Impact of COVID-19 on the Global Shunt Reactors MarketThe outbreak of the COVID-19 pandemic, which started in China in November 2019, has had a harsh impact on the global economy. The pandemic has adversely affected the global energy and power industry due to an acute decrease in the demand for energy from various sectors, including residential, commercial, and industrial. This reduction in the demand for energy has been caused due to the lockdown restrictions, shutting down of industrial and commercial operations, and halting of various projects, and other activities across countries such as the US, the UK, China, and India. As per the International Energy Agency (IEA), the global demand for energy decreased by 6% in 2020, which is nearly seven times the decline during the 2008 global financial crisis. In addition to this, it is also estimated that the demand for energy in the United States and the European Union decreased by approximately 9% and 11%, respectively, in 2020.
Moreover, IEA also estimated that the demand for electricity in several countries reduced by 20% or more during the lockdown period. All these factors are likely to affect the shunt reactors market in the coming months as the power sector has been affected severely due to the COVID-19 pandemic. Lockdown restrictions in the emerging economies of the world, such as India and China, have resulted in disrupted supply chains of raw materials and goods, closure of manufacturing plants, unavailability of workers, and cash flow constraints. Thus, the global shunt reactors market has been negatively impacted by the COVID-19 pandemic, considerably hampering the momentum of the overall energy industry. However, the demand for shunt reactors is anticipated to grow significantly in the coming months.
Global Investment in Energy (2017-2020)
Government authorities in many countries across the world have continued to focus on the development and installation of renewable energy sources to meet the demand for energy from the residential, commercial, and industrial sectors. Additionally, the global players in the shunt reactors market are focused on developing preventive measures and new business models to address the situation in the global market.
Source: Primary Experts, Secondary Sources, and MRFR Analysis