Oil Immersed Single Phase Shunt Reactor Market Size - By Product, By End Use Analysis, Growth Forecast, 2024 – 2032

Oil Immersed Single Phase Shunt Reactor Market Size

The global oil immersed single phase shunt reactor market was valued at USD 249.9 million in 2023 and is estimated to grow at a CAGR of 4.1% from 2024 to 2032, driven by the demand for efficient power transmission, integration of renewable energy, and grid voltage stabilization for long-distance high-voltage lines. Rising electricity consumption in emerging economies spurs grid infrastructure investments, promoting shunt reactor adoption.
 

Grid modernization and government initiatives to reduce transmission losses further support market growth. For instance, the U.S. DOE reported that efforts toward grid modernization activities have led to a 30% reduction in power outages since 2015, highlighting the impact of such initiatives. The expansion of renewable energy systems, requiring reactive power compensation, also increases demand for oil-immersed shunt reactors, particularly in Asia-Pacific, Europe, and North America.
 

Oil Immersed Single Phase Shunt Reactor Market Trends

The oil-immersed single-phase shunt reactor industry is driven by increasing renewable energy integration, grid modernization efforts, and expanding high-voltage transmission projects in emerging economies. The growing complexity of power grids, particularly with the addition of wind and solar sources, necessitates enhanced reactive power management and voltage stability solutions.
 

According to the Energy Information Administration, 20% of U.S. electricity generation in 2021 was accounted to renewable energy sources, highlighting the urgent need for grid stability technologies. Aging infrastructure in developed markets is spurring demand for updated power compensation technologies, while rapid electrification in developing regions fuels investments in shunt reactors. Technological advancements in insulation materials and efficiency improvements are further shaping the market's evolution, enhancing the performance and reliability of shunt reactors in various grid applications.
 

Oil Immersed Single Phase Shunt Reactor Market Analysis

The fixed shunt reactor segment is expected to surpass USD 200 million by 2032, driven by increasing investments in power grid infrastructure and the rising need for voltage stability in long-distance high-voltage transmission networks. Fixed shunt reactors are particularly favored for their ability to efficiently manage reactive power and reduce transmission losses in high-voltage lines, making them essential in modernizing and expanding grids. Additionally, the increasing integration of renewable energy sources, which require precise voltage control, and government initiatives to upgrade aging electrical infrastructure, further contribute to the growth of this segment.
 

The electric utility sector is projected to witness more than 2.5% CAGR through 2032. This growth is fueled by increasing investments in power grid expansion and modernization, particularly to accommodate the rising demand for electricity and the integration of renewable energy sources. Utilities are adopting shunt reactors to enhance grid stability and reduce transmission losses, especially in long-distance high-voltage networks. Additionally, government initiatives promoting energy efficiency, and the upgrading of aging infrastructure further contribute to market expansion. As electric utilities focus on enhancing power transmission efficiency, the adoption of oil-immersed shunt reactors is set to grow steadily.
 

The U.S. oil-immersed single-phase shunt reactor market is estimated to cross over USD 40 million by 2032, driven by investments in grid modernization and demand for efficient power transmission. Renewable energy integration necessitates improved voltage regulation, boosting shunt reactor adoption. The grid deployment office of U.S. Department of Energy has recently announced a funding allocation of USD 10.5 billion aimed at improving the resilience and reliability of the power grid, which will support market growth. Aging infrastructure upgrades, government initiatives for high-voltage transmission networks, and the need for reactive power compensation in long-distance lines further propel market expansion. These factors collectively contribute to the increasing demand for oil-immersed single-phase shunt reactors in the U.S. market.
 

The Asia Pacific oil-immersed single-phase shunt reactor market is driven by rapid urbanization, increasing electricity demand, and substantial investments in power grid expansion. The region's growing focus on integrating renewable energy sources, like solar and wind, necessitates voltage stabilization and reactive power management, further boosting demand for shunt reactors. Government initiatives for upgrading aging grid infrastructure also contribute to market growth.
 

Oil Immersed Single Phase Shunt Reactor Market Share

General Electric (GE) holds a significant share in the oil-immersed single-phase shunt reactor industry due to its strong portfolio of power grid solutions and a focus on improving grid efficiency. GE's expertise in high-voltage transmission infrastructure and its advanced reactor technologies contribute to the company’s leadership, as it supports the increasing demand for reactive power management and grid stability globally.
 

Oil Immersed Single Phase Shunt Reactor Market Companies

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

• CG Power & Industrial Solutions
• Coil Innovation
• General Electric
• GETRA
• Hitachi Energy
• Hyosung Heavy Industries
• Hilkar
• Nissin Electric
• Starlit Electricals
• SGB SMIT
• Siemens Energy
• Shrihans Electricals
• TMC
• Toshiba Energy Systems & Solutions Corporation
   

Oil Immersed Single Phase Shunt Reactor Industry News

• In February 2024, GE Vernova received contracts from India’s Power Grid Corporation to supply 765 kV shunt reactors. These reactors aim to enhance grid stability and support the integration of renewable energy. The projects, executed through GE T&D India, align with India's clean energy transition goals. Scheduled for delivery between 2025 and 2026, the reactors will contribute to the nation's sustainable energy objectives and grid modernization efforts.
   

This oil immersed single phase shunt reactor market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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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 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