Air Core Fixed Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By End Use (Electric Utility, Renewable Energy), Regional Outlook & Global Forecast, 2024 - 2032

Air Core Fixed Shunt Reactor Market size is projected to grow at over 6.7% CAGR from 2024 to 2032. The increasing demand for electricity, driven by urbanization, industrialization, and infrastructure development, is necessitating the expansion of power transmission and distribution networks, creating the strong demand for reactive power compensation solutions like fixed shunt reactors.

According to the Energy Information Administration, in 2022, the total electricity consumption in the U.S. was around 4.07 trillion kWh. This incessant high demand for electricity is driving the demand for air core fixed shunt reactors. The rising adoption of renewable energy sources, such as wind and solar power is introducing variability in power generation, requiring reactive power support to maintain grid stability. Significant advances in grid infrastructure and the increasing focus on grid reliability and efficiency are accelerating investments in reactive power compensation technologies, further contributing to the market growth

The air core fixed shunt reactors industry is segregated into phase, end-use, and region.

Based on phase, the market value from the single-phase segment will rise at significant rate from 2024 to 2032. This is owing to the increasing demand for reactive power compensation solutions in single-phase transmission and distribution systems. The rising deployment of renewable energy sources and the growing need for grid stability in rural and remote areas are driving the adoption of single-phase air core fixed shunt reactors.

With respect to end-use, the air core fixed shunt reactor industry from the renewable energy segment is estimated to grow at commendable CAGR until 2032. This is due to the growing need for reactive power compensation to maintain grid stability amid variable renewable energy generation. Rising government incentives and mandates for promoting renewable energy adoption is further accelerating the demand for air core fixed shunt reactors in renewable energy applications.

Regionally, the North America air core fixed shunt reactor market will accrue significant CAGR from 2024 to 2032, on account of the increasing investments in grid modernization projects, and the rising demand for electricity. The rollout of stringent regulations across the region is promoting grid stability and reliability. The integration of renewable energy sources into the grid and the rising need for reactive power compensation to mitigate voltage fluctuations will boost the regional market progression.