.
Shunt Reactor Key Market Trends
- Increasing Focus on Grid Stability and Power Quality: With the growing demand for electricity and the integration of renewable energy sources, maintaining grid stability has become crucial. Shunt reactors play a vital role in voltage regulation, reducing voltage fluctuations, and improving power factor correction, thus ensuring grid stability and enhancing power quality.
- Inclination towards Sustainable and Environmentally Friendly Solutions: Manufacturers are focusing on developing eco-friendly designs and materials to reduce the environmental impact of these devices. This includes the use of biodegradable and recyclable materials, energy-efficient designs, and compliance with international environmental standards.
Shunt Reactor Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analyses, the global shunt reactor market is experiencing steady growth, driven by several factors such as increasing demand for electricity, grid stability requirements, and the expansion of power transmission infrastructure. The market is characterized by the adoption of advanced technologies, including innovative designs and digital monitoring systems, to enhance the performance and efficiency of shunt reactors. Emerging economies, particularly in regions like Asia Pacific, are witnessing significant growth in the installation of shunt reactors. The rapid development of power transmission and distribution infrastructure in countries like China and India, coupled with rising electricity demand, is fuelling the market's expansion in these regions. Asia Pacific is identified as the fastest-growing region in the global shunt reactor market. North America remains the dominant region in the shunt reactor market, driven by the need to upgrade aging transmission infrastructure and the increasing focus on grid reliability. Countries such as the United States and Canada are investing in modernizing their power grids, presenting lucrative opportunities for shunt reactor manufacturers.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 3.2 billion |
| Market size value in 2031 | USD 5.3 billion |
| Growth Rate | 5.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Shunt Reactor Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Shunt Reactor Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Shunt Reactor Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Shunt Reactor Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Shunt Reactor Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Shunt Reactor Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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