Press release
Shunt Reactor Market Estimated to Expand at a Double-Digit CAGR of 8.6% through 2026
Future Market Insights delivers key insights on the global shunt reactor market in a latest report titled “Shunt Reactor Market: Global Industry Analysis and Opportunity Assessment, 2016–2026”. According to the report, revenue from the global shunt reactor market is projected to expand at a healthy CAGR of 8.6% over the forecast period.Some of the major factors driving the growth of the global shunt reactor market are an expanding electrical distribution network against the backdrop of continually increasing demand for electricity, refurbishment of ageing coal-fired plants, ageing power infrastructure in developed economies, and emergence of microgrids and interconnection of local and regional grids.
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Due to rapid changes in load structure and power generation, transmission and distribution networks are continually facing new demand for transformers and shunt reactors. For instance, in most regions, power grids go through a gradual change such as switching from overhead lines to high-voltage underground cables, addition of capacity to meet electricity demand, and interconnection of state/regional grids. Such changes are expected to drive demand for variable shunt reactors in the near future and in turn offer unprecedented opportunities to shunt reactor manufacturers, distributors, and product converters in the market. Furthermore, the trend is even more pronounced in emerging economies such as Brazil, India, Russia, and China. Healthy trade relations and government support in these regions have served to boost export-import activities of shunt reactors.
However, increasing component costs could inhibit new product sales, which could pose challenges and thereby restrain the growth of the global shunt reactor market.
Segmentation highlights
The global shunt reactors market is segmented on the basis of region, product type, phase, rating, voltage range and end-use application. By product type, shunt reactors are segmented into air-core dry type and oil immersed. On the basis of end-use application, the market is segmented into residential and commercial. On the basis of rating type, the global shunt reactor market is segmented into fixed and variable. By voltage range the market is segmented into less than 200 kV, 200-400 kV, and greater than 400 kV.
Global oil-immersed shunt reactor segment accounted for 64.8% share of the global shunt reactor market in 2015. Oil-immersed segment is projected to remain dominant over the forecast period, with increasing Y-o-Y growth of 6.7% to 8.9% from 2016 to 2026.
In terms of value and volume, three phase shunt reactor segment dominated the global shunt reactor market in 2015. The segment is estimated to account for 58.3% market value share by the end of 2016. The segment is projected to remain dominant over the forecast period, with increasing Y-o-Y growth of 6.7% to 9.1% from 2016 to 2026. Increasing number of industrial establishments and growing demand for three phase electricity in manufacturing and assembling facilities are expected to play a major role in the growth of the three phase shunt reactor segment.
In terms of value and volume, fixed shunt reactor segment dominated the global shunt reactor market in 2015. The segment is estimated to account for 81.3% market value share by the end of 2016. The segment is projected to remain dominant over the forecast period, with increasing Y-o-Y growth of 7.0% to 9.0% from 2016 to 2026. Increasing number of power substations and power grids across the globe is the major factor driving the growth of fixed shunt reactors.
Regional forecast
The global shunt reactor market is segmented into the seven key regions of North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, Middle East & Africa, and Japan. By 2016 end, the global shunt reactors market in Asia Pacific excluding Japan (APEJ) is estimated to hold the second highest market share of 24.9%. Consumption of shunt reactors in APEJ is projected to register a higher Y-o-Y growth rate due to expanding power generation and distribution infrastructure to meet increasing electrical energy demand, mostly from industries based in China and India.
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Vendor insights
Key market participants covered in the report include ABB Ltd., General Electric (ALSTOM), Fuji Electric Co. Ltd., Toshiba Corporation, Siemens AG, Zaporozhtransformator PJSC, Nissin Electric Co. Ltd, and Hyosung Corporation.
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