North America Shunt Reactor Market Size - By Phase, By Insulation, By Product, By End Use, Analysis, Share, & Forecast, 2025 - 2034

North America Shunt Reactor Market Size

The North America shunt reactor market was valued at USD 393.9 million in 2024 and is expected to reach USD 661 million by 2034, growing at a CAGR of 5.2% from 2025 to 2034, driven by heightened investments in power grid infrastructure, integration of renewable energy sources, and grid stability needs. As reported by the US Department of Energy’s Grid Deployment Office, the GRIP Program funded USD 10.5 billion towards improving the resilience and reliability in the power systems within the U.S.
 

Power utilities are implementing shunt reactors to enhance power factor correction and voltage regulation in response to increasing electricity demand. The expansion of high-voltage transmission networks, especially for wind and solar power projects, is contributing to market expansion. The EIA projects 63 GW of new U.S. utility-scale generation in 2025, a 30% rise from 2024’s 48.6 GW. Solar and battery storage will comprise 81%, with solar alone contributing 32.5 GW.
 

The enhancement of old grid infrastructure has resulted in greater demand for shunt reactors. Canada and the US remain primary markets because of ongoing programs for grid modernization, although the high initial costs coupled with maintenance needs may restrict growth. Recently, there is a grant of USD 500 million which aids in the adoption of clean technologies through enabling energy efficiency and renewable upgrades.
 

The North America shunt reactor market is advancing with the stricter standards compelling the development of technology, including the deployment of smart reactors with active monitoring systems. These innovations ensure operational efficiency improvement and greater market reliability in North America. In October 2023, the North American Electric Reliability Corporation (NERC) has put into effect new reliability standards encouraging smart grid technologies to be used for increased stability of power systems.
 

North America Shunt Reactor Market Trends

• The shunt reactor deployment in North America is increasing due to power system modernization plans, adoption of renewable energy, and improvement of power systems management. The U.S. Department of Energy has funded the Grid Modernization Initiative with USD 220 million for grid modernizations in 2023.
   
• Moreover, the growing deployment of high-voltage direct current (HVDC) transmission lines necessitates the greater installation of shunt reactors to achieve network power stability. The adoption of smart grids and intelligent digital substations has increased the need for modular intelligent real time monitored and automated reactors. FERC Order 881, issued in December 2021, mandates transmission providers to adopt ambient-adjusted ratings for transmission lines by 2025.
   
• Utility companies are implementing compact and energy-efficient shunt reactors to maximize space utilization and decrease operational expenses. The increasing electrical infrastructure of remote regions along with industrial development creates more market opportunities. Recently, USD 5 billion grant funding was given to support U.S. grid resiliency, which assists electricity providers in weatherizing infrastructure to extreme conditions.
   
• Companies in the market are enhancing their competitive positions through technological innovations, partnerships, and expanded aftermarket services within the North American power infrastructure sector. In October 2023, the Department of Energy announced USD 3.5 billion in grants to construct capacity for wind and solar energy, fortify power lines against severe storms, deploy batteries and electric vehicles, and establish microgrids capable of sustaining power during outages.
   

North America Shunt Reactor Market Analysis

• The North America shunt reactor industry across the phase segment is categorized into single and three phase. The market size was valued at USD 347.2 million, USD 370.1 million and USD 393.9 million in 2022, 2023 and 2024 respectively, driven by grid expansion and renewable energy integration. The three-phase shunt reactor market is anticipated to exceed USD 405 million by 2034.
   
• Three-phase shunt reactors are becoming increasingly important due to their use in the correction of power factors and voltage regulation in the high voltage transmission systems. Utility companies have a tendency to favor three-phase reactors for general purpose applications and even in HVDC systems and long-distance AC transmission."
   
• The U.S. Department of Energy recently stated plans to invest USD 13 billion toward grid infrastructure modernization, improving the power transmission reliability across states by implementing shunt reactors in the grid."
   
• Single-phase shunt reactors are experiencing increased adoption in specific applications, including railway electrification and industrial power systems, where phase balancing is essential. In October 2024, the U.S. government announced an investment of USD 2.4 billion towards 122 rail improvement activities in Washington D.C along with 41 other states. This in turn will drive the product adoption across these states in the coming years.
   
