Shunt Capacitor Market size is anticipated to reach USD 1 Billion by the end of 2035, growing at a CAGR of 7% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of shunt capacitor was USD 900 Million. The growth of the market can be attributed to growth in power generation technologies and establishment of plants and transmission cables. With the rapid urbanization, the need of power and energy has considerably grown which is expected to bring lucrative growth opportunities for the market. The global power plant database covers about 30,000 power plants from around 164 countries involving thermal plants and renewables.
The rise in rural electricity supply initiatives and an increase in long-distance transmission of high voltage cables is estimated to boost the global shunt capacitor market growth. Increased power generation plants and transmission lines have impacted the sales of global shunt capacitor market trends across the globe. Worldwide data transmission networks consumed about 260-340TWh or 1.1-1.4% of global electricity consumption in 2020. The global energy consumption by data centers in 2020 was 200-250 TWh which is around 1% of final electricity demand, excluding the cryptocurrency mining consumption of ~100 TWh in 2020.
Growth Drivers
Growing Need for Distribution Energy - The increased urbanization along with industrialization has prompted the rise in consumption of electricity for varied processes. Also, the high demand from end-use industries is expected to increase the production of electricity and energy which, in turn, is projected to expand the market size of shunt capacitor. In 2021, the U.S. primary energy consumption by energy sources used 36% petroleum, 8% nuclear electric power, 11% coal, 12% renewable energy, and 325 natural gas which adds to a total of 97.33 quadrillion Btu (British Thermal Units).
Rapid Adoption of Electricity in Rural Areas - The worldwide population with access to electricity increased from 87.7% of the population in 2016 to 90.5 % of the population in 2020.
Increasing Demand for Telecommunication - The Federal Communications Commission and Department of Education working together to promote remote learning with the use of USD 16 billion funds from the CARES Act’s Education Stabilization Fund.
Rise of Industries and Manufacturing Units - U.S Manufacturing contributed USD 2269.2 to U.S GDP in 2020 which is 10.8% of total GDP. Also, in 2019, the U.S. manufacturing imported value of intermediate goods and services is 14.7% leading to 10.7% output from foreign origin.
Increase in Power Generation and Supply - As per Electricity Market Report, coal-fired electricity generation is targeted to increase by 5% in 2021 and 3% in 2022 to reach a new high record. With current policy settings and economic trends, the world electricity generation is set to track 8% electricity demand in 2021 and higher than 6% in 2022.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 900 Million |
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Forecast Year Market Size (2035) |
~ USD 1 Billion |
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Regional Scope |
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Application (Utilities, Industries)
The global shunt capacitor market is segmented and analyzed for demand and supply by application into utilities, industries, and others. Out of these, the industries segment is anticipated to hold the largest market size by the end of 2035 in the global shunt capacitor market. The growth of the market segment is on account of rapid growth in the economy and population that led to increasing telecommunication such as fiber net and broadband. As per the Organization for Economic Co-operation and Development, in 2021 the number of fixed subscriptions raised by 18.6%, and fixed broadband subscriptions increased by 32.4% in 2022. Additionally, there has been exponential growth in residential and commercial construction sector. Owing to the growing population and rise in shift of people from rural to urban region the demand for construction activities is growing which is further boosting the growth of the construction sector.
Type (Low, Medium, High Voltage)
The global shunt capacitor market is also segmented and analyzed for demand and supply by voltage type into low, medium, and high. Amongst which, the high segment is anticipated to garner the largest revenue by the end of 2035. The growth of the segment can be attributed to growing launch of satellites which requires coil guns. A multi-stage coil with a coil arrangement acting as a launcher is charged by a high voltage capacitor system that is energy intensive to operate. Unfortunately, big currents and the high voltage necessary are extremely limited. Hence, other methods of energy storage include high voltage capacitor banks is used. Additionally, the growing demand for grid infrastructure in order to stratify the need for increasing electricity accessibility is also estimated to boost the segment growth.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Application |
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By System |
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North American Market Forecast
The North America shunt capacitor market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, on the back of rapid urbanization, an increase in industrial and manufacturing units backed by increased railways, metros, high-speed trains, IT hubs, and commercial centers in developing countries. The Federal Railroad Administration in June 2022 released a budget of USD 368 million for 46 projects in 32 states of Columbia district in Consolidated Rail Infrastructure and Safety Improvements grant program funds. About 46.3% i.e.,3.6 million people reported using a bus, 37.7% used subway or elevated rail, 11.8% used commuter rail or long-distance train, 3.1% take street cars or trolleys, and 1% used ferryboat as primary commuting mode in 2021.
APAC Market Statistics
Further, the market in the Asia Pacific region is estimated to grow owing to the factors such as growing urbanization which is further boosting the development of infrastructure. Additionally, the demand for renewable and sustainable energy is increasing which is also estimated to boost the market growing in this region. Moreover, the focus of government on rural electrification is growing in this region which is estimated to have positive impact on the demand for shunt capacitor. Also, the shunt capacitor is necessary for an effective, dependable, and steady energy supply in the growing number of metros, railroads, business centers, IT hubs, and high-speed trains. Therefore, the development of these applications in this region the market is expected to grow.
ABB Group was selected to supply a high voltage direct current (HVDC) light valve, high voltage capacitors, and power semiconductor devices to China for its Zhangbei HVDC grid built in the area of Beijing-Tianjin-Hebei. This HVDC would help to control and transmit power flow between grids efficiently by supporting the voltage and frequency of weak grids.
GE (General Electric) declared the first solution developed after the acquisition of Opus One Solutions. ‘Opus One DERMS’ Solution (Distributed Energy Resource Management System) helps utilities to optimize the energy transition and help keep the electric grid safe, secure, and resilient.
Author Credits: Abhishek Verma, Hetal Singh
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