Shunt Reactor Market: Global Industry Analysis and Opportunity Assessment, 2016-2026

A shunt reactor is an electrical device mainly used to absorb reactive power in an electrical power grid system. In a power transmission and distribution system, the voltage at the receiving end of electrical power is more than that at the origin or less than the voltage at origin due to long transmission distances, this difference in voltage is called reactive power. Shunt reactors are mainly installed at transmission line terminals or in the center of transmission lines in parallel configuration. This layout of installation of shunt reactors in the power grid system absorbs reactive power, minimises distribution losses and regulates voltage throughout the transmission system. Global sales of shunt reactors was valued at US$ 1,996.9 Mn in 2015, and is projected to increase 2.4X by the end of 2026 to be valued at U7$ 4,864.7 Mn. Global sales revenue is expected to register a CAGR of 8.6% over the forecast period.

Increasing demand for electricity is fuelling the growth of the global shunt reactor market

Key driving factors identified in the global shunt reactor market include expanding electrical distribution network on the backdrop of continually increasing demand for electricity, refurbishment of ageing coal-fired plants and ageing power infrastructure in developed economies, and emergence of microgrids and interconnection of local and regional grids. However, increasing product life and component costs can inhibit new product sales to some extent and act as a restraint in the global shunt reactor market.


Market Segmentation


By Voltage Range

By Product

By Phase

By Rating

By Application

By Region

Less than 200 KV

200-400 KV

Greater than 400 KV

Air-core Dry Type

Oil Immersed

Single Phase

Three Phase

Fixed Shunt Reactor

Variable Shunt Reactor



Residential

Industrial

North America

Latin America

Eastern Europe

Western Europe

APEJ

Japan

MEA

Oil-immersed shunt reactor segment to exhibit a strong growth

The oil-immersed shunt reactor segment accounted for 64.8% share of the global shunt reactor market in 2015. This segment is projected to remain dominant over the forecast period, with increasing Y-o-Y growth of 6.7% to 8.9% from 2016 to 2026.

Three phase shunt reactor segment expected to remain dominant over the forecast period

In terms of value and volume, the three phase shunt reactor segment dominated the global shunt reactor market in 2015. The segment is estimated to account for 58.3% market value share by the end of 2016. The segment is projected to remain dominant over the forecast period, with increasing Y-o-Y growth of 6.7% to 9.1% from 2016 to 2026. Increasing number of industrial establishments and growing demand for three phase electricity in manufacturing and assembling facilities are expected to play a major role in the growth of this segment. In terms of revenue growth, the single phase shunt reactor segment is projected to expand at a significantly higher rate than that of the three phase shunt reactor segment in the global shunt reactor market over the forecast period due to expanding electricity transmission and distribution to meet the demand for residential purposes across the globe.

Global shunt reactor market to exhibit a strong growth in developing economies like China and India

From a regional perspective, North America is estimated to account for the highest market value share of 32.4% in 2016. Sales revenue of shunt reactors in APEJ and Latin America is estimated to account for second (24.9%) and third largest shares (16.7%) respectively by 2016 end. Consumption of shunt reactors in APEJ is projected to grow at a higher Y-o-Y growth rate due to expanding power generation and distribution infrastructure to meet the increasing electrical energy demand majorly from industries based in China and India.

shunt reactor market

Geographic expansion and strategic investments are some of the key strategies adopted by prominent market players in the global shunt reactor market

ABB Ltd., General Electric (ALSTOM), Fuji Electric Co. Ltd., Toshiba Corporation, Siemens AG, Zaporozhtransformator PJSC, Nissin Electric Co. Ltd, and Hyosung Corporation are some of the leading companies operating in the global shunt reactor market. Strategic investments and acquisitions to strengthen revenue generation, geographic expansion through organic growth, and new product development and product support technologies are some of the strategies adopted by key market players to expand their market share.