• Furthermore, the advancements in compact forms and energy saving technologies have led to growth in both market segments. Custom tailored solutions with digital monitoring features are being developed by manufacturers to improve operational efficiency and reliability. In April 2022, Hitachi Energy launched OceaniQ, offering advanced offshore energy solutions with enhanced reliability, sustainability, and efficiency for wind farms and marine applications.
   

• The North America shunt reactor market is seeing growing demand for insulation in both fixed and variable shunt reactors on account of grid modernization and increasement of renewable energy sources. The shunt reactors with oil immersed insulation constituted for 58% of the market share in 2024 and is poised for significant growth, with a projected CAGR of 4.5% through 2034.
   
• The market is dominated by the fixed shunt reactors, which are the most economical for stabilization of transmission networks. The adoption of variable shunt reactors is rising as utilities increasingly demand adaptable solutions to varying power loads, especially in the case of wind and solar power. The North American Electric Reliability Corporation (NERC) emphasizes that variable shunt reactors are instrumental in achieving and sustaining the voltage requirements in the over renewable energy regions.
   
• Moreover, the adoption of smart grid technologies has resulted in an increased need for variable shunt reactors, which allow for real-time voltage control and improve overall grid performance. Canada launched its SREPs program in June 2021 with an allocated budget of USD 964 million aimed at supporting renewable energy technologies including wind, solar, and storage, in order to achieve net-zero emissions by 2050.
   
• Furthermore, investors are concentrating their efforts on the creation of new insulation materials, as wells as on advanced digital monitoring systems with the goal of improvement control, supervision and the overall effectiveness of North American power.
   
• In October 2024, Canada's Ministry of Energy directed a total of USD 362.1 million to the Utility Support Stream of the Smart Renewables and Electrification Pathways (SREPs) Program, which is part of a wider USD 2.1 billion spending on clean electricity infrastructure focusing on renewable energy and energy storage and grid modernization projects.
   

• The U.S. shunt reactor market is estimated at USD 256.8 million, USD 272.8 million, USD 289.3 million in 2022, 2023 and 2024 respectively. The market is further projected to cross USD 475 million by 2034, driven by increasing investments in power transmission infrastructure and grid modernization.
   
• Utility companies implement shunt reactors to improve grid reliability and efficiency, especially in high-voltage transmission networks. The ongoing transformation toward smart grids and digital substations contributes to market growth. In May 2023, California's Independent System Operator (CAISO) endorsed a USD 7.3 billion funding plan to enhance the state's clean energy objectives, justifying the investment with the California grid's goal capacity and reliability over the next decade. The funding is intended to be used on 45 associated projects.
   
• Moreover, regulatory requirements on energy efficiency and grid resilience tend to increase investments in energy shunt reactors. States including Texas and California demonstrate high adoption rates due to their extensive renewable energy installations. In 2024, California's USD 41 billion investment in clean energy infrastructure has increased non-fossil fuel sources to 61% of retail electricity sales, advancing toward the 2045 goal of 100% zero-carbon electricity.
   
• The market for shunt reactors in the Canada region is growing due to an increase in funding for the development of infrastructure for power transmission as well as the integration of renewable energy sources. Investments are expected to increase as the country is enlarging its wind and solar energy production while seeking greater solutions for voltage control and grid stabilization.
   
• Utilities are starting to incorporate shunt reactors in order to control reactive power to improve efficiencies in power transmission. The investments further demonstrate the government policies geared towards grid modernization as well as the growing market need for energy efficiency. In October 2024, Canada added another funding of USD 346.45 million raising the total to USD 3.12 billion for the Smart Renewables and Electrification Pathways Program (SREPs).
   
• The ongoing shift to smart grids and digital substations is increasing shunt reactor adoption. Ontario and Quebec are leading the development of the Canadian shunt reactors market owing to their wide power network and renewable energy infrastructure. In November 2023, Hydro-Quebec intends to spend USD 107.40 billion to USD 121.28 billion by 2035, further plans to add 8,000 to 9,000 MW of new capacity which includes 3,800 to 4,200 MW of hydroelectric capacity to address growing electricity demand and facilitate decarbonized supporting.
   

