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Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By Insulation (Oil Immersed, Air Core), By Product (Fixed Shunt Reactor, Variable Shunt Reactor), By End Use (Electric Utility, Renewable Energy) & Forecast, 2024 - 2032

  • Report ID: GMI6614
  • Published Date: Sep 2023
  • Report Format: PDF

Shunt Reactor Market Size

Shunt Reactor Market was valued at USD 2.1 billion in 2023 and is projected to showcase over 7.1% CAGR from 2024 to 2032. The rising global demand for electricity, driven by population growth, urbanization, and industrialization, is a significant driver propelling the market growth.

Shunt reactor market

The expansion and upgrade of transmission and distribution networks to meet increasing electricity demand is driving the demand for shunt reactors. Shunt reactors are deployed to maintain voltage levels and reduce transmission losses, particularly in long-distance transmission lines. In addition, the modernization of power grids and the implementation of smart grid technologies require enhanced voltage control and reactive power management, which in turn propels the product penetration.


COVID-19 Impact

The shunt reactor market experienced notable disruptions due to the COVID-19 pandemic. As global lockdowns and restrictions slowed down construction and infrastructure projects, demand for electrical equipment, including shunt reactors, was affected. Supply chain disruptions and labor shortages also led to delays in manufacturing and delivery. The uncertainty and economic challenges prompted many utilities and industries to defer capital expenditures, impacting investment in shunt reactor installations.

However, the pandemic also highlighted the importance of reliable and stable power transmission systems, particularly as remote work and digital connectivity became crucial. This has led to a renewed focus on strengthening grid infrastructure, which could potentially drive future demand for shunt reactors. As economies recover and projects resume, the market is expected to regain momentum, particularly with the growing emphasis on grid reliability, renewable energy integration, and the need for efficient power transmission systems.

Shunt Reactor Market Trends

The shunt reactor market is witnessing several notable trends that are shaping its trajectory. The increasing integration of renewable energy sources into power grids is driving the need for improved grid stability and voltage control. Shunt reactors play a vital role in managing reactive power and maintaining voltage levels, making them essential for accommodating the fluctuations inherent in renewable energy generation. Additionally, the advancements in smart grid technology are leading to the deployment of intelligent shunt reactors that can dynamically adjust their reactive power compensation based on real-time grid conditions.

Shunt Reactor Market Analysis

Shunt Reactor Market Size, By Phase, 2021 - 2032, (USD Billion)

The three phase shunt reactors segment is anticipated to grow at a CAGR of over 7.5% by 2032. Government initiatives and regulations focused on improving power system efficiency, reducing losses, and promoting renewable energy integration can drive the adoption of three-phase shunt reactors. Supportive policies and incentives for grid modernization and upgrading the power infrastructure will further stimulate the market. Investments in infrastructure expansion, grid reliability enhancement, and smart grid projects will create opportunities for the deployment of shunt reactors across the globe.

Shunt Reactor Market Share, By Insulation, 2022

The oil immersed shunt reactor market size was worth USD 1.2 billion in 2022 and is poised to reach USD 2.4 billion by 2023. Furthermore, oil-immersed shunt reactors have a more compact design compared to air-core reactors, resulting in a smaller footprint. This makes them suitable for installations where space is limited. In addition, the oil-filled enclosure of oil-immersed shunt reactors helps in reducing noise levels generated during operation, which in turn boost its adoption across noise sensitive environments or urban areas, thereby propelling the industry growth.

The variable shunt reactors obtain a market value of over USD 800 million in 2022 and is estimated to observe around 7.5% CAGR from 2023 to 2032. Furthermore, variable shunt reactors offer a wide range of reactive power control capabilities, including both leading and lagging reactive power, thereby allowing for precise control over power factor correction and voltage regulation, which in turn benefits the product penetration across T&D networks.

The utility segment held around 65% share of the shunt reactor market in 2022. Growing demand for electricity across the globe will compel the governments to enhance the transmission & distribution network in their respective country, which acts as a major driver for the deployment of shunt reactors. Many developed countries are extensively investing in refurbishing their aging grid infrastructure, thus fuelling a demand for reliable and efficient technologies including shunt reactors to offer safe supply of electricity to the customers.

Asia Pacific Shunt Reactor Market Size, 2021 - 2032, (USD Million)

Asia Pacific shunt reactor market is expected to witness 7.5% growth rate through 2032, owing to a substantial increase in energy consumption along with rapid urbanization, industrialization, and population growth. Governments in the Asia Pacific region are investing heavily in the development of power infrastructure, including the construction of new power plants, transmission lines, and substations. This infrastructure expansion is creating significant opportunities for the deployment of shunt reactors to enhance system stability and voltage regulation.

Moreover, many countries in the Asia Pacific region are actively promoting the use of renewable energy sources such as wind and solar energy. The recurrent nature of these renewable energy sources poses challenges in terms of grid stability, which allows the shunt reactors to play a crucial role in managing voltage fluctuations and maintaining the stability of the power grid during the integration of renewable energy, thereby driving its market penetration across the Asia Pacific region.

Shunt Reactor Market Share

Major participants in the shunt reactor market include:

  • GE
  • Siemens Energy
  • Toshiba Energy Systems & Solutions Corporation
  • CG Power & Industrial Solutions Ltd
  • Hitachi Energy Ltd
  • Fuji Electric Co
  • GBE S.p.A
  • WEG
  • HICO America
  • GETRA S.p.A 
  • Shrihans Electricals Pvt. Ltd.

These companies are engaging in strategic partnership, collaborations and joint ventures with component manufacturers or other small scale manufacturers to gain a competitive edge in the industry.

Shunt Reactor Industry News:

  • In July 2022, WEG announced the receival of a supply contract for six shunt reactors and four transformers of 500 kV rating, for a wind farm in Colombia with a power generation capacity of 492 MW. The supply was completed in the second half of 2022 and is anticipated to boost company’s presence in the international market, thus augmenting its market share.
  • In November 2021, Siemens announced that it was won a contract to deliver seven reactors to a joint venture of N1, Konstant Net and Nord Energi, which are major energy solution providers across Europe. The JV has won a tender to deploy the shunt reactors produced by Siemens across Energinet’s 60 kV networks, in order reduce reactive power contamination across the networks. the supply contract will augment Siemens product penetration across European market, which in turn will drive its market share across the region.

This market research report on shunt reactor includes an in-depth coverage of the industry with estimates & forecast in terms of USD Million from 2019 to 2032, for the following segments:

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By Phase

  • Single Phase
  • Three Phase

By Insulation

  • Oil Immersed
  • Air Core

By Product

  • Fixed
  • Variable

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


Authors: Ankit Gupta, Vishal Saini

Frequently Asked Questions (FAQ) :

The market size of shunt reactor was exceeded USD 2.1 billion in 2023 and will be worth over USD 3.9 billion by 2032, driven by the rising global demand for electricity on account of the surging population growth, urbanization, and industrialization.

Three phase shunt reactor market size is anticipated to witness over 7.5% CAGR from 2023 to 2032, owing to the growing number of government initiatives and regulations focused on improving power system efficiency, reducing losses, and promoting renewable energy integration.

Demand for oil immersed shunt reactors surpassed USD 1.2 billion in 2022 and is poised to reach more than USD 2.4 billion by 2032, due to surging need for reducing noise levels generated during operations.

Asia Pacific shunt reactor market size is expected to witness over 7.5% CAGR from 2023 to 2032, owing to the substantial increase in energy consumption in the region.

Shunt Reactor Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 422
  • Countries covered: 17
  • Pages: 330
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