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A shunt capacitor stands as a critical device in the realm of power systems, designed to enhance the quality of electricity supply and optimize the efficient functioning of power grids. Its primary function lies in providing capacitive reactive compensation or power factor correction, crucial for maintaining stable and efficient power transmission. The surging adoption of shunt capacitors can be attributed to several key attributes such as their cost-effectiveness, ease of installation, and flexibility in deployment across diverse segments of the power network.
The market for shunt capacitors is driven by a confluence of factors, prominently including the escalating demand for power and the substantial investments made in renewable energy generation. As power consumption continues to rise globally, the need to maintain a stable and high-quality power supply becomes imperative, propelling the utilization of shunt capacitors across various power systems and grids. Furthermore, the growing focus on renewable energy sources, characterized by solar and wind power generation, requires efficient capacitors to ensure optimal power transmission and quality.
However, the shunt capacitor market faces certain constraints and challenges. Fluctuations in raw material prices pose a significant challenge, impacting manufacturing costs and potentially affecting market growth. Additionally, the high initial investment required for installing shunt capacitors can act as a deterrent for widespread adoption, particularly for smaller-scale power systems.
Projections indicate a promising growth trajectory for the global shunt capacitor market, expected to achieve a Compound Annual Growth Rate (CAGR) of 6.72% during the forecast period. In 2016, the Asia Pacific region emerged as the leader in this market, capturing a substantial market share of 41.3%. Following closely were Europe and North America, securing market shares of 26.5% and 19.7%, respectively.
The dominance of the Asia Pacific region in the shunt capacitor market can be attributed to several factors. Rapid industrialization, urbanization, and infrastructural developments in countries across Asia Pacific have significantly driven the demand for efficient power supply systems. Moreover, the burgeoning energy needs of emerging economies in this region contribute to the high adoption rate of shunt capacitors.
Europe and North America, while holding slightly smaller market shares, remain significant players in the shunt capacitor market. Their emphasis on technological advancements, coupled with efforts towards renewable energy adoption and the need for modernizing existing power infrastructure, substantiates the sustained demand for shunt capacitors in these regions.
In conclusion, the global shunt capacitor market continues to witness steady growth, fueled by the crucial role these devices play in ensuring stable and high-quality power supply across diverse power systems. While facing challenges related to raw material price fluctuations and initial investment costs, the market is propelled by escalating power demands and the increasing focus on renewable energy sources. The Asia Pacific region leads the market, driven by rapid industrialization and burgeoning energy needs, while Europe and North America maintain their positions as key players in this evolving landscape.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 1.3 Billion |
| Market Size Value In 2023 | USD 1.36 Billion |
| Growth Rate | (2023-2032 |
Shunt Capacitor Market Highlights:
Global Shunt Capacitor Market Research (MRFR Insights)
Shunt Capacitor Market Size was valued at USD 1.3 billion in 2022. The Shunt Capacitor industry is projected to grow from USD 1.36 Billion in 2023 to USD 1.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.70% during the forecast period (2023 - 2032).
The shunt capacitor is an electrical component that provides a load line and is largely utilized in power systems. By releasing the power supply capacity, enhancing the voltage profile, and bracing the reactive power to offer the proper power factor, it is utilized to enhance the quality of the electrical supply. As per the shunt capacitor market research, factors like rising demand for dependable and efficient power supplies, tools for long-lasting and workable policies, and exposure to new technologies are driving the market. The demand for power grids is also growing, supporting the world market for shunt capacitors. Investments in renewable energy are anticipated to rise during the forecast period due to growing environmental concerns and initiatives by various governments worldwide. During the forecast period, it is predicted by the market report that this surge in power grid usage will increase demand for shunt capacitors.Â
COVID-19 Impact Analysis
According to the shunt capacitor market report, the market for shunt capacitors suffered as a result of the Covid-19 outbreak. The market was already at a halt due to a shortage of investors, and the pandemic caused a decline in sales value, product transfers, and manufacturing. Although the government's actions and plans helped to neutralize the situation, the market incurred a significant loss.
 Shunt Capacitor Market Dynamics
The market dynamics for shunt capacitor includes the significant population of the world improving their quality of life, which raises the need for energy. The need for shunt capacitors is on the rise due to several causes, including rising power consumption and significant investments in the manufacturing of electricity from renewable sources. In addition, the demand for a constant supply of electricity, ensuing investments in transmission and distribution networks, and secure electrical infrastructure are anticipated to fuel the expansion of the shunt capacitor market. However, the expansion of the shunt capacitor market is constrained by fluctuating raw material prices and costly initial investment.
Market Drivers
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The increasing demand for electricity
The power consumption used per person is likewise rising. For secure, effective, and dependable functioning, shunt capacitors must be used in all electrical networks. The expansion of industrial facilities and businesses benefits the capacitor market. During the forecast period, the worldwide shunt capacitor market is anticipated to be driven by expansion in the residential and commercial construction industries and increased investments in the construction of railways and other transportation infrastructure. The demand for electricity generation, telecommunications, infrastructure, and mass transportation has expanded as a result of urbanization's exponential growth and the population's growth as per the market driver. In turn, it is projected that this would increase demand for infrastructure for power transmission and distribution shortly.
