Shunt Reactor Market: Current Analysis and Forecast (2021-2027)

Report Description

Shunt Reactor Market is anticipated display a CAGR of around 5% over the forecast period (2021-2027). The Shunt Reactor market has captured significant market demand and is expected to grow at an influential rate in the forecasted period as well. It is mainly due to increasing digitization and a rise in the population. Moreover, the government is investing in expanding its existing electricity transmission and distribution systems to cater to the rising electricity demand due to rapid urbanization and industrialization. Furthermore, a rise in average electricity consumption is anticipated to account for steady growth in the shunt reactor market. In addition, increasing consumption of electricity and a growing emphasis on renewable electricity generation are the key factors driving the market’s growth. In addition, major players in the market are continuously testing and launching shunt reactors suitable for renewable energy power plants.

General Electric Company, Siemens Energy AG, Hitachi Energy Ltd., Hyosung Corporation, CG Power and Industrial Solutions Limited, Nissin Electric Co. Ltd., Fuji Electric Co., TBEA Co. Ltd., Hyundai Heavy Industries Co. Ltd., and GBE S.p.A. are some of the prominent players operating in the Shunt Reactor market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Phase, Three phase category to hold significant market share”

Based on phase, the shunt reactor market is categorized into Single Phase and Three Phase. Amongst these, the three-phase category is expected to hold a significant share of the market in 2020 owing to its wide use in transmission and distribution networks. These shunt reactors are extensively used for controlling the voltage throughout load differences in high voltage energy transmission systems. Based on the requirements of voltage, these reactors will operate to provide compensation for reactive power. They absorb (consume) reactive power by connecting them to the transmission line. Furthermore, increasing consumption of electricity due to an increasing population, followed by an increasing number of consumers and rapid urbanization, has led to a rise in demand for electricity, thereby raising the growth of shunt reactors across the globe.

“Amongst Voltage, 400 KV category to witness strong CAGR”

Based on voltage, the Shunt Reactor market is bifurcated into three segments: up to 200 KV, 200-400 KV, and above 400 KV. In 2020, the above 400 KV category accounted for a considerable share of the market. Moreover, growing requirements for protection solutions against sudden voltage spikes and investments into upgrading existing transmission and distribution networks will also augment the demand for high voltage shunt reactors. For instance, in India, under the Union Budget 2021-22, the government allocated US $42 billion (Rs. 305,984 crore) for a revamped, reform-based and result-linked new power distribution sector scheme over the next five years. Moreover, electrification in the country is increasing with support from schemes like Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), among others. Thus, demand for high voltage shunt reactors from countries like India is expected to drive the market’s growth during the forecast period..

“Amongst End-User, Electric Utilities Category to Witness Higher CAGR”

On the basis of end-user, the market is categorized into electric utilities and industrial verticals. During the forecast period, the electric utilities category is expected to witness higher growth during the forecast period. This is mainly due to the refurbishment and retrofit of existing grid infrastructure in various developed and developing nations, coupled with the expansion of smart grid networks and the introduction and adoption of stringent energy efficiency norms globally. For instance, the Smart Renewables and Electrification Pathways Program (SREPs) supports building Canada’s low-emission energy future and a renewable, electrified economy through projects that focus on non-emitting, cleaner energy technologies, such as storage and modernizing electricity system operations. Investing in these technologies reduces greenhouse gas emissions by creating a cleaner, more connected electrical system that is expected to help Canada reach its net-zero emissions target by 2050.

 “Asia Pacific represents one of the largest markets of Shunt Reactor market”

For a better understanding of the market dynamics of the Shunt Reactor market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Italy, United Kingdom, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC) and Rest of the World. APAC region has been witnessing some of the largest T&D expansions due to rapidly increasing demand in countries such as India and China. In addition, an upsurge in renewable power generation projects is expected to positively influence the market demand for shunt reactors. For instance, in 2021, China’s total renewable energy capacity increased 10.2 percentage points as compared to 2015. The capacity exceeded 1,000 GW in 2021, according to the National Energy Administration, accounting for 43.5% of the country’s total power generation capacity. Thus, with the increased support of the government and improved economics, the sector has become attractive from an investor’s perspective, which is further expected to drive the market for shunt reactors in the region.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Shunt Reactor market were the three major steps undertaken to create and analyze the adoption of Shunt Reactor in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Shunt Reactor market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Shunt Reactor through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Shunt Reactor market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as Phase, Type, Voltage, Application, and End-User. Further country-level analyses were conducted to evaluate the overall adoption of Shunt Reactor in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Shunt Reactor. Further, we conducted factor analysis using dependent and independent variables such as increasing digitalization of industries and urbanization in developing countries. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Shunt Reactor sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Shunt Reactor market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of Shunt Reactor across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Shunt Reactor market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Shunt Reactor market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and their type of the Shunt Reactor market.

The main objective of the Shunt Reactor Market Study

The current & future market trends of Shunt Reactor were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Shunt Reactor in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of type and their subtypes
• Define and analysis of the regulatory framework for the Shunt Reactor industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Shunt Reactor market for the major region
• Major regions studied in the report include North America (the U.S, Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Others), and the Rest of the World
• Company profiles of the Shunt Reactor market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry