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

Oil Immersed Three Phase Shunt Reactor Market Size

The global oil immersed three phase shunt reactor market size was valued USD 1.1 billion in 2023 and is estimated to grow at a CAGR of 7.1% from 2024 to 2032. This growth is driven by rising demand for grid stability and energy efficiency across power transmission networks.
 

Growing investments in upgrading and expanding aging power infrastructure across various nations are boosting the market growth. For instance, the U.S. Department of Energy reported a 12% increase in grid modernization investments in 2022, highlighting the growing focus on power infrastructure enhancement. Moreover, shift toward higher voltage levels in power networks is driving the demand for advanced oil-immersed reactors, which offer enhanced cooling and insulation. As transmission lines are extended to support growing integration of renewable energy, shunt reactors are essential for regulating voltage levels and reducing reactive power losses. However, the market faces challenges from volatile raw material costs and environmental concerns associated with the use of oil in these reactors.
 

Oil Immersed Three Phase Shunt Reactor Market Trends

The oil-immersed three-phase shunt reactor market is experiencing notable trends driven by the global shift toward renewable energy integration and modernization of power grids. Also, rise in wind and solar energy adoption is boosting demand for shunt reactors to stabilize voltage and improve power quality. For instance, as per the U.S. Energy Administration, in first half of 2022, renewable sources contributed 24% of U.S. electricity generation, led by wind and solar power. Moreover, technological advancements are enabling the development of more efficient and compact reactors, which are gaining popularity due to space constraints and cost considerations, shaping a positive future outlook.
 

Oil Immersed Three Phase Shunt Reactor Market Analysis

The oil-immersed three-phase shunt reactor product segment, comprising fixed and variable shunt reactors, is dominated by fixed shunt reactors and is projected to exceed USD 1.1 billion by 2032. There is a notable trend towards integrating smart technology, allowing for real-time monitoring and diagnostics to improve operational performance and reduce downtime. Additionally, demand for customized solutions is rising, as utilities seek shunt reactors tailored to specific operational needs and environmental conditions. Moreover, market is experiencing a transition toward eco-friendly insulating materials, propelled by regulatory demands and an increasing focus on sustainability, which is further influencing product offerings in this sector.
 

The end use segment in oil immersed three phase shunt reactor market is influenced by the electric utility sector, projected to grow at a CAGR of over 5.5% by 2032, driven by expansion of power generation and transmission sectors. Utilities are increasingly using shunt reactors in high-voltage applications to manage reactive power and stabilize voltage, particularly in variable renewable energy projects. Furthermore, growing trend of retrofitting aging infrastructure with modern shunt reactors is gaining traction, enabling utilities to improve reliability and reduce operational costs. As demand for electrification continues to rise in emerging economies, the end-use segment is expected to expand further, fostering innovation and investment in shunt reactor technology.
 

The U.S. oil immersed three phase shunt reactor market is projected to exceed USD 250 million by 2032, driven by growing focus on grid modernization and renewable energy integration. Furthermore, regulatory frameworks promoting clean energy are fueling demand for shunt reactors in renewable projects, particularly in wind and solar sectors. According to the U.S. Department of Energy, the nation's power grid requires significant upgrades, for achieving a goal of 100% carbon pollution-free electricity by 2035 Moreover, manufacturers are prioritizing eco-friendly insulating materials to meet sustainability trends, which in turn is expected to drive the market growth and reshape the competitive landscape across the country.
 

Asia Pacific oil immersed three phase shunt reactor market is propelled by increasing investments in renewable energy infrastructure and expansion of transmission networks. Countries including India and China are leading the demand, as they seek to enhance grid stability amid growing energy needs. Additionally, there is a significant push towards modernizing existing power infrastructure, coupled with a rising focus on environmentally friendly technologies, propelling growth in the region.
 

Oil Immersed Three Phase Shunt Reactor Market Share

Siemens Energy holds a substantial share in the oil-immersed three-phase shunt reactor market due to its extensive experience, advanced technology, and strong global presence. Company's focus on innovation, particularly in developing efficient and compact reactor designs, positions it as a leader. Additionally, Siemens’ commitment to sustainability and compliance with environmental regulations further enhances its competitive advantage in this rapidly evolving market.
 

Oil Immersed Three Phase Shunt Reactor Market Companies

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

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

Oil Immersed Three Phase Shunt Reactor Industry News:

• In February 2024, GE Vernova has secured significant contracts from Power Grid Corporation of India for the delivery of 765 kV shunt reactors, which will enhance grid stability and support renewable energy integration. These projects, executed through GE T&D India, are part of India's efforts to transition to clean energy, with delivery expected by 2025-26.
   
• In July 2022, WEG secured a supply agreement for four 500 kV transformers and six shunt reactors for a 492 MW wind farm project in Colombia. The successful delivery of these components later that year marked a significant milestone in WEG's global expansion efforts, expected to strengthen its international presence and enhance its market position.
   

The oil immersed three 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, 2021 – 2032 (USD Million)

• Fixed shunt reactors
• Variable shunt reactors

Market, By End Use, 2021 – 2032 (USD Million)

• 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