Asia Pacific Oil Immersed Shunt Reactor Market Size & Share 2024 to 2032
Market Size by Phase (Single Phase, Three Phase), by Product (Fixed Shunt Reactor, Variable Shunt Reactor), by End Use (Electric Utility, Renewable Energy), & Forecast.
Report ID: GMI6955
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Published Date: October 2023
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Report Format: PDF
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Authors:
Ankit Gupta, Vishal Saini
Asia Pacific Oil Immersed Shunt Reactor Market Size
Asia Pacific Oil Immersed Shunt Reactor Market was valued at USD 608.7 million in 2023 and is projected to grow at a CAGR of over 5.9% between 2024 and 2032. Driven by rapid industrialization and urbanization along with the substantial increase in electricity demand which necessitates the enhancement of power transmission and distribution system. As per International Renewable Energy Agency (IRENA), over 549 thousand GWh electricity has been generated by solar energy till 2021, which is over 3700% more than the electricity generated by solar energy till 2012 across Asian region.
Asia Pacific Oil Immersed Shunt Reactor Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Additionally, the ongoing development of smart grids and the need for grid modernization projects are spurring investments in shunt reactors to optimize power quality and transmission efficiency. Moreover, stringent environmental regulations have prompted the adoption of eco-friendly and energy-efficient shunt reactors.
COVID-19 Impact
The Asia Pacific oil immersed shunt reactor market faced pandemic-induced disruptions, including supply chain delays and project postponements. Lockdowns and labor shortages affected manufacturing and construction, leading to some setbacks in reactor installations. However, the growing need for grid reliability and expansion projects, particularly in the renewable energy sector, sustained demand. As economies recover, investments in grid infrastructure and renewable integration are expected to drive the market's rebound, albeit with some lingering uncertainties.
Asia Pacific Oil Immersed Shunt Reactor Market Trends
There is a growing emphasis on grid stability and voltage control as the region continues to expand its power infrastructure to meet increasing electricity demand. Shunt reactors are becoming integral components in enhancing power quality and transmission efficiency. Environmental concerns are pushing the market towards eco-friendly and energy-efficient shunt reactor designs. Many countries in the Asia Pacific region are investing in grid modernization to improve the reliability and efficiency of their power transmission and distribution networks. This includes the installation of shunt reactors to enhance voltage control. Furthermore, cross-border interconnection projects are on the rise in the Asia Pacific region to enhance regional grid connectivity and energy exchange, leading to increased demand for shunt reactors to support these initiatives.
Asia Pacific Oil Immersed Shunt Reactor Market Analysis
The three-phase shunt reactors market is projected to register gains at nearly 6% up to 2032. The rapid industrialization and urbanization across Asia are driving significant investments in power infrastructure, necessitating the deployment of shunt reactors to maintain grid stability and voltage control. The region's increasing reliance on heavy industries and manufacturing sectors places a higher demand on the electrical grid, making three-phase shunt reactors vital in managing power fluctuations and ensuring uninterrupted operations. Furthermore, the Asia Pacific region's vulnerability to natural disasters, such as typhoons and earthquakes, underscores the need for resilient electrical networks, further bolstering the adoption of shunt reactors for grid reliability.
The fixed shunt reactors market was worth USD 360 million in 2022 and is poised to observe around 5% growth rate from 2023 to 2032. These reactors offer several advantages, notably their simplicity and reliability, requiring minimal maintenance and boasting a proven track record of prolonged service life. Furthermore, they offer a cost-efficient alternative, especially when contrasted with the more intricate dynamic compensation technologies such as static VAR compensators or synchronous condensers. These shunt reactors are highly adopted for grid applications which require consistent and continuous reactive power support, effectively addressing voltage instability issues and enhancing system efficiency.
The oil-immersed shunt reactor industry derives its momentum from various end-use sectors, notably electric utilities and renewable energy integration. Electric utilities have played a pivotal role in driving the demand for these products, commanding a significant market share of over 74% in 2022. The escalating regional electricity demand has spurred governments to enhance their transmission and distribution networks, fueling the adoption of shunt reactors. Across Asia Pacific region, developed nations are channeling substantial investments into upgrading their old electricity grids, creating a pressing need for reliable
technologies like shunt reactors to ensure the secure and consistent delivery of electricity to consumers.
The China oil immersed shunt reactor market is estimated to attain a CAGR of over 5.5% during 2023 and 2032. China's rapid urbanization and industrialization have led to a substantial increase in electricity demand, necessitating the expansion and modernization of its power grid infrastructure. The integration of renewable energy sources, such as wind and solar, into the grid is driving the need for advanced grid solutions, including shunt reactors, to manage voltage fluctuations associated with intermittent renewables. In addition, government initiatives to enhance grid reliability and resilience against voltage disturbances further boost the demand for shunt reactors in China's evolving energy landscape.
Asia Pacific Oil Immersed Shunt Reactor Market Share
General Electric (GE) has established and maintained a substantial market share in the shunt reactor industry in the Asia Pacific through a combination of technological innovation, a strong regional presence, and a commitment to meeting the region's evolving energy needs. GE's extensive portfolio of high-quality shunt reactors, known for their reliability and advanced features, has earned the trust of utilities and grid operators across Asia Pacific. The company's commitment to environmental sustainability aligns with the region's growing focus on eco-friendly solutions.
Moreover, GE's local manufacturing facilities and customer support centers ensure responsive service and tailored solutions that cater to the diverse requirements of the Asia Pacific market. By consistently delivering products that control voltage and enhance grid stability, GE has solidified its position as a trusted and influential player in the oil-immersed shunt reactor market in the region.
Some of the key market players operating across the Asia Pacific oil immersed shunt reactor industry are:
Asia Pacific Oil Immersed Shunt Reactor Market News:
This Asia Pacific oil immersed 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
By Product
By End Use
The above information is provided for the following countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
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Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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✓ Competitive dynamics and market entry/exit expectations
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