Asia Pacific Utility Scale Shunt Reactor Market - By Phase, By Insulation, By Product Analysis & Growth Forecast, 2024 – 2032

Asia Pacific Utility Scale Shunt Reactor Market Size

Asia Pacific utility scale shunt reactor market size was valued at USD 669.5 million in 2023 and is expected to grow at a CAGR of 5.8% from 2024 to 2032. This growth is driven by increasing demand for reliable electricity infrastructure, rapid integration of renewable energy sources, government initiatives for power generation expansion, and ongoing grid modernization projects.
 

Rising urbanization and industrialization in China, India, and Southeast Asia fuel the need for efficient transmission and distribution systems. The integration of wind and solar power necessitates reactive power compensation to stabilize voltage fluctuations and enhance grid efficiency.
 

Government investments in upgrading aging transmission networks further propel market growth. The Indian government's ambitious target to achieve 500 GW of renewable energy capacity by 2030, as announced by the Ministry of New and Renewable Energy, exemplifies the region's commitment to clean energy integration, which in turn drives the demand for shunt reactors to manage grid stability.
 

Asia Pacific Utility Scale Shunt Reactor Market Trends

The Asia Pacific utility-scale shunt reactor market is driven by grid modernization efforts and renewable energy integration. Increasing renewable capacity, particularly in wind and solar, boosts demand for reactive power compensation to ensure grid stability. The shift towards higher voltage transmission systems, including ultra-high-voltage (UHV) networks, requires advanced shunt reactors for efficient long-distance power transmission.
 

Regional countries are investing in smart grid technologies and expanding transmission infrastructure to support urbanization and industrial growth. Japan's Ministry of Economy, Trade and Industry (METI) announced plans to invest USD 100 billion in grid expansion and modernization by 2030, including significant allocations for reactive power compensation technologies. Innovations in shunt reactor design, focusing on improved efficiency and reduced operational losses, are gaining traction as utilities seek to optimize performance and lower maintenance costs.
 

Asia Pacific Utility Scale Shunt Reactor Market Analysis

The Asia-Pacific shunt reactor market is seeing strong growth, with the three-phase segment expected to top USD 750 million by 2032. This surge is driven by the increasing need for efficient voltage control in high-capacity transmission networks, particularly as the region ramps up renewable energy integration. China and India's adoption of ultra-high-voltage (UHV) systems is fueling demand for these reactors. Government initiatives to modernize grid infrastructure and invest in renewable energy projects are also boosting market growth. As countries in the region expand their power networks, three-phase shunt reactors are becoming essential for maintaining grid stability and efficiency.
 

The utility-scale fixed shunt reactor market in the Asia-Pacific region is expected to grow at a CAGR exceeding 4.5% between 2024 and 2032. This growth is fueled by the increasing demand for reliable and stable power transmission, driven by rapid industrialization and urbanization across countries like China, India, and Japan. The rise in renewable energy integration, particularly wind and solar, necessitates efficient grid management, boosting the need for fixed shunt reactors to ensure voltage stability. Additionally, government initiatives focused on grid modernization, along with investments in expanding high-voltage transmission networks, are key factors driving market expansion during this period.
 

China's utility-scale shunt reactor market is projected to surpass USD 530 million by 2032. This growth stems from extensive investments in power transmission infrastructure to support rapid urbanization and industrial expansion. The integration of renewable energy into the national grid intensifies the need for reactive power compensation, boosting shunt reactor demand. According to the National Energy Administration, China's renewable energy capacity reached 1,100 GW in 2021, accounting for 44.8% of total installed power capacity. This significant increase underscores the growing importance of shunt reactors in managing grid stability. The development of ultra-high-voltage (UHV) transmission systems and government policies promoting energy efficiency further drive market expansion.
 

Asia Pacific Utility Scale Shunt Reactor Market Share

ABB is poised to capture a significant share of the utility-scale shunt reactor market in the Asia-Pacific region. The company’s advanced technologies and robust product portfolio align well with the growing demand for reliable voltage regulation and grid stability across the region. As Asia-Pacific continues to invest heavily in expanding and modernizing its power infrastructure to accommodate rising industrial and urban growth, ABB’s expertise in high-performance shunt reactors positions it strategically to meet these needs. Additionally, ABB’s involvement in large-scale renewable energy projects and grid upgrades further enhances its competitive edge in this expanding market.
 

Asia Pacific Utility Scale Shunt Reactor Market Companies

Some of the key market players operating across the Asia Pacific utility scale shunt reactor industry are:

• ABB
• Alstom
• Fuji Electric
• GBE
• General Electric
• Hitachi Energy
• Hyosung Heavy Industries
• Nissin Electric
• Siemens Energy
• Shrihans Electricals
• Toshiba
• Transformers Manufacturing Company
• TBEA
• WEG
   

Asia Pacific Utility Scale Shunt Reactor Industry News

• In February 2024, GE Vernova has secured significant orders from Power Grid Corporation of India Limited (PGCIL) to advance India's energy transition. The orders, totaling approximately USD 500 million, encompass the supply of advanced gas turbines, steam turbines, and generators. These technologies will support the development of efficient, low-emission power plants, contributing to India's goal of achieving a sustainable and resilient energy infrastructure. The collaboration underscores GE Vernova's commitment to enhancing energy efficiency and supporting the country's transition to greener energy sources, aligning with PGCIL's vision for a robust and future-ready power grid.
   
• In June 2021, Hitachi Energy launched a new shunt reactor for floating offshore wind. Built for deep-water and harsh marine conditions, this technology boosts efficiency and cuts costs compared to older models. This move shows Hitachi Energy's push into offshore wind, growing its global reach and backing clean energy.
   

Asia Pacific utility scale 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 Insulation, 2021 to 2032, (USD Million)

• Oil immersed
• Air Core

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

• Fixed shunt reactors
• Variable shunt reactors

The above information has been provided for the following countries:

• China
• India
• Japan
• Australia