Single Phase Variable Shunt Reactor Market to Reach CAGR 7,4% by 2031 Top 20 Company Globally

Single phase variable shunt reactors (VSRs) are grid-level inductive devices that provide continuously adjustable reactive-power absorption in high-voltage alternating-current systems; by varying their effective reactance (commonly via on-load tap changers or multi-winding arrangements) they reduce light-load overvoltages on long transmission lines and stabilise voltage in corridors with high transmission capacitance (cables, long AC links, or large offshore wind hubs). VSRs are a subset of the broader shunt-reactor family but are specified where smooth, continuous control of inductance is needed rather than stepped switching of fixed reactors; they are routinely supplied as oil-immersed or air-core constructions and sized from a few MVAr for distribution hubs to several hundred MVAr for extra-high-voltage transmission applications. Their value to system operators has risen with the expansion of variable renewable generation because VSRs help contain voltage swings, reduce losses related to reactive power, and defer more expensive reinforcement options such as new lines or synchronous condensers.

The single-phase variable shunt reactor market valued in the USD 387 million in 2024; and model a median CAGR of 7,4% to 2031. Implying growth driven by renewable-integration projects, long-distance HVAC corridors and grid modernisation programs across Asia, Europe and North America. This making the market value reaching USD 638 million in 2031.
Unit economics for VSRs vary strongly by voltage class, MVAr rating, cooling medium and optional controls (OLTC, monitoring, oil-filled vs. air core, scope of balance-of-plant). Globally benchmarks in the USD 60,000 per unit, implies to around 6,400 units sold in 2024. The true count depends on project mix, large offshore/hub orders, and whether three-phase banked solutions are procured as single-phase units or delivered as packaged three-phase systems.
Latest Trends and Technological Developments
The technology and project flow for VSRs in 2023 to 2025 shows three converging trends: scaled EHV VSRs for renewable corridors, localisation of manufacturing for very-high-voltage units, and incremental sustainability/efficiency improvements in materials and testing. A representative project signal is Siemens Energys long-standing record for large VSRs (a noted milestone article documenting the worlds most powerful VSR test was published December 2018), which established technical feasibility for 100+ MVAr coastal/offshore applications and remains a reference design for large offshore wind links. More recently, CHINT reported delivery of a 400 kV / 200 MVAr VSR in 2024 for a Central European project, illustrating that non-traditional large OEMs are now winning major transmission tenders. On May 2025, GE Vernova announced an order to supply more than 70 extra-high-voltage transformers and shunt reactors to Indias POWERGRID for renewable power corridors, a bulk procurement that signals substantial near-term demand for reactors and VSR-class devices as India expands renewables integration and long-distance evacuation links. The project cadence and vendor wins in 2024 to 2025 show that VSRs have migrated from niche, bespoke units to a more mainstream transmission-asset category where vendors offer scalable, tested platforms and local manufacturing footprints for major regional programs.
Asia Pacific is the largest regional market for shunt reactors and VSRs by share and shipments in 2024, reflecting rapid grid expansion, large renewable corridors and multi-hundred-kV projects across China, India, Korea and Southeast Asian countries. Multiple market reports and vendor order announcements identify Asia as the growth engine: regional utilities are procuring EHV reactors to stabilise long AC cable routes, support offshore wind hubs and manage large HVDC/AC interfacing nodes. Indias POWERGRID program (GE Vernova contract) exemplifies how national transmission buildouts and renewable-evacuation projects convert into multi-unit reactor purchases; utilities are prioritizing proven VSR platforms that provide continuous control, low losses and long lifecycle test certificates. In China and other parts of APAC, domestic OEMs (e.g., TBEA, Hyosung affiliates, CG Power) also capture share, compressing lead times and supporting local content rules for large transmission bids. Overall, Asias mix of very large MVAr projects, renewable buildouts and industrial electrification creates a multi-year pipeline for VSR procurement and service contracts.

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Single Phase Variable Shunt Reactor by Type:
Oil Immersed Reactor

Air Core Reactor

Single Phase Variable Shunt Reactor by Application:
Electric Utility

Renewable Energy

Others

Global Top 20 Key Companies in the Single Phase Variable Shunt Reactor Market
Siemens energy

GE Vernova

ABB

NR Electric

Fuji Electric Co., Ltd.

Nissin Electric Co., Ltd.

Hyosung Heavy Industries

Hitachi Energy

Toshiba Corporation

CG Power & Industrial Solutions

Trench Group

Schneider Electric

Eaton Corporation

Alstom SA

Hyundai Heavy Industries

GBE SpA

Hilkar

Getra

TBEA Co., Ltd.

