Variable Shunt Reactor Market Size (2023-2028):

The Global Variable Shunt Reactor Market was worth US$ 782 million in 2022 and is anticipated to reach a valuation of US$ 1,313.63 million by 2028 and is predicted to register a CAGR of 10.03% during 2023-2028.

A Variable Shunt Reactor is an electrical device used in high-voltage power systems to regulate voltage levels. It is a type of shunt reactor that provides various levels of reactive power compensation, allowing system operators to adjust the compensation level in real time based on changing power demand and system conditions. This improves the stability, reliability, and efficiency of the power system. Variable shunt reactors use thyristor-controlled reactor (TCR) technology to control the amount of reactive power supplied to the power system. The TCRs are controlled by a control system that adjusts the firing angle of the thyristors to change the amount of reactive power supplied by the variable shunt reactor.

Market Drivers:

As the demand for electricity continues to increase worldwide, power systems are becoming more complex and interconnected. This has led to a greater need for voltage regulation and reactive power compensation, which in turn is driving the demand for variable shunt reactors. These devices provide real-time adjustment of reactive power compensation levels, helping to maintain stable voltage levels and improve the reliability and efficiency of the power system. Therefore, the growing demand for electricity is one of the primary drivers of the variable shunt reactor market.

The power infrastructure in many countries is aging and needs upgrading to improve its efficiency, reliability, and stability. This has led to a growing demand for modernization, which is driving the variable shunt reactor market. Variable shunt reactors play a crucial role in regulating voltage levels and stabilizing power systems as reactive power compensation devices. As a result, they are a vital component in achieving the goals of modernization. Therefore, the upgradation of aging power infrastructure is a significant driver of the variable shunt reactor market.

The integration of renewable energy sources like wind and solar power into power grids is driving the variable shunt reactor market. These energy sources are often intermittent and can cause voltage fluctuations in the power system, which variable shunt reactors can mitigate. By regulating voltage levels and providing reactive power compensation, variable shunt reactors help stabilize power systems and ensure their reliability. Therefore, the integration of renewable energy sources is another driver of the variable shunt reactor market.

Market Restraints:

The Variable Shunt Reactor Market faces competition from alternative technologies such as STATCOMs and SVCs. These technologies can provide similar benefits as variable shunt reactors, including reactive power compensation and voltage regulation. This can limit the adoption of variable shunt reactors in some markets where alternative technologies may be more popular or where they have already been deployed. As a result, manufacturers and suppliers of variable shunt reactors may need to differentiate their products and demonstrate their unique advantages to gain a competitive edge in the market.

One of the main restraints of the Variable Shunt Reactor Market is the high capital cost associated with these devices. Variable shunt reactors require significant investments, which can be a barrier to adoption, particularly in developing countries with limited financial resources. This can limit the deployment of variable shunt reactors in regions where they could be most beneficial in stabilizing power systems and improving energy efficiency. As a result, finding cost-effective solutions and innovative financing mechanisms could help overcome this challenge and accelerate the adoption of variable shunt reactors in developing countries.

Market Opportunities:

Advancements in technology present opportunities for the Variable Shunt Reactor Market, as digital control systems and advanced materials can enhance performance and reduce costs. Precise regulation of voltage levels, enhanced durability, and reliability can be achieved through the use of digital control systems and advanced materials, respectively. Digital monitoring and diagnostic tools can identify potential issues and optimize performance, reducing maintenance costs and downtime. Thus, investing in research and development to improve variable shunt reactor technology can lead to new opportunities for growth and innovation in the market.

The expansion of power infrastructure in emerging economies presents a significant growth opportunity for the Variable Shunt Reactor Market. As developing countries modernize their power infrastructure and expand access to electricity, the demand for voltage regulation and reactive power compensation increases. Variable shunt reactors can play a key role in achieving these objectives, making them an attractive investment for power utilities and government entities. Additionally, as renewable energy sources continue to grow, the need for variable shunt reactors to mitigate voltage fluctuations will increase. Therefore, the expansion of power infrastructure presents a significant growth opportunity for the variable shunt reactor market.

