How Has the Shunt Reactor Market Size Evolved in Recent Years?
The shunt reactor market has seen considerable growth due to a variety of factors.
• Over the past few years, the shunt reactor market has seen significant growth. The market, which was worth $2.98 billion in 2024, is projected to escalate to $3.18 billion in 2025, reflecting a compound annual growth rate (CAGR) of 6.8%.
Factors contributing to this historical growth include a surge in electricity demand, an upswing in renewable energy projects, urbanization and industrialization advancements, the aging of power infrastructure, and an enhanced requirement for voltage stability.
What are the Market Size and Expected Growth Rates for the Shunt Reactor Market?
The shunt reactor market is expected to maintain its strong growth trajectory in upcoming years.
• The shunt reactor market is anticipated to experience robust growth in the upcoming years, escalating to $4.09 billion in 2029 with a compound annual growth rate (CAGR) of 6.5%.
Various factors propelling the growth in the forecast period include the augmentation of renewable energy integration, enhancement of electric vehicle infrastructure, heightened emphasis on energy storage systems, government-financed infrastructure development, and the growing demand for decentralized power generation. Noteworthy trends during the forecast period encompass growing emphasis on sustainability and reducing emissions, progress in transformer-less technology, increased capital in energy storage, the application of cutting-edge monitoring and diagnostics, and an increase in grid automation as well as digital solutions.
Which Key Drivers Are Propelling The Shunt Reactor Market's Growth?
The expansion of power generation capabilities is predicted to drive the shunt reactor market's growth. This capacity pertains to the maximum electrical power that a power plant or generation unit can produce under particular circumstances. The surge in power generation capacity is driven by the increasing global electricity demand, swift growth of renewable energy, substantial government investments in modern energy infrastructure, and technological advancements in power production. Shunt reactors play a crucial role in bolstering power generation capacity by enhancing voltage stability, reducing transmission losses, and optimizing grid performance, particularly in high-voltage networks. They regulate fluctuating power flow from emerging renewable energy sources, improve energy efficiency, and guarantee dependable power transmission across extensive distances. For example, the Australian Department of Climate Change, Energy, the Environment, and Water reported in June 2023 that Australia’s total electricity generation in 2022 was calculated at 273,265 gigawatt hours (GWh), a 2% rise from 2021. Therefore, the growth of the shunt reactor market is stimulated by the increasing power generation capacity.
What Are The Key Segments Within The Global Shunt Reactor Market?
The shunt reactormarket covered in this report is segmented –
1) By Type Of Product: Oil-Immersed Reactor, Air Core Dry Reactor
2) By Phase: Single Phase, Three Phase
3) By Rated Voltage: Less Than 200kV, 200kV-400kV, Above 400kV
4) By Application: Fixed Reactor, Variable Reactor
5) By End-User: Electric Utilities, Renewable Energy, Other End Users
Subsegments:
1) By Oil-Immersed Reactor: Single-Phase Oil-Immersed Reactor, Three-Phase Oil-Immersed Reactor, Fixed Oil-Immersed Reactor, Variable Oil-Immersed Reactor
2) By Air Core Dry Reactor: Fixed Air Core Dry Reactor, Variable Air Core Dry Reactor, Single-Phase Air Core Dry Reactor, Three-Phase Air Core Dry Reactor
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How Are Emerging Trends Reshaping The Dynamics Of The Shunt Reactor Market?
Leading firms in the shunt reactor market are adopting strategic collaborations to upgrade and improve grid stability and capacity. These partnerships involve cooperation between companies to boost product development, widen their market presence, and enhance technological integration in power transmission and grid stability solutions. For instance, in September 2023, Switzerland-based tech firm, Hitachi Energy Ltd., entered into a partnership with TenneT Holding BV, a transmission system operator company based in the Netherlands. This partnership aims at delivering high-quality power transformers and shunt reactors for upgrading and strengthening the transmission grid's stability and capacity. The collaboration also seeks to facilitate the incorporation of renewable energies, bolster grid resilience, and ensure a sustainable power supply for Germany and the Netherlands.
Who Are the Key Players In The Shunt Reactor Market?
Major companies operating in the shunt reactor market are:
• Hitachi Energy Ltd.
• General Electric Company
• Mitsubishi Electric Corporation
• Siemens Energy AG
• Toshiba Corporation
• CHINT Group
• Alstom Grid
• Hyosung Heavy Industries
• Meidensha Co.Ltd.
• Nissin Electric Co. Ltd.
• SGB-SMIT Group
• CG Power and Industrial Solutions Limited
• Voltamp Energy SAOG
• Prolec Energy
• Shreem Electric Limited
• GBE SpA
• Clariant Power System Ltd.
• Yash Capacitors Private Limited
• Edit Elektronik
• GETRA S.p.A.
• Hilkar
• NR Electric Co. Ltd.
• Jyoti Transformers
What Are The Regional Insights Into The Shunt Reactor Market?
Asia-Pacific was the largest region in the shunt reactor market in 2024 and it is expected to be the fastest-growing region in the forecast period. The regions covered in the shunt reactor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
