Global Shunt Reactor Market 2017-2021

Overview of the global shunt reactor market

Owing to the need for increasing grid reliability, several countries such as China, India, Russia, and South Africa are focusing on overall grid reliability and ensure its proper functioning. According to Technavio’s market research analysis, the need for increasing grid reliability will be one of the primary factors that will fuel the growth of the shunt reactor market in the coming years. In addition to increasing the overall efficiency, the reliability of the grid also plays a major role in ensuring equipment safety. With incidences such as voltage fluctuation causing severe damage to the entire grid during transmission and distribution, the demand for shunt reactors will increase in the coming years since they provide the necessary protection against over-voltages, in turn, driving the growth of this global market. Our market research analysts estimate that this market will grow steadily at a CAGR of more than 7% by 2021.

According to our analysis, the growing demand for reliable and flexible grid systems will be one of the key trends that will gain traction in the shunt reactor market in the coming years. The growing need for flexible power systems is one of the key trends that will gain traction it the shunt reactor market during the next few years. With the emergence of renewable energy, the intermittency of power generation compels energy companies to make changes to the rigid grid to a more reliable and flexible structure. The increasing adoption of renewable energy, is driving the need to upgrade the existing T&D equipment and install modern grid facilitating technologies, which will subsequently drive the need for shunt reactors.

Competitive landscape and key vendors

The shunt reactor market appears to be highly concentrated due to the presence of few established shunt reactor manufacturers. Since the vendors provide similar equipment, the competition among the players in quite intense. The increased focus of the vendors to provide innovative and better voltage protection solutions and the need to their market shares in APAC, will further intensify the competitive environment among the shunt reactor manufacturers in the coming years.

The leading vendors in the market are -

• ABB
• CG Power and Industrial Solutions
• Siemens
• TBEA HENGYANG TRANSFORMER

The other prominent vendors in the market are Beijing Power Equipment Group (BPEG), EGE, Fuji Electric, GBE, General Electric, Hilkar, HYOSUNG, Mitsubishi Electric, PJSC “Zaporozhtransformator”, Toshiba Energy Systems & Solutions, and Transformers & Rectifiers.

Segmentation by end-user type and analysis of the shunt reactor market

• Power utilities
• Industrial

During 2016, power utilities segment accounted for the major shares of the shunt reactor market. The rapid industrialization across the world that drives the need for electricity has induced several countries to focus on increasing their installed power capacities to meet the increasing electricity demand. Moreover, the introduction of stringent government policies, the growing carbon emissions, and the depletion of fossil fuel, that is compelling countries to focus on installing renewable energy sources, will also drive the demand for shunt reactors in the power utilities sector.

Segmentation by geography and analysis of the shunt reactor market

• Americas
• APAC
• EMEA

This market study estimates that in terms of geographic regions, APAC will be the major revenue contributor to the shunt reactor market throughout the forecast period. Factors such as rapid urbanization, industrialization, and the improvement in living standards of individuals have triggered the consumption of electricity in countries such as China and India. This drives the need for constant power supply in the developing countries in this region, which in turn, will positively impact the growth of the shunt reactor market.

Key questions answered in the report include

• What will the market size, market forecast and the growth rate be in 2021?
• What are the key factors driving the global shunt reactor market?
• What are the key market trends impacting the growth of the global shunt reactor market?
• What are the challenges to global shunt reactor market growth?
• Who are the key vendors in the market?
• What are the market opportunities and threats faced by the vendors in the global shunt reactor market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global shunt reactor market?