Global Shunt Reactor Market to 2026 – Implementation of Smart Grid Technology is Driving Growth – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Shunt Reactor Market – Forecasts from 2021 to 2026” report has been added to ResearchAndMarkets.com’s offering.
The global shunt reactor market is projected to witness a CAGR of 4.03% during the forecast period to reach a market size of US$3.105 billion by 2026, increasing from US$2.354 billion in 2019.
A shunt reactor is a piece of electrical equipment used in high voltage power transmission systems to stabilize the voltage during load variations. It is similar to a power transformer, but it has only one winding per phase as compared to a power transformer. In other words, shunt reactors are used to increase the power and energy system efficiency as it absorbs & compensate the reactive power in cables and long high voltage transmission lines.
Market Drivers
As nations continue to progress, the power sector becomes an indispensable part of the economy. The industrial and commercial segments rely largely on the uninterrupted supply of electricity. Thus, the increasing demand for electricity, upgrading of the aging technology in developing countries, and the addition of high voltage transmission lines are the driving factors for the shunt reactor market. The industrialization and urbanization trends in the developing nations are further aiding the market in those economies.
By type, the oil-immersed segment is expected to record the highest growth owing to the increase in the demand for electricity and rising investments in the T&D infrastructure. By end-user, the electric utility segment is projected to have the largest market during the forecast period as the power sector continues to expand coupled with industrialization in developing nations. The Asia-Pacific region is showcasing robust growth in the market as economies like China and India are relentlessly expanding their power generation and undertaking high investment.
Growth Factors
Upgrading the power grid to the 21st century
The power and utility sector in developed nations like the United States, the United Kingdom, Germany, have been relying on outmoded technologies which are insufficient for the current needs of power in the industrial districts. Additionally, the commitment to the net-zero transmission of greenhouse gases under Biden’s campaign platform by 2050 and a $2 trillion investment to help equitably achieve this target will bring in further transformation in the power grid technology. Thus, investments in the transmission and distribution infrastructure would see significant growth in the shunt reactor market.
Implementation of smart grid technology
Modernizing the grid through the use of cutting-edge technologies, equipment, and controls that communicate and work together to deliver electricity more reliably and efficiently can greatly reduce the frequency. Variable shunt reactors provide regulation capability and, thereby, system benefits in terms of power quality, optimized grid operation, and the possibility of interacting with other regulating devices. The developed nations are already maturing their implementation of smart grids while the concept is relatively new in the developing countries with immense potential. Hence, smart grid technology adoption will provide a growing opportunity to shunt reactors to increase their market size.
Restraints
As the power and utility segment continues to grow, the shunt reactor market has been benefitted largely during this period. But the development of alternative forms of technology like Flexible AC Transmission System, High-Voltage Direct Current System, and others, in terms of effective performance and speed and are gradually paving the way for these alternative options. These alternatives may bring in a threat to the shunt reactor market.
Market Segmentation:
By Type
- Oil-immersed
- Dry Type
By End-User
- Electrical Utilities
- Industry Verticals
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Australia
- Japan
- South Korea
- India
- Thailand
- Taiwan
- Indonesia
- Others
Companies Mentioned
- ABB
- Siemens AG
- General Electric Company
- Fuji Electric Co. Ltd.
- Nissin Electric Co. Ltd.
- Zaporozhtransformator
- Mitsubishi Electric Corporation
- CG Power and Industrial Solutions Limited
- Toshiba Energy and Solutions Corporation
- HYOSUNG HEAVY INDUSTRIES
For more information about this report visit https://www.researchandmarkets.com/r/ovc6rz
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