Market Size of Shunt Reactor Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 6.10 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Shunt Reactor Market Analysis
The Shunt Reactor Market is expected to grow at a CAGR of 6.1% over the forecast period (2021-2026). The need to increase the system's efficiency and provide reliable power is increasing the demand for a shunt reactor. The requirement for protection solutions for sudden voltage spikes and investments into upgrading existing transmission and distribution networks is also augmenting the demand for shunt reactors. The increasing demand for power will drive the demand for products, solutions, and services allied to the energy sector. Shunt reactor demand for the energy and utility will grow considerably in the coming years in-mid of increasing electricity demand and connectivity projects undertaken by various governments globally.
- For instance, the Ministry of Energy of the Republic of Lithuania has undertaken a project to synchronize the electricity network with the grid of Western Europe. This project will reduce electric power transmission capacities with Belarus and prevent the flow of electricity from the unsafe Astravets Nuclear Power Plant (NPP) in the future. In implementing the North-East Lithuanian reconstruction project, two 330 kV transformer substations in Ignalina and Utena will be reconstructed. A 330 kV-controlled shunt reactor will be moved from the Ignalina substation to the 330 kV switchyard in Elektrėnai.
- The growing energy demand in the industrial sector is another prominent influencer behind the incorporation of shunt reactors in power generation facilities in the region. For example, a second 330 kV shunt reactor of the Belarusian nuclear power plant was commission in April 2020. The equipment's adoption is for the overhead power lines, with the nominal voltage of 330 kV representing the primary source of reactive power. The continued participation of Siemens in SINCRO.GRID project has enabled the company to supply various shunt reactors to grid development projects in Europe. In Croatia, the company was able to install a 100 MVAr variable shunt reactor at the Mraclin substation.
- In February 2020, global electrical engineering firm W.E.G. announced the signing of an agreement with Transformadores e Serviços de Energia das Américas S.A. (TSEA) for the acquisition of one of its transformer factories located in the city of Betim, State of Minas Gerais, Brazil. The factory sits on 32,500 square meters of manufacturing facilities, equipment, and machinery. The factory is specialized in the manufacture of power transformers, shunt reactors and power autotransformers with voltage class up to 800kV and power ratings up to 500MVA.
- In September 2019, Kuwait's Ministry of Electricity of Water (MEW) invited a total of nine qualified Contractors to submit their proposals to undertake the execution of the maintenance and repair works at various 400kV, 300kV, 132kV Substations. The project scope of work involves maintenance and repair of following major equipment, and its associated equipment includes shunt reactors with voltage levels 300kV, 132kV, 33kV. Kuwait based Construction Company, United Gulf Enterprises General Trading & Contracting. Co. W.L.L. (UGETCO) has submitted the lowest bid of KWD 123.1 million.
- With the recent outbreak of COVID 19, the shunt reactor market is expected to face marginal decline due to the lockdown policies being adopted by the various governments worldwide. In April 2020, the Chinese power transmission network operator State Grid Corporation of China (SGCC) resumed construction on the 800kV, 800MW ultra-high voltage (U.H.V.) direct current (D.C.) power transmission project between Yulin, Shaanxi province and Wuhan, Hubei province after the lockdown was imposed in the region.
Shunt Reactor Industry Segmentation
A shunt reactor is a device that engages in absorbing reactive power, increasing the energy efficiency of the system. Reactive power is the contributor to added load across power transmission systems. Shunt Reactors are commonly utilized for reactive power compensation in long high-voltage transmission lines and cable systems. Shunt reactors are generally connected to substation bus-bar, often directly to the overhead transmission lines. The study under consideration offers market developments of shunt reactors based on their types such as oil-immersed reactor and air-core dry reactor, by rated voltage, and form factor.
By Type of Product | |
Oil-Immersed Reactor | |
Air Core Dry Reactor |
By Form Factor | |
Fixed Shunt Reactor | |
Variable Shunt Reactor |
By Rated Voltage | |
Less than 200 kV | |
200kV-400kV | |
Above 400kV |
Geography | ||||||
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Latin America | ||||||
Middle-East & Africa |
Shunt Reactor Market Size Summary
The shunt reactor market is poised for significant growth, driven by the increasing demand for efficient and reliable power systems. This demand is fueled by the need for protection solutions against sudden voltage spikes and the ongoing investments in upgrading transmission and distribution networks. The energy and utility sectors are expected to see considerable growth in shunt reactor demand, spurred by rising electricity consumption and government-led connectivity projects worldwide. Notable projects, such as Lithuania's synchronization with Western Europe's electricity grid and the expansion of power infrastructure in Asia-Pacific, highlight the global push towards enhancing power transmission capabilities. The market is also witnessing a shift towards renewable energy, with companies like Siemens and ABB actively participating in projects that integrate advanced shunt reactor technologies to support green energy initiatives.
The market landscape is characterized by a high level of consolidation, with major players like ABB Ltd, Siemens AG, and Mitsubishi Electric Corporation dominating the industry. These companies are engaged in intense competition, focusing on innovation and improved voltage protection solutions to maintain their market positions, particularly in high-growth regions such as Asia-Pacific. Strategic partnerships and collaborations are prevalent, as seen in Siemens' involvement in the Mayflower Wind project and ABB's contract with Interconexion Electrica SA ESP. The introduction of variable shunt reactors (VSR) is also transforming the market, offering enhanced voltage stability and reactive power compensation. As countries continue to invest in renewable energy and infrastructure upgrades, the shunt reactor market is expected to expand, supported by technological advancements and strategic industry alliances.
Shunt Reactor Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Force Analysis
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1.2.1 Threat of New Entrants
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1.2.2 Bargaining Power of Buyers
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1.2.3 Bargaining Power of Suppliers
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Market Drivers
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1.3.1 Increasing Need for Modernization of Transmission and Distribution Networks
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1.3.2 Increased Industrialization of the Developing Nations
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1.4 Market Challenges
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1.4.1 Recent outbreak of COVID-19 (resulting in delay of project being commissioned etc.)
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2. MARKET SEGMENTATION
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2.1 By Type of Product
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2.1.1 Oil-Immersed Reactor
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2.1.2 Air Core Dry Reactor
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2.2 By Form Factor
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2.2.1 Fixed Shunt Reactor
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2.2.2 Variable Shunt Reactor
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2.3 By Rated Voltage
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2.3.1 Less than 200 kV
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2.3.2 200kV-400kV
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2.3.3 Above 400kV
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2.4 Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.2 Europe
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2.4.2.1 United Kingdom
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2.4.2.2 Germany
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2.4.2.3 France
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2.4.2.4 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 China
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2.4.3.2 India
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2.4.3.3 Japan
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2.4.3.4 Rest of Asia-Pacific
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2.4.4 Latin America
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2.4.5 Middle-East & Africa
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Shunt Reactor Market Size FAQs
What is the current Shunt Reactor Market size?
The Shunt Reactor Market is projected to register a CAGR of 6.10% during the forecast period (2024-2029)
Who are the key players in Shunt Reactor Market?
Siemens AG, CG Power and Industrial Solutions Limited, Mitsubishi Electric Corporation, Fuji Electric Co. and Hitachi ABB Power Grids are the major companies operating in the Shunt Reactor Market.