Impact of COVID-19 on the Variable Shunt Reactor Market:

The COVID-19 pandemic has had a significant impact on the Variable Shunt Reactor Market. The global economic slowdown caused by the pandemic has led to delays and cancellations of power infrastructure projects, leading to a decline in demand for variable shunt reactors. Additionally, disruptions in supply chains and manufacturing operations have caused production delays and increased costs for variable shunt reactor manufacturers. However, the pandemic has also highlighted the importance of a reliable and stable power supply, particularly for essential services such as healthcare facilities. As such, investments in power infrastructure, including the adoption of variable shunt reactors, may be prioritized in the post-pandemic recovery phase. Furthermore, the shift towards remote work and digitalization has increased the demand for reliable and efficient power supply to support communication and data centers, which could create opportunities for the variable shunt reactor market. Overall, the impact of COVID-19 on the Variable Shunt Reactor Market has been mixed, with short-term disruptions but potential long-term growth opportunities as countries focus on improving their power infrastructure.

VARIABLE SHUNT REACTOR MARKET REPORT COVERAGE:

Market Segmentation:

Variable Shunt Reactor Market - By Type:

• Air-core
• Iron-core

Air-core variable shunt reactors segment is dominating the market because Air-core variable shunt reactors are typically lighter and less expensive than iron-core variable shunt reactors, making them more suitable for applications that require frequent transportation or installation in remote locations. They are also generally more efficient and have lower losses due to the absence of iron cores. However, they may not be as reliable and may require more maintenance due to the possibility of damage to the windings.

Variable Shunt Reactor Market - By Application:

• Power generation
• Transmission
• Distribution

The transmission segment is dominating the variable shunt reactors market. This is because transmission lines are longer and more prone to voltage fluctuations due to the high power transmission over long distances. Variable shunt reactors can help stabilize the voltage levels and improve the power quality of the transmission network.

Variable Shunt Reactor Market - By End-User Type:

• Electric Utilities
• Industrial
• Transportation
• Others

Electric utilities are likely to dominate the variable shunt reactor market segmentation because they have the highest demand for reactive power compensation devices, including variable shunt reactors, to maintain grid stability and reliability. The electric utility sector is responsible for generating, transmitting, and distributing electricity to end-users. The transmission and distribution of electricity over long distances can lead to voltage fluctuations and power quality issues. This is where variable shunt reactors come into play. They are used to regulate voltage levels and stabilize the power grid by absorbing or generating reactive power as needed.

Market Regional Analysis:

• North America
• Europe
• Asia-pacific
• Middle-east and Africa
• Latin America

The Asia-Pacific region is currently dominating the market for variable shunt reactors due to several factors. With a rapidly growing population and urbanization, the region is witnessing a sharp rise in electricity demand, requiring the use of variable shunt reactors to maintain grid stability. The region has a vast power generation and transmission infrastructure, and the use of renewable energy sources is also on the rise, further driving the demand for variable shunt reactors to maintain grid stability. In North America, the market for variable shunt reactors is driven by the increasing demand for electricity and investments in upgrading the power infrastructure. The region's well-established power sector, with a high penetration of renewable energy sources, requires the use of variable shunt reactors to maintain grid stability. In Europe, the market for variable shunt reactors is dominated by the demand from transmission and distribution segments. The region's extensive transmission and distribution network needs these reactors to maintain voltage stability and improve power quality. In the Middle East and Africa, the market for variable shunt reactors is driven by the growing demand for electricity and investments in renewable energy sources. These reactors are essential to maintaining grid stability in the region, which has a large renewable energy potential. In Latin America, the market for variable shunt reactors is driven by the demand from the transmission and distribution segments. The region has an extensive transmission and distribution network, and the use of variable shunt reactors helps maintain voltage stability and improve power quality.

Market Key Players:

1. Bharat Heavy Electricals Limited (BHEL)
2. ABB Ltd.
3. Siemens AG
4. General Electric Company
5. Crompton Greaves Ltd.
6. Mitsubishi Electric Corporation
7. Toshiba Corporation
8. Hyundai Heavy Industries Co. Ltd.
9. Alstom SA
10. Fuji Electric Co. Ltd.

Market Key Developments:

• In 2021, ABB Ltd. introduced a new line of variable shunt reactors that can operate at up to 800 kV. These reactors are designed to provide high power density, reliability, and flexibility.
• In 2021, Siemens AG launched a new series of variable shunt reactors that are equipped with advanced control systems. These reactors are designed to improve the stability and reliability of power systems.