Shunt Reactor Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Form Factor of Product, By Form Factor, By Rated Voltage, By End-user, By Region & Competition, 2021-2031F

Description

The Global Shunt Reactor Market is projected to expand from USD 3.01 Billion in 2025 to USD 4.39 Billion by 2031, achieving a compound annual growth rate of 6.49%. Shunt reactors are essential inductive devices within high-voltage transmission systems, designed to absorb reactive power and maintain stable voltage levels amidst load variations. The market's growth is primarily driven by the rising global demand for electricity and the critical need to integrate variable renewable energy sources into national grids. Additionally, the extensive modernization of aging power infrastructure in developed nations necessitates the widespread deployment of these stability-enhancing components to guarantee network reliability and efficiency.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 3.01 Billion
Market Size 2031	USD 4.39 Billion
CAGR 2026-2031	6.49%
Fastest Growing Segment	200kV-400kV
Largest Market	Asia Pacific

According to the International Energy Agency, global investment in electricity grids was expected to reach USD 400 billion in 2024, signaling a massive financial commitment to transmission equipment. Despite this demand, the market encounters significant obstacles due to supply chain bottlenecks affecting key raw materials like electrical steel. These logistical constraints frequently lead to prolonged manufacturing lead times and elevated costs, which can impede the timely execution of essential grid expansion projects.

Market Driver

The rapid expansion of renewable energy integration and grid interconnection acts as a primary catalyst for the shunt reactor market. As variable energy sources such as wind and solar enter the mix, grid operators must manage significant voltage fluctuations caused by intermittent generation, necessitating the use of inductive devices to absorb excess reactive power during periods of low load or high generation. According to the International Energy Agency's 'Renewables 2023' report from January 2024, annual renewable capacity additions surged by 50% to nearly 510 gigawatts in 2023, marking the fastest growth rate in two decades. This accelerated deployment directly increases the requirement for compensation equipment to ensure network stability and compliance with strict grid codes.

Market expansion is further propelled by increasing investments in long-distance high-voltage transmission projects, where utilities are constructing extensive superhighways to transport electricity from remote generation sites to demand centers. This infrastructure inherently generates high capacitive reactive power that must be neutralized, driving the need for adequate shunt reactors. According to National Grid's 'Full Year Results 2023/24' statement in May 2024, the company executed a record capital investment of GBP 8.2 billion across its UK and US networks to upgrade critical infrastructure. Such financial commitments reflect a global trend toward strengthening transmission backbones to handle higher loads, a necessity reinforced by the International Energy Agency's 2024 forecast of approximately 4% growth in global electricity demand.

Market Challenge

The Global Shunt Reactor Market is severely restricted by supply chain bottlenecks that limit the availability of essential raw materials, particularly grain-oriented electrical steel. These logistical hurdles create production bottlenecks that prevent manufacturers from meeting the escalating requirements for grid stability equipment. Because shunt reactors utilize the same specialized magnetic cores as other large inductive devices, shortages in high-grade steel compel manufacturers to ration output, resulting in extended delivery timelines that disrupt the scheduling of transmission upgrades. Consequently, this inability to secure timely equipment forces utility operators to delay renewable integration projects, directly stifling market expansion.

Market data illustrates the severity of these logistical constraints, with the National Electrical Manufacturers Association reporting that lead times for large power transmission equipment, including transformers and reactors, extended to between 120 and 210 weeks in 2025 due to material shortages. This prolonged waiting period creates substantial financial risk and operational uncertainty for grid investors, often causing capital committed to infrastructure modernization to remain unspent. As a result, the market struggles to convert projected demand into actual installations, hampering the sector's overall economic momentum.

