Shunt Reactor Market Report 2024

This Shunt Reactor market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The shunt reactor market size has grown strongly in recent years. It will grow from $2.8 billion in 2023 to $2.98 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. The growth observed during the historical period can be attributed to several factors, including the rising demand for electricity, the expansion of renewable energy projects, increased urbanization and industrialization, aging power infrastructure, and a growing need for voltage stability.

The shunt reactor market size is expected to see strong growth in the next few years. It will grow to $3.84 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The projected growth during the forecast period can be attributed to several factors, including the increasing integration of renewable energy, the expansion of electric vehicle infrastructure, a rising focus on energy storage systems, government investments in infrastructure, and a growing demand for decentralized power generation. Key trends expected to influence this period include an emphasis on sustainability and low emissions, advancements in transformer-less technology, increased investment in energy storage solutions, the adoption of advanced monitoring and diagnostics, and a rise in grid automation and digital technologies.

The increasing power generation capacity is anticipated to significantly drive the growth of the shunt reactor market in the coming years. Power generation capacity refers to the maximum electrical power that a power plant or generating unit can produce under specific conditions. The rise in power generation capacity is driven by the escalating global demand for electricity, the rapid growth of renewable energy sources, substantial government investments in modern energy infrastructure, and technological advancements in power generation. Shunt reactors play a crucial role in supporting this rising capacity by enhancing voltage stability, reducing transmission losses, and optimizing grid performance, particularly in high-voltage networks. They help manage the variable power flow from increasing renewable energy sources, improve energy efficiency, and ensure reliable power transmission over long distances. For instance, in June 2023, the Department of Climate Change, Energy, the Environment, and Water, an Australia-based government agency, reported that Australia’s total electricity generation in 2022 was estimated at 273,265 gigawatt hours (GWh), reflecting a 2% increase compared to 2021. Thus, the growth in power generation capacity is a key factor propelling the shunt reactor market.

Prominent companies in the shunt reactor market are pursuing strategic partnerships to modernize and enhance grid stability and capacity. These partnerships involve collaborations aimed at improving product development, expanding market reach, and advancing technology integration within power transmission and grid stability solutions. For example, in September 2023, Hitachi Energy Ltd., a Switzerland-based technology company, collaborated with TenneT Holding BV, a Netherlands-based transmission system operator, to supply high-performance power transformers and shunt reactors. This partnership is focused on modernizing and enhancing the stability and capacity of the transmission grid, supporting the integration of renewable energy, improving grid resilience, and ensuring a sustainable electricity supply for Germany and the Netherlands.

In April 2024, Triton Partners, a Luxembourg-based investment management firm, acquired Trench Group for an undisclosed sum. This acquisition is intended to strengthen Triton's position in the high-voltage electrical equipment market and capitalize on the growth opportunities presented by the energy transition. By leveraging Trench’s technological expertise and global reach, Triton aims to expand its capabilities and market leadership in this sector. Trench Group is a Germany-based manufacturer specializing in high-voltage products, including air-core dry-type shunt reactors.

Major companies operating in the shunt reactor market are Hitachi Energy Ltd., General Electric Company, Mitsubishi Electric Corporation, Siemens Energy AG, Toshiba Corporation, CHINT Group, Alstom Grid, Hyosung Heavy Industries, Meidensha Co.Ltd., Nissin Electric Co. Ltd., SGB-SMIT Group, CG Power and Industrial Solutions Limited, Voltamp Energy SAOG, Prolec Energy, Shreem Electric Limited, GBE SpA, Clariant Power System Ltd., Yash Capacitors Private Limited, Edit Elektronik, GETRA S.p.A., Hilkar, NR Electric Co. Ltd, Jyoti Transformers.

Asia-Pacific was the largest region in the shunt reactor market in 2023 and it is expected to be the fastest-growing region in the forecast period. The regions covered in the shunt reactor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the shunt reactor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A shunt reactor is an electrical device utilized in power systems to absorb excess reactive power and regulate voltage levels in high-voltage transmission lines. It plays a crucial role in maintaining grid stability by preventing overvoltage, particularly in long-distance power transmission. By consuming reactive power, shunt reactors enhance energy efficiency and minimize transmission losses.

The primary types of shunt reactors include oil-immersed reactors and air-core dry reactors. An oil-immersed reactor employs oil as a cooling and insulating medium to absorb and dissipate heat generated during operation, making it suitable for high-voltage electrical systems. These reactors are available in both single-phase and three-phase configurations, with rated voltages categorized as below 200 kV, 200 kV-400 kV, and above 400 kV. Shunt reactors can be classified as fixed or variable reactors and serve a variety of end users, including electric utilities, renewable energy sectors, and other applications.

The shunt reactor market research report is one of a series of new reports that provides shunt reactor market statistics, including shunt reactor industry global market size, regional shares, competitors with a shunt reactor market share, detailed shunt reactor market segments, market trends and opportunities, and any further data you may need to thrive in the shunt reactor industry. This shunt reactor market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The shunt reactor market consists of sales of gapped iron-core reactors, high-temperature superconducting reactors, hybrid reactors, thyristor-controlled reactors, line-connected reactors, and transformer-reactor combined units. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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