Oil Immersed Fixed Shunt Reactor Market Size - By Phase, By End Use, Analysis & Growth Forecast, 2025 - 2034

Oil Immersed Fixed Shunt Reactor Market Size

The global oil immersed fixed shunt reactor market was valued at USD 840.8 million in 2024 and is estimated to reach the value of USD 1.4 billion by 2034, growing at a CAGR of 5.7% from 2025 to 2034. A key driver is the quick industrialization and urbanization in emerging countries such as China, India, France and others. As the countries develop further, the demand for electricity to power industrial processes and urban development increases. This increased electricity demand calls for the extension and upgrading of power transmission and distribution systems.

The swift adoption of renewable energy sources is driving the market demand like solar and wind into the Asian-Pacific nations' power grids is a key driver for the oil-immersed fixed shunt reactor market. The arbitrary nature of renewable energy generation contributes to reactive power imbalances and voltage fluctuations across the grid.
 

The balancing and stabilization of these fluctuations is possible using fixed shunt reactors, oil-immersed ones specifically, which ensure power quality and reliability of the grid. For example, in 2022, China's renewable energy capacity reached nearly 1.2 terawatts, marking a 14 percent increase from 2021. Such growth poses challenges in the sophisticated grid infrastructure to manage the instability from renewable energy sources while maintaining voltage levels.
 

These regions ongoing upgrade of transmission and distribution networks enhances the demand for oil-drenched fixed shunt reactors. The aging infrastructure in developed countries, alongside the more developed urban centers in newly industrialized nations, requires considerable amounts of funding to be poured into grid enhancements which can support the growing demand of electricity while also ensuring uninterrupted supply.
 

An example of this is, China’s eagerness to over its power grids within the nation for modifcations and up-scalations has set aside USD 442 billion between 2021 and 2025 periods which showcases their betterment shift towards advancement of grid infrastructure.
 

The prompt goal regarding the restructuring of electricity systems internationally, alongside the implementation of major expansion and modern construction plans, oil-immersed fixed shunt reactors absolutely need to be paid attention to which assist in the stabilization of the voltage as well as the elevation of the power quality. Other than that these changes are important for shifting support in the developments region for energy transition, decoupled growing dependency on fossil fuels, and enable the further use of renewables.
 

In April 2025, tariffs on trade imposed by the U.S. administration will have a profound effect on the industry. Tariffs of 245% are on imports from China that provide shunt reactors and other respective component to the international market will have the negative effect on industry. Additionally, tariffs on other emerging nations have been suspended for a few months due to geopolitical considerations. This further import will thereby raise production expense for U.S. electric makers, most likely increasing consumer price and inducing supply chain disruptions. Different companies throughout the industry will seek alternative sources or domestic fabrication in an attempt to offset such problems.
 

Oil Immersed Fixed Shunt Reactor Market Trends

The increasing incorporation of wind and solar power as sources of renewable energy is being integrated into national grids. This emerging strategy has created issues with voltage changes and reactive power imbalances due to the variability of renewable energy generation. To address these issues, electricity companies tend to adopt oil-immersed fixed shunt reactors, which provide effective reactive power compensation, thereby improving grid stability and subsequent reliability.
 

As an instance, China spend over USD 940 billion on renewable energy in 2024 showcases the nation’s dedication to clean energy and the subsequent sophisticated oil-immersed fixed shunt reactors grid solutions requirement.
 

The refurbishment of power grids which are getting older is being done to cater to the increasing demands of electricity during the periods of rapid urban growth and industrialization. Part of these improvements includes the use of oil immersed fixed shunt reactors which provide benefits such as ease, reliability, low upkeep, and longer life. These efforts are notably led by Europe and the Asia Pacific regions where massive investments are placed towards improvement of grid efficiency and increased power needs. 
 

Global oil-immersed fixed shunt reactor market is expanding due to the integration of renewable energy sources and the modernization of power infrastructure. These trends underscore the importance of oil-immersed fixed shunt reactors in maintaining grid stability and supporting the transition to a more sustainable energy future.
 

