Shunt Reactor Market Surges to $5.62 Billion by 2032 Amid Renewable Energy Boom and Grid Modernization

Leander, Texas and Tokyo, Japan - Jan.05.2026
As per DataM Intelligence research report "Global Shunt Reactor Market reached US$ 3.08 billion in 2024 and is expected to reach US$ 5.62 billion by 2032, growing with a CAGR of 7.81% from 2025 to 2032." Rising electricity demand, renewable energy integration, grid modernization, and need for voltage stability in high-voltage transmission networks are fueling demand for shunt reactors.

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Japan: Recent Industry Developments
✅ In October 2025, Mitsubishi Electric delivered gapped-core shunt reactors for Japan's Hokkaido grid reinforcement. The installation improves reactive power compensation for offshore wind farms and enhances seismic-resilient operations.
✅ In 2025, Japanese manufacturers advanced dry-type shunt reactors for urban and indoor applications, prioritizing compactness, safety, and low maintenance in constrained networks.
✅ In 2025, Government initiatives supported smart grid technologies and renewable integration, driving adoption of digitally controlled shunt reactors for real-time monitoring.

United States: Recent Industry Developments
✅ In October 2025, Siemens Energy commissioned a new series of high-voltage shunt reactors in Texas. The project enhances grid stability for renewable integration amid rising solar capacity, featuring advanced digital monitoring.
✅ In August 2025, ABB launched oil-immersed shunt reactors with low-loss designs at a Midwest utility project. The solution reduces energy losses by 15% and aligns with federal incentives for efficient infrastructure.
✅ In 2025, Utilities expanded deployment of shunt reactors to stabilize grids in renewable-heavy networks, supporting large-scale wind and solar projects nationwide.

Shunt Reactor Market: Drivers
The shunt reactor market is driven by surging global electricity consumption and integration of intermittent renewables like wind and solar, requiring reactive power compensation for voltage control and grid stability. Investments in transmission infrastructure modernization, ultra-high-voltage networks, and smart grids promote adoption of advanced shunt reactors.
Another driver is the need to minimize transmission losses, improve power factor, and ensure reliability in expanding grids. Regulatory focus on energy efficiency, sustainability, and digital monitoring technologies, along with high initial costs offset by long-term savings, sustain market growth.

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Shunt Reactor Market: Major Players
General Electric, Siemens, Toshiba Corporation, CG Power and Industrial Solutions Limited, Hitachi Energy, Hyosung Corporation, ABB Ltd, Nissin Electric Co Ltd, Fuji Electric Co., Ltd, GBE SpA.

Segment Covered in the Shunt Reactor Market:
By Type
The market is segmented into Oil-Immersed (leading due to suitability for high-voltage and UHV systems) and Dry-Type (growing in urban/indoor settings for safety and compactness).
By Application
Fixed and Variable.
By Voltage Level
Low Voltage, Medium Voltage, High Voltage.
By End-User
Power Generation Companies, Transmission & Distribution Companies, Industrial Users, and Others.

Regional Analysis
Asia Pacific - Leading Share (41.8%)
Asia Pacific dominates the shunt reactor market due to massive investments in transmission infrastructure, integration of renewable energy, and expansion of high-voltage networks, particularly in China, India, and Japan. Rapid industrialization and urbanization are also driving demand for grid stabilization solutions.
North America - Significant Share (23.5%)
North America maintains a strong position, fueled by grid modernization programs, expansion of renewable energy sources, and federal incentives in the U.S. for power infrastructure upgrades. Utilities are increasingly adopting shunt reactors to improve grid reliability and manage reactive power.
Europe - Strong Share (19.2%)
Europe's market grows steadily with stringent sustainability regulations, smart grid initiatives, and the integration of renewable energy into the power system. Countries like Germany, France, and the U.K. are investing heavily in transmission reliability and reactive power management.
Latin America - Gradual Growth (9.3%)
Latin America is witnessing gradual growth, driven by ongoing infrastructure projects and the modernization of aging power grids in countries such as Brazil, Mexico, and Chile. Demand for shunt reactors is rising as utilities work to reduce transmission losses.
Middle East & Africa - Emerging Growth (6.2%)
The Middle East and Africa show emerging growth, with significant investments in power generation and transmission infrastructure. Countries like Saudi Arabia, UAE, and South Africa are focusing on stable and efficient power systems, creating opportunities for shunt reactor adoption.

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