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

Oil Immersed Shunt Reactor Market Size

Oil Immersed Shunt Reactor Market size was valued at USD 1.3 billion in 2023 and is anticipated to register 6.1% CAGR from 2024 to 2032. The expansion and modernization of power transmission and distribution networks, particularly in emerging economies, is increasing the demand for reactive power compensation solutions like shunt reactors.
 

The increasing emphasis on grid reliability and resilience against voltage fluctuations and disturbances is bolstering the adoption of shunt reactors. As the global energy landscape continues to evolve, the oil-immersed shunt reactor is poised for sustained growth, playing a critical role in ensuring the reliability and efficiency of electrical networks.
 

COVID-19 Impact

The COVID-19 pandemic had a many-sided impact on the oil-immersed shunt reactor market. While the energy sector, including power transmission, was deemed essential and largely operational during the pandemic, certain factors influenced the market dynamics. Disruptions in global supply chains and manufacturing activities led to delays in production and delivery of shunt reactors, affecting project timelines.
 

Additionally, reduced economic activity and uncertainties prompted some utilities to postpone infrastructure investments, including the installation of shunt reactors. The pandemic highlighted the importance of a resilient and stable electrical grid, potentially driving increased interest in grid enhancements, including reactive power compensation solutions like shunt reactors, to ensure grid reliability in times of crisis. This mixed impact underscores the importance of adaptability and long-term planning in the energy sector in response to unforeseen challenges like the COVID-19 pandemic.
 

Oil Immersed Shunt Reactor Market Trends

The oil-immersed shunt reactor market may witness significant growth up to 2032, impelled by growing emphasis on grid modernization and the integration of renewable energy sources into power systems. As electricity demand continues to rise globally, particularly in emerging economies, utilities are investing in grid infrastructure, providing opportunities for market growth. These trends collectively underscore the pivotal role of oil-immersed shunt reactors in optimizing power transmission and distribution networks for the future.
 

Oil Immersed Shunt Reactor Market Analysis

Three phase shunt reactors market will showcase 6% gains through 2032, led by integration of renewable energy sources, such as wind and solar. The increasing emphasis on grid reliability and resilience against voltage fluctuations and disturbances is bolstering the adoption of three-phase shunt reactors. Additionally, advancements in reactor design, materials, and monitoring technologies are improving the efficiency and performance of these reactors, aligning them with the evolving needs of modern power systems.
 

Fixed oil immersed shunt reactors obtain a market value of over USD 700 million in 2022 and is anticipated to grow at CAGR of over 5% during 2023 and 2032. One primary advantage is their simplicity and reliability, as fixed shunt reactors require minimal maintenance and have a proven track record of long service life. Additionally, they are a cost-effective solution, especially when compared to more complex dynamic compensation technologies such as synchronous condensers or static VAR compensators.
 

Fixed shunt reactors are well-suited for grid applications where consistent and continuous reactive power support is required, effectively mitigating voltage instability and improving system efficiency. Their robust design, combined with the ability to handle high levels of reactive power, makes fixed oil-immersed shunt reactors a practical and dependable choice for utilities and grid operators seeking to enhance grid stability and voltage control.
 

The electric utility segment captured around 68% share of the oil immersed shunt reactor market in 2022. The rising global demand for electricity is pressuring governments to improve their transmission and distribution networks, serving as a significant driver for the adoption of shunt reactors. Developed nations are making substantial investments in upgrading their aging grid infrastructure, creating a need for dependable technologies like shunt reactors to ensure the safe and consistent delivery of electricity to consumers.
 

Asia Pacific oil immersed shunt reactor market is expected to witness 5.5% growth up to 2032, owing to an increasing urbanization rate in many countries, leading to higher electricity consumption in urban areas and greater pressure on existing grid infrastructure. Furthermore, the growing awareness of the importance of grid stability and voltage control is pushing utilities and governments to invest in reactive power compensation solutions like oil-immersed shunt reactors, ensuring a more resilient and efficient power supply across the Asia Pacific region.
 

Oil Immersed Shunt Reactor Market Share

Major participants in the oil immersed shunt reactor market include :

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

Oil Immersed Shunt Reactor Industry News:

• In July 2022, WEG unveiled a significant supply contract involving six shunt reactors and four transformers rated at 500 kV for a wind farm project in Colombia, boasting an impressive power generation capacity of 492 MW. The successful completion of this supply agreement in the latter half of 2022 is poised to not only strengthen WEG's foothold in the global market but also enhance its market share significantly.
   
• In April 2022, Hitachi Energy has unveiled Oceaniq, a suite of innovative solutions tailored for the offshore environment. Oceaniq series combines advanced technology and expertise to address the unique challenges of offshore operations. Under the portfolio, the company has introduced OceaniQ transformers and shunt reactors in collaboration with various floating offshore developers to improve the operational efficiency of the wind farms. By leveraging Hitachi Energy's expertise in the energy sector and deep understanding of offshore operations, Oceaniq aims to enhance operational efficiency, optimize performance, and drive sustainable growth in the offshore industry.
   

This oil immersed 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 Product

• Fixed
• Variable

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