Asia Pacific Shunt Reactor Market Size & Share 2025 - 2034

Asia Pacific Shunt Reactor Market Size

The Asia Pacific shunt reactor market was at USD 1 billion in 2024 and is expected to reach USD 2.2 billion by 2034, growing at a CAGR 7.4% from 2025 to 2034. Increasing electric power requirements have led to a surge in investment in transmission and distribution infrastructure, which continues to drive the market.

The wind and solar integration introduce instability in the power grid that need to compensated by reactive power solutions like shunt reactors on to the grid. Governments of China, India, and Japan are also improving the infrastructure, which is further aiding in the growth of the market. In December 2024, Japan’s METI revealed a new plan aimed at boosting energy security while speeding up the shift to clean energy. The plan centers on hydrogen, broadening renewable energy, and strengthening the power grid.
 

The growth of high-voltage transmission networks and smart grid implementation is increasing demand. The development of variable shunt reactors and other technological advancements is improving operational efficiency and system reliability. In July 2022, Southern China has implemented a new power market aimed at modernizing the grid and achieving climate objectives, which increases energy trading, supports renewable expansion, and improves overall efficiency.
 

Significant challenges still exist in terms of initial costs and technology market complexities. However, companies in the market are working on innovating and forming strategic alliances in order to consolidate their competitive advantages. In March 2021, Coil Innovation type tested a 420kV shunt reactor and verified its compliance with international standards during the testing phase. The tests verified that the electric, thermal, and mechanical performance was sufficient for high power applications.
 

Asia Pacific Shunt Reactor Market Trends

• The Asia Pacific market for shunt reactors is growing due to the ongoing integration of renewable energies within the region, and the construction of new power grids. Japan’s policy for 2040 aims to advance the process of decarbonization in the country, while also supporting the development of renewables, and hydrogen and will further enable energy security along with industrial transformation while supporting sustainability and economic growth.
   
• With the construction of UHV (Ultra High Voltage) transmission networks in China and India, the demand for shunt reactors to stabilize the grid system has increased. In March 2024, Power Grid Corporation of India won three transmission projects which are expected to enhance reliability of the grid, especially in integration of renewable energy resources, consequently modifies the power system of the country.
   
• The adoption of smart grids and digital substations requires higher level of automation in reactor systems. The use of variable shunt reactors has been on the rise due to their reactive power service. In Japan, METI announced the storage subsidy program for FY 2024 in January 2025 with the intent of increasing battery storage, grid smoothing, and renewable power integration, effective 1 March 2025.
   
• Increased electricity consumption from industrial development and urbanization supports market growth. However, high costs and installation complexity present obstacles for market participants. The Australian Energy Market Operator (AEMO) reports a 2% annual increase in the energy consumption between 2022 - 2023.
   

Asia Pacific Shunt Reactor Market Analysis

• The phase segment in the Asia Pacific shunt reactor industry comprises of three and single phase. The three-phase segment is anticipated to exceed USD 1 billion by 2034.
   
• The need for three-phase shunt reactors is growing along with their application in high-voltage transmission networks and mega-sized electrical grids in China and India. These reactors help in sustainably reducing voltage issues while improving stability to the grid. A power industry in Japan is looking to fund USD 41to USD 47 trillion dollars towards enhancing the grid with the addition of submarine cables between Hokkaido and Honshu for the purpose of renewable energy inflow, while avoiding the over-utilization of power in Tokyo.
   
• Meanwhile, there is an increasing use of single-phase shunt reactors in modular and flexible applications such as the integration of renewable energy and electrification of railway systems. China's goal is to reach a power capacity of 3.6 billion kW by 2025 with 60% coming from non-fossil sources while keeping oil production over 200 million tonnes and expending 200 million kW in new energy capacity.
   
• The advancement of technology has boosted the productivity of both kinds of reactors, especially with regards to their digital control systems. The choice of a single-phase or three-phase reactor depends on grid demands, economic considerations and system layout.
   

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• The Asia Pacific shunt reactor market is seeing growing demand for insulation including air core and oil immersed. The oil-immersed insulation segment is poised for significant growth with a market share of 68% in 2024, projected a CAGR of over 6.5% through 2034.
   
• The oil-immersed shunt reactors continue to dominate the market due to their outstanding performance, superior heat dissipation, and compatibility with high voltage power transmission systems. The construction of ultra-high voltage (UHV) infrastructure within China and India continues to increase the need for such reactors.
   
