Oil Immersed Three Phase Shunt Reactor Market - By Product, By End Use Analysis, Growth Forecast, 2024 – 2032

Oil Immersed Three Phase Shunt Reactor Market Size

The global oil immersed three phase shunt reactor market size was valued USD 1.1 billion in 2023 and is estimated to grow at a CAGR of 7.1% from 2024 to 2032. As per the growing trend towards higher energy demand, the requirement for increased energy efficiency across electricity transmission networks is on the rise, and this translates into growth for the market too. Moreover, there are increasing investments across several nations towards improving and replacing older power infrastructure, and this too is supportive of growth of shunt reactor industry.
 

In addition, the intensifying shift toward oil-immersed reactors offering better insulation and cooling is evident while electric grids are being boosted for a higher voltage level. As the transmission lines are extended in order to support the rising integration of renewable energy, shunt reactors help in maintaining voltage stability at the endpoints while reducing reactive power loss. Yet the current oil-based reactors that are in use have some environmental issues, and the volatility in oil prices is proving to be a hurdle to the growth of the market.
 

Oil Immersed Three Phase Shunt Reactor Market Trends

Globally, there is a clear trend in the modernization of electric power systems dynamism that includes the deployment of shunt reactors. Moreover, with the increase in adoption of wind and solar energy, the demand for shunt reactors began to grow owing to their ability to maintain voltage levels and reactive power losses. According to a report by the U.S. Energy Administration, the share of solar and wind sources in energy generation grew up to 24% in first half of 2022 across U.S., indicating the potential for further growth was significant. Additionally, given space constraints and cost-saving measures, smaller and more efficient devices are being built due to breakthroughs in technology, which bodes well for the future.
 

Oil Immersed Three Phase Shunt Reactor Market Analysis

The fixed type shunt reactors segment is forecasted to reach over USD 1.1 billion by 2032. There is a growing public interest in the use of automated systems, enabling operational diagnostics and monitoring to address performance and outage issues. Furthermore, the preference for customizable shunt reactors with particular operational requirements and environmental conditions is also on the rise. The market, moreover, is witnessing a shift towards the use of environmentally friendly insulating materials owing to regulatory requirements and a growing emphasis on sustainable development.
 

Electricity utilities segment in the oil immersed three phase shunt reactor market is expected to grow with a CAGR of more than 5.5% through 2032, boosted with a noteworthy expansion of power generation and transmission networks. In addition, the trend of shunt reactors utilization in high voltage systems is gaining traction, especially in those connected to power grids with large, fluctuating renewable generation sources for voltage stabilization and reactive power management.
 

Moreover, infrastructure modernization through the replacement of obsolete systems with advanced shunt reactors is enabling utilities to enhance reliability while cutting operational expenditure. As there is an increasing need for more electric power in developing nations, the product deployment is expected to grow even more, which in turn will lead to further development and investment in research in shunt reactor technology.

The U.S. oil-immersed three-phase shunt reactor market is expected to cross USD 250 million by 2032. This increase in value is attributed to the increased investment towards modernization of grids and the integration of renewable energy sources. Additionally, the regulations aimed at promoting a clean environment as well as projects aimed at deployment of wind and solar energy also prove to be an influencing factor. In addition, manufacturers are producing more environmentally friendly insulating materials for electric shunt reactors, which in the long term will aid the market and change the competitive environment in the country.
 

Asia-Pacific oil-immersed three-phase shunt reactor market is witnessing a growth in their market share as there has been an increase in the investment in power generation resources alongside the growth in their transmission networks. For the most part, the major demand is coming from Indian and China regions as they are trying to make their grids more stable due to the rapid increase in total energy consumption. In addition to this, there is a noticeable emphasis on revamping the existing power systems and a shift towards green technologies, which will in return increase the energy production.
 

Oil Immersed Three Phase Shunt Reactor Market Share

Siemens Energy has a major share of the market for oil-immersed three-phase shunt reactors owing to its rich history, wide market reach, and technology. The Company’s ability to innovate, especially in the compact and efficient reactor designs, puts it in a prime position. Furthermore, Siemens’ initiative to operate under environmental laws gives it a distinct competitive edge in this highly fluid area.
 

Oil Immersed Three Phase Shunt Reactor Market Companies

Major players operating in the oil immersed three phase shunt reactor industry are:

• CG Power & Industrial Solutions
• Fuji Electric
• GE
• GBE
• GETRA
• Hyosung Heavy Industries
• Hitachi Energy
• Nissin Electric
• Shrihans Electricals
• SGB SMIT
• Siemens Energy
• Toshiba Energy Systems & Solutions
• TMC Transformers Manufacturing Company
• WEG
   

Oil Immersed Three Phase Shunt Reactor Industry News:

• In February 2024, GE Vernova has signed a significant contract with Power Grid Corporation of India for the supply of 765 kV shunt reactors, which will assist with grid stability and promote renewable energy. These projects, which are developed and implemented through GE T&D India, are part of India’s clean energy plan, with the delivery scheduled for 2025-26.
   
• In July 2022, WEG entered into a supply contract in respect of four 500 kV transformers and six shunt reactors for a 492 MW wind farm in Colombia. The supply of these components was done later in the year, and this was an important step for WEG to continue their global outreach and improve their position in the market.
   

This oil immersed three phase shunt reactor market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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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 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