PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1402353
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1402353
Air Core Shunt Reactor Market size is estimated to expand at over 8.5% CAGR from 2023-2032 attributed to the increasing investments in power infrastructure.
Several governments and industries globally are channeling significant funds into upgrading and expanding the power networks. Investments in new substations, transmission lines, and grid expansion projects are contributing to the growing need for shunt reactors to ensure optimal voltage regulation and grid reliability, further accelerating the industry expansion. For instance, in July 2023, the Asian Development Bank authorized a $125 million loan to improve Uzbekistan's power transmission grid, increasing energy efficiency as well as allowing the country to include more renewable energy into its power mix.
The air core shunt reactor industry is segmented into phase, product, end-use, and region.
As per product, the industry share from the variable shunt reactor segment gained significant traction in 2022 and is estimated to witness high demand through 2032. Variable shunt reactors offer dynamic control over reactive power for enabling efficient voltage regulation and grid stabilization. These reactors adhere to the evolving energy landscape given their ability to adapt to varying load conditions and accommodate renewable energy fluctuations. Moreover, the influx of grid modernization initiatives globally will fuel the adoption of variable shunt reactors across various industries.
Based on end use, the core shunt reactor market from the renewable energy segment is anticipated to generate substantial revenue through 2032. The increasing global emphasis on sustainable energy is necessitating effective grid stabilization solutions. Additionally, the rising deployment of renewable energy projects worldwide coupled with the rising investments in grid infrastructure enhancements will fuel the demand for air core shunt reactors. For instance, in October 2023, the Biden administration announced a $3.5 billion investment for projects targeted at improving electric grid resilience and stability across the U.S. for the deployment of cleaner and lower-cost energy.
Regionally, the North America air core shunt reactor industry is set to exhibit robust growth through 2032 due to increasing demand for grid stability and voltage regulation. The growing focus on modernizing power infrastructure coupled with the rising deployment of renewable energy projects in the region is surging the adoption of air core shunt reactors. Grid expansions, interconnections, and the need for advanced reactive compensation solutions will further accelerate the regional market expansion.