Fixed Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By Insulation (Oil Immersed, Air Core), By End Use (Electric Utility, Renewable Energy) & Forecast, 2024 – 2032

Fixed Shunt Reactor Market Size

Fixed Shunt Reactor Market size was valued at USD 1.2 billion in 2023 and is set to observe around 6.1% CAGR from 2024 to 2032. Driven by the increasing incorporation of renewable energy sources into the electrical grid, which is necessitating fixed shunt reactors to stabilize voltage fluctuations and ensure grid stability amid intermittent energy generation. Enhanced grid reliability and quality demands further boost the market as fixed shunt reactors regulate voltage and minimize power interruptions.
 

The primary function of the technology is to absorb or generate reactive power to regulate voltage levels and improve power system stability. Fixed shunt reactors are primarily used to compensate for capacitive reactive power in the system. When the transmission or distribution line is lightly loaded or has a long length, it tends to exhibit capacitive characteristics, which can cause voltage levels to rise. By connecting a shunt reactor in parallel, it provides an inductive effect, absorbing the excess capacitive reactive power and thereby reducing the voltage levels.
 

COVID-19 Impact

The COVID-19 pandemic had a multifaceted impact on the fixed shunt reactor market. Initially, the global market experienced disruptions in supply chains, manufacturing, and project implementation due to lockdowns, travel restrictions, and workforce challenges. As a result, some projects faced delays or cancellations. However, the pandemic underscored the critical importance of reliable electrical grids, prompting continued investments in power infrastructure to ensure uninterrupted electricity supply for healthcare facilities, remote work, and essential services.
 

The increased emphasis on grid reliability and resilience highlighted the role of fixed shunt reactors in voltage control and stabilization, potentially driving long-term growth. Furthermore, the pandemic accelerated the digital transformation of the power sector, fostering the integration of smart grid technologies and advanced monitoring and control systems, which can optimize the deployment and operation of fixed shunt reactors in the evolving energy landscape.
 

Fixed Shunt Reactor Market Trends

The fixed shunt reactor market is witnessing several notable trends that are shaping its trajectory. Firstly, the increasing integration of renewable energy sources into power grids is driving the need for improved grid stability and voltage control. Fixed shunt reactors play a vital role in managing reactive power and maintaining voltage levels, making them essential for accommodating the fluctuations inherent in renewable energy generation. Moreover, the aging grid infrastructure in many regions is prompting utilities to invest in upgrading and modernizing their systems, which includes the installation of shunt reactors for enhancing grid reliability. The demand for energy-efficient solutions is also driving innovation in shunt reactor design, with a focus on reducing losses and optimizing performance.
 

Fixed Shunt Reactor Market Analysis

The three phase shunt reactors market is anticipated to grow at a CAGR of over 6.5% through 2032. The demand for three-phase shunt reactors is primarily fueled by their role in compensating for reactive power in standard three-phase power systems, which form the backbone of most power transmission and distribution networks. This demand is further propelled by the increasing global need for electricity, driven by factors such as population growth, urbanization, and industrialization. As power grids expand and new transmission lines are constructed to meet this rising demand, the essential role of shunt reactors in reactive power compensation becomes evident.
 

Oil immersed shunt reactors market was worth USD 700 million in 2022 and is estimated to reach USD 1.3 billion by in 2032. Oil-immersed shunt reactors offer distinct advantages over air-core reactors, primarily stemming from their superior power handling capabilities. These reactors are adept at managing larger amounts of reactive power, effectively meeting the requirements of the power system. Additionally, oil-immersed shunt reactors are designed to be more compact, resulting in a smaller physical footprint. This feature makes them particularly suitable for installations where space is at a premium.
 

Electric utility segment held around 70% of the fixed shunt reactor market share in 2022. The rising global demand for electricity is a compelling force driving governments to prioritize the enhancement of their respective transmission and distribution networks. This imperative need serves as a major driver for the widespread deployment of shunt reactors. Developed nations, in particular, are directing substantial investments toward the revitalization of their aging grid infrastructure. This commitment fuels the demand for reliable and efficient technologies, including shunt reactors, to ensure the safe and uninterrupted supply of electricity to consumers.
 

Asia Pacific fixed shunt reactor market is expected to witness 5.5% growth rate during 2023 and 2032, owing to the escalating demand for electricity in the region, fueled by population growth, industrialization, and urbanization. As countries strive to meet this surging energy demand, investments in power infrastructure, including fixed shunt reactors, are on the rise. Asia-Pacific nations are investing heavily in modernizing and expanding their power grids, thereby increasing the deployment of fixed shunt reactors to regulate voltage and improve grid performance. The integration of renewable energy sources, such as solar and wind, necessitates reactive power compensation, further boosting the demand for shunt reactors.
 

Fixed Shunt Reactor Market Share

Major participants in the fixed shunt reactor market include :

• HYOSUNG HEAVY INDUSTRIES
• TMC TRANSFORMERS MANUFACTURING COMPANY
• Siemens Energy
• Hitachi Energy Ltd.
• WEG
• SGB SMIT
• NISSIN ELECTRIC Co.,Ltd.
• Shrihans Electricals Pvt. Ltd.
• GE
• GBE S.p.A
• Toshiba Energy Systems
• Solutions Corporation
• CG Power & Industrial Solutions Ltd.
• Fuji Electric Co., Ltd
• GETRA S.p.A.
   

Fixed Shunt Reactor Industry News:

• In November 2021, Siemens has recently secured a significant contract to supply seven reactors to a joint venture comprising N1, Konstant Net, and Nord Energi, renowned energy solution providers in Europe. This joint venture successfully secured a tender to implement Siemens' shunt reactors across Energinet's 60 kV networks, with the aim of mitigating reactive power contamination in these networks. This supply contract not only underscores Siemens' pivotal role in addressing power quality challenges but also bolsters its market presence throughout the European region. As a result, Siemens is poised to expand its market share significantly as it continues to deliver innovative solutions that enhance grid reliability and efficiency across Europe.
   

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

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By Phase

• Single Phase
• Three Phase

By Insulation

• Oil Immersed
• Air Core

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