Shunt Reactor Global Market Report 2026

A shunt reactor is an electrical device utilized in power systems to absorb excess reactive power and regulate voltage levels in high-voltage transmission lines. It plays a crucial role in maintaining grid stability by preventing overvoltage, particularly in long-distance power transmission. By consuming reactive power, shunt reactors enhance energy efficiency and minimize transmission losses.

The primary types of shunt reactors include oil-immersed reactors and air-core dry reactors. An oil-immersed reactor employs oil as a cooling and insulating medium to absorb and dissipate heat generated during operation, making it suitable for high-voltage electrical systems. These reactors are available in both single-phase and three-phase configurations, with rated voltages categorized as below 200 kV, 200 kV-400 kV, and above 400 kV. Shunt reactors can be classified as fixed or variable reactors and serve a variety of end users, including electric utilities, renewable energy sectors, and other applications.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electrical equipment, metal components, and power-grid machinery have increased procurement and manufacturing costs for shunt reactors, creating price pressures across global supply chains. These impacts are most visible in oil-immersed and air-core dry reactor segments and in regions relying heavily on imported grid equipment, particularly Asia-Pacific and Europe. While tariffs slow installation timelines and raise capex for utilities and renewable developers, they also encourage domestic manufacturing, localized sourcing, and technology innovation, which may create long-term cost and supply-chain benefits for the market.

The shunt reactor market research report is one of a series of new reports from The Business Research Company that provides shunt reactor market statistics, including shunt reactor industry global market size, regional shares, competitors with a shunt reactor market share, detailed shunt reactor market segments, market trends and opportunities, and any further data you may need to thrive in the shunt reactor industry. This shunt reactor market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The shunt reactor market size has grown strongly in recent years. It will grow from $3.13 billion in 2025 to $3.31 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to grid expansion in developing economies, rising electricity demand, early adoption of hvac transmission lines, increasing need for reactive power management, growth of large-scale thermal power plants.

The shunt reactor market size is expected to see strong growth in the next few years. It will grow to $4.19 billion in 2030 at a compound annual growth rate (CAGR) of 6.0%. The growth in the forecast period can be attributed to integration of renewable energy capacity, expansion of ehv and uhv networks, modernization of aging grid infrastructure, increasing reliance on long-distance power transmission, rising investments in grid stability solutions. Major trends in the forecast period include growing deployment of shunt reactors in extra-high-voltage transmission networks, rising demand for reactive power compensation due to grid expansion, increasing adoption of variable shunt reactors for dynamic voltage regulation, modernization of transmission infrastructure to reduce energy losses, expansion of long-distance renewable power evacuation lines.

The increasing power generation capacity is anticipated to significantly drive the growth of the shunt reactor market in the coming years. Power generation capacity refers to the maximum electrical power that a power plant or generating unit can produce under specific conditions. The rise in power generation capacity is driven by the escalating global demand for electricity, the rapid growth of renewable energy sources, substantial government investments in modern energy infrastructure, and technological advancements in power generation. Shunt reactors play a crucial role in supporting this rising capacity by enhancing voltage stability, reducing transmission losses, and optimizing grid performance, particularly in high-voltage networks. They help manage the variable power flow from increasing renewable energy sources, improve energy efficiency, and ensure reliable power transmission over long distances. For example, in June 2025, according to the Department of Climate Change, Energy, the Environment and Water, an Australia-based government agency, Australia produced approximately 273,106 GWh of electricity in 2023, which rose by 3% in 2024 to an estimated 283,920 GWh. Thus, the growth in power generation capacity is a key factor propelling the shunt reactor market.

Prominent companies in the shunt reactor market are pursuing strategic partnerships to modernize and enhance grid stability and capacity. These partnerships involve collaborations aimed at improving product development, expanding market reach, and advancing technology integration within power transmission and grid stability solutions. For example, in September 2023, Hitachi Energy Ltd., a Switzerland-based technology company, collaborated with TenneT Holding BV, a Netherlands-based transmission system operator, to supply high-performance power transformers and shunt reactors. This partnership is focused on modernizing and enhancing the stability and capacity of the transmission grid, supporting the integration of renewable energy, improving grid resilience, and ensuring a sustainable electricity supply for Germany and the Netherlands.

In April 2024, Triton Partners, a Luxembourg-based investment management firm, acquired Trench Group for an undisclosed sum. This acquisition is intended to strengthen Triton's position in the high-voltage electrical equipment market and capitalize on the growth opportunities presented by the energy transition. By leveraging Trench's technological expertise and global reach, Triton aims to expand its capabilities and market leadership in this sector. Trench Group is a Germany-based manufacturer specializing in high-voltage products, including air-core dry-type shunt reactors.

Major companies operating in the shunt reactor market are Hitachi Energy Ltd., General Electric Company, Mitsubishi Electric Corporation, Siemens Energy AG, Toshiba Corporation, CHINT Group, Alstom Grid, Hyosung Heavy Industries, Meidensha Co. Ltd., Nissin Electric Co. Ltd., SGB-SMIT Group, CG Power and Industrial Solutions Limited, Voltamp Energy SAOG, Prolec Energy, Shreem Electric Limited, GBE SpA, Clariant Power System Ltd., Hilkar, NR Electric Co. Ltd., Jyoti Transformers

Asia-Pacific was the largest region in the shunt reactor market in 2025 and it is expected to be the fastest-growing region in the forecast period. The regions covered in the shunt reactor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the shunt reactor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The shunt reactor market consists of sales of gapped iron-core reactors, high-temperature superconducting reactors, hybrid reactors, thyristor-controlled reactors, line-connected reactors, and transformer-reactor combined units. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Shunt Reactor Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses shunt reactor market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for shunt reactor ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The shunt reactor market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type Of Product: Oil-Immersed Reactor; Air Core Dry Reactor
• 2) By Phase: Single Phase; Three Phase
• 3) By Rated Voltage: Less Than 200kV; 200kV-400kV; Above 400kV
• 4) By Application: Fixed Reactor; Variable Reactor
• 5) By End-User: Electric Utilities; Renewable Energy; Other End Users
• Subsegments:
• 1) By Oil-Immersed Reactor: Single-Phase Oil-Immersed Reactor; Three-Phase Oil-Immersed Reactor; Fixed Oil-Immersed Reactor; Variable Oil-Immersed Reactor
• 2) By Air Core Dry Reactor: Fixed Air Core Dry Reactor; Variable Air Core Dry Reactor; Single-Phase Air Core Dry Reactor; Three-Phase Air Core Dry Reactor
• Companies Mentioned: Hitachi Energy Ltd.; General Electric Company; Mitsubishi Electric Corporation; Siemens Energy AG; Toshiba Corporation; CHINT Group; Alstom Grid; Hyosung Heavy Industries; Meidensha Co. Ltd.; Nissin Electric Co. Ltd.; SGB-SMIT Group; CG Power and Industrial Solutions Limited; Voltamp Energy SAOG; Prolec Energy; Shreem Electric Limited; GBE SpA; Clariant Power System Ltd.; Hilkar; NR Electric Co. Ltd.; Jyoti Transformers
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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