Shunt Reactor Market - Growth, Trends, Forecast (2020 - 2025)

Shunt Reactor Market - Growth, Trends, Forecast (2020 - 2025)

Market Overview

The need to increase the efficiency of the system and provide reliable power is increasing the global demand for shunt reactor. The need for protection solutions for sudden voltage spikes is also driving the demand for shunt reactors. However uncertain market scenarios in some countries is challenging the growth of this market.The rising demand for power will drive the demand for products,solutions and services allied to the energy sector around the world.Shunt reactor demand for the energy and utility will grow significantly in coming years in-mid of growing electricity demand. Moreover, growing demand for renewable sources of power generation has led to the various power projects across the globe, providing the boost to the shunt reactors market.

Scope of the Report

A shunt reactor is a compact device that basically absorbs reactive power boosting the energy efficiency of the system. Reactive power is the contributor to added load across power transmission systems.Shunt Reactors are commonly used for reactive power compensation in long high-voltage transmission lines and in cable systems.Shunt reactors are normally connected to substation bus-bar, often directly to the overhead transmission lines.

Key Market Trends

Increasing Need for Modernisation of Transmission and Distribution Networks

  • Electric power transmission and distribution networks act as the vital link between generating stations and customers. Transmission and distribution networks are undergoing modernization, extension, and upgradation across the world. This is to meet growing energy demands primarily as well as to make them compatible with emerging renewable sources that produce energy intermittently. Increasing loads and aging equipment are being replaced to decrease the risk of widespread blackouts.
  • Moreover, governments across the world are focusing on renewable energy projects, as they are environment-friendly and can provide long-term sustainable solutions. The global energy efficiency programs have been initiated by most of the governments across the globe to meet international regulations by setting up energy plants to harness renewable sources of energy, such as wind and solar. This is placing new demand for transmission and distribution networks. The global shunt reactor market is witnessing cascading effects of these developments.
  • The other factor that will play a crucial role in the growing demand for shunt reactor is the emergence of IoT and smart grid projects. Deployment of new technology platform-enabled infrastructure has resulted in the development of smart grids, especially in developed countries.
Asia-Pacific and North America will Experience a Substantial Growth in Demand for Shunt Reactor
  • Asia-Pacific region will dominate the global shunt reactor market, owing to huge government expenditure in the energy sector and rapid urbanization. Increasing number of transmission and distribution projects undertaken in this region will push the sales of the shunt reactors in this market. The increased demand for utilities will drive the need for better infrastructure leading to higher demand for Shunt Reactors.
  • North America closely follows Asia-Pacific in terms of demand mainly due to a well-established transmission and distribution sector. US government has invested extensively to upgrade its existing infrastructure leading to a growing demand for Shunt reactor in the country. In fact, one of the major trends that will drive the growth of shunt reactors market is large scale projects in developed regions for the modernization of outdated and inadequate power and supply network of electricity in developed regions.
Competitive Landscape

The shunt reactor market is highly concentrated due to the dominance of few established shunt reactor manufacturers like ABB Ltd, Siemens AG, CG Power and Industrial Solutions Limited, Mitsubishi Electric Corporation, among others. The vendors in this market provide similar equipment and hence the competition among the players in intense. Innovation and better voltage protection solutions will determine the dominance of major players in the high growth regions like Asia-Pacific over the forecast period. Major collaborations and partnerships have been taking place in this industry to establish market leadership.
  • October 2017 - L&T in Oman has selected Siemens to supply four shunt reactors to the Oman Electricity Transmission Company (SAOC). The reactors will be manufactured at Siemens transformer factory in Weiz, Austria and are scheduled for delivery in 2018. The reactors will be installed at 400kV substations in Izki and Ibri to improve grid stability across the transmission lines between these cities.
  • January 2017 - Bharat Heavy Electricals Limited (BHEL) in partnership with ABB won an INR13.6 billion order from the Power Grid Corporation of India to deliver the ultra-high voltage direct current (UHVDC) transmission project in India. BHEL will supply converter transformers, shunt reactors, filter bank capacitors, and instrument transformers from its Bhopal plant and thyristor valves from its electronics division, Bengaluru. The HVDC link is expected to be complete by 2019.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Introduction to Market Dynamics
4.3 Market Drivers
4.3.1 Increasing Need for Modernisation of Transmission and Distribution Networks
4.3.2 Increased Industrialisation of the Developing Nations
4.4 Market Restraints
4.4.1 High Initial Investment to Set Up Shunt Reactor
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5.1 By Type
5.1.1 Oil-Immersed Reactor
5.1.2 Air Core Dry Reactor
5.2 By Application
5.2.1 Electrical Utilities
5.2.2 Industrial Utilities
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia Pacific
5.3.4 South America
5.3.5 Middle East and Africa
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Siemens AG
6.1.3 CG Power and Industrial Solutions Limited
6.1.4 Mitsubishi Electric Corporation
6.1.5 Fuji Electric Co.
6.1.6 TBEA Co., Ltd.
6.1.7 Hitachi, Ltd.
6.1.8 Hyundai Heavy Industries Co., Ltd.
6.1.9 General Electric Company
6.1.10 Alstom SA

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