Asia-Pacific Shunt Reactors Market Size

APAC Shunt Reactors Market Analysis

Asia-Pacific Shunt Reactors Market is expected to reach a CAGR of 5.4% during the forecast period 2021 - 2026. Due to the need to increase the efficiency of the system and provide reliable power, the demand for a shunt reactor is increasing. The need for protection solutions for sudden voltage spikes and investments into upgrading existing transmission and distribution networks is also augmenting the demand for shunt reactors. The investments in upgrading the transmission and distribution infrastructure in the Asia-Pacific region are increasing due to continued growth in the electricity demand from both domestic and business sources in the region. For instance, according to the South Asia Regional Initiative for Energy Integration (SARI/EI) program, the March 2020 report states that the South Asian power grid requires an investment of INR 45,000 by 2030, as cross-border electricity trade is projected to increase in the region. According to China's state grid company, the line can transmit up to 12 gigawatts, which is enough to power 50 million Chinese households.

• The rising demand for power will drive the demand for products, solutions, and services allied to the energy sector in the region. The shunt reactor demand for the energy and utility will grow significantly in the coming years amidst the growing electricity demand and connectivity projects undertaken by the governments.
• The growing energy demand in the industrial sector is another prominent influencer behind the incorporation of shunt reactors in power generation facilities in the region. According to International Energy Agency's (IEA) 2019 report, the demand from the Asian gas industry is expected to rise by more than 10% over the next five years, reaching up to 4.3 trillion cubic meters in 2024.
• Moreover, China's largest utility state grid, which provides 90% of China's Electricity, is planning to integrate IoT technologies with national power grids. It has outlined 57 construction tasks and 25 demonstration projects to advance the plan, which is expected to be finished by 2024.
• The region is home to some of the major vendors that form alliances and partnerships with the local power suppliers, industrial projects, and government bodies. Some of the key players include Siemens, Fuji Electronic, ABB Ltd, and Hyosung Corporation.
• Also, the growing demand for renewable sources of power generation has led to the various power projects across the region, providing a boost to the shunt reactors market. For instance, Japan invested USD 2.75 billion to power the Fukushima region with 100% renewable energy by 2040.
• Owing to such developments, governments and private firms operating in the region are expected to undertake various projects to update their existing power distribution and transmission infrastructure.