Single Phase Shunt Reactor Market Size - By Insulation, By Product, By End Use, Analysis, Share, & Forecast, 2025 - 2034

Single Phase Shunt Reactor Market Size

The global single phase shunt reactor market was valued at USD 879.2 million in 2024 and is estimated to reach a value of USD 1.5 billion by 2034, growing at a CAGR of 5.8% between 2025 and 2034. Funding for smart grids, as well as digital substations, is growing which is increasing the need for single-phase shunt reactors. These shunt reactors are essential in boosting the voltage and power quality of contemporary transmission networks.
 

With the continuous growth in the generation of solar and wind energy, the requirement for the compensation of reactive power increases. This growing demand accentuates the deployment of single-phase shunt reactors that help with the voltage fluctuations and the overall reliability of the grid. For instance, as noted by IRENA, the total capacity for renewable energy all over the world was 3,372 GW in 2023. This, in turn, requires much more sophisticated management of the grid to accommodate the increasingly prevalent intermittent sources of power.
 

The growing demand of industrial, commercial, and residential sectors is leading to a rise in electricity consumption, which is causing an urgent need for grid infrastructure upgrades. One such development is the increasing need for single-phase shunt reactors which are required for the accurate power factor correction. One example would be the projection by the International Energy Agency, which estimates a 2.4% growth in global electricity demand for the year 2023 due to industrial and residential demand.
 

Globally, stringent grid codes and efficiency norms are pushing utilities to adopt single-phase shunt reactors. These reactors play a major role in reducing losses from transmission and in managing the reactive power flow optimally. For instance, Clean Energy Package of the European Union where a target of 32% of renewable energy was set for 2030 which promotes the need for utilities to improve grid economy and reliability.
 

Single Phase Shunt Reactor Market Trends

• Shunt reactors are becoming common with the upsurge IoT use for monitoring and automation. This has increased the operational and maintenance efficiency for real time management of the grid. The International Energy Association (IEA) has noted, for example, that the incorporation of IoT in grid systems has reduced the maintenance costs by 15%. That is more than 1 billion USD a year.
   
• The growth of single-phase shunt reactors is being propelled by the increased investment spending in ultra-high voltage (UHV) transmission networks which enables power to be transmitted over long distances at a very low cost. As an illustration, China’s State Grid Corporation expanded its UHV transmission network and subsequently invested approximately USD 3.5 billion, which substantially increased the single-phase shunt reactors deployment in 2023.
   
• In the production of reactors, there is a clear trend towards environmentally friendly and sustainable insulation materials that correspond to international environmental and sustainability policies. As modern urban substations and renewable energy systems move toward the use of compact and modular single-phase shunt reactors, the need for these compact solutions continues to grow.
   
• Hybrid substations equipped with FACTS devices and single phase shunt reactors, are changing the landscape of grid stability solutions. These FACTS substations provide dynamic voltage regulation as well as reactant power supply moderation. An example would be the almost USD 50 million investment made by the United States Department of Energy on grid technologies including FACTS devices for the improvement of grid reliability and stability.
   

Single Phase Shunt Reactor Market Analysis

• The single phase shunt reactor industry was valued at USD 766.5 million, USD 821.8 million and USD 89.2 million in 2022, 2023 and 2024 respectively. The single phase shunt reactors incorporate different type of insulations including oil immersed and air core, which in turn is complementing the overall industry growth over the years.
   
• Utilities are progressively integrating oil-immersed single-phase shunt reactors, primarily due to their advanced cooling systems and enhanced durability, making them suitable for use at high-voltage ranges. This adoption increases the stability of the grid and improves energy transmission efficiency. For instance, USD 4 billion were reportedly spent on the modernization of the grid infrastructure in the United States in 2023, showcasing the attention given to the project, which incorporates high voltage shunt reactors, greatly improving grid systems reliability.
   
• The single-phase air-core shunt reactors market is anticipated to grow at a CAGR of over 6.5% through 2034. These units, along with the growing importance of urban substations and renewable energy networks, are becoming popular in recent times. These devices are desired on a wider scale due to their compact construction, maintenance ease, and their functionality under unsaturated operational conditions.
   
