Air Core Fixed Shunt Reactor Market Forecasts to 2030 - Global Analysis By Phase (Three Phase and Single Phase), End User (Electric Utility, Industrial Sector and Other End Users) and By Geography

According to Stratistics MRC, the Global Air Core Fixed Shunt Reactor Market is accounted for $463.1 million in 2023 and is expected to reach $841.1 million by 2030 growing at a CAGR of 8.9% during the forecast period. The Air Core Fixed Shunt Reactor Market refers to the segment within the electrical equipment industry focused on the production, distribution, and utilization of air core fixed shunt reactors. The market encompasses various aspects including manufacturing, sales, installation, and maintenance services related to air core fixed shunt reactors. These reactors are integral in maintaining voltage stability and improving power factor, crucial for efficient and reliable electricity transmission and distribution.

According to the IEA, over the last twenty years, the energy consumption in Southeast Asia has shown an average annual growth rate of approximately 3%, which is to grow in the coming years.

Market Dynamics:

Driver:

Grid modernization initiatives

As governments and utilities worldwide undertake efforts to modernize aging electrical infrastructure, the demand for advanced technologies like air core reactors increases. These initiatives aim to enhance the resilience, efficiency, and flexibility of electrical grids to meet the evolving needs of modern society. Air core fixed shunt reactors play a crucial role in grid modernization by providing reactive power compensation and voltage stabilization, thereby improving the overall stability and reliability of the grid.

Restraint:

High initial investment

The capital expenditure associated with procuring and deploying these reactors can be substantial, particularly for utilities and industries operating under tight budgetary constraints. The upfront costs encompass not only the purchase of the reactors themselves but also expenses related to site preparation, engineering, construction, and commissioning. However, the need for specialized infrastructure and equipment to support the integration of air core reactors into existing electrical grids further contributes to the overall investment burden.

Opportunity:

Technological advancements

Continuous innovation in reactor design, materials, and manufacturing processes leads to significant improvements in performance, efficiency, and cost-effectiveness. Enhanced designs and materials result in reactors that offer higher power ratings, reduced losses, and improved reliability, meeting the evolving needs of electrical grids. Furthermore, advancements in control systems and monitoring technologies enable better integration and management of air core reactors within the grid infrastructure.

Threat:

Intense competition from alternative technologies

As industries and utilities seek solutions for reactive power compensation and voltage stabilization, they are presented with various options beyond air core reactors, such as static VAR compensators (SVCs), synchronous condensers, and other reactive power compensation devices. Advancements in power electronics and grid management systems have expanded the capabilities of alternative solutions, increasing their competitiveness in the market. Consequently, air core fixed shunt reactors face challenges in distinguishing themselves from these alternatives and may struggle to capture market share, particularly in segments where competing technologies offer comparable performance, cost-effectiveness, or ease of integration.

Covid-19 Impact:

Initially, the market experienced disruptions due to supply chain disruptions, temporary shutdowns of manufacturing facilities, and delays in project implementations caused by lockdown measures and restrictions on movement. These challenges led to project postponements and cancellations, affecting the demand for air core reactors. However, as the pandemic accelerated the digitization of industries and highlighted the importance of grid stability and reliability, there was a renewed focus on upgrading and modernizing electrical infrastructure, driving demand for reactive power compensation solutions including air core reactors.

The Three Phase segment is expected to be the largest during the forecast period

Three Phase segment commanded the largest share during the forecast period. As industries increasingly digitize and automate their operations, there is a growing demand for stable and reliable electrical power, driving the need for reactive power compensation and voltage stabilization provided by three-phase air core reactors. Moreover, the expansion of renewable energy sources, such as wind and solar power, has led to the integration of three-phase reactors into grid infrastructure to manage the variability and intermittency of these renewable resources. Additionally, advancements in technology and manufacturing processes have made three-phase air core reactors more efficient, compact, and cost-effective, further fueling their adoption and contributing to the booming growth of market.

The Industrial Sector segment is expected to have the highest CAGR during the forecast period

Industrial Sector segment is estimated to witness the highest CAGR over the projection period. Industrial operations often involve the use of heavy machinery, motors, and other equipment that generate reactive power and cause voltage fluctuations, leading to inefficiencies and reliability issues within electrical systems. As industries continue to digitize and automate their processes, the demand for stable electrical power becomes even more critical to ensure uninterrupted operations. Air core reactors play a crucial role in meeting these requirements by effectively managing power quality and improving the overall efficiency of industrial electrical systems.

Region with largest share:

With rapid economic development, urbanization, and industrialization in countries like China, India, and Southeast Asian nations, there's a substantial rise in energy consumption across various sectors, Asia Pacific region commanded the largest share of the market throughout the projection period. The increasing penetration of renewable energy sources, such as wind and solar power, further accentuates the need for technologies like air core reactors to manage the variability and intermittency of these renewable resources, thus driving the growth of the market in the Asia Pacific region.

Region with highest CAGR:

Asia Pacific region is projected to witness profitable growth throughout the extrapolated period. As governments aim to enhance energy efficiency, ensure grid stability, and reduce carbon emissions, they are implementing stringent regulations and standards related to power quality, grid reliability, and environmental protection. These regulations often mandate utilities to adopt advanced technologies like air core fixed shunt reactors for reactive power compensation and voltage stabilization. Additionally, incentives and subsidies provided by governments to promote the adoption of renewable energy sources further amplify the demand for air core reactors to manage the integration of these intermittent resources into the grid.

Key players in the market

Some of the key players in Air Core Fixed Shunt Reactor market include Hitachi Energy Ltd, Hyosung Heavy Industries, MindCore Technologies, Mitsubishi Electric Corporation, Nissin Electric Co.,Ltd, Phoenix Electric Corp, Shrihans Electricals Pvt. Ltd., Siemens Energy and Toshiba Energy Systems & Solutions Corporation.

Key Developments:

In February 2024, Hitachi Energy upgrades Fingrid and Elering's 105-km subsea HVDC transmission system in Finland and Estonia. The EstLink 1 HVDC transmission system to be upgraded with advanced MACH(TM) control and protection system to enhance power security in the Baltic region and the unified European electricity market with secured reliability and availability.

In January 2024, Hitachi Energy has signed a Memorandum of Understanding (MoU) with Pertamina New & Renewable Energy (Pertamina NRE), the nation's state-owned and largest energy company, on innovation and technology in the field of energy conservation and electric power system.

Phases Covered:

• Three Phase
• Single Phase

End Users Covered:

• Electric Utility
• Industrial Sector
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances