Global Shunt Reactor Market - 2024-2031

Overview

Global Shunt Reactor Market reached US$ 2.86 billion in 2023 and is expected to reach US$ 5.22 billion by 2031, growing with a CAGR of 7.81% during the forecast period 2024-2031.

The necessity to enhance system efficiency and ensure dependable power is escalating the demand for a shunt reactor. The necessity for protective measures against abrupt voltage surges and investments in enhancing current transmission and distribution networks is increasing the demand for shunt reactors. The rising need for energy will stimulate the need for products, solutions and services related to the energy sector.

The Ministry of Energy of the Republic of Lithuania has initiated a project to synchronize its power network with the Western European grid. This initiative will diminish electric power transmission capacities with Belarus and obstruct the future flow of electricity from the hazardous Astravets Nuclear Power Plant (NPP).

The North-East Lithuanian rebuilding project entails the reconstruction of two 330 kV transformer substations located in Ignalina and Utena. A 330 kV shunt reactor will be relocated from the Ignalina substation to the 330 kV switchyard in Elektrenai.

The increasing global demand for a reliable and secure power supply, along with governmental efforts to diminish carbon emissions, is expected to significantly enhance the expansion of the renewable energy sector. Since 2020, the global energy business has had remarkable expansion in the renewable energy industry, notwithstanding the pandemic. In 2020, renewable project deployments accelerated as policy deadlines in significant markets increased by 45% compared to 2019, according to statistics from the International Energy Agency.

Policy deadlines in China and US catalyzed an extraordinary surge in renewable capacity expansions in 2020, notwithstanding the pervasive pandemic. China alone increased its renewable capacity by 137 GW, whereas US augmented its renewable capacity by 36.6 GW. The swiftly growing renewable energy sector is expected to create profitable prospects for the market.

Dynamics

The Global Push for Transmission and Distribution Modernization

The worldwide increase in transmission line development and modernization initiatives is anticipated to elevate the need for transmission and distribution apparatus, especially shunt reactors. With the growing complexity of grids and the integration of renewable energy sources, utilities are implementing equipment such as transformers and reactors to regulate voltage levels and stabilize systems. Therefore, as the demand for power and generation escalates, there is an imperative necessity to enhance and modernize transmission and distribution infrastructure.

In January 2022, US Department of Energy initiated the 'Building a Better Grid' program to promote the establishment of new high-capacity transmission lines. In April 2022, Hitachi Energy India Ltd. obtained a US$ 19.7 million contract to enhance the transmission infrastructure in rural regions of Madhya Pradesh. The initiatives and escalating investments to satisfy growing energy demands are anticipated to propel market expansion in the forthcoming years.

Expanding Energy Landscape and the Demand for Enhanced Transmission Infrastructure

Recent fast urbanization and industrialization, especially in emerging economies, have markedly heightened energy demand. Consequently, governments globally are concentrating on augmenting their power producing capacities to guarantee a dependable electricity supply. India has achieved a significant 70% augmentation in its power generation capacity from 2014 to 2023. The country has evolved from an electricity deficit to a surplus, incorporating approximately 97,500 MW of renewable energy in the last ten years, achieving a total generation capacity of 425,536 MW by October 2023.

Significant nations such as China, the US and India have had considerable expansions in their power generation capacities in recent years. India intends to augment its infrastructure by including 27,000 circuit kilometers of power transmission networks by 2024 and aims for 500 GW of electricity generation from non-fossil fuels. The Central Electricity Authority (CEA) projects a requirement for an extra 228,541 MW to satisfy peak electricity demand by 2027.

The Shift from Conventional to Flexible AC and HVDC Systems

Flexible AC Transmission Systems (FACTS), HVDC systems and other innovative technologies have emerged in response to the increasing emphasis on grid stability and reducing energy loss during transmission. Conventional grid stabilization methods, which rely on capacitors and reactors, face performance and speed limitations. These constraints are driving the shift toward more efficient solutions like FACTS and HVDC systems.

FACTS devices are power electronic systems that are becoming increasingly prevalent in power transmission networks. They enhance power transfer capacity, improve grid stability and provide rapid reactive power and voltage support. Reactive power transmission can cause significant voltage fluctuations, limiting the active power capacity and increasing losses. Implementing Fixed Series Capacitors (FSC) can boost the dynamic power capacity of existing lines, leading to greater efficiency and reduced fuel consumption.

As a result, more active power can be transmitted and the growing adoption of these advanced technologies is expected to diminish the need for traditional transmission and distribution equipment in the near future.

Segment Analysis

The global shunt reactor market is segmented based on phase, type, rated voltage, product, end-user and region.

Variable Advancement in High-Voltage Transmission with Renewable Energy Integration

Variable Shunt Reactors (VSR) are employed in high-voltage energy transmission networks to regulate voltage fluctuations during load changes. A conventional shunt reactor has a fixed rating and is continuously connected to the power line or switched in and out based on the load requirements. The rating of a VSR may be adjusted incrementally.