• The stricter environmental policies have led to an increasing use of insulating oils that are more biodegradable in nature for oil-immersed reactors. The programme under the European Union’s Green Deal seeks to spend over USD 1 trillion on sustainable energy projects to be undertaken before 2030 and also aims to increase the use of green technologies such as biodegradable insulating oils in electrical equipment transformers.
   

• The single phase shunt reactor market is segmented in fixed and variable shunt reactors based on product types. The fixed shunt reactors have dominated the 58.3% of the market share in 2024, with projections indicating a significant rise in the deployment across the forecasted years.
   
• With the recent thrust by utilities for more flexible methods of reactive power compensation, the demand for variable single-phase shunt reactors is increasingly on the rise due to its new technology. This enables maximum flexibility to adapt to changing grid conditions, which significantly enhances the efficiency of power usage and reduces the transmission losses in current power grids. In Germany for example, Energiewende has led to high investments in the grid infrastructure, including variable shunt reactors, to accommodate renewables effectively.
   
• The advancements made towards smart grids and digital substations creates a high demand in investment towards variable shunt reactors with integrated automated control systems. These particular systems increase grid stability and allow for real-time voltage control. For example, automated shunt reactors and other smart grid technologies in China were developed through funding from the State Grid Corporation in 2023, which amounted to over USD 70 billion.
   
• The demand for both fixed and variable shunt reactors is increasing alongside industrialization and electrification. These reactors are critical towards achieving adequate power factor correction and efficient power transmission in different area. For example, India’s “Power for All” campaign has cemented investments in transmission facilities, including shunt reactors, to meet the needs of industrial and residential electrification.
   

• The U.S. single phase shunt reactor market was reached USD 100.3 million, USD 105.5 million and USD 110.9 million in 2022, 2023 and 2024 respectively. The U.S. market is expanding with rising investments on smart grids and high voltage transmission networks, which is encouraged by the federal efforts to improve grid reliability and integrate renewable energy sources like solar and wind.
   
• North America is experiencing growth in the single phase shunt reactor market due to increased industrial activity, the development of renewable energy projects, and modernization in infrastructure. For instance, Canada has declared a USD 964 million investment in 2023 to help manage clean energy initiatives and update the country’s electricity grid system.
   
• Europe single phase shunt reactor market is anticipated to cross over USD 160 million by 2034. Germany, France, and the UK drive the European Union’s efforts toward increasing renewables. Energy consumption is rising, while investments in grid infrastructure are being made to guarantee effective power delivery with minimal wastages.
   
• Asia Pacific leads in single-phase shunt reactor adoption, with a market share of over 45% in 2024. The expansion is supported by fast industrialization, increasing demand for energy, and large scale development of electricity infrastructures in China, India, and Japan.
   
• Extensive expansion of transmission networks from renewable energy sources such as wind and solar, ultra-high voltage China power grid modernization plans, and government investment in reliable power distribution systems are some of the factors aiding the China market growth.
   
• The implementation of new energy policies and increase in investment towards power infrastructure and electricity consumption in Saudi Arabia, the UAE and South Africa have propelled them to the forefront of the MEA region. As an illustration, in 2023 Saudi Arabia set aside around USD 51 billion for renewables development as part of project-funded expenditures under Vision 2030, demonstrating the country’s focus on energy diversification.

Single Phase Shunt Reactor Market Share

The top 6 players operating in the single phase shunt reactor market include General Electric, Siemens, Hitachi Energy, Hyosung Heavy Industries, Toshiba, and CG with a collective market share of over 40% in 2024. All these organizations have a large share in the single-phase shunt reactor industry because of their expansive product portfolios, technological capabilities, and global reach. These firms possess well-established supply chains, robust R&D capabilities, and high investments in grid infrastructure projects across the globe.
 

Siemens and General Electric lead the industry with their groundbreaking technologies in power transmission and distribution. Drawing from their extensive knowledge of automation and digital power grids, both companies offer high-efficiency single-phase shunt reactors that are adaptable for use with renewable power sources and smart power grids. Its reactors function for ultra-high voltage (UHV) transmission networks as well as for flexible AC transmission systems (FACTS) that are crucial for contemporary power grids.
 

