Oil Immersed Fixed Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By End Use (Electric Utility, Renewable Energy), Growth Prospects, Regional Outlook & Global Forecast, 2024 – 2032

Oil Immersed Fixed Shunt Reactor Market Size

Oil Immersed Fixed Shunt Reactor Market size was estimated at USD 791.8 million in 2023 and is expected to grow at over 5.6% CAGR from 2024 to 2032. The increasing demand for electricity, particularly across the emerging economies, is propelling the expansion of power infrastructure, which necessitates the deployment of effective power compensation solutions including fixed shunt reactors to enhance grid stability and efficiency. For instance, as per Enerdata, India witnessed a strong growth of 7.3% in energy consumption in 2022 owing to the strong economic growth in the nation.
 

Moreover, the rising adoption of renewable energy sources including wind and solar power requires effective reactive power management to mitigate voltage fluctuations, further boosting the demand for fixed shunt reactors in power transmission & distribution networks. Additionally, advancements in grid modernization efforts, coupled with the need for reliable power supply and reduced transmission losses, are driving utilities and grid operators worldwide to invest in reactive power compensation technologies, thereby fostering the growth of the oil-immersed fixed shunt reactor market.
 

COVID–19 Impact

The COVID-19 pandemic significantly impacted the oil-immersed fixed shunt reactor market, causing disruptions in manufacturing, supply chains, and project timelines due to lockdowns, restrictions, and economic uncertainty. Reduced industrial activities and project delays hampered the demand for fixed shunt reactors in power infrastructure projects globally. However, the pandemic also accelerated the focus on grid modernization and renewable energy integration in some regions, fostering long-term growth prospects for fixed shunt reactors as utilities seek to enhance grid stability and efficiency in the post-pandemic recovery phase.
 

Oil Immersed Fixed Shunt Reactor Market Trends

The oil-immersed fixed shunt reactor industry is projected to observe substantial expansion shaping its trajectory including the growing deployment of low carbon energy sources into power grids necessitates efficient reactive power compensation solutions such as fixed shunt reactors to ensure grid reliability. For instance, according to REN 21, between 2012 and 2022, the proportion of renewables in Asia's electricity composition surged by 10%, climbing from 17% to 27%, primarily propelled by the escalation in solar and wind power generation.
 

Moreover, technological advancements such as the development of advanced materials, insulation techniques, and digital monitoring systems are enhancing the efficiency and performance of oil-immersed fixed shunt reactors, further driving their adoption.
 

Oil Immersed Fixed Shunt Reactor Market Analysis

The oil immersed fixed shunt reactor industry is segmented in single phase and three phase based on phase. Three-phase shunt reactors dominate the market due to enhanced grid stability and voltage regulation and expand at a rate of over 5.5% between 2024 and 2032, on account of their indispensable adoption for modern power networks, driven by grid modernization and renewable energy integration.
 

The units offer enhanced efficiency and reliability in power transmission and distribution systems, facilitating better voltage regulation and grid stability. Their robust performance and ability to handle reactive power fluctuations have made them integral components of modern power networks. Moreover, as grid modernization efforts continue and renewable energy integration expands, the demand for three-phase oil-immersed fixed shunt reactors is expected to further escalate.
 

The oil immersed fixed shunt reactor market is experiencing substantial growth at a CAGR of over 4% through 2032, driven in large part by the electric utility. Electric utilities are increasingly investing in fixed shunt reactors to enhance the efficiency and reliability of their power transmission and distribution networks. These reactors play a crucial role in maintaining grid stability, improving power quality, and managing reactive power flow.
 

Moreover, stringent regulatory standards and the need to minimize transmission losses further bolster the adoption of these reactors in the electric utility sector. With utilities prioritizing grid modernization initiatives, the market is poised for sustained growth in the coming years.
 

Asia Pacific oil immersed fixed shunt reactor market size to cross USD 585 million by 2032. Rapid industrialization and urbanization in countries like China and India are leading to increased electricity demand, necessitating investments in power infrastructure and grid stability solutions. The region's growing focus on renewable energy integration, particularly solar and wind power, requires effective reactive power compensation systems like fixed shunt reactors to manage voltage fluctuations and ensure grid reliability.
 

For instance, in 2022, China significantly boosted its investment in renewables, witnessing a sharp 56.2% surge to USD 274.4 billion, constituting 55% of the global total investment, which creates a growth scenario for the oil-immersed fixed shunt reactors market across the country.
 

Government initiatives and policies promoting grid modernization, energy efficiency, and renewable energy adoption are driving the deployment of oil-immersed fixed shunt reactors across the region. Furthermore, technological advancements and innovations in reactor design and manufacturing processes are improving efficiency and performance, further fueling market growth. With these drivers in play, the Asia-Pacific shunt reactor industry is poised for significant expansion in the coming years.
 

Oil Immersed Fixed Shunt Reactor Market Share

Siemens Energy stands out as one of the foremost players, boasting a long-standing reputation for innovative solutions and reliability in the power sector. With a wide array of high-quality oil-immersed fixed shunt reactors, Siemens Energy addresses diverse industry needs. Its robust engineering expertise, commitment to sustainability, and global reach solidify Siemens Energy's position as a leader in the market.
 

Oil Immersed Fixed Shunt Reactor Market Companies

Some of the key market players operating across the industry 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 April 2022, Hitachi Energy launched Oceaniq, a suite of solutions tailored for offshore applications. The Oceaniq series associates the specialized expertise and advanced technology to tackle the challenges of offshore operations. Within this range, Hitachi Energy introduced OceaniQ shunt reactors and transformers, co-developed with floating offshore developers, to enhance the efficiency of offshore wind farms. Leveraging Hitachi Energy's deep experience in the energy sector and offshore operations, Oceaniq aims to improve operational efficiency, enhance performance, and promote sustainability in the offshore industry.
   
• In November 2021, Siemens clinched a substantial contract to furnish seven reactors to a consortium comprising Konstant Net, N1, and Nord Energi, esteemed energy solution providers in Europe. This consortium successfully secured a bid to deploy shunt reactors manufactured by Siemens across Energinet's 60 kV networks, aiming to alleviate reactive power issues within these networks. This supply agreement underscores Siemens' crucial part in addressing power quality challenges and further fortifies its market presence across Europe. Consequently, Siemens is positioned to significantly augment its market share by continually delivering innovative solutions that enhance grid reliability and efficiency throughout the region.
   

The oil immersed fixed shunt reactor market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘USD Million’ from 2019 to 2032, 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