Oil Immersed Variable Shunt Reactor Market
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The global oil immersed variable shunt reactor market size was valued at USD 548.3 million in 2023 and is projected to grow at a CAGR of 7.9% by 2032. The integration of renewable energy sources increased demand of reactive power support, whilst the complexity of a power grid’s system necessitates effective management of voltage fluctuations owing to their unpredictability. Integration of transmission infrastructure in developing areas is also encouraging growth in the marketplace. Furthermore, stringent regulatory requirements in power quality and power efficiency are other factors supporting growth in the market.
Urbanization and industrialization are anticipated to be the other major drivers for the growth of the oil-immersed variable shunt reactor market. This increase will lead to a greater demand for electricity and efficient power management systems. Which in turn, necessitates the modernization of the old electrical infrastructure. This will prompt the use of shunt reactors by the utilities. Also, the development of advanced reactive power compensation technologies will provide push for the development of smart grids.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Oil Immersed Variable Shunt Reactor Market size in 2023: | USD 548.3 Million |
| Forecast Period: | 2024 – 2032 |
| Forecast Period 2023 - 2032 CAGR: | 7.9 |
| 2023 Value Projection: | USD 1.1 Billion |
| Historical Data for: | 2021-2023 |
| No of Pages: | 70 |
| Tables, Charts & Figures: | 10 |
| Segments Covered: | Phase and End Use |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Several factors drive the dynamics of the market for oil-filled variable shunt reactors. Such as favorable environmental regulation pushing eco-friendly grid designs, digitalization and advanced materials to improve reactor reliability. Moreover, the rejuvenation in the trend for hybrid power systems enhances demand for the shunt reactors. As per the International Energy Agency, between 2022 to 2024, approx. 2.4% annual increases in global electricity demand took place, thereby driving the need for efficient transmission networking in developing economies, thus boosting the market and the need for efficient reactive power solutions.
The three phase oil-immersed variable shunt reactor market is expected to surpass USD 700 million by 2032. This growth can be attributed to various factors, such as the necessary management of reactive power caused by increased use of renewable sources and the development of transmission systems in developing countries. Additionally, the growth of the market is also accelerated by the increasing demand for efficient and reliable grid and reactor.
The application segment for oil-immersed variable shunt reactor industry is classified into electric utility and renewable sectors, with electric utility recording a higher share. The electric utility sector is projected to witness growth of more than 6% CAGR by 2032. This growth is driven by the rising modernization of the existing grids and transmission networks to meet growing electricity demand. Apart from these, regulatory requirements for efficient power quality and safety of the grid further enhances the demand for oil-immersed adjustable shunt reactor.
The Asia Pacific oil immersed variable shunt reactor market is expected to exceed USD 590 million by 2032. The rapid increase of modern infrastructures and factories within the area creates a great demand for electricity and grid expansion. Especially in India and China, improving integration of renewable energy sources requires effective solutions for reactive power management, thus increasing demand for reactors. According to the National Energy Administration, across China, in 2022, energy produced from renewable sources reached 47.3% of the country's total electricity generation, resulting in increased demand for stability solution for the grid. Some other driving factors in the regional market are expansion of smart grid systems, supportive state policy on investments and modernization of transmission facilities, and progress in the shunt reactor technology.
The market for oil-immersed variable shunt reactors in the U.S. is on the rise due to heightened expenditure on grid modernization and growth in renewable energy sources. Moreover, the obsolete transmission facilities and the adherence to regulations designating a stable power market are also enhancing the demand for this market.
With its technology and variety of oil-immersed variable shunt reactor available in the market, General Electric has established a strong base in the market owing to its firm hold in the power industry. GE has the expertise needed for power switching technology integration along with the integration of renewable energy sources, which makes it an active business in the market.
Some of the key market players operating across the oil immersed variable shunt reactor industry are:
Market, By Phase
Market, By End Use
The above information has been provided for the following regions and countries:
CG Power & Industrial Solutions, Fuji Electric, GBE, GE, GETRA, Hitachi Energy, Hyosung Heavy Industries, Nissin Electric, SGB SMIT, Shrihans Electricals, Siemens Energy, and TMC Transformers Manufacturing Company.
Asia Pacific market is projected to surpass USD 590 million by 2032, due to rapid urbanization and industrialization.
The three-phase shunt segment is projected to exceed USD 700 million by 2032, driven by the increasing integration of renewable energy sources.
The market size of oil immersed variable shunt reactor reached USD 548.3 million in 2023 and is set to grow at 7.9% CAGR through 2032, owing to the investments in transmission infrastructure.