Renewable-Based Shunt Reactor Market Research Report By Type (Dry Type, Oil Immersed Type, Gas Insulated Type), By Application (Transmission System, Distribution System, Industrial Applications), By Voltage Rating (Low Voltage (up to 1 kV), Medium Voltage (1 kV to 66 kV), High Voltage (above 66 kV)), By Power Rating (Up to 50 MVAR, 50 MVAR to 100 MVAR, Above 100 MVAR) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Renewable-Based Shunt Reactor Market Overview

As per MRFR analysis, the Renewable-Based Shunt Reactor Market Size was estimated at 0.77 (USD Billion) in 2022.The Renewable-Based Shunt Reactor Market Industry is expected to grow from 0.84(USD Billion) in 2023 to 1.8 (USD Billion) by 2032. The Renewable-Based Shunt Reactor Market CAGR (growth rate) is expected to be around 8.82% during the forecast period (2024 - 2032).

Key Renewable-Based Shunt Reactor Market Trends Highlighted

There are drivers for the growth of the Renewable-Based Shunt Reactor Market, including increased utilization of renewable energy sources such as solar and wind energy, the necessity to manage grid quality and voltages, and the increasing power consumption in developing countries. Some of the market opportunities include the launch of innovative technologies such as solid-state shunt reactors and the growing interest in regional expansion within the market. Recent times have seen an upsurge in the use of clean energy resources, an increase in electricity demand and growing advanced technology.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable-Based Shunt Reactor Market Drivers

Increasing Demand for Renewable Energy

One of the prime reasons for the increase in the volume of the Renewable-Based Shunt Reactor Market is the increased usage of various kinds of renewable energy, including solar and wind power. Shunt reactors are employed in controlling the voltage and the power level within electrical grids, and this makes them important when it comes to integrating renewable sources into the giant grid. With this shift into a more sustainable energy source, the demand for Renewable-Based shunt reactors will be exponentially increasing in the future.

Government Support for Renewable Energy

The enhancement of renewable energy sources by countries across the globe is being facilitated by various governments to a great extent. Such support ranges from financial support like subsidies and tax rebates to some useful regulations like RPS laws. This, in turn helps in reducing the costs of renewable energy, making it easier to access and increasing the uptake for Renewable-Based shunt reactors.

Advancements in Shunt Reactor Technology

In addition, technological improvements have also been a factor in the Renewable-Based Shunt Reactor Market. These advancements include innovations in materials and designs, which increase the efficiency and reduce the costs of shunt reactors. Furthermore, the active phase of research is focused on the development of new control systems for shunt reactors, which is crucial for the integration of renewable energy into the grid.

Renewable-Based Shunt Reactor Market Segment Insights:

Renewable-Based Shunt Reactor Market Type Insights  

The Renewable-Based Shunt Reactor Market is segmented by Type into Dry Type, Oil Immersed Type, and Gas Insulated Type. The dry-type segment is expected to hold the largest market share in 2023 and is projected to continue to dominate the market during the forecast period. The Oil Immersed Type segment is expected to grow at the fastest CAGR during the forecast period. The growth of the Dry Type segment is attributed to its advantages, such as low maintenance costs, compact size, and lightweight. These reactors are also easy to install and require minimal maintenance, making them a preferred choice for various applications.The Oil Immersed Type segment is expected to witness significant growth due to its high efficiency, reliability, and ability to handle large currents. The Gas Insulated Type segment is expected to gain traction during the forecast period owing to its compact size, low noise level, and high efficiency. These reactors are also environmentally friendly, as they do not use any hazardous materials. The Renewable-Based Shunt Reactor Market is expected to witness significant growth in the coming years, driven by the increasing adoption of renewable energy sources and the need for efficient power transmission and distribution systems.The market is also expected to benefit from government initiatives and regulations aimed at promoting the use of renewable energy and reducing carbon emissions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable-Based Shunt Reactor Market Application Insights  

The Renewable-Based Shunt Reactor Market segmentation by Application comprises Transmission Systems, Distribution Systems, and Industrial Applications. The Transmission System segment held the largest market share in 2023, and it is expected to continue its dominance during the forecast period. This growth is attributed to the increasing demand for renewable energy sources and the need to improve the efficiency of the transmission system. The Distribution System segment is also expected to witness significant growth during the forecast period, owing to the growing need for reliable and efficient distribution of electricity.The Industrial Applications segment is expected to grow at a steady pace during the forecast period, driven by the increasing demand for shunt reactors in various industrial applications, such as electric arc furnaces and induction heating systems.

Renewable-Based Shunt Reactor Market Voltage Rating Insights  

The Renewable-Based Shunt Reactor Market is segmented by Voltage Rating into Low Voltage (up to 1 kV), Medium Voltage (1 kV to 66 kV), and High Voltage (above 66 kV). Among these segments, the Medium Voltage segment is expected to hold the largest market share in 2024, owing to the increasing demand for shunt reactors in medium-voltage distribution networks to improve voltage stability and power quality. The High Voltage segment is expected to witness the highest growth rate during the forecast period due to the growing adoption of renewable energy sources, such as solar and wind power, which require high-voltage shunt reactors to integrate into the grid.The Low Voltage segment is also expected to experience steady growth, driven by the increasing demand for shunt reactors in low-voltage industrial applications.

