Variable Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By Insulation (Oil Immersed, Air Core), By End Use (Electric Utility, Renewable Energy), Global Forecast, 2024 – 2032

Variable Shunt Reactor Market Size

Variable Shunt Reactor Market was valued at over USD 869 million in 2023 and is projected to grow at over 8.4% CAGR from 2024 to 2032. The increasing integration of renewable energy sources, such as wind and solar, into the power grid has created a growing need for enhanced voltage control and stability. As per International Energy Agency (IEA), in 2022, the total investment across new solar capacity installation surpassed USD 320 billion. Moreover, investments across solar energy constituted to about 45% of the total investment in the electricity generation across the globe.

The modernization and expansion of power transmission and distribution infrastructure in both developed and emerging economies are contributing to the demand for shunt reactors. Moreover, advancements in shunt reactor technology, including the development of intelligent and digitally controlled units, are improving their efficiency and performance, aligning them with the evolving requirements of the power sector.
 

COVID-19 Impact

The COVID-19 pandemic had a multifaceted impact on the variable shunt reactor market. The pandemic disrupted global supply chains, causing delays in the manufacturing and delivery of shunt reactors. This led to project delays and postponed investments in grid infrastructure upgrades. However, the pandemic emphasized the importance of grid resilience and reliability as remote work and digital connectivity became more vital than ever. This realization prompted increased investments in grid modernization and voltage control, benefiting the market development. As the world transitions to a post-pandemic phase, the market is expected to rebound, driven by a renewed focus on grid reliability and the integration of renewable energy sources.
 

Variable Shunt Reactor Market Trends

The variable shunt reactor industry is experiencing notable trends that reflect the changing landscape of the global energy sector. A key trend is the growing emphasis on grid stability and reliability, driven by the increasing integration of renewable energy sources. Additionally, advancements in digital technology, including sensors and monitoring systems, are enabling more precise control and operation of variable shunt reactors, optimizing their performance and efficiency. Energy efficiency and environmental concerns are also driving the adoption of variable shunt reactors, as they offer a cost-effective solution to manage reactive power, reduce transmission losses, and minimize environmental impact.
 

Variable Shunt Reactor Market Analysis

Based on Phase configuration, the three-phase shunt reactor market is projected to witness 9% growth rate from 2023 to 2032. This growth is attributed to the increasing demand for these reactors in compensating for reactive power within standard three-phase power systems that underpin most electricity transmission and distribution networks. As power grids expand and new transmission lines are deployed to meet this surging demand, the vital role of shunt reactors in reactive power compensation becomes more evident.
 

Oil immersed variable reactors market was worth USD 490 million in 2022 and is anticipated to reach USD 1.1 billion by 2032. Oil-immersed variable shunt reactors play a pivotal role in maintaining grid stability by providing reactive power compensation. As renewable energy sources like wind and solar power become more integrated into the grid, these reactors aid in mitigating voltage fluctuations and ensuring a reliable power supply. Moreover, infrastructural development and grid modernization initiatives worldwide are bolstering the demand for oil-immersed shunt reactors as essential components in upgrading power systems. Their ability to enhance grid reliability, stabilize voltage profiles, and reduce losses makes them a crucial asset in the evolving energy landscape.
 

Variable shunt reactors find applications across various sectors, including electric utility and renewable energy. The variable shunt reactor industry is experiencing significant growth propelled by the renewable energy sector. As the world transitions towards cleaner and more sustainable energy sources, renewable energy installations such as wind farms and solar power facilities are rapidly expanding. Variable shunt reactors play a vital role in maintaining grid stability when integrating intermittent renewable energy sources.
 

Asia Pacific variable shunt reactor market is slated to register gains at nearly 9.5% up to 2032, owing to the region's rapid economic growth and urbanization which have led to increased electricity demand, putting pressure on power transmission and distribution networks. To ensure a reliable and stable power supply, utilities are investing in grid infrastructure improvements, including the deployment of variable shunt reactors. Additionally, the Asia Pacific region is characterized by a growing focus on renewable energy integration, with countries like China and India leading in renewable capacity expansion.
 

Variable Shunt Reactor Market Share

General Electric (GE) has established a robust presence in the variable shunt reactor industry, holding a strong position due to its extensive expertise in electrical technologies and grid solutions. GE's reputation for innovation and reliability has made it a preferred choice for utilities and industries seeking efficient reactive power compensation solutions. Furthermore, GE's commitment to sustainability aligns with the increasing emphasis on environmentally friendly solutions in the power sector, further solidifying its market standing. Through a combination of technical excellence and a customer-centric approach, GE has earned a significant market share in the variable shunt reactor segment, ensuring reliable and efficient power management for its clients.
 

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

• GE
• Siemens Energy
• Toshiba Energy Systems & Solutions Corporation
• CG Power & Industrial Solutions Ltd.
• Hitachi Energy Ltd.
• HYOSUNG HEAVY INDUSTRIES
• TMC TRANSFORMERS MANUFACTURING COMPANY
• NISSIN ELECTRIC Co.,Ltd.
• Fuji Electric Co., Ltd.
• GBE S.p.A
• WEG
• SGB SMIT
• GETRA S.p.A.
• Shrihans Electricals Pvt. Ltd.

Variable Shunt Reactor Market News:

• In June 2021, Hitachi ABB Power Grids, now known as Hitachi Energy, Ltd., has introduced an innovative shunt reactor technology alongside several transformer technologies for floating offshore wind power. The newly launched shunt reactor technology addresses the unique challenges of deep water and harsh marine environments, providing enhanced operational efficiency. Compared to conventional shunt reactors, this advanced technology offers greater efficiency, making it a cost-effective option. This product launch reinforces Hitachi Energy's commitment to delivering improved solutions in the offshore sector and expanding its global presence. The introduction of this cutting-edge technology marks a significant milestone in the company's pursuit of sustainable energy solutions for offshore wind power.
   

This 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 2019 to 2032, for the following segments:

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By Phase

• Single Phase
• Three Phase

By Insulation

• Oil Immersed
• Air Core

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