Market Trends

The accelerated adoption of Variable Shunt Reactors (VSRs) is transforming the market as grid operators increasingly seek dynamic solutions to manage the volatility associated with renewable energy sources. Unlike traditional fixed reactors that provide static compensation, VSRs allow for continuous and precise inductance adjustments, enabling real-time voltage stabilization during the rapid load fluctuations typical of wind and solar generation. This capability significantly reduces the need for frequent circuit breaker switching, thereby extending equipment lifespan and operational efficiency. Highlighting this shift, Hitachi Energy reported in an October 2024 press release that it manufactured a customized 500 kV variable shunt reactor to support a major wind project in Uzbekistan, confirming the industry's move toward flexible compensation equipment.

Concurrently, the integration of intelligent monitoring and IoT technologies is shifting asset management strategies from reactive to predictive maintenance models. Utilities are deploying embedded sensors and digital twin software to simulate reactor performance under various stress conditions, facilitating early fault detection and optimizing maintenance schedules for aging infrastructure. This digital evolution is critical for enhancing network reliability by providing granular visibility into the health of high-voltage assets. A notable advancement occurred in February 2024, when GE Vernova launched the GridBeats portfolio, which includes AI-driven Asset Performance Management tools designed to digitize substation equipment through physics-based digital twins.

Key Market Players

Siemens AG
Hitachi ABB Power Grids
Hyosung Corporation
Trench Group
CG Power and Industrial Solutions Limited
Mitsubishi Electric Corporation
Fuji Electric Co.
TBEA Co. Ltd
Hyundai Heavy Industries Co. Ltd
Alstom SA

Report Scope

In this report, the Global Shunt Reactor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Shunt Reactor Market, By Form Factor of Product

Oil-Immersed Reactor
Air Core Dry Reactor

Shunt Reactor Market, By Form Factor

Fixed Shunt Reactor
Variable Shunt Reactor

Shunt Reactor Market, By Rated Voltage

Less than 200 kV
200kV-400kV
Above 400kV

Shunt Reactor Market, By End-user

Electric Utility
Renewable Energy

Shunt Reactor Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Shunt Reactor Market.

Available Customizations:

Global Shunt Reactor Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Shunt Reactor Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Form Factor of Product (Oil-Immersed Reactor, Air Core Dry Reactor)
- 5.2.2. By Form Factor (Fixed Shunt Reactor, Variable Shunt Reactor)
- 5.2.3. By Rated Voltage (Less than 200 kV, 200kV-400kV, Above 400kV)
- 5.2.4. By End-user (Electric Utility, Renewable Energy)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Shunt Reactor Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Form Factor of Product
- 6.2.2. By Form Factor
- 6.2.3. By Rated Voltage
- 6.2.4. By End-user
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Shunt Reactor Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Form Factor of Product
    - 6.3.1.2.2. By Form Factor
    - 6.3.1.2.3. By Rated Voltage
    - 6.3.1.2.4. By End-user
- 6.3.2. Canada Shunt Reactor Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Form Factor of Product
    - 6.3.2.2.2. By Form Factor
    - 6.3.2.2.3. By Rated Voltage
    - 6.3.2.2.4. By End-user
- 6.3.3. Mexico Shunt Reactor Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Form Factor of Product
    - 6.3.3.2.2. By Form Factor
    - 6.3.3.2.3. By Rated Voltage
    - 6.3.3.2.4. By End-user

7. Europe Shunt Reactor Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Form Factor of Product
- 7.2.2. By Form Factor
- 7.2.3. By Rated Voltage
- 7.2.4. By End-user
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Shunt Reactor Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Form Factor of Product
    - 7.3.1.2.2. By Form Factor
    - 7.3.1.2.3. By Rated Voltage
    - 7.3.1.2.4. By End-user
- 7.3.2. France Shunt Reactor Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Form Factor of Product
    - 7.3.2.2.2. By Form Factor
    - 7.3.2.2.3. By Rated Voltage
    - 7.3.2.2.4. By End-user
- 7.3.3. United Kingdom Shunt Reactor Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Form Factor of Product
    - 7.3.3.2.2. By Form Factor
    - 7.3.3.2.3. By Rated Voltage
    - 7.3.3.2.4. By End-user
- 7.3.4. Italy Shunt Reactor Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Form Factor of Product
    - 7.3.4.2.2. By Form Factor
    - 7.3.4.2.3. By Rated Voltage
    - 7.3.4.2.4. By End-user
- 7.3.5. Spain Shunt Reactor Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Form Factor of Product
    - 7.3.5.2.2. By Form Factor
    - 7.3.5.2.3. By Rated Voltage
    - 7.3.5.2.4. By End-user