Oil Immersed Fixed Shunt Reactor Market Analysis

• The global market for oil immersed fixed shunt reactor was valued at USD 734.8 million, USD 786.8 million and USD 840.8 million in 2022, 2023, and 2024 respectively. Based on phase, the market is segmented into single phase, and three phases, where three phases will grow at a CAGR of over 6.2% till 2034 owing to increasing advancement in grid stability.
   
• The market for single-phase oil-immersed fixed shunt reactors is witnessing steady growth mainly due to the growing need for efficient power distribution and transmission systems. The reactors are highly suitable for reactive power management and voltage stabilization in single-phase applications, including rural electrification and particular industrial installations.
   
• Rapid growth is linked to the growing deployment of alternative energy sources such as solar and wind power that require reactive power compensation in order to sustain the stability of the grid. Other factors such as the replacement of old grid infrastructures and urbanization are further driving the growth of three-phase oil-immersed fixed shunt reactors.
   
• For instance, in December 2024, Sungrow, the world leader in PV inverters and energy storage systems, announced a strategic collaboration with KTISTOR Energy to implement the groundbreaking liquid-cooled PowerTitan 2.0 Battery Energy Storage System (BESS) in a number of significant projects in Greece. This alliance is the PowerTitan 2.0's first appearance in Greece, where it will serve as a prime driver of improving grid stability and helping the country achieve its renewable energy transition ambitions.
   

• Based on end use, the market is segmented in electric utility and renewable energy, with electric utility holding a market share of 70.7% in 2024. Furthermore, the soaring energy demand across the globe from growing industrialization will propel the need for an efficient and reliable grid network, which in turn will fuel the deployment of oil filled fixed shunt reactors across the globe over the next few years.
   
• The growing investment by the government and private bodies towards the energy infrastructure is driving the global market. For instance, Germany transmission grid operator Amprion unveiled an uplift in investments to USD 41.37 billion over the next five years to 2029, with a primary focus on infrastructure upgrades for effective transmission of renewable electricity.
   
• Furthermore, renewable energy sources produced over 44% of the European Union's power in the year 2023, a surge of 12.4% from the previous year. The increasing trend towards clean energy demands upgradation of the grid structure to be able to run variable sources of power and maintain voltage stability.
   
• The speedy growth in renewable energy technologies, especially solar and wind power, is the major reason behind the growing uptake of oil-immersed fixed shunt reactors. In 2023, electricity generated by solar and wind sources accounted for a record 27% of electricity produced in the EU, which was 23% in 2022. The increase marked a 19% reduction in fossil fuel-driven electricity production, demonstrating the transformation towards cleaner resources.
   
• Shunt fixed oil-immersed reactors are useful sources of effective compensation of reactive power, thereby creating grid stability, as well as a constant source of reliable supply of power. As the participation of renewable energy in the power mix globally will continue expansion due to growing needs for oil-immersed fixed shunt reactors.
   

• The U.S. oil immersed fixed shunt reactor market was valued at USD 96.1 million, USD 101.1 million, and USD 106.1 million in 2022, 2023, & 2024 respectively. This is primarily driven by the technological advancements in the U.S. associated with the availability of key market players that delivers strong product portfolio to multiple applications. 
   
• In Europe, the oil-immersed fixed shunt reactor market is shaped by the renewable energy goals of the EU and its grid modernization activities. The European Union's goal to reduce greenhouse gas emissions by 55% by 2030 requires integrating renewable resources and improving grid infrastructure. This trend will create new opportunities for the oil immersed fixed shunt reactor market.
   
• The Asia Pacific region, where developed and emerging countries such as China, India, Japan, and South Korea is experiencing quick urbanization and industrialization, resulting in an upsurge in the demand for electricity. For instance, India's Ministry of Power observed that electricity demand had grown by 50.8% from 2013-14 to 2022-23, further boosting the use of shunt reactors for voltage control.
   
• The Middle East is placing significant investments in infrastructure and renewable energy initiatives, resulting in rising demand for oil-immersed fixed shunt reactors. The UAE and Saudi Arabia are targeting energy diversification and grid reliability improvement. Shunt reactor adoption plays a crucial role in regulating voltage fluctuations and achieving efficient transmission of electricity to sustain the energy transition objectives in the region.
   
