Shunt Reactor Market Analysis

Shunt Reactor Market Analysis

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The three phase shunt reactors segment is anticipated to grow at a CAGR of over 7.5% by 2032. Government initiatives and regulations focused on improving power system efficiency, reducing losses, and promoting renewable energy integration can drive the adoption of three-phase shunt reactors. Supportive policies and incentives for grid modernization and upgrading the power infrastructure will further stimulate the market. Investments in infrastructure expansion, grid reliability enhancement, and smart grid projects will create opportunities for the deployment of shunt reactors across the globe.
 

The oil immersed shunt reactor market size was worth USD 1.2 billion in 2022 and is poised to reach USD 2.4 billion by 2023. Furthermore, oil-immersed shunt reactors have a more compact design compared to air-core reactors, resulting in a smaller footprint. This makes them suitable for installations where space is limited. In addition, the oil-filled enclosure of oil-immersed shunt reactors helps in reducing noise levels generated during operation, which in turn boost its adoption across noise sensitive environments or urban areas, thereby propelling the industry growth.
 

The variable shunt reactors obtain a market value of over USD 800 million in 2022 and is estimated to observe around 7.5% CAGR from 2023 to 2032. Furthermore, variable shunt reactors offer a wide range of reactive power control capabilities, including both leading and lagging reactive power, thereby allowing for precise control over power factor correction and voltage regulation, which in turn benefits the product penetration across T&D networks.
 

The utility segment held around 65% share of the shunt reactor market in 2022. Growing demand for electricity across the globe will compel the governments to enhance the transmission & distribution network in their respective country, which acts as a major driver for the deployment of shunt reactors. Many developed countries are extensively investing in refurbishing their aging grid infrastructure, thus fuelling a demand for reliable and efficient technologies including shunt reactors to offer safe supply of electricity to the customers.
 

Asia Pacific shunt reactor market is expected to witness 7.5% growth rate through 2032, owing to a substantial increase in energy consumption along with rapid urbanization, industrialization, and population growth. Governments in the Asia Pacific region are investing heavily in the development of power infrastructure, including the construction of new power plants, transmission lines, and substations. This infrastructure expansion is creating significant opportunities for the deployment of shunt reactors to enhance system stability and voltage regulation.
 

Moreover, many countries in the Asia Pacific region are actively promoting the use of renewable energy sources such as wind and solar energy. The recurrent nature of these renewable energy sources poses challenges in terms of grid stability, which allows the shunt reactors to play a crucial role in managing voltage fluctuations and maintaining the stability of the power grid during the integration of renewable energy, thereby driving its market penetration across the Asia Pacific region.