Renewable-Based Shunt Reactor Market Power Rating Insights  

The Renewable-Based Shunt Reactor Market segmentation by power rating showcases distinct market dynamics. The "Up to 50 MVAR" segment held a significant market share in 2023, owing to its wide adoption in small-scale renewable energy projects. The "50 MVAR to 100 MVAR" segment is projected to witness robust growth over the forecast period, driven by increasing demand for medium-scale renewable energy installations. The "Above 100 MVAR" segment is anticipated to gain traction as large-scale renewable energy projects, such as offshore wind farms, continue to proliferate.The Renewable-Based Shunt Reactor Market data indicates that the "Up to 50 MVAR" segment is expected to reach a valuation of approximately USD 0.4 billion by 2024, while the "50 MVAR to 100 MVAR" and "Above 100 MVAR" segments are projected to generate revenues of USD 0.6 billion and USD 0.8 billion, respectively, by 2024. These insights provide valuable guidance for manufacturers and suppliers operating in the Renewable-Based Shunt Reactor Market industry, enabling them to tailor their strategies to cater to the evolving market requirements and drive market growth.

Renewable-Based Shunt Reactor Market Regional Insights  

The Renewable-Based Shunt Reactor Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, owing to the increasing adoption of renewable energy sources and the presence of a well-established power grid infrastructure. Europe is anticipated to follow North America in terms of market size, driven by stringent environmental regulations and government incentives for renewable energy adoption. The APAC region is projected to witness significant growth over the forecast period, primarily due to the rising demand for electricity and the growing focus on renewable energy development in countries such as China and India.South America and MEA are expected to contribute a smaller share of the global market, but they are anticipated to experience steady growth over the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable-Based Shunt Reactor Market Key Players And Competitive Insights:

Major players in the Renewable-Based Shunt Reactor Market industry are focusing on expanding their product portfolio and increasing their market share. Leading Renewable-Based Shunt Reactor Market players are also investing in research and development to develop new and innovative products. The Renewable-Based Shunt Reactor Market is expected to witness significant growth in the coming years, owing to the increasing demand for renewable energy sources. The competitive landscape of the Renewable-Based Shunt Reactor Market is expected to remain fragmented, with a number of small and medium-sized players operating in the market. However, the market is expected to witness consolidation, with the larger players acquiring smaller players to increase their market share.Mitsubishi Electric is a leading Renewable-Based Shunt Reactor Market player. The company offers a wide range of Renewable-Based Shunt Reactor products, including dry-type and oil-filled shunt reactors. Mitsubishi Electric also offers a variety of services, including engineering, installation, and maintenance. The company has a strong presence in the Asia-Pacific region and is also expanding its presence in Europe and North America.Eaton is a major competitor in the Renewable-Based Shunt Reactor Market. The company offers a wide range of Renewable-Based Shunt Reactor products, including dry-type and oil-filled shunt reactors. Eaton also offers a variety of services, including engineering, installation, and maintenance. The company has a strong presence in North America and Europe and is also expanding its presence in the Asia-Pacific region.

Key Companies in the Renewable-Based Shunt Reactor Market Include:

• Crompton Greaves


• Siemens


• Mitsubishi Electric


• Schneider Electric


• Nelco


• Hitachi


• General Electric


• Eaton


• ABB


• KEI Industries


• Hyundai Electric


• LS Electric


• CG Power and Industrial Solutions


• Havells India


• Toshiba

Renewable-Based Shunt Reactor Market Industry Developments

The Renewable-Based Shunt Reactor Market is poised for substantial growth, driven by the increasing adoption of renewable energy sources and the need to stabilize power grids. According to a recent report, the market is expected to reach USD 1.8 billion by 2032, expanding at a CAGR of 8.82% from 2024 to 2032. Key market trends include rising investments in renewable energy projects, government initiatives supporting grid modernization, and technological advancements in shunt reactor design. Recent developments include the launch of new high-voltage shunt reactors by major manufacturers and the integration of advanced control systems to enhance grid stability.

Renewable-Based Shunt Reactor Market Segmentation Insights

• Renewable-Based Shunt Reactor Market Type Outlook
  
  
  
  • Dry Type
  
  
  • Oil Immersed Type
  
  
  • Gas Insulated Type
  
  
  
  

• Renewable-Based Shunt Reactor Market Application Outlook
  
  
  
  • Transmission System
  
  
  • Distribution System
  
  
  • Industrial Applications
  
  
  
  

• Renewable-Based Shunt Reactor Market Voltage Rating Outlook
  
  
  
  • Low Voltage (up to 1 kV)
  
  
  • Medium Voltage (1 kV to 66 kV)
  
  
  • High Voltage (above 66 kV)
  
  
  
  

• Renewable-Based Shunt Reactor Market Power Rating Outlook
  
  
  
  • Up to 50 MVAR
  
  
  • 50 MVAR to 100 MVAR
  
  
  • Above 100 MVAR
  
  
  
  

• Renewable-Based Shunt Reactor Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa