Air Core Shunt Reactor Market Size & Share 2025 to 2034

Air Core Shunt Reactor Market Size

The global air core shunt reactor market was valued at USD 851.8 million in 2024 and is expected to reach USD 1.7 billion by 2034, growing at a CAGR 7.4% from 2025 to 2034. The investments in the construction of electricity transmission facilities and the modernization of the grid have contributed to the growth.

Furthermore, the growing adoption of wind and solar energy sources has led to an increase in the requirement for reactive power compensators and the adoption of air core shunt reactors. The Department of Energy pledged funding toward integrating renewable sources into the grid by announcing in October 2023 a USD 13 billion investment in modernization and expansion projects.
 

The operational advantages of air core shunt reactors include low maintenance requirements, reduced active power losses, and high stability of the system, which makes them more beneficial than oil-filled reactors. The expansion of industrial areas and increased urbanization leads to heightened demand for electricity which will accelerate the air core shunt reactor market growth. Under the REPowerEU plan, the European Commission has allocated USD 609.05 billion through 2030 for infrastructure development of power grid with additional funds for the incorporation of technologies that aid in reactive power compensation.
 

However, the market is constrained by elevated initial investments and electromagnetic interference issues. The participants in the market are investing in improving technology through enhanced insulation materials and optimized design of the reactor for reliability and efficiency of operations. In September of 2023, the Indian Ministry of Power issued new shunt reactor guidelines for voltage control in transmission systems that injected shunt reactors to certain voltage levels.
 

North America and Europe exhibit steady increase in market development, whereas the Asia Pacific region is capitalizing on expansion in grid infrastructure and the increasing demand for electricity. According to China’s National Energy Administration, investments in grid infrastructure for 2023 are expected to increase by 12.3%, most of which will go to reactive power compensation facilities.
 

Air Core Shunt Reactor Market Trends

• The air core shunt reactor industry is changing with the progression of energy efficiency and renewable in the energy sector. The increasing use of high voltage direct current (HVDC) transmission systems is a major factor for the growth of the shunt reactor market as these devices are essential to control voltage fluctuations and stabilize the grid.
   
• Improvements in conductor materials and insulation techniques are enhancing reactor performance and reducing energy losses. The market shows a clear shift toward customizable and modular designs that facilitate installation and scalability.
   
• Manufacturers are developing environmentally responsible products to reduce ecological impact. The European Union's Horizon Europe program has committed USD 99.73 billion for research and innovation in clean energy technologies, including advanced reactor systems, through 2027.
   
• In the Asia-Pacific region, the rapid level of industrialization and urbanization along with heavy investment into power infrastructure has expanded the growth. Meanwhile, North America and Europe are more focused on upgrading existing power grids and smart grid systems, which in turn boosts the need for air core shunt reactors.
   
• Also, competition in the market fosters innovation, as firms seek reliable and affordable solutions. China’s National Energy Administration (NEA) announced plans to invest USD 50 billion into power grid infrastructure upgrades, including significant spending on reactive power compensation equipment.
   

Air Core Shunt Reactor Market Analysis

• The air core shunt reactor indusry size was valued at USD 719.6 million, USD 783.7 million and USD 851.7 million in 2022, 2023 and 2024 respectively. The market is divided into two segments three-phase and single-phase air core shunt reactors, each caters to specific power transfer needs.
   
• The three-phase segment has the largest share in the market expected to reach more than USD 940 million by 2034, as it is widely utilized in high-voltage electric transmission systems and serves various applications. These reactors help ensure voltage stability in electrical power systems and limit transmission power losses. In June 2023, the U.S. Department of Energy’s Grid Deployment Office made headlines by announcing investment of USD 10.5 billion into improving and modernizing the power grid. This would include sophisticated reactor system deployment.
   
• The demand for three-phase reactors is further fueled by the increasing shift towards renewable energy sources and HVDC transmission infrastructure, especially within utility scale projects. In 2023, the European Commission’s REPowerEU plan invested USD 30.24 billion for power grid enhancements focusing on the reactive power compensation equipment.
   
• The single-phase segment is gradually growing as there are more applications needing concentrated voltage control. These reactors are perfectly competent in the challenging domain of grid management requiring phase-to-phase compensation. Their compactness and non-invasiveness also make them suitable for both modernization and green field projects.
   
