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. This growth is driven by increasing power infrastructure investments, demand for efficient grid management, and rising electricity consumption. The shift to renewable energy sources necessitates improved grid stability, enhancing the need for shunt reactors to manage reactive power.
 

Expansion of transmission and distribution networks, particularly in emerging economies, fuels demand. According to the International Energy Agency, global electricity demand grew by 6% in 2021, the largest ever annual increase in absolute terms. Air core designs are preferred due to lower losses and reduced maintenance compared to oil-immersed alternatives, making them crucial in smart grids. Regulatory mandates for energy efficiency and cost reduction trends further support market growth.
 

Air Core Three Phase Shunt Reactor Market Trends

The air core three-phase shunt reactor industry is driven by several key trends. Smart grid technologies and advanced infrastructure adoption are enhancing energy efficiency. Renewable energy integration is increasing demand for shunt reactors to stabilize voltage and manage reactive power. Compact, low-maintenance air core designs are gaining popularity in urban and industrial settings. Technological advancements are improving performance and reducing costs. The market is shifting towards modular reactors for easier installation and scalability. Emerging economies' investments in power infrastructure are fueling global growth.
 

Air Core Three Phase Shunt Reactor Market Analysis

The variable shunt reactor market is expected to surpass USD 260 million by 2032. This dominance is driven by the flexibility of variable reactors in adjusting reactive power compensation, making them ideal for fluctuating grid demands. The increasing integration of renewable energy sources, such as wind and solar, necessitates improved grid stability, which variable reactors provide. Additionally, the rise in smart grid implementation and expansion of high-voltage transmission networks globally further supports their demand. Their ability to reduce transmission losses and enhance grid reliability makes them a critical component in modern power systems.
 

The electric utility sector is expected to drive significant growth in the air core three-phase shunt reactor market, with projections indicating a CAGR exceeding 8% through 2032. This growth is fueled by the increasing demand for efficient power transmission and distribution, as utilities seek to enhance grid stability and reduce energy losses. The rise in renewable energy integration, particularly from wind and solar sources, is also contributing to the sector's expansion, as utilities require shunt reactors to manage voltage fluctuations and maintain grid reliability. Additionally, government initiatives focused on modernizing aging grid infrastructure and expanding electrification efforts are further boosting market demand.
 

The U.S. air core three-phase shunt reactor market is projected to exceed USD 60 million by 2032, driven by power grid modernization investments, renewable energy expansion, and the need for efficient voltage regulation. These reactors are crucial for grid stability and transmission loss reduction. The U.S. Department of Energy reports that in 2021, renewable energy sources accounted for 20.1% of total U.S. electricity generation, highlighting the growing demand for grid stabilization technologies. Rising electricity consumption, aging infrastructure upgrades, and government policies supporting clean energy further propel market growth. As utilities adopt advanced solutions to address these challenges, the demand for air core shunt reactors is expected to increase significantly.
 

The Asia Pacific air core three-phase shunt reactor market is driven by rapid industrialization, urbanization, and increasing electricity demand across emerging economies. Expanding renewable energy projects, particularly in wind and solar, are boosting the need for grid stability solutions. Additionally, ongoing investments in power transmission infrastructure upgrades and government initiatives aimed at reducing transmission losses and improving energy efficiency are further propelling the demand for air core shunt reactors in the region.
 

Air Core Three Phase Shunt Reactor Market Share

GE holds a significant share in the air core three-phase shunt reactor industry, leveraging its advanced technologies and global presence. The company's expertise in grid solutions and voltage management, combined with its strong focus on renewable energy integration, has positioned it as a key player. GE's solutions help enhance grid stability, reduce transmission losses, and support the increasing demand for energy-efficient infrastructure worldwide.
 

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, GE Vernova secured contracts from Power Grid Corporation of India to deliver 765 kV shunt reactors. These reactors will boost grid stability and support the integration of renewable energy. The projects, conducted through GE T&D India, are part of India's clean energy transition plan. Delivery is expected by 2025-26, aligning with the country's sustainable energy goals.
   
• In July 2022, WEG landed a supply agreement for four 500 kV transformers and six shunt reactors for a 492 MW wind farm project in Colombia. The company successfully delivered these components later that year, marking a key milestone in WEG's global expansion strategy. This achievement is expected to bolster WEG's international presence and enhance its standing in the market, showcasing its capability to support large-scale renewable energy projects.
   

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