Shunt Reactor Market Size, Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Covid-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2540
Shunt Reactor Market size is set to register a significant CAGR in the coming years owing to proliferating electricity demand and the subsequent focus on development of high-voltage transmission systems across the globe. Rising prevalence of voltage fluctuations has increased the need for robust protection solutions exponentially, in turn triggering a surge of investment efforts geared towards the upgradation of T&D (transmission and distribution) networks, including adoption of high-performance shunt reactors.
Shunt reactors refer to electrical devices that can absorb reactive power and stabilize voltage during load fluctuations in high-voltage transmission systems and lines. The compact device demonstrates strong potential in reactive power compensation and helps enhance energy efficiency of longer HV transmission lines.
A major trend stimulation shunt reactor market expansion is the rapid evolution of power generation and load structures, which is in turn creating new demand for advanced T&D networks. Shunt reactors are a key component for voltage stability and reactive power compensation in high-voltage transmission.
Numerous nations worldwide are increasingly emphasizing on developments in renewable energy, which could generate lucrative growth prospects for the industry. According to WRI estimates, cities in the U.S. signed over 335 renewable energy deals, coming up to 8.28 gigawatts in total, between 2015 and Q1 of 2020, which is almost equivalent to the cumulative electric generating capacity of Rhode Island, Vermont, Alaska, and Hawaii.
This growing investment interest in renewable energy has prompted key shunt reactor market participants to focus their efforts on developing products that cater to the evolving industry demands. For instance, in June 2020, Siemens was awarded an order from Danish firm Semco Maritime, for the delivery of high-voltage electrical equipment, including three 275 kV / 265 MVAr shunt reactors, for the ESP of the Mayflower Wind LLC offshore wind project.
With respect to factor, variable shunt reactors are expected to emerge as a key segment in the global shunt reactor industry. This is credited mainly to the extensive use of VSRs in high-voltage transmission applications, and their ability to offer grid operators more controllability in reactive power management.
The shunt reactor market outlook is bolstered significantly by the presence of prominent players including, ABB, CG Power and Industrial Solutions Limited (formerly Crompton Greaves), Elgin Power Solutions, Siemens, Zaporozhtransformator (formerly Zaporozhye Transformer Plant), TBEA, Trench Group, GE, Mitsubishi Electric, Toshiba, Fuji Electric, Trafta, and SEA Trasformatori.
These industry players are involved in various technology upgrades, innovations, and customizations to strengthen their hold in the competitive business landscape.
For example, in July 2020, global power engineering company Trench earned a contract from a German Transmission System Operator for the supply and installation of the highest-voltage dry-type shunt reactor in the world. Trench was tasked with supplying a 420 kV dry-type shunt reactor, targeted for delivery in March 2021.
Likewise, independent Europe-based multi-technical services leader in communications and energy, SPIE was commissioned by TransnetBW, a transmission network operator to install a top-of-the-line switch field-equipped 380-kV shunt reactor at the Stuttgart-Mühlhausen substation. The reactor was hailed as a key component for ensuring energy turnaround success, due to its ability to stabilize the high-voltage grid and facilitate reliable supply of power amid rising shutdowns of conventional power facilities.
Impact of COVID-19 on Shunt Reactor Market Trends
The ongoing COVID-19 crisis has emerged not just as one of the most devastating health crises worldwide but has also ushered in a new era of economic activity across the industrial landscape. Nationwide lockdowns, social distancing directives and mass shutdowns of business facilities have had a massive impact on electricity demand from the industrial and commercial sectors, in turn creating roadblocks for the shunt reactor market growth. According to IEA (International Energy Agency) reports, global electricity demand dipped by nearly 2.5% in the first quarter of 2020, with a prediction of a 5% contraction by the year end. Several companies worldwide ceased or cut back on capital expenditures in light of this, including in the power sector, with non-critical investments being suspended across the sector.
Despite these dislocations however, economic activity is beginning to pick up gradually as lockdown measures are eased and mobility improves. This is likely to boost the demand for electricity from the industrial and commercial sectors, which could in turn put the shunt reactor market share on the path to recovery in the years ahead.
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