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    Oil Immersed Shunt Reactor Market

    ID: MRFR/E&P/27023-HCR
    100 Pages
    Chitranshi Jaiswal
    October 2025

    Oil Immersed Shunt Reactor Market Research Report By Installed Capacity (Below 50 MVAR, 50-100 MVAR, 100-150 MVAR, Above 150 MVAR), By Voltage (Below 132 kV, 132-220 kV, 220-400 kV, Above 400 kV), By Reactor Type (Dry-Type, Oil-Immersed, Air-Core, Liquid-Filled), By Core Material (Amorphous Core, Crystalline Core, Grain-Oriented Silicon Steel), By Insulation Type (Paper Insulation, Resin Insulation, Silicone Insulation) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Oil Immersed Shunt Reactor Market Infographic
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    Oil Immersed Shunt Reactor Market Summary

    The Global Oil Immersed Shunt Reactor Market is projected to grow from 13.46 USD Billion in 2024 to 23.12 USD Billion by 2035, reflecting a robust growth trajectory.

    Key Market Trends & Highlights

    Oil Immersed Shunt Reactor Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 5.08 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 23.2 USD Billion, indicating substantial growth opportunities.
    • in 2024, the market is valued at 13.46 USD Billion, showcasing a strong foundation for future expansion.
    • Growing adoption of oil immersed shunt reactors due to increasing demand for efficient power transmission is a major market driver.

    Market Size & Forecast

    2024 Market Size 13.46 (USD Billion)
    2035 Market Size 23.12 (USD Billion)
    CAGR (2025-2035) 5.04%

    Major Players

    Siemens, ABB, General Electric Company, Mitsubishi Electric Corporation, Toshiba Corporation, Hitachi, Ltd., Schneider Electric, Hyundai Electric Energy Systems, Arteche Group, Sumec People's Electrical Equipment Group, Emotron AB, LG Electronics, CG Power, CESI S.p.A., Eaton Corporation

    Oil Immersed Shunt Reactor Market Trends

    The Oil Immersed Shunt Reactor Market is experiencing significant growth attributed to rising demand for electricity transmission and distribution, increasing industrialization, and expanding renewable energy sectors. Key market drivers include the growing emphasis on grid stability, the need for efficient power transmission, and supportive government policies promoting renewable energy integration. Moreover, advancements in power electronics and the development of smart grids are creating new opportunities for the oil-immersed shunt reactor market. Recent trends include the adoption of compact and modular designs, as well as the incorporation of advanced monitoring and control systems, enhancing grid reliability and efficiency.

    Strategic partnerships mergers and acquisitions are shaping the competitive landscape, with key players focusing on expanding their global reach and product offerings in response to market demands.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    The increasing demand for efficient power transmission and distribution systems is driving the adoption of oil immersed shunt reactors, which are essential for voltage regulation and system stability in electrical networks.

    U.S. Department of Energy

    Oil Immersed Shunt Reactor Market Drivers

    Growing Demand for Renewable Energy

    The Global Oil Immersed Shunt Reactor Market Industry experiences a notable increase in demand driven by the global shift towards renewable energy sources. As countries invest in wind and solar power, the need for efficient power management systems becomes paramount. Oil immersed shunt reactors play a crucial role in stabilizing voltage levels and improving the efficiency of renewable energy integration into the grid. This trend is expected to contribute significantly to the market, with projections indicating a market size of 13.5 USD Billion in 2024, reflecting the industry's adaptation to evolving energy landscapes.

    Market Trends and Growth Projections

    Regulatory Support for Grid Stability

    The Global Oil Immersed Shunt Reactor Market Industry is influenced by regulatory frameworks aimed at ensuring grid stability and reliability. Governments worldwide are implementing policies that promote the use of reactive power compensation technologies, including oil immersed shunt reactors. These regulations are designed to enhance the resilience of electrical grids, particularly in regions experiencing rapid growth in electricity demand. As a result, the market is likely to see increased investments and adoption of these reactors, aligning with global efforts to modernize and secure power systems.

    Technological Advancements in Reactor Design

    The Global Oil Immersed Shunt Reactor Market Industry benefits from ongoing technological advancements in reactor design and manufacturing processes. Innovations such as improved insulation materials and enhanced cooling systems lead to more efficient and reliable reactors. These advancements not only reduce operational costs but also extend the lifespan of the reactors, making them more appealing to utility companies. As the industry embraces these technologies, the market is expected to grow, potentially reaching 23.2 USD Billion by 2035, indicating a strong trajectory driven by enhanced performance and reliability.