Hyosung Heavy Industries is competitively positioned in the Asia-Pacific region, particularly in China and South Korea, due to its compact, well-performing, and lightweight reactor configurations for regulating voltage. Toshiba and CG Power supply varied markets such as Asia, the Middle East, and Latin America with cost-effective and reliable technology that improves the stability of the grid, lowers losses, and ensures efficient transmission of power.
 

Single Phase Shunt Reactor Market Companies

• Hitachi Energy produces single-phase shunt reactors which enhance stability and energy efficiency to the grid. Their innovative products aid the integration of renewable energy sources as well as improve the power quality. Their commitment to sustainability and innovative development has earned them a foothold in the market for single-phase shunt reactors. In March 2023, Hitachi Energy signed a contract with National Grid to provide shunt reactors for a grid stabilization project in the UK.
   
• Toshiba focuses more on a specific market niche in the production of single-phase shunt reactors for power systems with different loads. Their reactors strengthen the stability of voltage and reliability of the electricity grid. Toshiba's commitment to energy saving products and long-standing experience in the power infrastructure add strength to the company’s market share. In January 2023, Toshiba was awarded a contract to provide shun reactors for the expansion of the power transmission network of Vietnam.
   
• General Electric (GE) provides single-phase shunt reactors for grid applications. The company’s experience and market reach enable their reactors to stabilize and integrate renewables into the electrical girds. Their advanced engineering design guarantees the reliability and efficacy of the product. In December 2022, GE Grid Solutions supplied shunt reactors to the transmission system operator in Brazil to improve the stability of the electrical grid.
   
• Fuji Electric produces single-phase shunt reactors designed for power transmission and distribution systems particularly in the area of reactive power control and voltage regulation. The company's market competitiveness is well supported by product design and energy efficiency standards. In September 2022, Fuji Electric completed the installation of shunt reactors as part of Taiwan Power Company upgrade to grid modernization project.
   
• CG Power & Industrial Solutions focuses on developing single-phase shunt reactors that enhances grid performance and stability of the voltage. The company’s products facilitate smart grid adoption which is an important component in the new sustainable energy infrastructure. In November 2022, Power Grid Corporation of India awarded a contract to CG Power for the supply of shunt reactors to be used in their transmission network.
   
• WEG produces single-phase shunt reactors for power transmission systems. These products aid in voltage control as well as the integration of renewable energy sources. Their focus on effectiveness and efficiency allows them to branch out into new regions. In February 2023, WEG announced the successful delivery of shunt reactors for the Chilean renewable energy integration project.
   

Major players operating in the single phase shunt reactor market are:

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

Single Phase Shunt Reactor Industry News

• In February 2024, GE Vernova’s Grid Solutions Business was awarded significant contracts by the Power Grid Corporation of India for the production and delivery of 765 kV Shunt Reactors. These contracts are intended for improving the energy transmission as well as the use of renewable resources in India. The Indian-made reactors will be important for the stability of the grid and will help PGCIL achieve the country’s renewable energy targets by 2030.
   
• In October 2024, Hitachi Energy developed a new 500 kV variable shunt reactor for wind power integration increasing their market share intake for renewable energy. These technologies are beneficial in managing the stability of the grid in areas with high potentials of renewable energy. Uzbekistan, which aims to integrate 25 percent of renewables by 2030, is specifically notable as a prospective market for this technology.
   
• In April of 2024, Hitachi Energy poured more than USD 100 million into the renovation of its transformer factory located in Varennes, Quebec, Canada. The subsidized upgrades from the Quebec regional government are, at least in part, to help accommodate the ever growing need for sustainable energy. The new facility will increase the capacity for manufacturing power transformers for grid systems, renewable energy initiatives, and large scale electrification.
   
• In February 2025, WEG is broadening its scope in the global transformer markets and forming important partnerships within Brazil and elsewhere. Recently, WEG supplied transformer and shunt reactors to the Brazilian mining industry and to the renewable energy industry in Chile. Their investments seek to improve capabilities in the supply of wind power, cement, and housing construction, which is continuously on the rise.
   

This single phase shunt reactor market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Insulation

• Oil immersed
• Air core

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