USD 2.59 Billion
Global Shunt Reactor Market Size, Share, Growth Analysis, By Product(Oil-immersed and Air-core), By Application(Electric utilities and Industrial verticals) - Industry Forecast 2024-2031
Report ID:
SQMIG20E2064 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|
Tables:
59 |
Figures:
76
Global Shunt Reactor Market Insights
Global Shunt Reactor Market size was valued at USD 2.59 Billion in 2022 and is poised to grow from USD 2.76 Billion in 2023 to USD 4.53 Billion by 2031, at a CAGR of 6.4% during the forecast period (2024-2031).
The global shunt reactor market is being driven by the increasing demand for electricity, the need to upgrade aging technology in developing countries, and the expansion of high-voltage transmission lines. However, the market faces challenges due to the growing focus on grid reliability and energy loss minimization, which has led to the development of alternative technologies such as FACTS (Flexible AC Transmission System) and HVDC systems. Many developed nations, including the US, UK, and Germany, are dealing with aging infrastructure and outdated technologies in their transmission and distribution networks, causing strain on the grid's ability to meet current and future demands. In these countries, a significant portion of transformers and transmission networks are over 25 years old and reaching the end of their operational lives.
The combination of long-term underinvestment in transmission and distribution infrastructure and the increasing demand for reliable power delivery has heightened the vulnerability of the grid. To prevent power outages and grid failures, substantial investments are needed to upgrade the aging infrastructure, including the implementation of shunt reactors. As energy requirements continue to rise, the demand for supporting infrastructure also increases. Europe and North America have been actively modernizing their transmission grids to ensure efficient electricity supply. Japan has also made substantial investments to strengthen and upgrade its power transmission infrastructure networks. According to T&D World magazine, global electric utilities are expected to invest USD 3.2 trillion in new and replacement transmission and distribution infrastructure. This investment is necessary to meet the growing electricity demand, address aging assets, and accommodate new power generation projects, including intermittent renewable resources that place strain on the grid. Consequently, the shunt reactor market is expected to experience significant growth as investments in transmission and distribution infrastructure increase. However, the development of alternative technologies is anticipated to restrain the growth of the shunt reactor market worldwide. The focus on grid reliability and energy loss minimization during transmission has led to the emergence of alternative technologies like FACTS and HVDC systems. These technologies offer more efficient grid stabilization capabilities compared to conventional methods that use devices such as capacitors, which have inherent limitations in terms of performance and speed. As a result, FACTS and HVDC systems are gradually replacing traditional methods, posing a challenge to the shunt reactor market's growth.
US Shunt Reactor Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Oil-immersed
Fastest Growth
Air-core
Growth Rate
6.4% CAGR
Global Shunt Reactor Market ($ Bn)
Country Share for North America Region (%)
Global Shunt Reactor Market By Product ($ Bn)
Global Shunt Reactor Market By Product (%)
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Global Shunt Reactor Market Segmental Analysis
The global shunt reactor market is segmented on the basis of product, application, and region. By product type, the market is segmented into oil-immersed and air-core. By application, the market is segmented into electric utilities and industrial verticals. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Shunt Reactor Market Analysis By Product
Oil-immersed shunt reactors are the dominant segment in the global market. These reactors are designed to be immersed in oil for efficient cooling and insulation. They are widely used in high-voltage transmission systems to regulate voltage levels, reduce reactive power, and stabilize the grid. Oil-immersed shunt reactors offer advantages such as high-power ratings, robust construction, and reliable performance. They are commonly utilized in utilities, substations, and power generation plants.
Air-core shunt reactors are the fastest-growing segment in the shunt reactor market. These reactors utilize air as the cooling and insulation medium, eliminating the need for oil. Air-core shunt reactors are lightweight, environmentally friendly, and suitable for high-voltage applications. They are primarily used in renewable energy projects, including wind farms and solar power plants, where reactive power compensation and voltage stabilization are essential. The growing adoption of renewable energy sources and the need for reactive power control are driving the demand for air-core shunt reactors.
