Air Core Three Phase Shunt Reactor Market Size - By Product, By End Use Analysis, Growth Forecast, 2024 – 2032

Air Core Three Phase Shunt Reactor Market Size

The global air core three phase shunt reactor market was valued USD 211.9 million in 2023 and is estimated to grow at a CAGR of 9.8% from 2024 to 2032. The boost is caused by increases in power infrastructure, the need for more efficient management of the grid, along with increasing power consumption. Furthermore, the transition towards renewable energy sources will result in need for more shunt reactors for managing reactive power, as it is required for appropriate grid stability.
 

There is a substantial requirement for the transmission and energy distribution networks to grow across the developing and developed nations, which fuels the market growth. The IEA reports that in 2021, the worldwide utilization of electricity surged by an astonishing 6 % which is the highest annual figure ever recorded. For these reasons, oil-immersed designs are of utmost importance in smart grids, as sophisticated core configurations are far more effective and economical to operate and maintain. There are also regulations on energy efficiency and cost reduction that enhance market development.
 

Air Core Three Phase Shunt Reactor Market Trends

The air core three phase shunt reactor industry is influenced by several trends that present clearly identifiable opportunities and threats. The adoption of smart technologies and green infrastructure is improving energy efficiency. The integration of renewable energy sources is continuously increasing the demand for shunt reactors to ensure voltage stability and reactive power management. Nowadays compact and maintenance-free air core reactors are in higher demand in urban and industrial zones. Cost and performance criteria are being met due to advancements in technology. The market is also moving toward modular design of reactors which makes the systems easier to install and scale. Strengthening investments in power infrastructure of emerging economies are boosting the market worldwide. In 2021, around 20% of electricity generation in the U.S. was from renewable energy sources, this underlines the progressive need for technologies like shunt reactors designed for grid stabilization, according to the U.S. EIA.
 

Air Core Three Phase Shunt Reactor Market Analysis

The variable shunt reactor segment is anticipated to reach over the USD 260 million by 2032. This dominance is caused by the versatility of the variable reactors to reactive power compensation. Furthermore, the increasing incorporation of renewable energy resources such as wind and solar energy require more grid stability which variable reactors can provide. Moreover, the increase in smart grid adoption and the growth of the high voltage power transmission network around the world gives more value to these devices. Their ability to cut down transmission losses and improve the stability of the grid makes them indispensable in contemporary power systems.
 

The market for air core three-phase shunt reactors is projected to gain impetus from the electric utility sector with the projected to register more than 8% CAGR through 2032. This growth stems from the increased efficiency needed in power transmission and distribution, which utilities are seeking in order to improve grid performance and minimize energy losses. With an increase in renewable energy integration, especially from wind and solar sources, this sector is expected to further grow since utilities will need more shunt reactors to control voltage issues and support grid stability. In addition, government efforts aimed at upgrading old grid systems and increasing electrification are stimulating additional market demand.
 

The U.S. air core three-phase shunt reactor markets is anticipated to reach USD 60 million by 2032, because of renewables expansion, efficient voltage regulation needs, and power grid modernization investments. The reactors are essential to reduce transmission losses and assist with grid stability. Utilization rates and the increasing age of infrastructure, electricity poles replacement along with clean energy supported by government policies are some of the reasons for market growth. As electricity providers strive to overcome these challenges, greater adoption of new solutions can be anticipated along with the supply and use of air core shunt reactors.
 

Rural infrastructure as well as urbanization, and a rise in the demand for primary electricity drove the Asia Pacific air core three-phase shunt reactor market. The expanding grid stability needs due to new projects in the renewable energy sector, particularly wind and solar, will contribute towards the adoption of air core shunt reactors. Further boost to the region's air core shunt reactors industry is expected as the investment in power transmission infrastructure increases from the government and aims to decrease the transmission energy waste and increase the energy efficiency.
 

Air Core Three Phase Shunt Reactor Market Share

GE's investment in air core three-phase shunt reactor technologies is aided by their global reach, as they benefit from advanced technologies. Their experience in voltage management and grid solutions, along with an extremely strong emphasis on renewable energy, has been key to powering the company’s growth. In the case of GE, improvements to grid stability and infrastructure and transmission loss mitigation are paramount to meeting modern global energy requirements.
 

Air Core Three Phase Shunt Reactor Market Companies

Major players operating in the air core three phase shunt reactor industry are:

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

Air Core Three Phase Shunt Reactor Industry News:

• In February 2024, contracts were secured by GE Vernova from Power Grid Corporation of India to produce 765 kV shunt reactors. These reactors will provide support for renewable energy integration and boost the stability of the grid. The projects that were done through GE T&D India are parts of the clean energy transition plan in India. The delivery of the components is forecasted to be 2025-26, which agrees with goals set for sustainable energy in the country.
   
• WEG received a supply contract for 4 500kV transformers and 6 shunt reactors to be used in a 492 MW wind farm project in Colombia. This deal was signed in July 2022. He successfully completed the supply of components later that year, marking an important step for growth in WEG’s international strategy. This event is predicted to strengthen WEG’s international standing and position the company as a supporter of great renewable energy initiatives.
   

This air core three phase shunt reactor market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Product

• Fixed shunt reactors
• Variable shunt reactors

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