Air Core Variable Shunt Reactor Market - By Phase, By End Use, Growth Forecast 2024 – 2032

Air Core Variable Shunt Reactor Market Size

The global air core variable shunt reactor market size was valued at USD 320.7 million in 2023 and is projected to grow at a CAGR of 9% from 2024 to 2032. The increasing reliance on renewable energy sources necessitates improved grid stability. Efficient voltage regulation is crucial for managing power fluctuations in transmission networks. Investments in smart grids and infrastructure modernization are rising. Technological advancements are enhancing the reliability and flexibility of air core reactors.
 

Growing energy consumption in developing economies demands more robust electrical grids. Notably, the U.S. Energy Information Administration reports that renewable energy sources accounted for about 20% of U.S. electricity generation in 2021, highlighting the urgent need for grid stability solutions like air core variable shunt reactors.
 

Air Core Variable Shunt Reactor Market Trends

The market is driven by the transition to renewable energy and the need for enhanced grid stability. Smart grid investments and power infrastructure modernization boost reactor adoption, offering improved efficiency and adaptability. Increasing focus on environmentally friendly solutions shapes market evolution globally. The European Commission's REPowerEU plan, announced in May 2022, aims to increase the EU's renewable energy target to 45% by 2030, signaling a significant push for grid modernization and stability solutions. Reactor design advancements reducing energy losses and the growing demand for voltage regulation in regions integrating wind and solar power further propel market growth.
 

Air Core Variable Shunt Reactor Market Analysis

The market, particularly for three-phase shunt reactors, is expected to exceed USD 450 million by 2032. This growth is driven by the increasing need for grid stability due to the rising integration of renewable energy sources, such as wind and solar, which create voltage fluctuations. Additionally, the modernization of aging transmission infrastructure, expanding investments in smart grid technologies, and the shift toward environmentally sustainable, oil-free systems are key factors boosting demand. Technological advancements that improve efficiency, reliability, and adaptability of shunt reactors also contribute to the market's expansion.
 

The air core variable shunt reactor market is segmented into electric utility and renewable energy sectors, with the renewable energy segment holding a substantial market share. This segment is expected to grow at a CAGR of over 11.5% by 2032, driven by the rising integration of wind and solar power, which create voltage imbalances in the grid. Increasing investments in renewable energy infrastructure and efforts to modernize power grids further boost demand for these reactors. Additionally, the need for advanced grid stability and the push toward eco-friendly, oil-free solutions are contributing to market expansion within the renewable sector.
 

The Asia Pacific air core variable shunt reactor market is set to surpass USD 380 million by 2032, driven by rapid industrialization, urbanization, and renewable energy adoption. China, India, and Japan are expanding power grids to meet increased electricity demand and integrate renewable sources. Grid modernization efforts, improved power quality requirements, and the need for stable voltage regulation fuel market growth. Technological advancements in air core reactor design, offering enhanced efficiency and reduced maintenance, support widespread adoption. Notably, India's Ministry of Power reported in March 2023 that the country's renewable energy capacity reached 168.96 GW, accounting for 42% of total installed power capacity, highlighting the region's commitment to clean energy integration and the subsequent demand for advanced grid management solutions like air core variable shunt reactors.
 

The U.S. air core variable shunt reactor market is driven by increasing investments in grid modernization and the integration of renewable energy sources. As wind and solar power become more prevalent, the need for voltage regulation and reactive power management grows. Additionally, efforts to enhance grid stability and improve energy efficiency, alongside regulatory mandates to support renewable integration, are key factors driving market expansion.
 

Air Core Variable Shunt Reactor Market Share

General Electric holds a significant share in the market, leveraging its expertise in grid solutions and advanced technologies. GE's products are widely used for voltage regulation and reactive power management, particularly in grids integrating renewable energy. The company's focus on innovation and efficient power solutions positions it as a key player in supporting grid stability and modernization efforts globally.
 

Air Core Variable Shunt Reactor Market Companies

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

• 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 Variable Shunt Reactor Industry News

• In August 2024, Hitachi Energy secured a significant order from Svenska kraftnät to enhance Sweden's power grid. The project involved supplying transformers and shunt reactors, crucial components for stabilizing voltage and boosting grid reliability. This upgrade supported Sweden's transition to renewable energy, addressing the growing electricity demand. Hitachi Energy's advanced technology played a key role in modernizing and strengthening Sweden's energy transmission infrastructure.
   
• In June 2021, Hitachi Energy (previously known as Hitachi ABB Power Grids) unveiled innovative shunt reactor and transformer technologies designed for floating offshore wind power. These new solutions tackle the unique challenges of deep water and harsh marine environments, offering improved efficiency and cost-effectiveness compared to conventional models. This launch not only bolstered Hitachi Energy's presence in the offshore sector but also advanced their sustainable energy solutions for wind power generation.
   

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

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Market, By Phase, 2021 to 2032, (USD Million)

• Single phase
• Three phase

Market, By End Use, 2021 to 2032, (USD Million)

• 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