Shunt Reactor Market Size, Share, Growth Analysis, By Type(Oil-immersed and Air-core), By Application(Electric utilities and Industrial verticals), By Region - Industry Forecast 2024-2031

Global Shunt Reactor Market size was valued at USD 15.21 Billion in 2022 and is poised to grow from USD 25.37 Billion in 2023 to USD 39.83 Billion by 2031, at a CAGR of 5.8% during the forecast period (2024-2031).  

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.