• The industry across Latin America is experiencing consistent growth with urbanization and increasing adoption of advanced products in Brazil, Argentina, and Chile. Moreover, regions focus on energy efficient products to create new opportunities in the market.
   

Oil Immersed Fixed Shunt Reactor Market Share

Top 5 companies in the oil immersed fixed shunt reactor market include GE, WEG, Fuji Electric Co., Ltd., Toshiba Energy Systems & Solutions Corporation and Hitachi Energy Ltd. having for over 37% market share in 2024. These companies have designed and invested in global international along with quickly developing technologies and consorted with other sponsors for the expansion of shunt reactors.
 

The dominance of the key players in terms of technological advancement, partnership, agreements, and product strategies, has majorly contributed to their expansion of the industry. As a reference, chosen by Sterlite Grid 32 Limited, in February 2025, GE Vernova has planned to provide 765 kV gas-insulated switchgear (GIS), 765 kV transformers, and shunt reactors, along with installation supervision for testing and commissioning for Khavda Phase-IV Part C project.
 

Oil Immersed Fixed Shunt Reactor Market Companies

• WEG is a globally recognized leader that delivers electric engineering, power, and automation technologies all over the world. It serves sectors such as energy, oil & gas, mining, and infrastructure for multiple applications. The company generated annual revenue of 1.72 billion in 2023.
   
• Fuji Electric Co., Ltd., is a Japanese electrical equipment manufacturer specializing in power semiconductors and power electronics solutions. They offer a wide range of products and services, including power generation systems, energy management systems, and automation solutions. Strong presence globally has achieved an annual revenue of USD 7,306 million during the year 2024.
   
• Toshiba Energy Systems & Solutions Corporation Toshiba Corporation is Japanese multinational electronics conglomerate with diverse products and services in four main business fields: Energy, Social Infrastructure, Electronic Devices, and Digital Solutions. Founded in 1939 as Tokyo Shibaura Electric Company, Ltd., it is now a world leader in numerous industries. Toshiba has amassed revenue of approximately USD 23 billion in the year 2024 by introducing fresh technologies into the industry.
   
• Hitachi Energy Ltd., Hitachi Energy Ltd. is a worldwide technology organization, based in Zurich, Switzerland, with the aim to build a sustainable energy future. It provides an extensive array of products and services for the utility, industry, transportation, data centers, and infrastructure markets. During the year 2023 the company was successful in providing phenomenal returns and earned approximately USD 68 billion.
   

Key market players operating across the oil immersed fixed shunt reactor market are:

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

Oil Immersed Fixed Shunt Reactor Industry News

• In February 2024, GE Vernova's Grid Solutions business wins orders from Power Grid Corporation of India for the delivery of 765 kV Shunt Reactors. The orders assist India's renewable energy ambitions, making the grid more stable and efficient to support renewable energy integration.
   
• In October 2024, Hitachi Energy ups variable shunt reactor to 500 kV for wind power sector Uzbekistan. The Uzbek government aims to double the percentage of renewable energy sources from 10 percent in 2022 to 25 percent by 2030, raising the capacity targets from 5 gigawatt (GW) to 3 GW to 5 GW for wind and 7 GW for solar photo-voltaic (PV).
   
• In April 2022, Adani Electricity Mumbai Ltd installed a 220 kV variable shunt reactor at its a crucial part of city’s power grid that is Gorai EHV substation. With this, Adani Electricity is among the first utility in India to power a 48-120 MVAr, 220 kV variable shunt reactor.
   
• In March 2021, T&R worked towards designing and producing extra high voltage reactor filled with biodegradable natural ester fluid for POWERGRID India. Additionally, the company has successfully manufactured and generated 420 kV, 3-phase, 50 MVAr, shunt reactor filled with ester fluid, which positively underwent routine and type tests.
   

This oil immersed fixed shunt reactor market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Phase

• Single Phase
• Three Phase

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