Global Shunt Reactor Market - Forecasts from 2024 to 2029

Global Shunt Reactor Market - Forecasts from 2024 to 2029

The Shunt Reactor Market is estimated to grow at a CAGR of 4.37% during the forecast period to reach US$7,990.742 million by 2029, from US$5,921.250 million in 2022.

Several key factors are driving the growth and expansion of the global shunt reactor market. With the world's population on the rise and economies evolving, the electricity demand is steadily increasing.

This necessitates the expansion and enhancement of power grids to facilitate the efficient transmission of electricity across long distances. Shunt reactors play a crucial role in this process by ensuring voltage stability and maintaining power quality within these grids, making them increasingly indispensable.

Many countries, particularly those in developing economies, grapple with aging power grids equipped with outdated infrastructure. These grids are prone to inefficiencies and power losses. Consequently, upgrading them with modern equipment, including shunt reactors, becomes imperative to ensure reliable and efficient power transmission.

Moreover, there is a global shift towards renewable energy sources such as solar and wind power, gaining significant momentum. However, these renewable sources are inherently variable, leading to fluctuations in power output. Shunt reactors prove invaluable in managing these fluctuations and upholding grid stability during the integration of renewable energy sources.

Additionally, sudden changes in load or faults within the power grid can trigger voltage spikes, posing risks to sensitive electrical equipment. Shunt reactors play a pivotal role in mitigating these voltage spikes, thereby safeguarding such equipment from potential damage.

In summary, the increasing demand for electricity, ongoing grid modernization initiatives, the accelerating integration of renewable energy sources, and the imperative for enhanced grid efficiency and reliability collectively drive the growth of the global shunt reactor market.

Market Drivers:

Growing Urbanization-

The market is set to be propelled by increasing urbanization and rising power consumption. Electricity stands as a fundamental pillar of the economy, with industries and households heavily reliant on a continuous power supply. The emergence of digitization and electrification further emphasizes the critical need for efficient electricity transmission.

As transition into an era characterized by high-speed trains/metro systems, smart cities, widespread high-speed internet access, and the proliferation of electric vehicles, the demand for shunt reactors becomes more crucial than ever before.

For instance, India currently has an urban population of 35%, projected to rise to 53% by 2047, with an additional 400 million people expected to move into urban areas. Similarly, China has witnessed significant urbanization in recent years, with the urbanization rate reaching 64.72% in 2022, according to the National Bureau of Statistics. By the end of 2022, the urban population in China had grown to 914 million, marking an increase of 12.05 million from the previous year.
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 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.

Market Restraint:

Several factors are restraining the market-

Shunt reactors, especially those with high capacity, can pose a considerable financial challenge due to their substantial upfront costs for procurement and installation. This obstacle is particularly pronounced for utilities in developing regions with constrained budgets.

The integration of shunt reactors into current power grids demands meticulous planning and specialized engineering proficiency. Inadequate positioning or sizing of reactors may result in unintended outcomes, such as overcompensation or malfunctioning equipment.

Ensuring the proper installation, operation, and maintenance of shunt reactors requires a proficient workforce equipped with expertise in power systems engineering.

Shunt reactor market segmentation by type into oil-immersed and dry type-

The shunt reactor market is categorized by type into oil-immersed and dry type. Oil-immersed shunt reactors are characterized by high efficiency and effective heat dissipation, coupled with a compact design. On the other hand, dry-type shunt reactors are distinguished by being fire-resistant and environmentally friendly, exhibiting lower maintenance requirements, and being suitable for both indoor and outdoor installations.

APAC is anticipated to hold a significant share of the global shunt reactor market-

APAC is poised to command a significant portion of the global shunt reactor market. Economic advancement and the rapid urbanization observed in countries like China and India have spurred a notable increase in electricity consumption. Consequently, there is a pressing need for investments in the expansion and enhancement of power grids, where shunt reactors play a pivotal role in facilitating efficient transmission and voltage regulation.

Across many APAC nations, aging power grids necessitate modernization efforts. The integration of shunt reactors into these grids is paramount to enhancing efficiency, minimizing power losses, and ensuring the dependable transmission of electricity.

Industrial growth stands out as a prominent catalyst for electricity demand in APAC. Given the heavy reliance of industries on a steady and effective power supply, shunt reactors emerge as indispensable components vital for sustaining their operations.

Market Developments:

December 2023- National Grid delivered a new shunt reactor to the Melksham substation during the week to guarantee that electricity supplies stayed secure and reliable for the local area. Weighing 131 tonnes and measuring over seven meters in length and almost four meters in height, the shunt reactor was comparable in size and weight to a super grid transformer. Its distinct purpose was to assist in efficiently managing reactive power and voltage levels on the network.
January 2022- The initiation of production for the world's first 500kV Dry-Type Shunt Reactor was announced by Trench Group.

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
UK
Germany
France
Italy
Spain
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
China
Australia
Japan
India
South Korea
Indonesia
Thailand
Taiwan
Others