Utility Based Shunt Reactor Market Research Report By Technology (Dry Type, Oil Type), By Voltage Level (Low Voltage, Medium Voltage, High Voltage), By Application (Power Transmission, Power Distribution, Industrial, Renewable Energy), By Cooling Type (Air Natural, Air Forced, Water Natural, Water Forced), By Core Type (Three Phase Core, Single Phase Core) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Utility Based Shunt Reactor Market Overview

As per MRFR analysis, the Utility Based Shunt Reactor Market Size was estimated at 4.17 (USD Billion) in 2022. The Utility Based Shunt Reactor Market Industry is expected to grow from 4.43(USD Billion) in 2023 to 7.5 (USD Billion) by 2032. The Utility Based Shunt Reactor Market CAGR (growth rate) is expected to be around 6.04% during the forecast period (2024 - 2032).

Key Utility Based Shunt Reactor Market Trends Highlighted

Key factors propelling the transmission substation market spread across geographical regions include increasing electricity consumption, rising grid enhancement programs and growing contribution in renewable energy sources. Also pushing the market growth are the rising smart grid networks and development of distributed energy resources. Also, the policies to curb emissions and enhance energy efficiencies provide an environment that is conducive to the utilization of new substation technologies. Digital and automatic technologies are coming up as key emerging trends which support remote operation of the assets, preventive operation and increased resiliency of the grid. The market is experiencing advancement in insulating materials switch gear technologies and power electronics in substations that are enhancing the efficiency and dependability of these infrastructures. Also, the demand for the enhanced substation technologies is anticipated to increase, as protection against grid security threats becomes a core focus.

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

Utility Based Shunt Reactor Market Drivers

Aging Power Grid Infrastructure

The aging power grid infrastructure is a major driver of the growth of the Utility Based Shunt Reactor Market Industry. As the power grid ages, the need for shunt reactors to improve power quality and stability increases. Shunt reactors help to compensate for the inductive reactance of power lines, which can cause voltage fluctuations and power outages. By installing shunt reactors, utilities can improve the reliability and efficiency of their power grids. The aging power grid infrastructure is a global problem.In the United States, for example, the average age of a power transformer is over 40 years. In Europe, the average age of a power line is over 50 years. As these aging assets continue to deteriorate, the need for shunt reactors will only increase. The growth of the Utility Based Shunt Reactor Market Industry is also being driven by the increasing demand for electricity. As the global population grows and economies develop, the demand for electricity is expected to increase significantly.This will put a strain on the power grid infrastructure, making the need for shunt reactors even more critical. In addition to the aging power grid infrastructure and the increasing demand for electricity, the growth of the Utility Based Shunt Reactor Market Industry is also being driven by the development of new technologies. These new technologies, such as smart grids and renewable energy sources, are creating new challenges for the power grid.Shunt reactors can help to integrate these new technologies into the power grid, making them more reliable and efficient.

Increasing Penetration of Renewable Energy Sources

The increasing penetration of renewable energy sources is another major driver of the growth of the Utility Based Shunt Reactor Market Industry. Renewable energy sources, such as solar and wind power, are intermittent and variable. This can cause voltage fluctuations and power outages on the power grid. Shunt reactors can help to mitigate these problems by providing reactive power compensation. The increasing penetration of renewable energy sources is a global trend.In 2021, renewable energy sources accounted for over 25% of global electricity generation. This share is expected to increase to over 50% by 2030. As the penetration of renewable energy sources increases, the need for shunt reactors will also increase. The growth of the Utility Based Shunt Reactor Market Industry is also being driven by the increasing adoption of smart grids. Smart grids are more efficient and reliable than traditional power grids.They can also help to integrate renewable energy sources into the power grid. Shunt reactors play a key role in smart grids by providing reactive power compensation and helping to maintain voltage stability.

Growing Demand for Power Quality

The growing demand for power quality is another major driver of the growth of the Utility Based Shunt Reactor Market Industry. Power quality refers to the reliability and stability of the power supply. Shunt reactors can help to improve power quality by compensating for voltage fluctuations and power outages. The growing demand for power quality is being driven by the increasing use of sensitive electronic equipment. This equipment is susceptible to voltage fluctuations and power outages, which can cause data loss and equipment damage.Shunt reactors can help to protect sensitive electronic equipment by providing a reliable and stable power supply. The growth of the Utility Based Shunt Reactor Market Industry is also being driven by the increasing adoption of electric vehicles. Electric vehicles require a reliable and stable power supply for charging. Shunt reactors can help to provide this power supply by compensating for voltage fluctuations and power outages.