    Expansion of Power Transmission Infrastructure

    The Global Oil Immersed Shunt Reactor Market Industry is bolstered by the expansion of power transmission infrastructure across various regions. As urbanization and industrialization continue to rise, there is an increasing need for robust electrical networks capable of handling higher loads. Oil immersed shunt reactors are essential components in these networks, providing reactive power compensation and enhancing system stability. This infrastructure development is anticipated to drive the market growth, with a projected compound annual growth rate of 5.08% from 2025 to 2035, further solidifying the importance of these reactors in modern power systems.

    Rising Electricity Demand in Emerging Economies

    The Global Oil Immersed Shunt Reactor Market Industry is significantly impacted by the rising electricity demand in emerging economies. As populations grow and industrial activities expand, countries in Asia, Africa, and Latin America are experiencing unprecedented increases in energy consumption. This surge necessitates the development of efficient power systems, where oil immersed shunt reactors play a vital role in managing reactive power and ensuring voltage stability. The growing electricity demand in these regions is expected to drive substantial market growth, reinforcing the importance of these reactors in meeting future energy needs.

    Market Segment Insights

    Oil Immersed Shunt Reactor Market Installed Capacity Insights

    Oil Immersed Shunt Reactor Market Installed Capacity Insights

    The Oil Immersed Shunt Reactor Market is segmented by Installed Capacity into 'Below 50 MVAR', '50-100 MVAR', '100-150 MVAR', and 'Above 150 MVAR'. Among these segments, the 'Below 50 MVAR' segment held the largest market share in 2023, accounting for approximately 40% of the Oil Immersed Shunt Reactor Market revenue. The '50-100 MVAR' segment is expected to follow closely behind, with a market share of around 30%.

    The '100-150 MVAR' and 'Above 150 MVAR' segments are expected to account for the remaining market share.The growth of the 'Below 50 MVAR' segment can be attributed to the increasing demand for shunt reactors in distribution networks.

    These reactors are used to compensate for the reactive power demand of inductive loads, such as motors and transformers. The '50-100 MVAR' segment is also expected to witness significant growth due to the increasing adoption of shunt reactors in transmission networks. These reactors are used to control voltage levels and improve power quality. The '100-150 MVAR' and 'Above 150 MVAR' segments are expected to witness moderate growth due to the increasing demand for shunt reactors in large-scale industrial applications.These reactors are used to compensate for the reactive power demand of heavy machinery and equipment.

    Overall, the Oil Immersed Shunt Reactor Market is expected to witness steady growth in the coming years, driven by the increasing demand for shunt reactors in various applications.

    Oil Immersed Shunt Reactor Market Voltage Insights

    Oil Immersed Shunt Reactor Market Voltage Insights

    The Oil Immersed Shunt Reactor Market is segmented by voltage into Below 132 kV, 132-220 kV, 220-400 kV, and Above 400 kV. Among these segments, the 220-400 kV segment held the largest market share in 2023, accounting for around 40% of the Oil Immersed Shunt Reactor Market revenue. The growth of this segment can be attributed to the increasing demand for shunt reactors in the voltage range of 220-400 kV for power transmission and distribution applications.

    The Below 132 kV segment is also expected to witness significant growth during the forecast period, owing to the rising demand for shunt reactors in low-voltage applications.

    Oil Immersed Shunt Reactor Market Reactor Type Insights

    Oil Immersed Shunt Reactor Market Reactor Type Insights

    The Oil Immersed Shunt Reactor Market segmentation by Reactor Type can be divided into Dry-Type, Oil-Immersed, Air-Core, and Liquid-Filled. Among these, the Oil-Immersed segment held the largest market share in 2023, accounting for approximately 45.2%. The growth of this segment can be attributed to the increasing demand for reliable and efficient power transmission and distribution systems.

    Oil-immersed shunt reactors offer several advantages, such as high efficiency, low maintenance requirements, and long service life, making them a preferred choice for various industrial applications.The Dry-Type segment is expected to witness significant growth in the coming years, owing to its compact design and ability to operate in harsh environmental conditions. Additionally, the growing adoption of renewable energy sources, such as solar and wind power, is expected to drive the demand for dry-type shunt reactors for grid integration and voltage regulation.

    Oil Immersed Shunt Reactor Market Core Material Insights

    Oil Immersed Shunt Reactor Market Core Material Insights

    The Oil Immersed Shunt Reactor Market is segmented by Core Material into Amorphous Core, Crystalline Core, and Grain-Oriented Silicon Steel. In 2023, the Grain-Oriented Silicon Steel segment held the largest market share at 65.69%, followed by Crystalline Core with 23.58% and Amorphous Core with 10.73%. The market growth for each segment is projected to be driven by factors such as increasing demand for shunt reactors in power transmission and distribution networks, rising investments in renewable energy projects, and the need for efficient power factor correction.

