A shunt capacitor is an electrical device that improves the quality of electricity supply and permits efficient operation of the power system. These capacitors are primarily installed to provide capacitive reactive compensation or power factor correction. The application of the shunt capacitor is increasing continuously, mainly due to its low cost, easy and quick installation and convenient virtual deployment, anywhere in the power network. The shunt capacitor market is driven by various factors such as the increase in power consumption, and high investment in renewable energy power generation. The shunt capacitor market has various restraints such as fluctuation in raw material prices and high initial investment.
There is huge scope for shunt capacitor in developing nations. Developing markets such as India and China tend to have a higher growth rate with low level of competition. This gives them huge opportunities for the power business in these countries. Indian companies are displaying attention in power generation and in the electricity sector, and have developed 319.60 GW of power generation capacities. This will create vast opportunities for OEMs such as manufacturers of conductors, insulators, shunt capacitors and Engineering Procurement Construction (EPC).
For the purpose of this study, shunt capacitor market has been segmented, based on voltage, end-user, and region. By voltage, High Voltage accounted for the largest market share and is projected to grow at the highest CAGR of 7.38% during the forecast period. High voltage capacitors offer excellent reliability and thermal shock performance. By end-user, Utilities accounted for the largest market share and is projected to have the highest CAGR of 7.55% during the forecast period. Utilities use these capacitors at distribution and utilization voltages to provide reactive power near the inductive loads that require it.
Read more: Shunt Capacitor Market 2018