North America Shunt Reactor Market Share

The top 6 companies operating in North America shunt reactor industry include Siemens Energy, General Electric, Hitachi Energy, Toshiba, Hyosung Heavy Industries and Fuji Electric. These companies lead with advanced technology, strong distribution, and key roles in grid modernization for renewable energy integration and stability with a market share of more than 40% in 2024 and are expected to grow further.
 

General Electric (GE) Siemens Energy maintains the most significant share within the North America shunt reactor market owing to the firm’s power transmission business across the region and its extensive product range alongside advanced technology.
 

Their competitive edge is gained from high-efficiency reactor’s reputation, along with enhancement of grid reliability and stability, integration of renewable energies, and large scale grid modernization projects also play a pivotal role. Under the SINCRO.GRID project, in 2020 Siemens Croatia put into operation a 100 MVAr variable shunt reactor at Mraclin substation to improve grid flexibility and support renewables while decreasing congestion.
 

North America Shunt Reactor Market Companies

• General Electric leads the North American shunt reactor market with its power systems and grid solutions. The company’s reactor technologies contribute to the dependability and efficiency of grid operations as renewable energy penetration and transmission system modernization grow. In May 2020, GE formed a contract with the American Roll-On Roll-Off Carrier Group to deliver three shunt reactors to Texas for the department of energy’s BPA utility grid modernization initiative.
   
• Hitachi Energy continues to hold an important market position by supplying services for power transmission and distribution systems. The company’s reactor designs incorporate adequate voltage levels for energy efficiency and potential renewable energy sources to be incorporated in the area. In May 2023, Hitachi Energy provided its HVDC Light technology for the SunZia Transmission Project which allows wind energy to be transmitted over 885 kilometers from New Mexico to Arizona, further increasing renewable energy sources in the western United States.
   
• Toshiba engages the market with its reactor solutions as well as its power system optimization capabilities. During the first half of 2024, the company reported the net sales of USD 10.77 billion, which signifies an increasing growth. The company addresses the expanding need for grid extension and modernization by providing products that improve voltage regulation as well as help in reducing power loss.
   
• Hyosung Heavy Industries has specialized in insulation technology and high capacity shunt reactors, which results in revenue of USD 2.65 billion in 2023, with a gross profit of 313.8 million. Their products help improve the reliability of the transmission network and the integration of renewable energy, thereby firmly establishing them as a dominant supplier in North America.
   
• Fuji Electric offers dependable reactor solutions for the North American market. For the third quarter of 2024, the company registered a net sales figure of 3.27 billion. The company leverages its knowledge of power electronics and grid infrastructure to meet voltage stability needs, aiding in the creation of robust power grids.
   

Major players operating in the North America shunt reactor industry are:

• Alstom
• CHINT Group
• Elgin Power Solutions
• Fuji Electric
• General Electric
• Hitachi Energy
• Hyosung Heavy Industries
• JSHP Transformer
• MEIDENSHA
• Nissin Electric
• SGB SMIT
• Shrihans Electricals
• Siemens Energy
• Toshiba
• WEG
   

North America Shunt Reactor Industry News

• In November 2024, Hyosung Heavy Industries Ltd. won a contract with Ørsted to provide components for an offshore wind project, valued at USD 0.20 billion. This contract broadens Hyosung's activity in the renewable energies industry. The project is part of Ørsted's expansion of offshore wind capacity and entail Hyosung providing electrical equipment for the infrastructure.
   
• In October 2024, Hitachi Energy introduced a new 500 kV variable shunt reactor (VSR) technology in response to the growing need for wind power systems. Active VSRs and the expansion of the 500 kV VSR strengthened the support of grid systems to allow better control of large-scale renewable energy transmission, thus boosting energy reliability and facilitating the swifter shift to a sustainable world.
   
• In May 2024, Meidensha Corporation (Meiden) launched four new versions of shunt reactors with eco-friendly ester oil insulating fluid. This was done after the successful launch of its Ester filled Transformer. Sales of these eco-friendly shunt reactors are set to start, which will further strengthen the sustainable energy offerings.
   

This North America shunt reactor market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Phase

• Single phase
• Three phase

Market, By Insulation

• Oil immersed
• Air core

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 countries:

• U.S.
• Canada