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Growing urbanization and rising population
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Factors such as easy and quick installation, availability, and efficient price are driving the market
Market Restraints:
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The presence of alternatives
A shunt capacitor is a kind of capacitor bank, and the presence of different types of alternatives makes the market diversified and adversely affects the demand for shunt capacitors. Thus, it acts as a market restraint per the shunt capacitor market overview over the forecast period.
Market Opportunities:
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Growth of the residential & commercial construction sector and rise in investments
During the forecast period, it is expected that the growth of the residential and commercial construction sector and an increase in investments for the construction of railroads and other transportation infrastructure would fuel demand for shunt capacitors worldwide.
Segment Overview
By Voltage Insights
Based on voltage, the shunt capacitor market segmentation is low, medium, and high. The high segment had a prominent share in 2021. Several industries utilize high-voltage capacitors frequently because of their dependability and efficiency. Additionally, these capacitors are utilized in industrial settings. These are employed to fulfill the needs for MV induction motor compensation and general power factor adjustment at the medium voltage bus.
By End Use Industry Insights
Based on the end-use industry, the shunt capacitor market segmentation is power generation, renewable energy, transmission, and distribution utilities, transport & infrastructure, industrial, and others. The shunt capacitor market growth was prominently high under the power generation segment in 2021. The electrical shunt capacitor is a component of the electrical power grid. By enhancing the quality of the electrical supply and enabling effective operation, this device is used. The fundamental purpose of shunt capacitors is to supply the ideal power factor. Capacitors for power factor adjustment are another name for this method. The market size is expanding daily due to the utilization of renewable energy. This is the market's driving force.
Global Shunt Capacitor Market Share by Region, 2021 (%)
 Shunt Capacitor Market Overview, by Region
As per the shunt capacitor market forecast, the shunt capacitor market is divided into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific accounted for the most extensive market share. North America is anticipated to account for the highest CAGR during the forecast period.
Asia-Pacific
As per the market research, the Asia-Pacific accounted for the most extensive shunt capacitor market share in 2021. The high increase in manufacturing and industrial units has propelled the demand for shunt capacitors. The growth in railways, IT hubs, metros, high-speed trains, commercial centers, etc., requires shunt capacitors for stable, efficient, and reliable electricity supply. Rural electrification initiatives and increased long-distance high-voltage transmission power cables have positively impacted the market. Growing urbanization has increased the number of sub-stations, which has also positively impacted the shunt capacitor market.
North America
North America is anticipated to encounter the fastest growth rate during the forecast period, according to market research. The countries' economies will be boosted by upgrading, modernizing, and refurbishing their electrical infrastructure, which will also fuel the expansion of the shunt capacitor industry. To meet the need for electricity, several European countries are gradually phasing out conventional power-producing methods and establishing renewable power plants.
 Shunt Capacitor Market Competitive Landscape
The competitive market landscape includes tier-1, tier-2, and local players. The key market participants generally pursue new shunt capacitor market categories. Leading companies are concentrating on purchasing feed mills and small factories to grow their operations in domestic and international markets.
Prominent players in the shunt capacitor market include ABB Ltd., General Electric Company, Siemens AG, Larsen & Toubro Ltd., Eaton Corporation Plc, Magnewin Energy Pvt. Ltd., Globe Capacitors Ltd., Motif Electric Limited, TDK Electronics AG, Schneider Electric SE, among others.
Scope of the Shunt Capacitor Market Segmentation
 Shunt Capacitor Market, By Voltage Outlook
- Low
- Medium
- High
 Shunt Capacitor Market, By End Use Industry Outlook
- Power Generation
- Renewable Energy
- Transmission and Distribution Utilities
- Transport & Infrastructure
- Industrial
- Others
 Shunt Capacitor Market, By Region Outlook
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North America- US
- Canada
- Mexico
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Europe- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific- China
- India
- Japan
- Australia and New Zealand
- Rest of Asia-Pacific
-
Rest of the World- South America
- Middle East
- Africa
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
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Shunt Capacitor Market Forecast & Size:
To identify and estimate the market size for the shunt capacitor market report segmented by voltage & end-use industry by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers with the shunt capacitor market forecast between 2022 and 2030.
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Market Landscape and Trends:
To identify and infer the drivers, restraints, opportunities, and challenges for the shunt capacitor market growth
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Market Influencing Factors:
To find out the factors which are affecting the shunt capacitor market size among consumers
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Impact of COVID-19:
To identify and understand the various factors involved in the shunt capacitor market affected by the pandemic
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Company Profiling:
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Intended Audience
- Shunt Capacitor Manufacturers
- Raw Material Suppliers
- Retailers, Wholesalers, and Distributors
- Governments, Associations, and Industrial Bodies
- Investors and Trade Experts
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