Shunt Reactor Market Analysis By Application
The electric utilities segment is the dominant application in the global shunt reactor market. Shunt reactors play a crucial role in voltage regulation and reactive power compensation in utility networks. They are extensively used in high-voltage transmission systems to maintain voltage levels within acceptable limits, enhance power factor correction, and improve grid stability. Electric utilities, including power generation companies and transmission operators, heavily rely on shunt reactors to ensure efficient and reliable power delivery. The increasing demand for electricity, upgrading of aging infrastructure, and the need to maintain grid stability contribute to the dominance of the electric utilities segment.
The industrial verticals application segment represents a significant share of the shunt reactor market. In industrial settings, shunt reactors are used to compensate for reactive power and maintain stable voltage levels. Industries with high power consumption, such as manufacturing, mining, oil and gas, and chemical industries, often require shunt reactors to mitigate power quality issues, improve efficiency, and reduce energy costs. Shunt reactors help these industrial verticals achieve power factor correction, voltage stabilization, and overall power system optimization. The industrial sector's demand for shunt reactors is driven by the need for improved power quality and reliable operation of electrical systems.
Global Shunt Reactor Market By Product, 2023 (%)
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Global Shunt Reactor Market Regional Insights
North America is the dominant region in the global shunt reactor market. The region's dominance can be attributed to the extensive presence of electric utilities, significant investment in grid infrastructure, and the need for grid stability and voltage regulation. The aging power infrastructure in North America necessitates the deployment of shunt reactors for efficient power transmission and distribution. Additionally, the focus on renewable energy integration and the increasing demand for electricity drive the demand for shunt reactors in the region.
Asia Pacific is the fastest-growing region in the shunt reactor market. The region's rapid industrialization, urbanization, and growing population contribute to the increased demand for electricity and the expansion of power transmission infrastructure. Governments in countries such as China, India, and Southeast Asian nations are investing heavily in upgrading their power grids and incorporating renewable energy sources, which fuels the demand for shunt reactors. Additionally, the increasing focus on improving grid reliability and stability in the region further drives the adoption of shunt reactors.
Global Shunt Reactor Market By Region, 2024-2031
- Largest
- Fastest
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Global Shunt Reactor Market Dynamics
Shunt Reactor Market Drivers
Growing Demand for Gambling and Entertainment
Integration of Renewable Energy Sources:
- The rapid expansion of renewable energy sources, such as solar and wind power, requires efficient integration into the grid. Shunt reactors enable the compensation of reactive power and voltage stabilization, facilitating the smooth integration of renewable energy sources and supporting the growth of clean energy generation.
Shunt Reactor Market Restraints
Development of Alternative Technologies:
- The emergence of alternative technologies, such as Flexible AC Transmission Systems (FACTS) and High-Voltage Direct Current (HVDC) systems, presents a challenge to the shunt reactor market. These technologies offer advanced voltage control and reactive power compensation capabilities, potentially replacing or reducing the demand for traditional shunt reactors.
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Global Shunt Reactor Market Competitive Landscape
The global shunt reactor market features a competitive landscape with several players vying for market share. These market participants employ various strategies such as product development, partnerships, collaborations, and acquisitions to strengthen their position in the industry. The market is characterized by intense competition, technological advancements, and a focus on providing efficient and reliable solutions. Key players in the global shunt reactor market invest significantly in research and development activities to introduce innovative products and enhance their offerings. They strive to meet the evolving customer demands and address the challenges faced by the power industry, including grid stability, voltage regulation, and power quality. Moreover, market players focus on expanding their geographical presence by entering new markets and catering to the specific needs of different regions. They also establish strategic alliances with utilities, grid operators, and other stakeholders to strengthen their market position and increase their customer base. The competitive landscape of the global shunt reactor market is driven by factors such as technological advancements, product differentiation, pricing strategies, and customer service. The market players continuously strive to deliver high-performance and cost-effective solutions to gain a competitive edge.