    Oil Immersed Shunt Reactor Market Insulation Type Insights

    Oil Immersed Shunt Reactor Market Insulation Type Insights

    The Oil Immersed Shunt Reactor Market is segmented by Insulation Type into Paper Insulation, Resin Insulation, and Silicone Insulation. Paper Insulation held the largest market share in 2023, accounting for around 40% of the Oil Immersed Shunt Reactor Market revenue. Paper Insulation is a traditional and cost-effective insulation material that has been used in shunt reactors for many years. It is made from layers of Kraft paper that are impregnated with oil. Resin Insulation is a newer type of insulation material that is gaining popularity due to its superior electrical and thermal properties.

    It is made from a synthetic resin that is poured into the reactor tank and cured. Silicone Insulation is another newer type of insulation material that is known for its high temperature resistance and long lifespan. It is made from a silicone rubber that is applied to the windings of the reactor. The demand for Oil Immersed Shunt Reactors with Resin Insulation and Silicone Insulation is expected to grow in the coming years due to their superior properties.

    Get more detailed insights about Oil Immersed Shunt Reactor Market Research Report — Global Forecast till 2034

    Regional Insights

    The regional segmentation of the Oil Immersed Shunt Reactor Market provides insights into the market's performance in different geographic regions. North America is expected to hold a significant market share due to the presence of developed economies with high electricity consumption and increasing investments in grid infrastructure. Europe is another major region with a high demand for oil-immersed shunt reactors for voltage regulation and power factor correction.

    The Asia-Pacific region is projected to witness substantial growth, driven by rapid industrialization and expanding power grids.South America and the Middle East and Africa (MEA) are also expected to contribute to the market growth, with increasing investments in renewable energy and grid modernization projects. The Oil Immersed Shunt Reactor Market segmentation data indicates that North America is anticipated to generate revenue of 6.9 billion USD by 2028, while Europe is projected to reach 5.3 billion USD. The APAC region is estimated to register a CAGR of 6.3% during the forecast period, reaching 4.9 billion USD by 2028.

    South America is expected to contribute 1.2 billion USD, and MEA is projected to generate 1.7 billion USD by 2028.

    Oil Immersed Shunt Reactor Market Regional Insights  

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in Oil Immersed Shunt Reactor Market are focusing on expanding their global presence by establishing new manufacturing facilities and acquiring local companies. They are also investing in research and development to improve the efficiency and performance of their products. Leading Oil Immersed Shunt Reactor Market players are adopting various strategies to gain a competitive edge, such as offering customized solutions, providing value-added services, and forming strategic alliances with other companies in the industry.

    The Oil Immersed Shunt Reactor Market is expected to witness significant growth in the coming years due to increasing demand for electricity and rising investment in renewable energy projects.A leading player in the Oil Immersed Shunt Reactor Market is Siemens. The company offers a wide range of oil immersed shunt reactors, which are used to regulate voltage levels in electrical power systems. Siemens has a strong global presence and a well-established reputation for providing high-quality products and services.

    The company is committed to innovation and is continuously investing in research and development to improve the performance of its products. Siemens is also focused on expanding its global reach through strategic acquisitions and partnerships.A major competitor in the Oil Immersed Shunt Reactor Market is ABB. The company offers a comprehensive portfolio of oil-immersed shunt reactors, which are designed to meet the specific needs of customers. ABB has a strong global presence and a well-established reputation for providing high-quality products and services.

    The company is committed to innovation and is continuously investing in research and development to improve the performance of its products. ABB is also focused on expanding its global reach through strategic acquisitions and partnerships.

    Key Companies in the Oil Immersed Shunt Reactor Market market include

    Industry Developments

    The Oil Immersed Shunt Reactor Market is projected to reach USD 22.01 Billion by 2034 from an estimated USD 14.13 Billion in 2025, at a CAGR of 5.42% during the forecast period. Rising investments in renewable energy sources, increasing electricity demand, and growing adoption of smart grids are key factors driving market growth. Recent news developments in the market include Siemens Energy's launch of a new line of oil-filled shunt reactors and ABB's acquisition of GE's Industrial Solutions business, which includes its oil-immersed shunt reactor product line. These developments indicate a growing emphasis on innovation and consolidation in the industry.

    Future Outlook

    Oil Immersed Shunt Reactor Market Future Outlook

    The Oil Immersed Shunt Reactor Market is projected to grow at a 5.04% CAGR from 2025 to 2035, driven by increasing demand for energy efficiency and grid stability.