• The Asia-Pacific region’s moving power infrastructure illustrates an increasing demand for both reactor types. During the December 2023 review, India’s Ministry of Power announced USD 36.7 billion in funding towards the advanced technologies for enhancement of transmission grid infrastructure and comprehensive grid modernization of the country.
   

• The air core shunt reactor market comprises two main product segments, fixed shunt reactors and variable shunt reactors. The fixed shunt reactor product segment is expected to experience a robust growth rate, with a CAGR exceeding 6.5% through 2034. As set by the Grid Modernization Initiative 2021 by the U.S. Department of Energy, investment levels for shunt reactors and grid infrastructure is expected to be USD 13 billion by 2025.
   
• Fixed shunt reactors hold the largest market share of 58% in 2024, on account of being the most cost effective as well as the most reliable compensating device for a reactive power network in a transmission system at a high voltage level. The European Commission's Power Grid Enhancement Program 2023 has allocated USD 834.32 million for transmission infrastructure upgrades, including fixed shunt reactor installations.
   
• Variable shunt reactors are experiencing increased adoption due to their adjustable reactive power compensation capabilities, which improve grid flexibility and stability. The increasing adoption of fluctuating sources of renewable, such as wind and solar energy, needs sophisticated dynamic regulation systems. As reported by China’s National Energy Administration in 2023, China seeks to employ variable shunt reactors at 60% of its renewable energy fusion sites by the year 2025.
   
• Investments in infrastructure in the US, Europe and Asia-Pacific are increasing the demand for both types of reactors, but the demand for variable reactors is expected to increase even more due to their greater operational flexibility. The Government of India’s Ministry of Power, in 2023, made an announcement of a USD 5 billion investment in grid modernization, 30 percent of which will be used for variable shunt reactors and other smart grid technologies.
   

• The U.S. air core shunt reactor market was estimated at USD 94.1 million, USD 100.7 million and USD 107.5 million in 2022, 2023 and 2024 respectively, driven by the advancement in energy integration and modernization of the grid. Moreover, the construction of high-power transmission lines for wind and solar farms increases the need for both fixed and variable shunt reactors.
   
• The fixation on improving the reliability of the energy grid and lowering energy transmission losses motivates further investment into the market. The adoption of shunt reactors is on the rise due to their increased capacity to control electricity usage during peak loads of power. FERC Order No. 881 requires greater use of granular adjusted ratings by transmission services to facility better grid performance and reliability.
   
• The air core shunt reactor market in Europe is expanding at a CAGR of over 6% through 2034, due to investments in renewable energy integration and grid modernization. Germany leads the region's market growth through its renewable energy transition, particularly in wind and solar power, which necessitates efficient voltage regulation and reactive power compensation for grid stability.
   
• Asia Pacific air core shunt reactor market was valued at over USD 400 million in 2024 and is further anticipated to grow substantially over the next few years. The expansion of the market in the Asia-Pacific region can be attributed to the region’s level of industrialization, urbanization, and the development of a high voltage transmission network.
   
• China remains at the forefront of the regional market with multi-faceted renewable energy projects, increasing electricity consumption, and government expenditures directed at enhancing the grid’s dependability and effectiveness. In order to enhance the transmission infrastructure within the area, the nation reported making substantial investments amounting to USD 12.60 billion in power grid developments during the first quarter of 2023. These activities are increasing the demand for both air core shunt reactors and static var compensators.
   
• Middle East & Africa holds a market share of over 18% in 2024 with projections of a steady growth by 2034. The market in the Middle East and Africa region is expanding due to increasing spending on power infrastructure and renewable energy projects, mainly solar power systems.
   
• Saudi Arabia continues to enhance its regional growth with the Vision 2030 program that supports energy diversification and the modernization of the power transmission network to augment the demand of air-core shunt reactors. The Saudi Electricity Company set forth an investment agenda of USD 27.8 billion between the years of 2023 and 2025 to improve the scope and efficiency of the electric power transmission network.
   

Air Core Shunt Reactor Market Share

The top 5 companies operating in air core shunt reactor industry include Hitachi Energy, GE, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, Hyosung Heavy Industries. As a result of their research and development activities, such firms together have a market share of more than 40% in 2024 and are expected to grow their share further in the coming years.
 

