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.
The global shunt reactors market report has a segmentation based on type which includes oil-immersed and air-core dry shunt reactors. Category of oil-immersed shunt reactors is anticipated to dominate the market in the forthcoming years. Expanding power transmission & distribution infrastructure in developing regions, growing global enegy demand and addition of high voltage transmission is projected to be the dynamic driving force for the shunt reactor market. Application of these shunt reactors is dominantly in transmission lines which include voltage levels greater than 40kV. Oil-immersed reactors comes with core-less or with gapped iron core. Usually, they have three-phase or single-phase design with or without fan cooling and installed within tanks which hold oil & act as metallic magnetic shields. Oil-immersed shunt reactors are considered highly compact, cost-efficient and suitable for high voltage transmission lines.
The global shunt rectors has regional segmentation which covers Europe, Asia-pacific, South America, Middle East & Africa. In 2018, Asia-Pacific had highest share for shunt reactors across the globe and the market is expected to exhibit optimistic growth during the forecast period. In asia-pacific, there is high investment in smart grid infrastructure development, increasing dependence on renewable power generation sources, modernization and upgradation of electrical networks in recent past. China held highest shre in the Asia-Pacific region as there is enormous demand for electricity fueled by industrialization and urbanization and investment in developing T&D network, would fuel the demand for shunt reactors.