PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462607
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462607
According to Stratistics MRC, the Global Oil Immersed Fixed Shunt Reactor Market is accounted for $520.09 million in 2023 and is expected to reach $840.64 million by 2030 growing at a CAGR of 7.1% during the forecast period. Oil immersed fixed shunt reactors are essential components in electrical power systems for voltage regulation and reactive power compensation. These reactors are immersed in insulating oil to dissipate heat efficiently. They help maintain a stable voltage level across the grid by absorbing excess reactive power during times of high demand.
According to the International Energy Outlook report by EIA 2019, India's industrial energy consumption nearly triples by 2050, growing from 16 quadrillion British thermal units (Btu) in 2018 to 47 quadrillion Btu by 2050 at an average annual rate of 3.4%.
Growing population and industrialization
With a growing population, there's a higher need for reliable and efficient power transmission and distribution infrastructure to meet rising energy demands. Industrialization drives the establishment of manufacturing facilities, commercial complexes, and other industrial units, all of which require substantial power supply. Oil immersed fixed shunt reactors play a crucial role in enhancing grid stability, voltage control, and power quality, thus supporting the growing demands driven by population growth and industrial expansion.
Environmental concerns
Environmental concerns regarding oil immersed fixed shunt reactors primarily revolve around the use of insulating oil, typically containing polychlorinated biphenyls (PCBs), which pose environmental and health risks. PCBs are persistent organic pollutants that can bio accumulate in the environment, leading to adverse ecological impacts and potential health hazards. These environmental issues can lead to stricter regulations, increased compliance costs, and public opposition, thereby hampering the market growth.
Aging infrastructure replacement
Aging infrastructure replacement creates opportunities for modernization and efficiency enhancement in power transmission and distribution systems. As old equipment reaches the end of its operational life, there's a need to replace it with more reliable and technologically advanced solutions. These reactors offer improved voltage regulation, reactive power compensation, and grid stability, making them essential components of upgraded power systems. Thus, the replacement of aging infrastructure fosters the demand for oil immersed fixed shunt reactors to ensure the reliability and efficiency of the grid.
High substantial upfront costs
Oil immersed fixed shunt reactors incur high upfront costs primarily due to the specialized materials, manufacturing processes, and transportation expenses involved in their production. Additionally, installation and maintenance require skilled labor and specific infrastructure, further increasing costs. Consequently, the substantial upfront costs of these reactors may deter market growth by limiting adoption rates and delaying investment decisions in power transmission and distribution infrastructure projects.
Covid-19 Impact
The covid-19 pandemic has had a mixed impact on the oil immersed fixed shunt reactor market. Initially, the market experienced disruptions in manufacturing and supply chain activities due to lockdowns and restrictions. However, as economies reopened, there has been a gradual recovery driven by ongoing infrastructure projects and investments in power transmission and distribution. Additionally, the pandemic has highlighted the importance of reliable electricity supply, which may drive further demand for oil immersed fixed shunt reactors as utilities seek to enhance grid stability and resilience in the face of future crises.
The power grids segment is expected to be the largest during the forecast period
The power grids segment is estimated to have a lucrative growth. Oil immersed fixed shunt reactors are vital components in power grids, used to regulate voltage levels and enhance system stability. They reduce voltage fluctuations and improve power transfer capability. With their robust design and reliable operation, these reactors play a crucial role in modern power grids, enabling utilities to maintain grid integrity and meet the demands of growing electricity consumption.
The industrial sector segment is expected to have the highest CAGR during the forecast period
The industrial sector segment is anticipated to witness the highest CAGR growth during the forecast period. Oil immersed fixed shunt reactors are utilized to compensate for reactive power in electrical networks, improving power factor and voltage regulation. In industrial settings, they are crucial for maintaining stable and efficient operation of large-scale machinery and equipment, such as motors, transformers, and industrial processes requiring high power demands. Their stability and optimize energy distribution further fuels the segment growth.
The oil immersed fixed shunt reactor market in the Asia Pacific region is witnessing significant growth driven by factors such as increasing demand for electricity, infrastructure development, and expansion of the power transmission and distribution networks. Countries like China, India, Japan, and South Korea are key contributors to this market growth due to their substantial investments in power infrastructure projects. Additionally, initiatives towards grid modernization and renewable energy integration are further fueling the demand for oil immersed fixed shunt reactors in the region.
North America is projected to have the highest CAGR over the forecast period, owing to factors such as the modernization of existing power infrastructure, the integration of renewable energy sources, and the increasing demand for electricity. Countries like the United States and Canada are leading the market with significant investments in grid expansion and transmission projects. Technological advancements and government initiatives aimed at enhancing energy efficiency further support market growth in North America.
Key players in the market
Some of the key players profiled in the Oil Immersed Fixed Shunt Reactor Market include ABB Limited, Siemens AG, Toshiba Corporation, Crompton Greaves Limited, General Electric Company, Mitsubishi Electric Corporation, Hyundai Heavy Industries Limited, Fuji Electric Corporation, WEG Industries, Schneider Electric SE, Hitachi Limited, Hyosung Heavy Industries, Shrihans Electricals Limited, Nissin Electric Corporation and TBEA Corporation.
In April 2022, Hitachi Energy introduced OceaniQ shunt reactors and transformers, co-developed with floating offshore developers, to enhance the efficiency of offshore wind farms. Leveraging Hitachi Energy's deep experience in the energy sector and offshore operations, Oceaniq aims to improve operational efficiency, enhance performance, and promote sustainability in the offshore industry.
In November 2021, Siemens clinched a substantial contract to furnish seven reactors to a consortium comprising Konstant Net, N1, and Nord Energi, esteemed energy solution providers in Europe. This supply agreement underscores Siemens' crucial part in addressing power quality challenges and further fortifies its market presence across Europe.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.