• The UHVDC project implemented by Hitachi Energy in July 2021 further improved stability of the grid, integration from renewables, and effective transfer of power throughout India.
   
• Moreover, the adoption of air-core shunt reactors is growing for use in renewable energy projects and industrial applications, especially in areas with spatial constraints and certain ecological conditions. The smart grid is implemented and integrated with digital substation technologies, which increases the operation and dependability of both kinds of insulation.
   
• In February 2025, Iberdrola and Kansai Electric formed a joint venture to accelerate both electrification and the deployment of renewable energy sources. This partnership seeks to enable the global transition to sustainable energy through modernization of electricity grids and further steps towards decarbonization.
   
• However, there are certain obstacles in the market with respect to every type of insulation. For instance, Oil-immersed reactors need continuous maintenance and pose environmental problems. Meanwhile, air-core reactors have high production costs and suffer from limited output voltage.
   
• Australia's energy transition is described in AEMO's 2026 Integrated System Plan, which include renewables, modernization of the grid, and reliability. The plan intends to facilitate deep decarbonization, improve energy security, and strategically manage the existing assets for a reliable, and low-cost electricity system.
   

• The China shunt reactor market size surpassed USD 439.8 million, USD 476.3 million, USD 515.2 million in 2022, 2023 and 2024 respectively. The market is further anticipated to reach USD 1 billion by 2034, fueled by rapid expansion of ultra-high voltage (UHV) transmission networks and grid modernization initiatives.
   
• The expansion of digital substations and smart grid technologies is continuing domestic market, which is also aided by local manufactures investing in new products and cheaper processes. China aims to reach a peak of carbon emissions by 2030 and net zero carbon emissions by 2060 through the development of major initiatives including setting up offshore wind farms and energy bases in desert regions.
   
• In India, advancements in the use of renewable sources, particularly wind and solar, create a greater need for grid stabilizing shunt reactors. Growth within the market is aided by the government's Green Energy Corridor program and improvements to transmission facilities.
   
• Shunt reactors are particularly important in South Asia where India has the highest demand of them owing to the rising consumption of electricity and modernization of the power grid. The ongoing efforts to achieve sustainability along with systematically incorporating renewables while ensuring grid system stability will come at a cost. Furthermore, as of December 2022, India’s projected spending on clean energy transmission infrastructure stands at over USD 23 billion, which is a challenge in itself.
   
• In Japan, investments in smart grids and renewable integration, notably offshore wind, strengthen the shunt reactor market. Utilities enhance transmission efficiency to support the country's 2050 carbon neutrality goals. Japan maintains its position as East Asia's primary market for shunt reactors through its advanced power infrastructure and energy transition initiatives.
   
• In January 2025, METI’s FY2024 Program economic subsidies were given to 27 projects aimed at expanding energy storage facilities. All funded projects were BESS, with the government covering approximately 67% of project expenses.
   
• The shift towards shunt reactor expansion in Australia is attributed to increased transmission at higher voltage levels along with the growing renewables, specifically solar and wind energy. The market further benefits from the development of interconnectors that aim at improving the reliability of the grid.
   
• With the increased growth of renewable energy, Australia is leading the shunt reactor market within Oceania due to their demand for grid stability. In June 2022, AEMO requested an investment of USD 12.7 billion for new transmission lines to be built in an effort to reinforce renewable energy implementation, along with scaling down coal powered energy and improving the grids in Eastern and South Eastern Australia.
   

Asia Pacific Shunt Reactor Market Share

The top 6 companies operating in Asia Pacific shunt reactor industry include Siemens AG, CG Power and Industrial Solutions, Mitsubishi Electric, Fuji Electric and TBEA. These companies have established strong market positions through technological innovation, extensive product portfolios, and strategic regional presence with a market share of more than 40% in 2024.
 

In the Asia Pacific shunt reactor market, General Electric (GE) holds a dominant portion due to its unique technological advancement, large market coverage within the region, and its aggressive focus on changing energy demands. GE's clients, which include a number of utilities and grid operators across the region, have come to trust the company’s highly reliable shunt reactors due to their advanced features.
 

Also, GE's environmental friendly focus meets GE’s increased demand for sustainable efforts across the Asia Pacific region. In 2021, GE Grid Solutions collaborated with Power Grid Corporation of India Limited (PGCIL) for the transmission network expansion project where the company supplied 765 kV shunt reactors.
 