Hitachi Energy Ltd is a key competitor in the Air Core Shunt Reactor business. The company’s footprint and expertise in energy enables it to be a leading manufacturer in this market. In 2022, Hitachi Energy commenced the sale of its newly upgraded series of air core shunt reactors with improved voltage control features.
 

Hitachi Energy’s air core shunt reactors underpin the stability and operational effectiveness of power systems for utility and industrial clients around the world. Focused on grid reliability and performance improvements, Hitachi Energy is actively leading the development of the air core shunt reactor industry. In 2023, Hitachi Energy stated that they had entered into a partnership agreement with one of the largest utilities in Europe to provide shunt reactors for their substations modernization project.
 

Air Core Shunt Reactor Market Companies

• GE offers shunt air core reactors that improve the effectiveness and reliability of the pillars supporting the system. Its global reach allows the company to provide products for the high voltage industry that ease the integration of renewable energy and modernization of the grid. As part of India’s growing energy requirements, GE won the contract in 2022 to construct the 400kV gas insulated substations. The goal of the project is to strengthen grid reliability, enhance electricity transmission, and enable the use of renewable energy resources into the country wide electric grid.
   
• Siemens Energy makes air core shunt reactors for use in voltage and reactive power modulation. In 2024, it allocated USD 6.53 billion for new product development expenditure. The company’s products enable business including high voltage renewable energy and electric power transmission across the power region.
   
• Toshiba Energy Systems & Solutions Corporation makes air core shunt reactors which are used for voltage regulation in power transmission systems. In the year 2023, the revenue reached USD 20.6 billion. The organization integrates materials science and engineering to achieve energy efficiency and grid stability, with a focus on the renewable energy and high voltage transmission system sectors.
   
• Hyosung Heavy Industries has valuable experience in the design and production of air core shunt reactors used in high voltage transmission lines. As of Q1 2023 ending March 31, Hyosung Heavy Industries Corporation had sales of USD 8.02 million, an increase from USD 5.66 million from the previous year. The products of the company support different energy management and grid stability requirements that operate across multi applications.
   
• Nissin Electric develops air core shunt reactors to improve voltage stability and reduction of transmission losses. Nissin Electric signed an agreement in Delhi to support energy initiatives in the region on August 21, 2024, while also collaborating with Tata Power Delhi Distribution Limited to aid in the energy efficiency. As part of NEDO’s International Demonstration Project, Nissin has set a target to launch the first ever Micro Substation equipped with a Power Voltage Transformer (PVT) by the year 2024.
   

Major players operating in the air core shunt reactor market are:

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

Air Core Shunt Reactor Industry News

• In December 2024, Hitachi Energy's 500kV variable shunt reactor were deployed to support the Dzhankeldy 500MW wind farm in Uzbekistan. This will enable grid stability and proper voltage regulation. This reactor is set to control and balance the output fluctuation from renewable electricity sources. By facilitating wind power integration, it can help in the energy transition of Uzbekistan. Moreover, the solution will increase the reliability of the grid and help meet future energy needs.
   
• In November 2024, Hyosung Heavy Industries signed a USD 200 million contract with Ørsted, an offshore wind energy leader, to supply key parts for an offshore wind farm. The collaboration strengthens Hyosung’s position in the renewable energy market, particularly in offshore wind. As electric equipment supplier on the project’s infrastructure, Hyosung will also contribute on Ørsted’s plans to expand offshore wind capacity.
   
• In August 2024, Hitachi Energy received a record order from Svenska Kraftnät to improve Sweden’s power grid. The project will enhance grid customer’s reliability and enable the integration of renewable sources, which is part of Sweden’s sustainability objectives. This order exemplifies Hitachi Energy’s partnership in the modernization of energy infrastructure and the mitigation of conditions for a more reliable and efficient energy network.
   
• In February 2024, GE Vernova has secured new contracts from PGCIL concerning India’s energy transition. The orders include modernized grid infrastructure for power transmissions, facilitating renewable energy integration and improving grid reliability as part of India’s sustainability objectives.
   

This air core shunt reactor market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Phase

• Single phase
• Three phase

Market, By Product

• Fixed shunt reactor
• Variable shunt reactor

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