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

Three Phase Variable Shunt Reactor Market Size

The global three phase variable shunt reactor market size was valued at USD 532.7 million in 2023 and is projected to grow at a CAGR of 8.9% from 2024 to 2032, due to increased grid control and renewable energy integration. These reactors contribute to voltage corrections in unstable electric networks. The refurbishment of an aging infrastructure coupled with deployment of smart grid aids in the uptake across regions. The U.S Energy Information Administration also estimates that in 2021 approximately 20% of the utility electricity generation was from renewable energy sources, further proving the rationale for sophisticated grid management solutions.
 

With the increasing share of renewable energy, variable shunt reactors are expected to improve stability, limit losses and enhance quality in power systems. The increasing requirement for grid stability and improvement of power quality is driving the market growth for three phase variable shunt reactors.

Three Phase Variable Shunt Reactor Market Trends

Recent technological advancements along with sustainability concerns have caused the global market for three phase variable shunt reactor to trend upward. Automated and digitized control technologies are improving voltage control and optimizing the grid. New designs that are suitable for reducing operational losses and environmental impact are being developed. The integration with digital substations is aiding improving monitoring and remote control. Compact and modular designs are increasingly being demanded by clients due to the spatial constraints. Utility and Technology companies are collaborating to provide specially designed reactor solutions.
 

According to the US Department of Energy (2022), shunt reactors along with other primary power electronics have the capability of reducing the losses in power systems by more than thirty percent and thus positively impacting the performance of the grid.
 

Three Phase Variable Shunt Reactor Market Analysis

The oil-immersed three-phase variable shunt reactor is expected to cross over USD 700 million by 2032 owing to factors such as excessive investments in the enhancement of power grids ensuring stable voltage levels and the excessive demand for electric vehicles. The increase in the use of wind and solar energy systems creates a greater demand for fluctuating voltage control devices oil immersed shunt reactors. In addition, the smart grid development and the upgrading of the transmission system are also factors driving the demand for this technology. Their high efficiency and durability, as well as their ability to function efficiently in high stress environments, contributes to the improvement of grid reliability and minimization of lost energy.
 

The global three phase variable shunt reactor market can be segmented into electric utility and renewable energy market. The electric utility segment holds a significant span and is expected to grow at a CAGR of above 7% through 2032. The growth in electricity demand globally has raised the need for grid stability both on the supply and demand side. Increasing electricity demand has necessitated shunt reactors for enhanced voltage control and management of reactive power as utilities upgrade old equipment and develop new transmission systems.
 

Moreover, this growth is accelerated by the rise in electrification projects, particularly in developing countries. Furthermore, the increasing complexity of the power grids, due to both traditional and renewable energy source use, has resulted in an increasing requirement for these reactors for effective, dependable grid management.
 

The Asia Pacific three phase variable shunt reactor market is projected to surpass USD 630 million by 2032, due to the continuous urbanization and industrialization in this region which has led to increasing energy demand. Demand for three phase reactors has reached new highs in China, India and Japan, owing to rising investment in smart grid projects including interconnected power grids and transmission networks. Along with numerous favorable government initiatives aiming to incorporate shifts towards renewable energy which is further promoting the expansion of this market.
 

The US is also witnessing similar trend with regard to the expansion of the variable phase shunt reactor market. Uplifting the old power structures and the pursuit towards energy efficiency along with the rise in the integration of renewables is driving the surge in this market in US. Increased investments in smart technologies and grid range also are snags in US utilities being able to acquire shunt reactors for increasing market relations for efficient reactive power infrastructure.
 

Three Phase Variable Shunt Reactor Market Share

Siemens Energy has a competitive edge in the global three phase variable shunt reactor industry owing to its proven technology and proficiency in stabilizing the grid. The company has maintained its edge among the competitors on account of the development of energy efficient products and their incorporation into smart grid systems. Reactors produced by Siemens Energy assist with the management of reactive power, thereby ensuring reliable voltage levels and increased grid stability.
 

Three Phase Variable Shunt Reactor Market Companies

Some of the key players operating across the three phase variable shunt reactor industry are:

• Coil Innovation
• GE
• GETRA
• Hilkar
• Hitachi Energy
• Hyosung Heavy Industries
• MindCore Technologies
• Nissin Electric
• Phoenix Electric
• SGB SMIT
• Shrihans Electricals
• Siemens Energy
• TMC Transformers
• Toshiba Energy Systems & Solutions
   

Three Phase Variable Shunt Reactor Industry News

• In August 2024, Hitachi Energy received a large contract from Svenska kraftnat to enhance Sweden's power grid. Circuit breakers and shunt reactors - which are very important for balancing the equipment - are provided by them to maintain the voltage at a given level, thereby increasing the reliability of the grid. This upgrade assists Sweden in making the transition to green energy as well as in catering to the ever increasing demand for electricity. The modernization of Sweden's electricity transmission system has been achieved thanks to Hitachi Energy's innovative technology.
   
• In June 2021, Hitachi Energy (previously known as Hitachi ABB Power Grids) announced the launch of new shunt reactor and transformer technology designed for floating offshore wind power in June 2021. These new solutions address the difficult problems of deep water and rough sea conditions more efficiently and at a lower cost than older models. This launch helped in further consolidating Hitachi Energy’s presence in the offshore market as well as in bringing forward the wind power eco-friendly energy solutions.
   

This three phase 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 Insulation

• Oil immersed
• Air core

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