Asia Pacific Shunt Reactor Market Companies

• Siemens AG has a notable share in the Asia Pacific shunt reactor industry due to its grid stability and voltage regulation solutions. During Q4 2024, the company recorded a net income of USD 2.27 billion. The firm’s attention to R&D allows it to design energy efficient reactors which also help in renewable energy sources integration and increasing electricity supply in the region’s power transmission networks.
   
• CG Power and Industrial Solutions designs and manufactures shunt reactors for utilities and industrial applications across the Asia Pacific region. In 2024, the company reported a revenue of USD 935.87 million which is a positive indicator. The company's electrical equipment businesses gave them an initial foothold in the region, and the low prices offered by the competitor for voltage regulation solutions make them a major supplier for operators of power grids.
   
• In the Asia Pacific market, Mitsubishi Electric Corporation leads the region in providing high-quality shunt reactors. The products provided by the company help in the control of voltage fluctuations, which enhances the region's power system efficiency and aids renewable energy adoption. As of April 2024, Mitsubishi Power helps with Indonesia's energy transition through innovation and strategic partnerships. The company has further assisted Indonesia by upgrading gas-fired plants to more efficient and cleaner M701F turbines, enabling the country to work towards net-zero emissions by 2060.
   
• Fuji Electric is also a major player in the Asia Pacific region shunt reactor market due to its design and production capabilities. The company’s shunt reactors serve the growing electricity transmission and distribution in the region. Fuji Electric will increase production of SiC power semiconductors at the Tsugaru plant and considering mass production in 2024. Their spending is reported to be USD 1.29 billion for EVs and renewables.
   
• TBEA is one of the principal providers of shunt reactors in the Asia Pacific and China along with other emerging markets. The firm has a complete range of high voltage power apparatus that aids in improving the quality and dependability of the grid, in the modernization of the power infrastructure, and in renewable energy assimilation in the region. TBEA launched a new program in June 2023 to promote renewables around the world.
   

Asia Pacific Shunt Reactor Market Companies

Major players operating in the Asia Pacific shunt reactor industry are:

• Alstom
• CG Power & Industrial Solutions
• Fuji Electric
• GBE
• GE
• Hitachi Energy
• HYOSUNG HEAVY INDUSTRIES
• NISSIN ELECTRIC
• SGB SMIT
• Shrihans Electricals
• Siemens Energy
• TBEA
• TMC TRANSFORMERS MANUFACTURING COMPANY
• Toshiba Energy Systems & Solutions
• WEG
   

Asia Pacific Shunt Reactor Industry News

• In February 2025, Siemens Energy and Rolls-Royce SMR partnered in the development of Small Modular Reactors (SMRs), which includes the turbo steam generators and auxiliary systems Siemens Energy provides to Rolls-Royce’s nuclear power generation plants. With a thermal power output of 470 megawatts, a value sufficient to power 1.1 million homes, these modern modular reactors are more compact, cost-effective, and durable.
   
• In November 2024, Hyosung Heavy Industries Ltd. acquired a contract from Ørsted for components of an offshore wind project for USD 0.20 billion. This contract increases Hyosung's activity in renewable energies. The project is part of the Ørsted offshore wind capacity expansion and entails Hyosung providing electric power infrastructure components.
   
• In October 2024, Hitachi Energy developed a new technology for a 500 kV variable shunt reactor (VSR) for wind power systems, responding to the increasing demand for such systems. Active VSRs and the expansion of the 500 kV VSR strengthened the support of grid systems to allow better control of large-scale renewable energy transmission, thus boosting energy reliability and facilitating the shift to a sustainable world.
   
• In February 2024, In February 2024, GE Vernova has received important orders from PGCIL to facilitate India’s energy transition. The supply of sophisticated grid management systems for major transmission projects improves grid reliability and efficiency. The projects are in consonance with the efforts being made by India towards the modernization and integration of renewables, which will help GE Vernova to further enhance its contribution towards improving India’s power infrastructure.
   

This Asia Pacific 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 Insulation

• Oil immersed
• Air core

Market, By Product

• Fixed shunt reactors
• Variable shunt reactors

Market, By End Use

• Electric utility
• Renewable energy

The above information has been provided for the following countries:

• China
• India
• Japan
• Australia