Air Core Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By Product (Fixed Shunt Reactor, Variable Shunt Reactor), By End Use (Electric Utility, Renewable Energy), 2023 - 2032

Air Core Shunt Reactor Market Size

Air Core Shunt Reactor Market was valued at USD 700 million in 2022 and is projected to witness around 8.5% CAGR between 2023 and 2032. The increasing demand for electricity, driven by industrialization, urbanization, and the expansion of renewable energy sources, has led to the need for enhanced power system stability and voltage regulation. As per Enerdata’s yearbook for 2022, the global electricity consumption in 2022 equalled over 25 thousand terawatt hours, which is a 90% increase from electricity consumption in 2000.
 

Growing emphasis on reducing energy losses in power transmission and distribution systems is pushing utilities to invest in more efficient solutions like air core reactors, which do not suffer from core losses associated with traditional iron core reactors. Furthermore, environmental concerns and regulations promoting eco-friendly technologies are boosting the adoption of air core reactors, which do not use environmentally harmful insulating oils or materials, making them an attractive choice for modern power systems. These factors collectively contribute to the market growth.
 

COVID-19 Impact

The COVID-19 pandemic disrupted the air core shunt reactor market, causing delays in manufacturing, supply chain interruptions, and reduced construction activities in the power sector due to lockdowns and economic uncertainties. However, as the need for grid stability and voltage regulation remains, the market is expected to recover and potentially grow in the post-pandemic era, driven by ongoing infrastructure investments and the transition to renewable energy sources, which require reactive power compensation.
 

Air Core Shunt Reactor Market Trends

The air core shunt reactor industry is witnessing several notable trends. One significant trend is the increasing deployment of air core reactors in power systems, driven by their environmental advantages as they eliminate the need for environmentally-harmful insulating oils. Additionally, the global shift towards renewable energy sources, such as wind and solar power, is boosting the demand for air core shunt reactors, which play a vital role in integrating these intermittent energy sources by providing reactive power support. As grid modernization efforts continue, there is a growing emphasis on grid stability and voltage regulation, further propelling the adoption of air core reactors.
 

Air Core Shunt Reactor Market Analysis

The utilization of three-phase air core shunt reactors is projected to exhibit 10.5% CAGR through 2032, driven by the paramount importance of grid stability and power quality in modern power systems. These reactors excel in providing reactive power compensation without the saturation issues often associated with iron core reactors, offering a reliable means of ensuring grid stability. Furthermore, their eco-friendliness, with no risk of oil leaks or environmental contamination, has garnered favor. With the surge in renewable energy integration, air core shunt reactors have gained prominence in managing voltage fluctuations from intermittent renewable generation.
 

The Fixed air core shunt reactors achieved a market value of over 420 million in 2022 and is predicted to attain 8% CAGR through 2032. The increasing demand for stable and efficient power transmission and distribution systems in the face of growing urbanization and industrialization is boosting the adoption of shunt reactors to compensate for capacitive reactive power and maintain grid stability. Furthermore, aging power infrastructure in many regions requires retrofitting and upgrading of reactors, driving market growth. The emphasis on energy efficiency and the need for reducing transmission losses further bolster the demand for fixed air core shunt reactors.
 

In terms of end use, air core shunt reactors find versatile use in various sectors, including electric utilities and renewable integration. The global surge in electricity demand is exerting pressure on governments to enhance their transmission and distribution networks, serving as a significant catalyst for the widespread adoption of air core shunt reactors. Developed nations are channeling substantial investments into the overhaul of their aging grid infrastructure, thereby creating a growing demand for reliable technologies such as air core shunt reactors, essential for ensuring the secure and uninterrupted delivery of electricity to end-users.
 

Asia Pacific air core shunt reactor market is estimated to observe around 10% growth rate from 2023 to 2032. This growth is attributed to the increasing demand for electricity in the region, driven by urbanization, industrialization, and a growing population, which in turn has led to the expansion of power transmission and distribution networks. Moreover, advancements in grid infrastructure, smart grid technology, and the need to improve power quality and grid reliability are further propelling the adoption of air core shunt reactors.
 

Air Core Shunt Reactor Market Share

Hitachi Energy Ltd. stands out as a significant and influential player. With a history of innovation and a strong global presence, Hitachi Energy Ltd. is renowned for its advanced technologies in the energy sector. Their expertise in designing and manufacturing air core shunt reactors contributes significantly to the efficient and stable operation of power systems, making them a trusted partner for utilities and industries worldwide. Hitachi Energy Ltd. is dedicated to enhancing the reliability and performance of electrical grids, making them a key contributor to the evolution of the air core shunt reactor.
 

Some of the key market players operating across the air core shunt reactor industry are:

• GE
• Siemens Energy
• Toshiba Energy Systems & Solutions Corporation
• Hilkar
• Hitachi Energy Ltd.
• HYOSUNG  HEAVY  INDUSTRIES
• TMC TRANSFORMERS MANUFACTURING COMPANY
• NISSIN ELECTRIC Co.,Ltd.
• Phoenix Electric Corp.
• Coil Innovation
• MindCore Technologies
• SGB SMIT
• GETRA S.p.A.
• Shrihans Electricals Pvt. Ltd.

Air Core Shunt Reactor Market News:

• In June 2021, Hitachi ABB Power Grids, now known as Hitachi Energy, Ltd., unveiled an innovative shunt reactor technology, accompanied by multiple transformer technologies designed for floating offshore wind power applications. This newly introduced shunt reactor technology is tailored to address the unique challenges presented by deepwater and harsh marine environments, ultimately enhancing operational efficiency. Compared to traditional shunt reactors, this advanced technology offers superior efficiency, making it a more cost-effective choice. This product launch reaffirms Hitachi Energy's dedication to providing enhanced solutions in the offshore sector and expanding its global presence. The introduction of this cutting-edge technology represents a significant milestone in the company's ongoing commitment to sustainable energy solutions for offshore wind power.
   

This air core shunt reactor market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2019 to 2032, for the following segments:

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By Phase

• Single Phase
• Three Phase

By Product

• Fixed
• Variable

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