Air Core Fixed Shunt Reactor Market

Air Core Fixed Shunt Reactor Market Size

The global air core fixed shunt reactor market was estimated at USD 497 million in 2024 and is estimated to reach the value of USD 966.2 million by 2034, growing at a CAGR of 7.1% from 2025 to 2034. This demand is attributed to the need for voltage regulation and reactive power compensation in high-voltage transmission networks.

The use of air core reactors for effective management of voltage fluctuations posed by the inclusion of wind and solar energy into power systems is required. For instance, in April 2025, India plans to increase its solar power capacity, in addition to existing renewables, to 2.3 TW by 2025 and 5.8 TW by 2030, significantly raising its energy generation goals.

Air core reactors provide significant advantages over oil-immersed variants, including reduced maintenance requirements, higher reliability, and improved environmental safety. Recent advances in insulation materials and cooling systems have increased the efficacy and operational life of these reactors.

Increasing investment in substations and modernization of transformers in developed nations aids in providing further assistance in air core fixed shunt reactor market development. On the other hand, raw material price volatility, industry rivalry, and stringent performance regulations in addition to safety compliant rules restrict unrestrained development for manufacturers.

The Trump administration tariffs, especially the 25% tariffs on steel and aluminum, are likely to have a big influence on the air-core fixed shunt reactor industry. These reactors, which are crucial for power system voltage regulation, depend significantly upon high-quality aluminum conductors. The higher tariffs drive up material prices, resulting in increased production costs and longer procurement times. As such, utilities could experience grid infrastructure project timelines slippage and reassess investments in such reactors, holding back grid modernization initiatives.

Air Core Fixed Shunt Reactor Market Trends

• The air core fixed shunt reactor is observing considerable developments. The three-phase section dominates the air core fixed shunt reactor industry and is essential for systems of high-voltage electricity transmission. These reactors support voltage levels and control reactive power in extensive power systems.
  
• The growing integration of renewable energy sources and requirements for efficient grid management drive their widespread adoption. Technological improvements have increased the efficiency and reliability of these reactors. For instance, in June 2021, Hitachi Energy launched shunt reactor and transformer tech for floating offshore wind, enhancing efficiency in harsh marine conditions and advancing sustainable energy goals.
  
• Single-phase reactors are expanding their presence in lower voltage applications, particularly in rural and remote areas with space limitations and specific voltage requirements. Also, the expansion of renewable energy installations in remote regions requires localized reactive power compensation, increasing the demand for single-phase air core fixed shunt reactors.
  
• For example, in April 2023, Siemens Energy and Dragados Offshore were awarded a significant contract to provide HVDC systems for three offshore grid connections in the German North Sea. These projects will facilitate the transmission of wind energy to northern Germany, thus aiding in the country's expansion of renewable energy.
  

Air Core Fixed Shunt Reactor Market Analysis

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• The phase segment in the air core fixed shunt reactor industry includes single and three phase. The market was valued at USD 425.1 million, USD 460.1 million and USD 496.9 million in 2022, 2023 and 2024 respectively. The three phase segment dominates the market and is expected to reach over USD 627 million by 2034.
  
• The three phase segment accounts for most of the market share as these reactors are crucial in the verticals of high voltage transmission systems. They are essential in preserving voltage steady state conditions and controlling reactive power flow in big scale power systems.
  
• Increasing adoption of renewable energy sources along with effective grid management propels their utilization. For instance, in 2024, GE Vernova's Grid Solutions received significant purchases from PGCIL for 765 kV shunt reactors aimed at enhancing renewable integration and bolstering power transmission in areas such as Rajasthan and Karnataka.
  
• The utilization of single-phase reactors is growing in low voltage application areas including rural and remote regions with space constraints and unique voltage specifications. The growth of renewable energy resources in these areas has a greater need for localized reactive power compensation, which increases the need for single phase air core fixed shunt reactors.
  
• For instance, Prolec GE Brazil recently manufactured and tested a 100 MVAr, 765 kV single-phase shunt reactor in November 2024, demonstrating their commitment to quality power transmission solutions.
  

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• The air core fixed shunt reactor market is evolving across end use segments including electric utility and renewable energy sectors. The electric utility segment held 71% of the market share in 2024 and is anticipated to grow at a CAGR of over 5.5% through 2034.
  
