Global Shunt Reactor Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Oil-Immersed, Dry-Type), By End-User (Electrical Utilities, Industrial), And By Geography - Forecasts From 2022 To 2027

The shunt reactor market is projected to witness a compounded annual growth rate of 4.99% to grow to US$3.243 billion by 2027, from US$2.306 billion in 2020.

A shunt reactor is a piece of electrical equipment used in high-voltage power transmission systems to stabilize the voltage during load variations. It is similar to a power transformer, but it has only one winding per phase as compared to a power transformer. In other words, shunt reactors are used to increase the power and energy system efficiency as it absorbs & compensate for the reactive power in cables and long high-voltage transmission lines.

Growing urbanization and increasing power consumption is anticipated to propel the market. Electricity is an indispensable part of the economy, as industries and households significantly rely on the uninterrupted supply of power. The emerging age of digitization and electrification is propelling the need for proper transmission of electricity more than ever before. In the coming era of high-speed trains/metro, smart cities, high-speed internet accessibility, and electric vehicles amongst others are heavily dependent on such reactors.

Not only urbanization but electricity outreach programs by various governments to rural areas are also key drivers propelling the demand for shunt reactors, especially in the Asia Pacific region. Increasing disposable income in countries like India, China, South Korea, and Indonesia amongst others, are taking significant steps to spread the electricity grid.

Market Growth Drivers:

Upgrading the power grid

Many nations understand with the increasing need for electricity, investing in the upgradation and modernization of the power grid will serve strong pillar in the growth of the nations. The power and utility sector in developed nations like the United States, the United Kingdom, and Germany, have been relying on outmoded technologies which are insufficient for the current needs of power in the industrial districts. The International Energy Agency estimates that in order to reach net-zero emissions by 2050, yearly investments in energy sector infrastructure and technology will need to rise from the current level of more than $1 trillion to $4 trillion by 2030. According to Princeton University, the US electrical transmission network would need to double in size by 2030. Increasing digitization and rising needs for electricity pose a drastic change in the infrastructure, with this the demand for the Shunt reactors is anticipated to increase in the coming year.

Key development:

• In April 2022, Adani Electricity Mumbai Ltd announced that it put into service a 220kV Variable Shunt Reactor (VSR) at its Gorai EHV substation. With the installation of this 220kV, 48-120 MVAr Variable Shunt Reactor, AEML becomes one of the pioneering utilities in India.

COVID-19 Impact on the Shunt Reactor Market:

The COVID-19 pandemic negatively impacted the global shunt reactor market. The robust outbreak of the virus led to the implementation of numerous containment measures. A nationwide lockdown implemented to break the cycle of the virus led to trade and supply chain restrictions, which notably hampered market operations. Delayed power project construction and implementation resulted in the contraction of demand for shunt reactors.

Global Shunt Reactor Market Scope:

Market Segmentation:

• By Type
  • Oil-Immersed
  • Dry Type
• By End-User
  • Electrical Utilities
  • Industrial
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East And Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Australia
    • Japan
    • South Korea
    • India
    • Thailand
    • Taiwan
    • Indonesia
    • Others