ID: MRFR/E&P/0643-HCR | February 2021 | Region: Global | 111 pages
The Shunt Reactor Market Size rate will grow by 4.66% in the forecast period.
The shunt reactors technology absorbs power. The characteristics of the shunt reactor are different from transformers and other electrical equipment. It is a cost-efficient technology that can offer exceptional power stability for appliances. The high demand in the power transmission industry is positively affecting the market. The shunt reactors can regulate the voltage transmissions lines and cables.
The electrical substations highly demand the shunt reactor market. The overall Market Value will increase by USD 3.51 billion in the forecast period. The energy consumption rate in China is increasing by 3%. It is a crucial factor for the high demand for shunt creator technology in the forecast period. The expansion rate of the market is expected to grow massively. Also, the adoption of this power stability technology will grow more in Asia pacific. Also, the growth of electricity infrastructure will grow in the upcoming years. All these factors will ultimately increase the profitability of the market.
The covid 19 has a harsh effect on the global economy. The power industry has plenty of challenges during this pandemic. The demand from all the verticals such as residential, commercial and industrial sectors is affected in this period. Also, the reduction in the energy demand is another challenge for the shunt reactor market. The decline in demand is due to the lockdown restriction in many regions. The 6% decrease in the energy market demand has a huge impact on the market. However, post the covid 19 situations, the market will resume its operations gradually. Also, the global Market Trends is accepted to increase positively.
Most of the transmission technology in industries and commercial spaces are mature. The up-gradation of this transmission system is a requirement in the upcoming years. The outdated transmission infrastructure creates demand for the shunt reactor technology. Also, the North America, Europe and Asia Pacific markets require a new range of shunt reactors due to the ageing transmission technologies. Thus adoption rate of the shunt reactors will enhance the demand for the market in the forecast period.
Further, investments in the shunt reactor market are a crucial driver. The massive power industries are contributing more investments in shunt reactors. It is a measure to choose a cost-efficient transition to offer stable electricity for electrical utilities. China is a key investor for the shunt receptor market in the Asia Pacific region. All these factors will offer exception demand for the market in the forecast period. Also, the revenue rate of the shunt reactors market will enable more adoption and market expansion rate. Further, the profitability of the market will reach the highest rate in the forecast period.
The launch of the smart grid enhances and widens the operations of shunt reactors. Most of the transmission technologies require constant monitoring. However, with the launch of smart-grid technology, the shunt-reactors can be monitored virtually. The possibility of remote monitoring through these reactors attracts more customers in the forecast period. This technological advancement in the market will provide exceptional development possibilities for the market. With the smart-shunt reactor proper monitoring and easy precautionary steps to avoid electrical accidents will increase.
Also, timely recognition and diagnosis of the issue are possible through this technology. The surging investments rate in the market will offer more growth prospects in the upcoming years. With the increasing investment in R&D and innovation are possible in the market. The launch of new innovative reactors will enhance the overall market growth. All these factors are responsible to provide exceptional growth opportunities for the Shunt Reactor Industry.
The technological developments in the market to produce alternate transmission systems are restraint in the market. The alternate technologies such as the FACTS can pose a restraint to the market demand. The growth rate of the shunt reactor global market will gradually decline due to these alternate technologies. There are few technical issues in the shunt reactor technology in speed and performance. All these factors constrict the demand in the upcoming years. The lack of awareness about these energy-efficient shunt reactors is another restraint to the overall market. It can affect the revenue rate in the forecast period.
The profitability of the power industry is expected to decline in the upcoming years. This declining trend in the power industry is due to the pandemic. Also, the decline in revenue in the power industry will affect the market drastically. The shunt reactor market can witness a significant decline in demand due to the effects of covid 19. The supply chain disruption and low production rate can cause this decline. Also, the lack of standardization is another challenge in the market. The operations of shunt reactors differ in every region. This can cause inconsistencies in the market.
The shunt reactor market growth remains stable during the forecast period. Two segments in the market receive massive demand. The oil and gas sector and the electric utilities are the two segments that have the highest demand. The global market wills receive exceptional demand rates from these sectors. Also, the high demand from the transmission industry will continue to spark market growth opportunities. The ageing of conventional transmission technologies benefits the shunt reactor market.
The shunt reactor is a high-end transmission system that can offer exceptional power stability. However, few factors can decline the market growth. The alternate technologies for the shunt reactor are more effective and efficient. The launch of these technologies can decline the market demand. However, the high investments and R&D will impact the market positively. The overall Market Outlook looks positive in the forecast period.
The Asia Pacific region dominates the shunt reactor market. China is accountable for the largest Market Share. The growing investments in the Asia Pacific will increase the demand for shunt reactors. The launch of grid reliability will offer plenty of growth opportunities. The rising requirements for efficient transmission technology will constantly fuel the demand for the market. Also, the investments rate in Asia pacific market is growing higher in Asia pacific. The growth of the market will result in high profitability.
The competition in the shunt reactor market is growing in the forecast period. With the new alternatives and FACT technologies, the competition will increase massively. Also, the key players of the market will implement market expansion and acquisitions strategies. The key players will increase their investments in the upcoming years.
The shunt reactor market is segmented into Asia Pacific, Europe, North America, Middle East and South America. The Asia Pacific market will dominate the other regional players in the forecast period. The growing investment is the key factor for high demand in the Asia Pacific region. Also, the increasing innovation in the market will provide plenty of growth opportunities in the forecast period. The dependence on electrical networks in the industry is higher in this region.
It will result in the highest demand rate for the market. Further, North America will witness a high profitability rate in the forecast period. The North American market has high investments. Innovation and R&D are growing in this region. This will ultimately offer growth opportunities in the forecast period. Further, the key players of the market are trying to expand the North American market. Europe is a developing market with plenty of growth opportunities. Europe will record the highest demand rate in the forecast period.
|Market Size||2025: USD 3.38 Billion|
|CAGR||4.72% CAGR (2020-2027)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application and End Use|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Zaporozhtransformator (Ukraine), Siemens AG (Germany), ABB (Switzerland), Crompton Greaves (India), Hyundai Heavy Industries (Korea), Fuji Electric Co. Ltd (Japan), Mitsubishi Electric Corporation (Japan), TBEA (China), TRENCH Group (France), and Hilkar (Turkey)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The overall growth rate of the shunt reactor market is known as 4.66%.
The crucial drivers of the shunt reactor market are the growing need for transmission technology and the ageing of conventional transmission technology.
The key players of the shunt reactor market are Nissin Electric, ABB, Mitsubishi, Crompton, Fuji Electric, Toshiba and Zaporozhtransformator.