8. Asia Pacific Shunt Reactor Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Form Factor of Product
- 8.2.2. By Form Factor
- 8.2.3. By Rated Voltage
- 8.2.4. By End-user
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Shunt Reactor Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Form Factor of Product
    - 8.3.1.2.2. By Form Factor
    - 8.3.1.2.3. By Rated Voltage
    - 8.3.1.2.4. By End-user
- 8.3.2. India Shunt Reactor Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Form Factor of Product
    - 8.3.2.2.2. By Form Factor
    - 8.3.2.2.3. By Rated Voltage
    - 8.3.2.2.4. By End-user
- 8.3.3. Japan Shunt Reactor Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Form Factor of Product
    - 8.3.3.2.2. By Form Factor
    - 8.3.3.2.3. By Rated Voltage
    - 8.3.3.2.4. By End-user
- 8.3.4. South Korea Shunt Reactor Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Form Factor of Product
    - 8.3.4.2.2. By Form Factor
    - 8.3.4.2.3. By Rated Voltage
    - 8.3.4.2.4. By End-user
- 8.3.5. Australia Shunt Reactor Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Form Factor of Product
    - 8.3.5.2.2. By Form Factor
    - 8.3.5.2.3. By Rated Voltage
    - 8.3.5.2.4. By End-user

9. Middle East & Africa Shunt Reactor Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Form Factor of Product
- 9.2.2. By Form Factor
- 9.2.3. By Rated Voltage
- 9.2.4. By End-user
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Shunt Reactor Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Form Factor of Product
    - 9.3.1.2.2. By Form Factor
    - 9.3.1.2.3. By Rated Voltage
    - 9.3.1.2.4. By End-user
- 9.3.2. UAE Shunt Reactor Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Form Factor of Product
    - 9.3.2.2.2. By Form Factor
    - 9.3.2.2.3. By Rated Voltage
    - 9.3.2.2.4. By End-user
- 9.3.3. South Africa Shunt Reactor Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Form Factor of Product
    - 9.3.3.2.2. By Form Factor
    - 9.3.3.2.3. By Rated Voltage
    - 9.3.3.2.4. By End-user

10. South America Shunt Reactor Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Form Factor of Product
- 10.2.2. By Form Factor
- 10.2.3. By Rated Voltage
- 10.2.4. By End-user
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Shunt Reactor Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Form Factor of Product
    - 10.3.1.2.2. By Form Factor
    - 10.3.1.2.3. By Rated Voltage
    - 10.3.1.2.4. By End-user
- 10.3.2. Colombia Shunt Reactor Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Form Factor of Product
    - 10.3.2.2.2. By Form Factor
    - 10.3.2.2.3. By Rated Voltage
    - 10.3.2.2.4. By End-user
- 10.3.3. Argentina Shunt Reactor Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Form Factor of Product
    - 10.3.3.2.2. By Form Factor
    - 10.3.3.2.3. By Rated Voltage
    - 10.3.3.2.4. By End-user

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Shunt Reactor Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Siemens AG
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Hitachi ABB Power Grids
15.3. Hyosung Corporation
15.4. Trench Group
15.5. CG Power and Industrial Solutions Limited
15.6. Mitsubishi Electric Corporation
15.7. Fuji Electric Co.
15.8. TBEA Co. Ltd
15.9. Hyundai Heavy Industries Co. Ltd
15.10. Alstom SA