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

Oil Immersed Shunt Reactor Market Size

The global oil immersed shunt reactor market size was valued at USD 1.4 billion in 2024 and is estimated to grow at a CAGR of 6.3% from 2025 to 2034. The global demand for electricity, the undertaking of grid modernization, and the shift towards the use of renewable energy sources are primary factors that drive the market. Furthermore, the introduction of improved cooling solutions as well as new insulation materials increases the efficiency and reliability of the system. Additionally, due to strong environmental measures, it is required to use environmentally friendly designs, which promote development.
 

Moreover, urbanization and industrialization, especially in developing countries, promote the growth of the market, while developed countries seek to upgrade their infrastructures. Major companies employ strategic partnerships and R&D spending to retain competitiveness, which makes the industry very competitive in meeting new shifts in energy. For instance, Hitachi Energy, in collaboration with Kanonaden Entrepnard Mälardalen AB, provided Sweden's biggest power quality solution for Svenska Kraftnät in November 2024. The enhancement of Sweden's renewable power generation is set to benefit from the USD 300 million project, which seeks to improve transmission capability.

Oil Immersed Shunt Reactor Market Trends

The global market for oil-immersed shunt reactor is driven by the transition of energy and modernization of energy grids. The development of smart grid systems and the availability of digital monitoring tools are improving the reactor and efficiency levels. In pursuit of environmental initiatives, continuous efforts are being made towards probiotic transformer oils that have a diminished impact on environmental sustainability. Moreover, the increase in electric frequency modulation solutions is encouraging the use of reactors with new technologies. For instance, in April 2024, Hitachi Energy put over USD 100 million, aimed at updating its transformer facility in Varennes, located in Quebec, in order to aid in the determination of the expanding requirements necessary in the sustainable energy market.
 

Oil Immersed Shunt Reactor Market Analysis

The three phase oil immersed shunt reactors is expected to reach over USD 1.9 billion by 2034. Grid development, connectivity, and integration of renewable sources are the main drivers of market growth. Large-scale industry and utility grid applications prefer three-phase reactors because they are better suited for heavy loads. Adoption of single-phase reactors is also increasing due to their effectiveness in addressing load imbalances and losses across high-voltage networks. Moreover, there is an increasing growth of both single-phase and three-phase reactors, which feature modular and customizable designs that are appropriate and satisfactory for market and operational needs.
 

The increasing usage of fixed shunt reactors for power generation will compound this segment to continue growing at a CAGR of over 5.5% through 2034. This growth can be attributed to the increasing requirement for supply plants to enhance reliability by providing voltage regulation. Whereas the growth of the variable shunt reactor segment is driven from their flexibility and adaptability in power usage, which is especially required in support of grids utilizing renewable energy resources. Improvements in miniaturization, energy-saving technologies, as well as the development of monitoring and controlling equipment technologies, benefit both fixed and variable shunt reactors and contribute to the current market development trends.
 

The US oil-immersed shunt reactor market is expected to surpass USD 280 million by 2034, owing to the upsurge in investments focused on the modernization of grid systems as well as the advancement of renewable electricity sources. Notably, the penetration of solar and wind energies increases the demand for shunt reactors to alleviate power supply idle time. For example, in July 2024, Hitachi Energy launched its 500 kV variable shunt reactor for better integration with renewable resources including wind energy. Design and insulation material improvements further increase this equipment’s performance.
 

Moreover, with the integration of renewable energy resources, grid extensions, and urbanization, the oil-immersed shunt reactor market in the Asia Pacific region is growing rapidly, especially in countries including China and India, where there is a huge demand for transmission network remodeling. There is a rapid increase in the use of electricity and various plans for the establishment of green infrastructure, all of which promote growth, while more advanced reactor technologies and more flexible designs meet the changing needs of energy in the region.
 

Oil Immersed Shunt Reactor Market Share

Hitachi Energy due to its cutting-edge technology, worldwide reach, and vast experience in power systems holds a significant market share in the oil-immersed shunt reactor industry. The company’s solutions guarantee improved grid reliability and efficiency, hence meeting the increasing demand for electricity. It has a strong commitment to sustainability and a robust portfolio of high-performance reactors, making it a reputable leader among utilities and industrial clients globally.
 

Oil Immersed Shunt Reactor Market Companies

Major players operating in the oil immersed shunt reactor industry are:

• CG Power & Industrial Solutions
• Fuji Electric
• GBE
• GE
• GETRA
• Hitachi Energy
• Hyosung Heavy Industries
• Nissin Electric
• SGB SMIT
• Shrihans Electricals
• Siemens Energy
• TMC Transformers
• Toshiba Energy Systems & Solutions
• WEG
   

Oil Imersed Shunt Reactor Industry News

• In November 2024, Hyosung Heavy Industries, a prominent player in the offshore wind power market, inked a USD 0.20 billion deal with Ørsted. Hyosung is firmly established in the offshore wind market and has demonstrated a wider commitment to the renewable energy industry. As part of the contract Hyosung will provide crucial high-voltage equipment to support Ørsted's aspirations to improve offshore wind developments.
   
• In February 2024, GE Vernova Grid Solutions entered into new development contracts with India Power Grid Corporation worth millions of dollars for the construction of 765-kilovolt reactors in the Karnataka and Rajasthan regions. These contracts are expected to be directed by GE T&D India, on the other hand, is responsible for the marketing, design, implementation and performance of the program from Vadodara. All those projects aim for the enhancement of India’s electricity transmission system before 2025 - 2026.
   

Oil immersed 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 Product

• Fixed shunt reactor
• Variable shunt reactor

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