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

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 Many developed nations, including the US, UK, and Germany, are dealing with aging infrastructure and outdated technologies in their transmission and distribution networks, causing strain on the grid's ability to meet current and future demands.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.