Air Core Fixed Shunt Reactor Market By Power Rating (Below 50 MVAR, 50-100 MVAR, Above 100 MVAR), By Application (Grid Voltage Control, Industrial), By End-Use Industry (Power Transmission, Renewable Energy), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Air Core Fixed Shunt Reactor Market was valued at USD 621.3 million in 2023 and will surpass USD 1,058.9 million by 2030; growing at a CAGR of 7.9% during 2024 - 2030.

The Air Core Fixed Shunt Reactor Market is expanding rapidly due to the increasing need for efficient voltage control in power transmission networks. Shunt reactors, especially air core fixed types, are essential for maintaining voltage levels and ensuring the stability of electrical grids, particularly in regions with high voltage fluctuations. Air core fixed shunt reactors provide reactive power compensation, which helps prevent overvoltage conditions and supports grid stability, making them vital for modernizing power systems. With the ongoing global transition towards renewable energy and the growing complexity of energy grids, the demand for these reactors is expected to continue rising.

The application of air core fixed shunt reactors is crucial in both industrial and grid voltage control settings, where the reactors play an essential role in managing power quality. They are especially valuable in networks with large renewable energy inputs, where voltage levels can fluctuate due to the intermittent nature of sources such as wind and solar. These reactors help ensure consistent and reliable electricity supply, which is critical for both utilities and industries. As the energy market evolves, the role of air core fixed shunt reactors will become even more prominent in ensuring the efficiency and stability of electricity distribution systems.

Below 50 MVAR Power Rating Segment Is Largest Due to Increased Demand for Grid Stability

The Below 50 MVAR power rating segment is the largest in the air core fixed shunt reactor market, primarily driven by the widespread demand for low- and medium-capacity voltage regulation solutions in power transmission systems. Power grids, particularly in urban areas, often require smaller shunt reactors to provide localized voltage control. These reactors are commonly used in areas where transmission lines are shorter, and the amount of reactive power required for voltage stabilization is relatively lower. The popularity of this segment is also due to the fact that air core fixed shunt reactors in this range are cost-effective and suitable for a wide variety of applications, including grid voltage control and industrial power systems.

The demand for reactors with power ratings below 50 MVAR is rising as countries modernize their power infrastructure to meet growing electricity demands. These reactors are particularly beneficial in regions where the grid is expanding to accommodate both conventional and renewable energy sources. Furthermore, as grid operators seek to reduce operational costs and improve efficiency, smaller power rating reactors offer a solution that balances performance and cost, making them the preferred choice for many utility companies.

Grid Voltage Control Is Fastest Growing Application Due to Renewable Energy Integration

The Grid Voltage Control application is the fastest-growing segment in the air core fixed shunt reactor market, fueled by the increasing integration of renewable energy sources into power grids. The volatile nature of wind and solar power necessitates advanced grid voltage regulation to maintain stable and reliable electricity supply. Air core fixed shunt reactors play a crucial role in reactive power compensation, helping to maintain voltage levels within acceptable ranges and prevent voltage surges or dips caused by fluctuating renewable energy generation.

With the global shift towards cleaner energy sources, there is an escalating need for grid systems that can handle the fluctuations in power output. Grid operators are turning to air core fixed shunt reactors for their ability to quickly and efficiently absorb reactive power and stabilize the grid. This application is expected to experience robust growth, especially in regions where renewable energy adoption is accelerating, such as Europe and North America.

Power Transmission Industry Is Largest End-Use Sector for Air Core Fixed Shunt Reactors

The Power Transmission industry is the largest end-use sector for air core fixed shunt reactors. These reactors are integral in power transmission networks, where they help to regulate voltage and ensure that electricity can be transmitted over long distances without excessive losses or instability. In high-capacity transmission lines, air core fixed shunt reactors provide essential support for maintaining the power factor and stabilizing the grid. The growth of the power transmission industry is driven by the increasing demand for electricity and the need to upgrade aging grid infrastructure to meet modern power transmission requirements.

The continued expansion of electrical grids to meet the needs of rapidly growing populations and industries further reinforces the demand for air core fixed shunt reactors in this sector. Power transmission networks are essential for linking power generation plants with consumers, and maintaining voltage stability is crucial for ensuring the smooth operation of these systems. As power transmission capacity expands to accommodate higher renewable energy penetration, the need for efficient and reliable voltage control systems like air core fixed shunt reactors will continue to grow.

Asia Pacific Is Fastest Growing Region Due to Expanding Power Infrastructure

The Asia Pacific region is the fastest growing market for air core fixed shunt reactors, driven by rapid industrialization, urbanization, and the expanding need for reliable and efficient power infrastructure. Countries such as China and India are making significant investments in power transmission and distribution systems to support their growing energy needs. As the region continues to integrate more renewable energy sources, particularly solar and wind, the demand for voltage control solutions like air core fixed shunt reactors is expected to rise sharply.

Asia Pacific’s emphasis on grid modernization and the implementation of smart grid technologies further boosts the adoption of these reactors. The region’s commitment to enhancing its energy infrastructure to support economic growth and sustainability goals has led to an increased focus on voltage stabilization. As the region strives to balance energy supply and demand, air core fixed shunt reactors are becoming increasingly crucial for ensuring the reliability and stability of electrical grids.

Leading Companies and Competitive Landscape

The air core fixed shunt reactor market is highly competitive, with several key players leading the charge in terms of product innovation and market expansion. Companies like Siemens AG, General Electric, Schneider Electric, and ABB Ltd. are some of the prominent names in the market, offering advanced solutions for voltage regulation and grid stability. These companies are focusing on improving the performance and efficiency of their air core fixed shunt reactors to meet the growing demand from utilities and industrial sectors.

The competitive landscape is marked by strategic collaborations, mergers, and acquisitions as companies seek to expand their market share and technological capabilities. With a growing emphasis on renewable energy integration and grid modernization, companies are increasingly focused on offering sustainable solutions that align with global energy transition goals. As the market evolves, technological advancements and the ability to provide cost-effective, reliable products will be key factors in maintaining a competitive edge in the air core fixed shunt reactor market.

List of Leading Companies:

• ABB Ltd.
• Siemens AG
• Schneider Electric
• General Electric (GE)
• Mitsubishi Electric Corporation
• Hitachi Energy
• WEG S.A.
• Eaton Corporation
• Hyundai Electric & Energy Systems Co.
• Toshiba Corporation
• BHEL (Bharat Heavy Electricals Limited)
• Alstom (GE Power)
• Piller Power Systems
• Schneider Electric India
• CG Power and Industrial Solutions Limited

Recent Developments:

• In November 2024, ABB Ltd. launched a new series of air core fixed shunt reactors, designed to improve grid stability for renewable energy integration.
• In October 2024, Siemens AG secured a contract to supply air core fixed shunt reactors for a large-scale power transmission project in Asia.
• In September 2024, Mitsubishi Electric Corporation developed an advanced air core fixed shunt reactor for industrial voltage regulation, focusing on reducing energy losses.
• In August 2024, General Electric (GE) completed the installation of air core fixed shunt reactors for a wind energy project in Europe, enhancing grid connectivity.
• In July 2024, Schneider Electric introduced a new line of air core fixed shunt reactors optimized for medium voltage applications in power plants and substations.

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