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

Three Phase Shunt Reactor Market Size

The global three phase shunt reactor market size was valued at USD 1.4 billion in 2024 and is estimated to grow at a CAGR 7.3% from 2025 to 2034. Increasing investments into upgrading electricity transmission and distribution networks are driving the growth of three-phase shunt reactors market.
 

Additionally, three phase shunt reactors are also deemed necessary for adequate power control during the integration of renewable energy sources into the existing grids. The growing trends of urbanization and industrialization in developing countries simultaneously have resulted in a surging demand for shunt reactors for improved quality of power while reducing transmission losses. Moreover, the market growth across both the utility and industrial sectors has been supplemented by the technological advancements in smart grid technologies as well as new energy efficiency designs.
 

Three Phase Shunt Reactor Market Trends

The growing acceptance of decentralized control, along with integrating the changing energy requirements, is empowering the further expansion of the three-phase shunt reactor market. The ability to control shunt reactors with real-time operations has assisted with the integration of energy control systems in the grid, allowing significant improvement of grid performance. As per the U.S. DOE, the renewable energy sources account for approximately 21% of 2022’s utility-scale electricity generation, driving the requirement for high voltage reactors for grid stability.
 

Manufacturers focus on lightweight and compact designs for urban installations with space constraints. The integration of environmentally friendly power solutions such as oil-free reactors and ecofriendly insulation material is on the rise as evidenced by changing market dynamics. A more effective solution is modular and customized reactor solutions, enhancing system efficiency and addressing functional needs.
 

Three Phase Shunt Reactor Market Analysis

The market for oil-immersed three-phase shunt reactor is anticipated to cross over USD 1.9 billion by 2034, owing to the increase in the modernization and expansion of grids. The growing requirement for energy transmission in developing countries is aiding market growth. Moreover, the increasing use of renewable energy sources additionally requires modern gear such as shunt reactors. Increased research towards the advancement of improves the performance and lifespan of oil-immersed reactors fuels their demand. Energy regulations that encourage growth in energy saving and replacement of obsolete electrical infrastructure remain another key enabler. These combined factors enable the market to grow strongly in the coming years.
 

The market for fixed three-phase shunt reactors is expected to grow at over 6.5% CAGR through 2034. This can be accounted for by the trend towards investment in grid infrastructure and the growing global shift towards renewable energy sources that require new technologies for maintaining acceptable voltage levels. Besides, the need for better energy transmission in the developing countries as well as the reconstruction of the aged electricity grids in the developed economies also create additional market requirements. The improvement of reactors’ effectiveness and dependability due to technological advances and the laws governing energy use being enforced are also positive factors in supporting market growth.
 

The U.S. three-phase shunt reactor market is expected to surpass USD 300 million by 2034. These growth factors include power grid investments as well as investment in renewable sources of energy. The U.S. Energy Information Administration, in March 2024 report, states that it expects renewable sources to grow to 24% of the output of utility electricity in 2024, which further amplifies the requirements for shunt reactors due to the voltage issues that arise. Other contributing factors include the legislations surrounding energy compliance which meet the growing infrastructure needs alongside the aging electrical systems being refurbished. Across industrial and residential sectors, projected electricity consumption is on the rise, and thus shunt reactors are gaining popularity.
 

The fast pace of urbanization and industrialization within the Asia Pacific region has resulted in a rapid increase in the demand for electricity, and as such enhances the three-phase shunt reactor market growth within the region. Large amounts of funding aimed at grid expansion, renewable energy integration, and modernization projects are also helping in market growth. Moreover, the region’s commitment to improving energy efficiency and controlling power networks’ voltage stability also drives the adoption of reactors. Additionally, technological development and state policies directed at enhancing the reliability and sustainability of energy infrastructure also enhance the expansion of the market.
 

Three Phase Shunt Reactor Market Share

With regards to the three-phase shunt reactor market, General Electric has significant shares due to its innovative technologies and presence across borders. Innovation remains a driver for the company, thus, demand for voltage stabilization and grid optimization solutions are catered for. Company’s involvement in the key grid modernization projects, as well as in the renewable energy construction adds to his prominence in the industry. A certainly growing GE market is sustained by the company's commitment to reliability, sustainability, and customer-focused solutions.
 

Three Phase Shunt Reactor Market Companies

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

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

Three Phase Shunt Reactor Industry News

• In February 2024, multi-million contracts were signed between GE Vernova’s Grid Solutions and the Power Grid Corporation of India for shunt reactors meant for the discrete 765 kV three-phase. These shunt reactors are for the grid stability facilitation in Rajasthan and Karnataka for integration of Renewables. The Indian subsidiary of GE, GE T&D India will complete the project by overseeing processes such as the design, manufacturing, testing and commissioning, with the production being done at their Vadodara facility. The work is expected to be delivered in time for India’s new fiscal year in 2025-26, and it is expected that this will help improve India’s power transmission scopes further.
   
• In November 2024, Hyosung Heavy Industries, entered into a partnership agreement with the firm Ørsted to assist them with Offshore Wind Projects. The agreement was signed for USD 200 million. Hyosung Heavy Industries also anticipate that this partnership will deepen their credibility within the renewable energy spheres. They are responsible for developing infrastructure for a variety of electrical equipment that helps promote the infrastructure necessary for this project.
   

This three 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:

Click here to Buy Section of this Report

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