Growing Demand for Shunt Reactor Market is driving the growth at a CAGR of 5.2% during the forecast period 2023 to 2032

Market Research Future (MRFR) has published on the “Global Shunt Reactor Market”.

Market Research Future (MRFR) has published a cooked research report on the “Global Shunt Reactor Market” that contains the information from 2022 to 2032. The Shunt Reactor Market is estimated to register a CAGR of 5.2% during the forecast period of 2022 to 2032.

MRFR recognizes the following companies as the key players in the Global shunt reactor market— NISSIN ELECTRIC CO LTD, ABB INDIA PVT LTD, MITSUBISHI CORPORATION, FUJI ELECTRIC, HD HYUNDAI HEAVY INDUSTRIES CO., LTD., TBEA, HILKAR, TOSHIBA CORPORATION, SIEMENS AG, and GE GRID SOLUTION

Market Highlights

The global shunt reactor market is expected to register 5.2% CAGR during the forecast period, 2023 to 2032, and is expected to reach USD 8,204.9 million in 2032.

The global market for shunt reactors is influenced by several factors. Firstly, increasing energy demand, particularly in emerging economies, drives the need for grid modernization and voltage control solutions. As countries upgrade their power infrastructure to accommodate growing electricity demand, the demand for shunt reactors is expected to rise. Additionally, the growing deployment of renewable energy sources like wind and solar power necessitates investments in grid stabilization technologies. Shunt reactors play a crucial role in managing voltage fluctuations caused by the intermittent nature of renewable energy generation, supporting the integration of renewable energy into the grid.

Stringent regulatory standards and grid codes also mandate the deployment of reactive power compensation solutions like shunt reactors to maintain power quality and ensure compliance with voltage stability requirements. Utilities are compelled to invest in shunt reactors to adhere to regulatory mandates and uphold grid reliability standards. Furthermore, rapid industrialization and urbanization in developing regions drive the demand for electricity and necessitate investments in power infrastructure. Shunt reactors stabilize grid voltage and enhance power quality, supporting industrial growth and urban development initiatives.

Segment Analysis

The Global shunt reactor Market has been segmented based on Type, Application, End Use and Region.

Based on type, the oil-immersed segment accounted for a market share of 66.9% in 2022 and is expected to exhibit a CAGR of 6.5% during the forecast period. Oil-immersed shunt reactors currently dominate the market due to their ability to handle larger currents and higher voltages, making them suitable for high-power applications. Additionally, the insulation and cooling provided by oil immersion enhance reliability, making oil-immersed reactors preferred in large substations and power plants where efficiency is crucial.

Based on application, the variable segment accounted for a market share of 75.1% in 2022 and is expected to exhibit a CAGR of 6.3% during the forecast period. Variable shunt reactors are currently dominating the market due to their flexibility in adjusting reactive power compensation based on varying grid conditions. They are essential for regulating voltage levels and improving power factor dynamically, especially in systems with fluctuating loads or intermittent renewable energy sources, offering greater versatility compared to fixed shunt reactors.

Based on end use, the electric utilities segment accounted for a market share of 73.4% in 2022 and is expected to exhibit a CAGR of 6.4% during the forecast period. In electric utilities, oil-immersed shunt reactors dominate due to their robustness and capability to handle high-power applications typical in utility-scale operations. Conversely, in Industrial Verticals, variable shunt reactors are prevalent because of their ability to dynamically adjust reactive power compensation to meet fluctuating industrial energy demands efficiently, enhancing power quality and reducing energy costs.

Regional Analysis

By region, the global market is segmented into North America, Europe, Asia Pacific, South America, Middle East & Africa. Among these, The Asia-Pacific segment accounted for the largest market share of 63.5% in 2022, with a market value of USD 1533.2 million; it is expected to register a CAGR of 6.6% during the forecast period. The North America segment accounted for the second largest market share in 2022, with a value of USD 415.4 million; it is projected to exhibit a CAGR of 4.9%.

Key Findings of the Study

• The Shunt Reactor market is projected to witness significant growth during the review period, exhibiting a CAGR of 5.2%. The market was estimated to be USD 4,754.8 million in 2022 and is expected to reach a value of USD 8,204.9 million by the end of the forecast period (2023-2032).


• The Asia Pacific region accounted for the fastest growth in the global market.


• Oil-immersed segment had the largest share in the Shunt reactor Market.


• Variable segment has the largest market share in the Shunt reactor Market.


• Electric Utilities segment had the largest share in the Shunt reactor Market.


• NISSIN ELECTRIC CO LTD, ABB INDIA PVT LTD, MITSUBISHI CORPORATION, FUJI ELECTRIC, HD HYUNDAI HEAVY INDUSTRIES CO., LTD., TBEA, HILKAR, TOSHIBA CORPORATION, SIEMENS AG, and GE GRID SOLUTION