The maximal regulation range is contingent upon the capacity of the on-load tap changer utilized alongside the regulation winding employed for the shunt reactor. The maximum regulation range has increased over the years, from 50% to 80% at certain voltage levels. The variability offers greater advantages than a conventional fixed shunt reactor. The VSR can consistently adjust reactive power in response to load fluctuations, hence ensuring voltage stability.

Numerous countries worldwide are progressively prioritizing the renewable energy industry to decrease their power consumption expenses. In 2019, UK's renewable energy sector surpassed fossil fuel plants for 137 days, marking the country's most environmentally sustainable year. Due to the increasing investments in renewable energy in the region, shunt reactor providers are aligning their products with industry demands. Siemens in UK has constructed a notable variable shunt reactor with a rating of 120-300 MVAr, a rated voltage of 220 kV, a weight of 317 metric tons and dimensions of around 10x8.5x8 meters.

Geographical Penetration

Investments in Asia-Pacific Transmission and Distribution Infrastructure

Investments in enhancing Transmission and Distribution infrastructure in Asia-Pacific are rising due to sustained growth in power demand from residential and commercial sectors. To satisfy the electrical requirements of urban and industrial areas in China, the State Grid Corporation of China (SGCC) is constructing 12 transmission lines connecting coal production and hydropower facilities, with a project cost of US$ 33.7 billion. China's state grid organization reports that the line can transmit a maximum of 12 gigawatts, sufficient to supply power to 50 million households in China.

The March 2020 study from the South Asia Regional Initiative for Energy Integration indicates that the South Asian power grid necessitates an investment of INR 45,000 by 2030, as cross-border energy commerce is anticipated to rise in the region. In April 2019, with the assistance of Development Bank of Kazakhstan JSC, a subsidiary of "Baiterek" NMH" JSC, the production of high-voltage transformers and shunt reactors commenced in Shymkent. The products will be distributed to the markets of the CIS nations, Iran, Afghanistan and Pakistan.

The significant investments in transmission and distribution infrastructure throughout Asia-Pacific underscore a strategic response to rising electricity demand, facilitating improved energy security and cross-border electricity trade that can greatly benefit the entire region.

Competitive Landscape

The major global players in the market include GE, Siemens, Toshiba Corporation, CG Power and Industrial Solutions Limited, Hitachi Energy, Hyosung Corporation, ABB Ltd, Nissin Electric Co Ltd, Fuji Electric Co., Ltd. and GBE SpA.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict profoundly impacts the shunt reactor market, chiefly because to its repercussions on the semiconductor supply chain. Shunt reactors depend on multiple semiconductor components for functionality and the current dispute intensifies pre-existing shortages of vital raw materials like neon and palladium, which are crucial for semiconductor production.

Although the short-term effects on semiconductor production may be controllable, the unpredictability of raw material costs and supply chains presents a concern for the medium to long term. Companies in the shunt reactor industry must proactively evaluate their supply chains and formulate contingency plans to alleviate problems resulting from the war and associated sanctions. Investigating alternate sources for essential minerals and investing in recycling technology may be vital solutions to guarantee sustainability and stability amid any supply issues.

Phase

• Single Phase
• Three Phase

Type

• Oil Immersed
• Air Core

Rated Voltage

• Less than 200 kV
• 200kV-400kV
• Above 400kV

Product

• Fixed
• Variable

End-User

• Electric Utility
• Renewable Energy

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In February 2024, GE Vernova's Grid Solutions division obtained substantial multi-million-dollar contracts with the Power Grid Corporation of India (PGCIL) for the provision of 765 kV Shunt Reactors. These reactors are essential for improving the stability and efficiency of India's electrical transmission system, especially as the nation strives to include additional renewable energy sources into its grid.
• In April 2022, Hitachi Energy launched OceaniQ transformers and shunt reactors specifically engineered for offshore applications. This effort seeks to improve the efficacy and sustainability of offshore activities, especially within the renewable energy sector. OceaniQ specializes in new solutions that enhance the administration of offshore assets, ensuring superior performance and reliability.
• In September 2022, ABB announced the execution of an agreement with Hitachi Ltd. to dispose its remaining 19.9% ownership in the joint venture Hitachi ABB Power Grids, established in 2020.
• In March 2022, Siemens Energy divested its 35% interest in the joint venture Voith Hydro, previously known as Voith Siemens Hydro Power Generation. This acquisition renders Voith Group the sole owner of the Voith Hydro Group Division.
• In January 2022, Trench Group, a subsidiary of Siemens Energy, launched a 500kV Dry-Type Reactor. The company asserts it is the world's inaugural 500kV Dry-Type Reactor and possesses technology enabling the production of high-voltage dry-type reactors up to 550 kV.

Why Purchase the Report?

• To visualize the global shunt reactor market segmentation based on phase, type, rated voltage, product, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the shunt reactor market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global shunt reactor market report would provide approximately 78 tables, 68 figures and 224 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies