The “Global Shunt Reactor Market Size by Type (Oil-Immersed and Air-Core Dry), by End-User Industry (Electrical Utilities and Industrial Verticals), by Region and Forecast 2018 to 2025” study provides an elaborative view of historic, present and forecasted market estimates.
Shunt reactor are basically inductive loads used to absorb reactive power, thereby reduce overall voltage generated by line capacitance. It is used for improving the energy efficiency of a system. These devices are generally used for reactive power compensation in long high-voltage cable systems and transmission lines.
The global shunt reactor market size has shown optimistic growth in past which is anticipated to scale up to USD 4.26 Billion by the end of 2025. The key drivers of shunt reactors across the globe includes growing energy demand, growing investments on power transmission & distribution network, addition of high transmission lines and establishment of renewable energy plants.
However, there are some factors that may hamper the overall growth such as increasing demand for alternative technologies like HVDC systems and FACTS. Besides, instability seen in cost of raw materials used for manufacturing of shunt reactors like gauge devices, capillary tubes, radiators, steel sheets, copper conductors, silica gel, etc. The design of smart grid technologies and constant surge in the development of power generation technologies are some of the factors that is expected to offer multiple growth opportunities across the globe. This market foresees optimistic growth prospects in emerging countries like China and India.
Smart grids would act as an opportunity for shunt reactor manufacturers as they help to improve energy efficiency. The existing grid infrastructure in most electric networks around the world is traditional and need an upgrade. Hence, growing need for renewable energy supply and penetration of IoT are expected to boost the demand for smart grids. Thus, shunt reactors have a lot of potential in the near future and can be installed to manage the fluctuations and loss of power while smart grids can help in transmitting data about outages and faults in the substation automatically.