Shunt Reactor Market Top Player’s Company Profile
- Zaporozh transformator - Ukraine
- Siemens AG - Germany
- ABB - Switzerland
- Crompton Greaves - India
- Hyundai Heavy Industries - South Korea
- Fuji Electric Co. Ltd - Japan
- Mitsubishi Electric Corporation - Japan
- TBEA - China
- TRENCH Group - Switzerland
- Hilkar - Turkey
- General Electric - United States
- Toshiba - Japan
- Nissin Electric - Japan
- BEIJING POWER EQUIPMENT GROUP CO LTD - China
- CG Power Systems - India
- Edit Elektronik - Turkey
- ENTES Elektronik Cihazlar - Turkey
- Etamatis Enerji - Turkey
- Hyosung Power & Industrial Systems PG - Industrial - South Korea
- Hitachi - Japan
- Alstom SA – France
Shunt Reactor Market Recent Developments
-
In December 2023, The National Transmission and Despatch Company Limited (NTDC) completed the installation of a shunt reactor on the 500 kV Guddu-Rahim Yar Khan Transmission Line to improve power system stability. The NTDC teams effectively installed the reactor on Bay-02 of the Guddu-RYK transmission line, which was energized without any issues.
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In September 2023, TenneT entered into an agreement valued at nearly €2 billion for the construction of substations in Germany and the Netherlands, pointing at accelerating the energy transition. The Dutch transmission system operator finalized agreements with Siemens Energy, Hitachi Energy, GE Grid, and Royal SMIT to procure 110 shunt reactors and 160 power transformers. Each supplier was awarded roughly a quarter of the total volume.
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In September 2023, Hitachi Energy provided transformers and reactors to TenneT's transmission grid development program in Germany. This strategic partnership intends to facilitate the energy transition by providing high-performing and sustainable equipment to modernize infrastructure, increase capacity, and improve grid stability.
Global Shunt Reactor Key Market Trends
- Increasing Focus on Grid Stability and Power Quality: With the growing demand for electricity and the integration of renewable energy sources, maintaining grid stability has become crucial. Shunt reactors play a vital role in voltage regulation, reducing voltage fluctuations, and improving power factor correction, thus ensuring grid stability and enhancing power quality.
- Inclination towards Sustainable and Environmentally Friendly Solutions: Manufacturers are focusing on developing eco-friendly designs and materials to reduce the environmental impact of these devices. This includes the use of biodegradable and recyclable materials, energy-efficient designs, and compliance with international environmental standards.
Global Shunt Reactor Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analyses, the global shunt reactor market is experiencing steady growth, driven by several factors such as increasing demand for electricity, grid stability requirements, and the expansion of power transmission infrastructure. The market is characterized by the adoption of advanced technologies, including innovative designs and digital monitoring systems, to enhance the performance and efficiency of shunt reactors. Emerging economies, particularly in regions like Asia Pacific, are witnessing significant growth in the installation of shunt reactors. The rapid development of power transmission and distribution infrastructure in countries like China and India, coupled with rising electricity demand, is fuelling the market's expansion in these regions. Asia Pacific is identified as the fastest-growing region in the global shunt reactor market. North America remains the dominant region in the shunt reactor market, driven by the need to upgrade aging transmission infrastructure and the increasing focus on grid reliability. Countries such as the United States and Canada are investing in modernizing their power grids, presenting lucrative opportunities for shunt reactor manufacturers.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 2.59 Billion |
| Market size value in 2031 | USD 4.53 Billion |
| Growth Rate | 6.4% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Shunt Reactor Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Shunt Reactor Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Shunt Reactor Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Shunt Reactor Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Shunt Reactor Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Shunt Reactor Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Shunt Reactor Market Report Snapshots
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