Utility Based Shunt Reactor Market Segment Insights:

Utility Based Shunt Reactor Market Technology Insights

The Utility Based Shunt Reactor Market is segmented based on Technology into Dry Type and Oil Type. Dry Type: The dry type of segment accounted for a significant share of the Utility Based Shunt Reactor Market in 2023 and is expected to maintain its dominance throughout the forecast period. This growth can be attributed to the increasing adoption of dry type shunt reactors in various applications, such as power transmission and distribution systems, due to their advantages over oil type shunt reactors, which is less maintenance, higher efficiency, and longer lifespan.Oil Type: The oil type segment is expected to witness a steady growth rate during the forecast period. Oil type shunt reactors are still widely used in various applications due to their lower cost and higher power handling capacity, but the growth of this segment is expected to be limited by the increasing adoption of dry type shunt reactors. The Utility Based Shunt Reactor Market is expected to grow from USD 4.43 billion in 2023 to USD 7.5 billion by 2032, at a CAGR of 6.04%. The growth of the market is attributed to the increasing demand for electricity, the expansion of power transmission and distribution networks, and the growing adoption of renewable energy sources.

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

Utility Based Shunt Reactor Market Voltage Level Insights

The Utility Based Shunt Reactor Market segmentation by Voltage Level comprises Low Voltage, Medium Voltage, and High Voltage. The High Voltage segment held the largest revenue share in 2023 and is projected to continue its dominance throughout the forecast period. The widespread adoption of high-voltage power transmission systems as a means of reducing transmission losses and increasing power transfer capacity has been the primary factor driving the growth of this segment. High-voltage shunt reactors are essential components in these systems, as they help to regulate voltage and improve power quality.The Medium Voltage segment is anticipated to exhibit a steady growth rate over the analysis timeframe. The increasing demand for electricity in both developed and developing regions is propelling the expansion of power distribution networks, thereby augmenting the demand for medium-voltage shunt reactors. The Low Voltage segment is expected to register a moderate growth rate during the forecast period. These reactors are primarily utilized in industrial and commercial applications, where voltage regulation and power quality are of paramount importance.

Utility Based Shunt Reactor Market Application Insights

The Utility Based Shunt Reactor Market is segmented based on application into power transmission, power distribution, industrial, and renewable energy. Among these segments, the power transmission segment is expected to hold the largest market share in 2023 and is projected to grow at a CAGR of 6.2% during the forecast period. The growth of the power transmission segment can be attributed to the increasing demand for electricity and the need to improve the efficiency and reliability of power transmission networks. The power distribution segment is expected to be the second-largest segment in 2023 and is projected to grow at a CAGR of 5.8% during the forecast period.The growth of the power distribution segment can be attributed to the increasing demand for electricity in emerging economies and the need to upgrade aging power distribution infrastructure. The industrial segment is expected to be the third-largest segment in 2023 and is projected to grow at a CAGR of 5.6% during the forecast period. The growth of the industrial segment can be attributed to the increasing demand for electricity from industrial applications such as manufacturing, mining, and construction. The renewable energy segment is expected to be the fourth-largest segment in 2023 and is projected to grow at a CAGR of 6.5% during the forecast period.The growth of the renewable energy segment can be attributed to the increasing adoption of renewable energy sources such as solar and wind power.

Utility Based Shunt Reactor Market Cooling Type Insights

The Cooling Type segment of the Utility Based Shunt Reactor Market is categorized into Air Natural, Air Forced, Water Natural, and Water Forced. Among these, the Air Natural segment held the largest market share in 2023, accounting for around 45% of the global revenue. This dominance is attributed to the low maintenance and operational costs associated with air natural cooling systems. However, the Water Forced segment is projected to exhibit the highest growth rate during the forecast period, owing to its superior cooling efficiency and ability to handle high-power applications.The Utility Based Shunt Reactor Market segmentation provides valuable insights into the industry's dynamics and helps stakeholders identify potential growth opportunities.

Utility Based Shunt Reactor Market Core Type Insights

The Three Phase Core segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. This is primarily attributed to the high efficiency and reliability of three-phase core shunt reactors in regulating voltage and improving power quality in electrical networks. The Single Phase Core segment, on the other hand, is projected to witness a steady growth rate during the forecast period, owing to its increasing adoption in smaller and medium-sized distribution networks. These reactors offer advantages such as ease of installation and maintenance, making them a suitable choice for various industrial and commercial applications.Overall, the Utility Based Shunt Reactor Market segmentation provides valuable insights into the different core types available in the market, enabling stakeholders to make informed decisions based on their specific requirements.

