The Global Shunt Reactor Market Is Expanding as a Result of Rising Electricity Usage

The shunt reactor market is projected to witness a compounded annual growth rate of 4.99% to grow to US$3.243 billion by 2027, from US$2.306 billion in 2020

Shunt reactors are identical to power transformers; however, they only have one winding per phase. As they absorb and balance the reactive power in cables and lengthy high-voltage transmission lines, shunt reactors are used to improve the efficiency of power and energy systems. The power line or the third winding of a three-winding transformer may be directly connected to it.

The need for voltage control equipment is highlighted by the rapidly shifting energy landscape and the rising number of high-voltage transmission lines. The shunt reactor is the most cost-effective and space-saving technology for controlling reactive power generation in cable and high-power transmission networks. Reactive power is produced in long transmission lines due to capacitance between the lines and the earth. No application may make advantage of reactive power. Reactive power is absorbed by the shunt reactor, which improves the system's energy effectiveness. Additionally, the shunt reactor makes it possible to modify the reactive power compensation as the load changes over time.

The growing urbanization and rising electricity usage are expected to drive the global shunt reactor market.

The Shunt Reactor Market is being driven by rising energy consumption, the updating of outdated technology in developing nations, and the construction of high-voltage transmission lines. The increasing emphasis on grid dependability and minimizing energy loss during transmission has resulted in the introduction and development of alternative technologies such as FACTS (Flexible AC Transmission System) and HVDC systems, which serve as limitations on the Shunt Reactor Market. Most developed countries' existing transmission and distribution networks rely on old infrastructure and antiquated technology that struggle to fulfill current and future expanding demand.

It is projected that rising urbanization and rising electricity usage would drive the market. Since businesses and individuals heavily rely on a consistent supply of electricity, it is essential to the economy. The requirement for adequate power transmission is more important than ever in the age of electrification and digitalization. Such reactors will be crucial in the future for high-speed trains and metro, smart cities, high-speed internet connectivity, and electric vehicles, among other things.

The market for shunt reactors is being driven mostly by urbanization, but also by government initiatives to bring power to rural regions, particularly in the Asia Pacific region. India, China, South Korea, Indonesia, and other nations with rising disposable wealth are among those making considerable efforts to promote the electricity grid.

The increase in electricity connectivity projects undertaken by various governments globally will drive the growth of the global shunt reactor market

The demand for goods, services, and solutions related to the energy industry will increase in response to the rising need for electricity. In the upcoming years, there will be a significant increase in the demand for shunt reactors in the energy and utility sector due to rising worldwide electricity consumption and connection initiatives.

For instance, In August 2019 the Republic of Lithuania's Ministry of Energy launched a project to synchronize the country's energy network with the grid in Western Europe. This project would lessen Belarus's ability to transmit electricity and stop future electricity flow from the dangerous Astravets Nuclear Power Plant (NPP). The repair of two 330 kV transformer substations in Ignalina and Utena is part of the North-East Lithuanian rehabilitation project. The Ignalina substation's 330 kV-controlled shunt reactor will be transferred to Elektrnai's 330 kV switchyard. Given the significance of synchronization and the complexity of the project, which includes not only the building of the infrastructure for power transmission but also contacts with other nations, a special commission was decided upon by the government.

By 2025, the Lithuanian electric power system will be fully synchronized with the Continental European network thanks to the efforts of this commission, which will oversee effective inter-institutional collaboration and coordination thus the use of shunt reactors will increase in this project and several other projects passed by these government for power grid which will certainly make sure the growth of Shunt Reactor Market

The upgrade the power grid technology is a significant growth driver for global shunt reactor market

Many countries recognize that, given the rising energy demand, upgrading and modernizing the power infrastructure will be a pillar in their respective country’s development. In wealthy countries like the United States, the United Kingdom, and Germany, the power and utility sectors have relied on antiquated technology that is insufficient for the present demands of electricity in the industrial areas. According to the International Energy Agency, annual expenditures in energy sector infrastructure and technologies must increase from their present level of more than $1 trillion to $4 trillion by 2030 to achieve net-zero emissions by 2050. Princeton University estimates that by 2030, the size of the US electricity transmission network will need to be doubled.

Authorities were forced to upgrade old facilities and extend the grid infrastructure due to the exponentially growing demand for power to maintain a steady supply. In addition, wind energy and solar energy are growing parts of the energy mix across the world to mitigate carbon emissions. Shunt reactors are widely used in transmission and distribution systems as well as renewable energy sources to compensate and regulate reactive power to enhance the energy efficiency, which is likely to brighten up the market prospects. The infrastructure is drastically changing due to increasing digitalization and rising power demand, and as a result, the need for shunt reactors is expected to rise in the upcoming year.

During the forecast period, the shunt reactor market is expected to grow in the asia pacific region

The Asia Pacific area presently has the largest shunt reactor market, followed by North America and Europe. The growing demand for shunt reactors in the Asia Pacific is driven by increased utility expenditure, which will result in greater grid resilience. The inclusion of a high voltage transmission network as well as rising renewable energy investments is projected to contribute to the growth of the Asia Pacific shunt reactor market.

Orders have been received for Larsen & Toubro's Power Transmission & Distribution Business both in India and internationally. The business's renewable division has been given the go-ahead to build a 245 MW solar power plant in Rajasthan. Also, a new order has been obtained to carry out a solar photovoltaic energy storage project in Gujarat's Kutch area. The large-scale, grid-interactive green energy storage project will include a 57 MWh Battery Energy Storage System with a 35 MW (AC) solar capacity (BESS).

Particularly in the Asia-Pacific area. Countries with rising disposable income, such as India, China, South Korea, and Indonesia, are taking substantial measures to expand their energy infrastructure. Because of government initiatives to upgrade the grid infrastructure, the Asia Pacific region is expected to dominate the market. India and China are probably going to be quite important in boosting the market's expansion. To offer power on a wider scale, the Indian government is heavily investing in extending the national grid, which is advantageous for the Shunt Reactor market for its growth regional wise and also global reach.

Knowledge Sourcing Intelligence is a market research and consulting firm based out of India. Steered by some of the industry experts, the company provides syndicated reports, custom research, and consulting services.