Shunt Reactor Circuit Market Report 2026

The shunt reactor circuit market size has grown strongly in recent years. It will grow from $2.59 billion in 2025 to $2.77 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to long transmission line expansion, increasing electricity demand, grid voltage instability, conventional reactive power compensation, urban industrialization.

The shunt reactor circuit market size is expected to see strong growth in the next few years. It will grow to $3.58 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to renewable energy integration, smart grid deployment, rising electric mobility adoption, modernization of power transmission infrastructure, demand for energy efficiency. Major trends in the forecast period include smart grid integration, high-voltage transmission efficiency, reactive power compensation solutions, compact substation design, advanced monitoring & control systems.

The increasing adoption of renewable energy is expected to drive the growth of the shunt reactor circuit market going forward. Renewable energy is derived from natural sources such as sunlight and wind, which are continuously replenished and used to generate power sustainably. The adoption of renewable energy is driven by rising environmental concerns, the need for sustainable solutions, and government incentives aimed at reducing greenhouse gas emissions. In renewable energy systems, shunt reactor circuits help stabilize voltage levels and manage reactive power in long transmission lines, enabling the efficient and reliable integration of renewable energy sources into the grid. For example, in April 2025, Ember, a UK-based energy think tank, reported that in 2024, renewable power sources generated a record 858 TWh, representing a 49% increase over the previous record of 577 TWh set in 2022. Therefore, the growing adoption of renewable energy is fueling the shunt reactor circuit market.

Major companies in the shunt reactor circuit market are forming strategic partnerships to improve energy-efficient operations and validate performance under demanding conditions. For example, in August 2025, Hitachi Energy, a Switzerland-based technology company, collaborated with NKT, a Denmark-based cable technology company, to establish a new high-voltage power cable test center in Karlskrona, Sweden. The facility will be one of the world’s largest and most advanced centers for testing both AC and DC power cables. Shunt reactors supplied by Hitachi Energy play a key role in absorbing reactive power during testing, ensuring efficient energy usage and precise performance validation. The phased delivery, expected to be completed by 2027, supports NKT’s strategic expansion to meet the growing global demand for high-voltage cable systems essential t.

In April 2024, Triton Partners, a UK-based investment management firm, acquired Trench Group for an undisclosed sum. This acquisition aims to strengthen Triton's position in the high-voltage grid components market and leverage Trench Group’s expertise to benefit from the global energy transition. Trench Group, based in Germany, specializes in high-voltage grid components, including air core shunt reactors, bushings, and instrument transformers.

Major companies operating in the shunt reactor circuit market are Hitachi Energy, Siemens AG, General Electric Company, Mitsubishi Electric Corporation, ABB Ltd., Toshiba Corporation, Eaton Corporation plc, Alstom SA, Fuji Electric Co., Ltd., WEG S.A., Bharat Heavy Electricals Limited (BHEL), Hyosung Heavy Industries Corporation, HD HyundAI Electric & Energy Systems Co., Ltd., Nissin Electric Co., Ltd., S&C Electric Company, TRENCH Group, SGB-SMIT Group, GBE SpA, TMC Transformers, Hilkar Electric Pvt. Ltd., Shrihans Electricals Pvt. Ltd., GETRA S.p.A.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the shunt reactor market by increasing the cost of imported components such as high-grade steel, copper, and specialized insulation materials, leading to higher production expenses. This has affected segments like oil-immersed and air-core reactors, particularly in regions dependent on imports such as Asia-Pacific and Europe. While cost pressures may slow new installations, tariffs also encourage local manufacturing and sourcing, fostering innovation and potentially reducing long-term dependency on foreign suppliers.

The shunt reactor circuit market research report is one of a series of new reports that provides shunt reactor circuit market statistics, including shunt reactor circuit industry global market size, regional shares, competitors with a shunt reactor circuit market share, detailed shunt reactor circuit market segments, market trends and opportunities, and any further data you may need to thrive in the shunt reactor circuit industry. This shunt reactor circuit market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A shunt reactor circuit is an electrical device used in power systems to absorb reactive power and stabilize voltage levels. It consists of an inductor connected in parallel with the power line to compensate for the capacitive reactance of long transmission lines. By absorbing excess reactive power, the shunt reactor helps maintain voltage stability and enhances the efficiency of power transmission.

The main types of shunt reactor circuits are oil-immersed and air-core. Oil-immersed shunt reactors feature a core immersed in insulating oil, which provides both insulation and cooling. These reactors are used in various applications, including both variable and fixed configurations, and are employed by electric utilities and industrial sectors.Asia-Pacific was the largest region in the shunt reactor circuit market in 2025. The regions covered in the shunt reactor circuit market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the shunt reactor circuit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The shunt reactor circuit market consists of sales of dry-type shunt reactors, air-core shunt reactors, variable shunt reactors, and high-voltage shunt reactors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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