    New opportunities lie in:

    • Invest in advanced materials for enhanced thermal performance and longevity.
    • Develop smart grid solutions integrating shunt reactors for real-time monitoring.
    • Explore emerging markets in renewable energy sectors for strategic partnerships.

    By 2035, the Oil Immersed Shunt Reactor Market is expected to achieve substantial growth, reflecting evolving energy demands.

    Market Segmentation

    Oil Immersed Shunt Reactor Market Voltage Outlook

     
    • Dry-Type
    • Oil-Immersed
    • Air-Core
    • Liquid-Filled

    Oil Immersed Shunt Reactor Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia-Pacific
    • Middle East and Africa

    Oil Immersed Shunt Reactor Market Reactor Type Outlook

     
    • Amorphous Core
    • Crystalline Core
    • Grain-Oriented Silicon Steel

    Oil Immersed Shunt Reactor Market Core Material Outlook

     
    • Paper Insulation
    • Resin Insulation
    • Silicone Insulation

    Oil Immersed Shunt Reactor Market Insulation Type Outlook

     
    • North America
    • Europe
    • South America
    • Asia-Pacific
    • Middle East and Africa

    Oil Immersed Shunt Reactor Market Installed Capacity Outlook

     
    • Below 132 kV
    • 132-220 kV
    • 220-400 kV
    • Above 400 kV

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024   13.46 (USD Billion)
    Market Size 2025   14.13 (USD Billion)
    Market Size 2035 23.12 (USD Billion)
    Compound Annual Growth Rate (CAGR) 5.04% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Siemens AG, Arteche Group, Sumec People's Electrical Equipment Group, Emotron AB, LG Electronics, General Electric Company, CG Power, ABB Ltd., CESI S.p.A., Mitsubishi Electric Corporation, Eaton Corporation, Toshiba Corporation, Hitachi, Ltd., Schneider Electric, Hyundai Electric Energy Systems
    Segments Covered Installed Capacity, Voltage, Reactor Type, Core Material, Insulation Type, Regional
    Key Market Opportunities Growing demand, Infrastructure expansion, Smart grid initiatives, Technological advancements, and Renewable energy integration
    Key Market Dynamics Rising demand for renewable energy, increasing power grid infrastructure, technological advancements, government initiatives and growing industrialization
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the market size of the Oil Immersed Shunt Reactor Market?

    The Oil Immersed Shunt Reactor Market is expected to reach a valuation of 22.01 Billion USD by 2034, exhibiting a CAGR of 5.42% during the forecast period of 2025-2034.

    Which region is expected to dominate the Oil Immersed Shunt Reactor Market?

    Asia-Pacific is projected to dominate the Oil Immersed Shunt Reactor Market throughout the forecast period, owing to the rapid industrialization and growing demand for electricity in the region.

    What are the key applications of Oil Immersed Shunt Reactors?

    Oil Immersed Shunt Reactors are primarily used for voltage regulation, power factor correction, and harmonic filtering in electrical power systems.

    Who are the major players in the Oil Immersed Shunt Reactor Market?

    Key players in the Oil Immersed Shunt Reactor Market include ABB, Siemens, Schneider Electric, General Electric, and Toshiba.

    What is the growth rate of the Oil Immersed Shunt Reactor Market?

    The Oil Immersed Shunt Reactor Market is anticipated to grow at a CAGR of 5.04% from 2023 to 2032.

    What factors are driving the growth of the Oil Immersed Shunt Reactor Market?

    Factors driving the growth of the Oil Immersed Shunt Reactor Market include increasing demand for electricity, growing industrialization, and the need for efficient voltage regulation and power factor correction.

    What challenges does the Oil Immersed Shunt Reactor Market face?

    Challenges faced by the Oil Immersed Shunt Reactor Market include intense competition, stringent regulations, and technological advancements.

    What are the key trends in the Oil Immersed Shunt Reactor Market?

    Key trends in the Oil Immersed Shunt Reactor Market include the growing adoption of smart grid technologies, the increasing use of renewable energy sources, and the demand for compact and efficient reactors.

    What is the impact of COVID-19 on the Oil Immersed Shunt Reactor Market?

    The COVID-19 pandemic had a moderate impact on the Oil Immersed Shunt Reactor Market, leading to temporary disruptions in supply chains and project delays.

    What is the forecast for the Oil Immersed Shunt Reactor Market?

    The Oil Immersed Shunt Reactor Market is expected to witness steady growth over the forecast period, driven by increasing demand for electricity and the need for efficient voltage regulation and power factor correction.

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