Shunt Reactor Market size was over USD 2.82 billion in 2024 and is poised to exceed USD 6.71 billion by 2037, witnessing over 6.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of shunt reactor is evaluated at USD 2.99 billion.
The growth of the market can be attributed primarily to the requirement of protection solutions for sudden voltage spikes, and growing investments to upgrade existing transmission and distribution networks across the globe. Along with these, rising demand for power worldwide, and increasing development of high voltage transmission lines are also expected to drive significant market growth in the forthcoming years. About 23,000 billion KWh of electricity was consumed in 2018, up from more than 22,000 billion KWh in the year 2017. Furthermore, escalating adoption of smart grid technology, and high focus to minimize energy loss during transmission are projected to offer ample growth opportunities to the shunt reactor market in the near future.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.9% |
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Base Year Market Size (2024) |
USD 2.82 billion |
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Forecast Year Market Size (2037) |
USD 6.71 billion |
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Regional Scope |
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The shunt reactor market is segmented by type into oil-immersed, and air-core, out of which, the oil-immersed segment is anticipated to observe notable growth in the market. This can be accounted to the high cost-effectiveness, and increasing investments in transmission and distribution infrastructure associated with oil-immersed shunt reactors. Additionally, on the basis of type, the variable shunt reactor segment is assessed to acquire the largest share during the forecast period owing to the growing utilization of high voltage energy transmission systems to stabilize voltage during load variations. Apart from these, surge in investments to increase the maximum regulation range of variable shunt reactors is also predicted to boost growth to the market segment in the future.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Form |
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Rated Voltage |
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Asia Pacific industry is estimated to hold largest revenue share by 2037, driven by growing investments to improve the transmission and distribution network, and rising electricity demand from business and domestic sources in the region. In 2020, India and the rest of South Asia announced that it will invest USD 25.9 billion in smart grid infrastructure, with the aim to modernize power sector over the period 2020-2029. In addition, high manufacturing capacity of industries in India and China, whose energy needs are surging rapidly is also expected to boost the market growth in the region in the coming years. Moreover, the market in North America is projected to acquire a significant share during the forecast period ascribing to high technological advancements in the energy industry, and presence of major shunt reactor market players in the region.
March 2020- ABB announced that it will supply 500 kV GIS and shunt reactors for a major grid expansion in Egypt which is led by the manufacturing company El Sewedy Electric T&D.
January 2020- Siemens Croatia commissioned 100 MVAr variable shunt reactor in the Mraclin substation. The project costs around USD 3.7 million.
Author Credits: Dhruv Bhatia
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