Future Market Insights delivers key insights on the global shunt reactor market in a latest report titled “Shunt Reactor Market: Global Industry Analysis and Opportunity Assessment, 2016–2026”. According to the report, revenue from the global shunt reactor market is projected to expand at a healthy CAGR of 8.6% over the forecast period.
Some of the major factors driving the growth of the global shunt reactor market are an expanding electrical distribution network against the backdrop of continually increasing demand for electricity, refurbishment of ageing coal-fired plants, ageing power infrastructure in developed economies, and emergence of microgrids and interconnection of local and regional grids.
Due to rapid changes in load structure and power generation, transmission and distribution networks are continually facing new demand for transformers and shunt reactors. For instance, in most regions, power grids go through a gradual change such as switching from overhead lines to high-voltage underground cables, addition of capacity to meet electricity demand, and interconnection of state/regional grids. Such changes are expected to drive demand for variable shunt reactors in the near future and in turn offer unprecedented opportunities to shunt reactor manufacturers, distributors, and product converters in the market. Furthermore, the trend is even more pronounced in emerging economies such as Brazil, India, Russia, and China. Healthy trade relations and government support in these regions have served to boost export-import activities of shunt reactors.
However, increasing component costs could inhibit new product sales, which could pose challenges and thereby restrain the growth of the global shunt reactor market.
The global shunt reactors market is segmented on the basis of region, product type, phase, rating, voltage range and end-use application. By product type, shunt reactors are segmented into air-core dry type and oil immersed. On the basis of end-use application, the market is segmented into residential and commercial. On the basis of rating type, the global shunt reactor market is segmented into fixed and variable. By voltage range the market is segmented into less than 200 kV, 200-400 kV, and greater than 400 kV.
Global oil-immersed shunt reactor segment accounted for 64.8% share of the global shunt reactor market in 2015. Oil-immersed segment is projected to remain dominant over the forecast period, with increasing Y-o-Y growth of 6.7% to 8.9% from 2016 to 2026.