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

Oil Immersed Variable Shunt Reactor Market Size

The global oil immersed variable shunt reactor market size was valued at USD 548.3 million in 2023 and is projected to grow at a CAGR of 7.9% between 2024 and 2032. Renewable energy integration increases demand for reactive power support. Complex power grids require effective voltage fluctuation management. Investments in transmission infrastructure, especially in developing regions, stimulate market expansion.
 

Stringent regulatory standards on power quality and efficiency contribute to growth. Technological advancements enhance shunt reactor performance and flexibility. In 2022, the U.S. Energy Information Administration reported that renewable energy sources accounted for 22.6% of total U.S. electricity generation, underscoring the increasing need for grid stability solutions like shunt reactors.
 

Additional drivers for the global oil-immersed variable shunt reactor industry include the increasing urbanization and industrialization, which elevate electricity demand and necessitate enhanced power management solutions. The aging electrical infrastructure in many regions also requires modernization, prompting utilities to invest in shunt reactors. Moreover, the push towards smart grids encourages the deployment of advanced reactive power compensation technologies.
 

Oil Immersed Variable Shunt Reactor Market Trends

The oil-immersed variable shunt reactor industry is driven by several factors. Environmental regulations push for eco-friendly designs. Digital technologies enhance operational efficiency. Manufacturers improve reactor reliability through advanced materials. The growing trend of hybrid power systems increases demand for shunt reactors. According to the International Energy Agency, global electricity demand is projected to grow by 2.4% annually from 2022 to 2024, necessitating robust transmission infrastructure. This growth fuels investments in transmission networks, especially in emerging economies, driving market expansion and the need for effective reactive power solutions.
 

Oil Immersed Variable Shunt Reactor Market Analysis

The market for oil-immersed variable shunt reactors, particularly three-phase shunt reactors, is projected to exceed USD 700 million by 2032. This growth is driven by several factors, including the increasing integration of renewable energy sources, which require effective reactive power management, and the expansion of transmission networks in developing regions.
 

Additionally, the demand for enhanced grid stability and efficiency, coupled with advancements in technology that improve reactor performance and reliability, further fuels market expansion. Regulatory pressures for better power quality and the aging of existing electrical infrastructure also contribute to the rising need for these shunt reactors, positioning them as essential components in modern power systems.
 

The oil-immersed variable shunt reactor market is segmented into electric utility and renewable energy sectors, with electric utilities holding a substantial market share. The sector is expected to grow at a CAGR of over 6% by 2032. This growth is driven by increasing investments in grid modernization and the expansion of transmission networks to accommodate rising electricity demand.
 

Additionally, the integration of renewable energy sources into power grids is fueling the need for reactive power management solutions. Regulatory mandates for improved power quality and grid reliability further boost demand, along with advancements in smart grid technologies, which enhance operational efficiency and real-time monitoring of power systems.
 

The Asia Pacific oil-immersed variable shunt reactor market is projected to surpass USD 590 million by 2032. Rapid urbanization and industrialization across the region drive increased electricity demand and grid expansion. Renewable energy integration, particularly in China and India, necessitates advanced reactive power management solutions.
 

The National Energy Administration of China reported that in 2022, renewable energy sources accounted for 47.3% of the country's total installed power generation capacity, highlighting the growing need for grid stability solutions. Government initiatives for upgrading transmission infrastructure, technological advancements in shunt reactor designs, and the rise of smart grid systems further propel market growth in the Asia Pacific region.
 

The U.S. oil-immersed variable shunt reactor industry is experiencing steady growth, driven by increasing investments in grid modernization and the expansion of renewable energy sources. As the country integrates more wind and solar power into its grid, the need for reactive power management grows. Additionally, aging transmission infrastructure and regulatory requirements for improved grid stability are further fueling market demand.
 

Oil Immersed Variable Shunt Reactor Market Share

General Electric holds a significant share in the oil-immersed variable shunt reactor industry, driven by its advanced technologies and strong presence in the power sector. GE’s expertise in grid modernization and renewable energy integration positions it as a key player, providing reliable solutions for reactive power management. Their products cater to the growing demand for efficient grid stability across various regions.
 

Oil Immersed Variable Shunt Reactor Market Companies

Some of the key market players operating across the oil immersed variable 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 Manufacturing Company
• Toshiba Energy Systems & Solutions
• WEG
   

Oil Immersed Variable Shunt Reactor Industry News

• In August 2024, Hitachi Energy received a record order from Svenska kraftnät to enhance Sweden’s power grid. The project included the supply of transformers and shunt reactors, which were essential for stabilizing voltage and improving grid reliability during Sweden’s shift to renewable energy. The infrastructure upgrade supported the increasing demand for electricity and renewable integration. Hitachi Energy played a pivotal role in providing advanced technology for this modernization, strengthening Sweden’s energy transmission capabilities.
   
• In June 2021, Hitachi Energy (formerly Hitachi ABB Power Grids) launched new shunt reactor and transformer technologies for floating offshore wind power. The shunt reactor technology tackles deep water and harsh marine challenges, boosting efficiency and cost-effectiveness compared to conventional models. This launch strengthens Hitachi Energy's offshore presence and advances its sustainable energy solutions for wind power.
   

The oil immersed variable shunt reactor market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 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
  • Argentin