• The electric utility industry retains its commanding market share due to continued spending on the finest services in voltage control, power factor correction, and grid stability. Furthermore, the utilities are upgrading their systems with sophisticated technologies and reactors to satisfy the increasing demand for electrical power.
  
• In October 2023, the U.S. Department of Energy has allocated USD 3.46 billion for 58 projects across 44 states focused on improving the resilience and reliability of the electric grid.
  
• The sector for renewable energy continues to show significant growth, due to the construction of new solar and wind power plants. The incorporation of air core fixed shunt reactors plays an essential role in the control of the constant power flow, which is linked with the intermittent nature of energy services.
  
• Also, the expansion of the segment aids the world initiatives in mitigating carbon emissions as countries are augmenting the potential for renewable energy. For example, Canada’s total photovoltaic capacity surpassed 5GW when it added 314MW of solar capacity in March 2024. This capacity represents a 92% increase since 2019 due to dropping costs of solar technologies and favorable policies such as clean technology investment tax credits.
  

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• The U.S. air core fixed shunt reactor market experienced significant growth in 2022, 2023 and 2024 and was valued at USD 55.6 million, USD 59.1 million and USD 62.7 million respectively. The market is estimated to cross over USD 103 million by 2034. Growing modernization of the grid, the shift to renewable resources, and the growing need for electricity are the factors propelling growth in the market.
  
• The advancement of grid with the help of new technologies, and the Department of Energy is furthering these efforts through its Grid Modernization Initiative. The adoption of wind and solar energy requires voltage-level compensation, which boosts demand for air core fixed shunt reactors.
  
• For instance, in April 2025, for example, Sunraycer Renewables raised USD 475 million for Texas solar and storage projects, and Excelsior Energy Capital secured USD 1 billion for renewable energy projects across the country, looking to fund prospects for shunt reactors.
  
• The market for European air core fixed shunt reactors is growing due to grid stabilizing measures and the development of inter-regional transmission facilities. There is also a compelling need because of the age of power systems and the requirements related to the integration of renewables.
  
• Germany is the regional leader in spending on smart grid systems owing to the energy transition plans which facilitate the large scale renewable generation deployment and intelligent power delivery throughout the country’s grid. For instance, Amprion in April 2025 increased its investment plan to USD 41.06 billion by 2029 to expand transmission infrastructure for renewables, which is aligned with the goals of Germany’s green energy.
  
• The demand for air core fixed shunt reactors in the Asia Pacific is in tandem with the rise in consumption of electricity, urbanization, and industrialization. The implementation of government policies aimed at encouraging the expansion of the grid and the adoption of new sources of renewable energy amplifies the demand.
  
• The air core fixed shunt reactor market is dominated by China owing to its extensive investments into the development of power infrastructure and the integration of wind and solar energy into its grid as they require sophisticated solutions for reactive power management. For instance, State Grid Corporation of China plans to invest a record USD 89 billion in 2025 to upgrade its power grid, accommodating rapid renewable energy growth and to enhance grid stability.
  
• Infrastructure development and energy diversification initiatives increase demand for air core fixed shunt reactors in the Middle East & African market. The adoption of solar energy in desert areas, and the associated reliability of the power grid, facilitates growth opportunities in the market.
  
• The market is dominated by the United Arab Emirates (UAE) due to implementing energy shift policies and developing huge solar parks which need voltage control services. In November 2024, the UAE unbound its ceiling investment of USD 54.5 billion by 2030 to increase the country’s clean energy capacity, targeting to increase renewables to 30% of the overall energy structure, supporting net-zero goals in 2050 and efforts towards global energy transition.
  

Air Core Fixed Shunt Reactor Market Share

The top six companies in the air core fixed shunt reactor industry include Hitachi Energy, GE, Siemens Energy, Nissin Electric, SGB SMIT, and Hyosung Heavy Industries which held more than 40% market share in 2024. These firms are noted for their comprehensive engineering capabilities, international reach, and competency in providing effective grid stabilization services for high voltage transmission systems.

Hitachi Energy possesses the largest market share for air core fixed shunt reactors due to its extensive global presence, expert manufacturing capabilities, and vast experience in high-voltage transmission technology. The company innovates in the areas of grid integration and stabilization, as well as renewables fostering power quality leadership.

