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

Single phase fixed shunt reactor market size is estimated to grow at over 5.1% CAGR between 2024 and 2032, driven by increasing investments in electrical infrastructure development, particularly in emerging economies. To illustrate, in January 2024, Canadian electric utility firm BC Hydro invested $36 billion in electrical infrastructure expansion. As these countries continue to modernize their power grids to meet the growing electricity demands, the need for reliable and efficient reactive power compensation has become paramount.

Moreover, renewable energy generation is introducing power quality challenges due to the intermittent nature, leading to voltage fluctuations and power factor issues. Single-phase fixed shunt reactors help in mitigating these challenges by providing reactive power support, thereby enhancing grid stability and reliability. With the renewable energy sector continuing to expand globally, the product demand is expected to rise correspondingly, further driving market growth.

The single phase fixed shunt reactor industry is segmented on the basis of insulation, end-use and region.

By insulation, the market size from the oil immersed segment is anticipated to witness substantial growth through 2032, due to strong need to offer superior cooling properties for ensuring efficient heat dissipation and enhancing the overall operational performance and longevity. Additionally, the use of high-quality insulating oil is improving the reliability and insulation properties of these reactors while reducing the risk of electrical breakdowns. Furthermore, oil-immersed reactors are well-suited for outdoor installations as they offer robust protection against environmental factors, such as moisture, dust, and extreme temperatures.

With respect to end-use, the single phase fixed shunt reactor market from the renewable energy segment will record notable growth during 2024 and 2032. This is attributed to the increasing integration of renewable energy sources like wind and solar power into the grid. These reactors help in stabilizing voltage levels and improving power quality in renewable energy systems whilst mitigating issues associated with intermittency and variability. As countries worldwide intensify efforts to shift towards cleaner energy sources, the segment is expected to witness substantial growth.

North America single phase fixed shunt reactor market size is anticipated to grow at an impressive pace through 2032, attributed to the increasing integration of renewable energy sources, such as wind and solar power, into the electricity grid. Of late, the aging infrastructure and the need for grid modernization initiatives are driving investments in reactive power compensation equipment to enhance power quality and optimize transmission and distribution networks. Growing stringent regulatory standards aimed at improving grid resilience and minimizing power system losses will also stimulate the regional market growth.