Utility Based Shunt Reactor Market Regional Insights

The regional segmentation of the Utility Based Shunt Reactor Market offers insights into the market's geographic distribution and growth potential. North America held the largest market share in 2023, accounting for around 35% of the global revenue. The region's established power grid infrastructure and increasing demand for reliable and efficient power transmission drive its dominance. Europe follows closely, capturing approximately 28% of the market in 2023. Stringent regulations for grid stability and growing renewable energy integration contribute to the region's significant share.The APAC region is poised for substantial growth, with a projected CAGR of 7.2% during the forecast period. Rapid industrialization, urbanization, and government initiatives to enhance grid infrastructure in developing countries within the region fuel this growth. South America and MEA represent emerging markets with untapped potential. The increasing focus on grid modernization and electrification in these regions presents opportunities for growth in the Utility Based Shunt Reactor Market.

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

Utility Based Shunt Reactor Market Key Players and Competitive Insights:

Major players in the Utility Based Shunt Reactor Market industry are constantly striving to gain a competitive edge by developing new and innovative products. They are also focusing on expanding their geographical presence and strengthening their distribution networks. Some of the leading Utility Based Shunt Reactor Market players include ABB, Siemens, GE, Toshiba, and Hyundai Heavy Industries. These companies are investing heavily in research and development to stay ahead of the competition and meet the evolving needs of their customers. The Utility Based Shunt Reactor Market industry is expected to witness significant growth in the coming years, driven by the increasing demand for reliable and efficient power transmission and distribution systems. The growing adoption of renewable energy sources, such as solar and wind power, is also expected to boost the demand for utility-based shunt reactors.Among the leading players in the Utility Based Shunt Reactor Market, ABB is a global leader in power and automation technologies. The company has a strong presence in the utility sector and offers a wide range of shunt reactors for various applications. ABB's shunt reactors are known for their reliability, efficiency, and durability. The company has a global network of manufacturing and sales facilities, and it provides comprehensive support to its customers. ABB is well-positioned to capitalize on the growing demand for utility-based shunt reactors and is expected to maintain its leading position in the market.One of the major competitors in the Utility Based Shunt Reactor Market is Siemens. Siemens is a global technology company that offers a wide range of products and services for the power industry. The company's shunt reactors are known for their high quality and performance. Siemens has a strong global presence and a large customer base. The company is investing heavily in research and development to develop innovative shunt reactor solutions. Siemens is well-positioned to compete with ABB and other leading players in the Utility Based Shunt Reactor Market and is expected to gain market share in the coming years.

Key Companies in the Utility Based Shunt Reactor Market Include:

• Hitachi Energy


• Hyundai Electric Energy System


• T India Limited


• Alstom


• ABB


• Larsen Toubro Limited


• Crompton Greaves Consumer Electricals Limited


• Siemens


• NOJA Power


• Eaton


• Mitsubishi Electric Corporation


• General Electric (GE)


• CG Power and Industrial Solutions


• Toshiba Mitsubishi Electric Industrial Systems Corporation


• Schneider Electric

Utility Based Shunt Reactor Market Industry Developments

The global utility-based shunt reactor market is projected to reach USD 7.5 billion by 2032, exhibiting a CAGR of 6.04% during the forecast period. Increasing demand for reliable and efficient power transmission and distribution networks, coupled with the growing adoption of renewable energy sources, is driving market growth. Moreover, government initiatives to enhance grid infrastructure and reduce transmission losses are expected to further propel market expansion. Key industry participants are focusing on developing innovative technologies, such as compact designs and advanced cooling systems, to meet evolving customer requirements. Recent news developments include Siemens Energy's launch of the SVC PLUS static var compensator, designed to improve voltage stability and power quality in transmission networks. Additionally, ABB's acquisition of GE's Industrial Solutions business is expected to strengthen its position in the shunt reactor market.

Utility Based Shunt Reactor Market Segmentation Insights

• Utility Based Shunt Reactor Market Technology Outlook
  
  
  
  • Dry Type
  
  
  • Oil Type
  
  
  
  

• Utility Based Shunt Reactor Market Voltage Level Outlook
  
  
  
  • Low Voltage
  
  
  • Medium Voltage
  
  
  • High Voltage
  
  
  
  

• Utility Based Shunt Reactor Market Application Outlook
  
  
  
  • Power Transmission
  
  
  • Power Distribution
  
  
  • Industrial
  
  
  • Renewable Energy
  
  
  
  

• Utility Based Shunt Reactor Market Cooling Type Outlook
  
  
  
  • Air Natural
  
  
  • Air Forced
  
  
  • Water Natural
  
  
  • Water Forced
  
  
  
  

• Utility Based Shunt Reactor Market Core Type Outlook
  
  
  
  • Three Phase Core
  
  
  • Single Phase Core
  
  
  
  

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