Its alliances and extensive product range strengthen its leadership position in the air core fixed shunt reactor segment. For example, in August 2024, Hitachi Energy received a significant contract from Svenska kraftnät for the supply of transformers and shunt reactors, which under a framework agreement supports the Sweden grid expansion and energy transition project.

Air Core Fixed Shunt Reactor Market Companies

• GE is a significant manufacturer of air core fixed shunt reactors owing to its experience in grid infrastructure and power systems. In 2024 the company’s revenue was USD 87.98 billion of which USD 3.23 billion was spent on Research and Development. Due to the established technology and global presence of the company, it is able to provide dependable solutions for voltage control and system stability for power transmission networks. 
  
• Siemens Energy competes in the market of air core fixed shunt reactors for reactive power compensation applications. The integration of digital capabilities in the company’s products further augments its position in the global transmission and distribution market. To further strengthen its innovative market presence, in November 2021, Siemens received a contract to provide seven shunt reactors to an European consortium of N1, Konstant Net, Nord Energi.
  
• Nissin Electric remains active in the Asian air core fixed shunt reactor industry. In 2024, the company reported a revenue of USD 5.11 billion and operating profit of USD 562.68 million. With the aid of its research and development efforts, which focus on meeting customer needs, the company supports the development of voltage stabilization and harmonic suppression reactors.
  
• SGB SMIT designs and manufactures air core fixed shunt reactors within the scope of its transformer production activities. SGB-SMIT Company offers engineered solutions for energy transmission systems, observing international standards. For example, in 2022, SGB-SMIT Power Matla made headlines as the first South African transformer manufacturer to win a multimillion dollar deal to provide hundreds of distribution transformers to a utility company in the United States.
  
• Hyosung Heavy Industries located in South Korea, includes air core fixed shunt reactors within its power equipment portfolio. The company focuses on high voltage work and sells its reactive power management solutions abroad. In July 2024, the company disclosed plans to expand their ultra high voltage transformer factories in the US and Korea to capture the growing global market for electricity infrastructure.
  

The major players operating in air core fixed shunt reactor market includes:

• Coil Innovation
• GE
• GETRA
• Hilkar
• Hitachi Energy
• Hyosung Heavy Industries
• MindCore Technologies
• Nissin Electric
• Phoenix Electric
• SGB SMIT
• Shrihans Electricals
• Siemens Energy
• TMC Transformers
• Toshiba Energy Systems & Solutions
  

Air Core Fixed Shunt Reactor Industry News

• In March 2025, Trench Group entered into a long term framework agreement with Hitachi Energy to supply air-core reactors utilized in high-voltage direct current (HVDC) systems, as well as grid stability solutions. This partnership seeks to enable the global transition of energy by improving grid reliability and incorporating renewables using modern power transmission systems.
• In December 2024, Hitachi Energy Inc offered a 500 kV variable shunt reactor to equip Dzhankeldy 500 MW wind farm, located in Uzbekistan. The reactor manages reactive power dynamically and also helps to enhance stability of the grid. It assists the country achieve its renewable energy targets. It is the highest voltage reactor of this type ever manufactured by Hitachi Energy, specially designed for the needs of the region’s transmission.
  
• In November 2024, Prolec GE Brazil has successfully manufactured and tested a 100 MVAr, 765 kV single-phase shunt reactor at its Canoas facility. The reactor was put through stringent tests under ISO 14644 Class 8 cleanroom conditions, which translates to Grade 8 on the ISO cleanliness scale, for ensuring unparalleled quality and reliability. This achievement reflects Prolec's dedication to developing sophisticated solutions for the electrical energy domain. 
  
• In February 2024, the Power Grid Corporation of India (PGCIL) awarded multi-million dollar contracts to GE Vernova’s Grid Solutions division for the supply of 765 kV shunt reactors for transmission projects in various regions including Rajasthan and Karnataka. These reactors, which are produced at GE T&D India’s Vadodara plant, are expected to increase India’s grid stability and improve the assimilating of renewable energy with the national grid. The deliveries are planned in 2025 and 2026.
  

This air core fixed shunt reactor market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Phase

• Single phase
• Three phase

Market, By End Use

• Electric utility
• Renewable energy

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
• Latin America
  • Brazil
  • Argentina