Baoding Tianwei Baobian Electric Co., Ltd

Regional Insights
ASEAN demand is currently smaller than East Asia but accelerating as utilities and independent transmission projects mature. Indonesia is notable for archipelagic transmission challenges and rising generation capacity; in 2025 Indonesia announced ambitious generation diversification plans and has active transmission project pipelines where VSRs can be specified to manage long coastal cables and regional grids. The Philippines and Thailand have also trialled and specified large reactor solutions for cable corridors and interconnection projects. While procurement cycles in ASEAN are still conservative and often favor fixed reactors for lower-cost scopes, recent tenders and pilot projects are increasingly specifying variable capability to avoid repeated switching and to support grids with rising inverter-based generation. This shift is being reinforced by donor-funded transmission upgrades and by regional renewable corridors that need continuous reactive management rather than stepped compensation.
The VSR sector faces five structural headwinds. First, procurement cycles are long and risk-averse: utilities require exhaustive type testing, thermal and dielectric performance proofs and often a track record at similar voltage/MVAr ranges before awarding large contracts, which slows adoption of smaller/new vendors. Second, unit cost variance driven by MVAr rating and voltage class creates buyer uncertainty and complicates standardisation for tendering; big projects can radically shift average selling prices and distort short-term market value. Third, manufacturing and test capacity is concentrated: only a handful of heavy-manufacturing sites globally can build and test very-large VSRs (hundreds of MVAr at 220400 kV), meaning lead times and logistics can be bottlenecks. Fourth, the continuing competition from power-electronic solutions (STATCOMs, SVCs) for fast reactive control in some applications places technical and economic pressure on VSRs in markets that prioritize sub-second dynamic response over energy-efficient steady reactive absorption. Fifth, environmental and lifecycle questions around transformer-type oil systems (for oil-immersed VSRs) push customers toward low-loss, recyclable materials and alternative cooling that can add up-front cost and qualification friction.
For vendors and investors the high-probability plays are clear: secure platform scalability for the 200400 kV range (where single-unit MVAr is highest), localise manufacturing in major growth markets (India, China, selective ASEAN hubs) to meet procurement and content rules, and pair VSR deliveries with long-tail services (on-site testing, condition monitoring, spare-parts packages) to improve lifetime economics. Utilities benefit from tender structures that prioritize lifecycle cost (losses and O&M) and rapid delivery for renewable corridors; hybrid solutions that combine a VSR with fast STATCOM modules can, in many net-benefit cases, optimise both steady absorption and dynamic stability. Investors should look for suppliers with strong factory test capacity, strategic OEM partnerships for turnkey HV substation works, and recurring service revenues from long vendor warranties and condition-monitoring contracts.

Product Models
Single-phase variable shunt reactors are key devices in modern power systems, designed to control reactive power and stabilize voltage in transmission networks. By adjusting their inductive reactance, they help improve grid efficiency and reliability.
Oil-immersed reactors, which use oil as insulation and cooling medium for high-capacity applications. Notable products include:
Siemens Oil-Immersed Shunt Reactor Siemens Energy: Designed for transmission grids up to 765 kV, providing reliable reactive power compensation.
GE Grid Solutions Oil-Immersed Shunt Reactor GE Vernova: Known for high efficiency and robust insulation, widely applied in extra-high voltage networks.
ABB Oil-Immersed Shunt Reactor Hitachi Energy: Custom-built designs with advanced cooling systems for voltage stabilization.
TBEA Oil-Immersed Variable Shunt Reactor TBEA Co.: Widely used in Chinas ultra-high voltage projects, offering adjustable reactive power.
Hyosung Oil-Immersed Shunt Reactor Hyosung Heavy Industries: Compact and efficient design, supporting both urban and industrial power grids.
Air-core reactors which rely on air insulation and are valued for their simple structure, safety, and reduced fire risk. Examples include:
Siemens Air-Core Reactor Siemens Energy: Dry-type, fire-safe design for both indoor and outdoor installations.
GE Air-Core Dry Shunt Reactor GE Vernova: Offers reduced maintenance with compact and environmentally safe construction.
ABB (Hitachi Energy) Air-Core Reactor: Known for high reliability in reactive power compensation applications.
TRENCH Air-Core Shunt Reactor Trench Group: Global leader in dry-type reactors for transmission and distribution systems.
ZTR Air-Core Shunt Reactor Zaporozh transformator: Cost-effective solution for large substations across Eastern Europe.

Single-phase variable shunt reactors are transitioning from specialised, bespoke devices to mainstream transmission-asset classes in grids that host large, geographically dispersed renewable generation and long cable links. Using a reconciled 2024 baseline of USD 387 million and a median CAGR near 7.4% to 2031, the market offers multi-year visibility as national transmission programs, renewable corridors, and large industrial customers specify VSRs for smoother voltage control and lower steady-state losses. Asia Pacific leads demand and will remain a structural growth engine, with ASEAN and Indonesia becoming incrementally important as local grid projects and policy incentives mature.

Investor Analysis
For investors the what is exposure to a capital-goods niche where unit economics, testing capability and local delivery capacity create durable barriers to entry and where large tenders produce lumpy but high-visibility revenue events. The how is via equity stakes in tier-one VSR manufacturers or transformer/OEMs with tested EHV platforms, joint ventures that localise heavy assembly in India/China, or service and spare-parts plays that monetise installed bases. The why is a confluence of policy and technical drivers: national transmission modernization (India POWERGRID deals), offshore and onshore renewable evacuation needs, and utility preference for equipment that reduces line losses and defers costly reinforcements; together these create a multi-year procurement pipeline that supports both new-unit volumes and attractive aftermarket annuities. Risk management should focus on vendor concentration, lead-time inflation for heavy components, and competition from power-electronics solutions for dynamic needs.
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5 Reasons to Buy This Report
It reconciles disparate published estimates into a defensible 2024 baseline (single-phase VSR ≈ USD 880M) and provides a transparent CAGR range to 2031 with source alignment.
It translates market dollars into unit economics (price per MVAr, average unit price and implied units sold in 2024) with sensitivity brackets that investors and procurement teams can plug into valuation and capex models.
It maps concrete dated developments and project wins (e.g., CHINTs 400 kV/200 MVAr delivery in 2024 and GE Vernovas POWERGRID order on May 2025) that materially move procurement timing and regional demand.
It breaks down Asia and ASEAN dynamics policy, localisation and project pipelines so go-to-market and manufacturing footprint decisions can be prioritized by investors and vendors.
It profiles the competitive set and technological differentiators (OLTC range, oil-immersed vs air core, EHV test capability), enabling rapid target screening for M&A, JV or supply agreements.
5 Key Questions Answered
What is a defensible market size for single-phase VSRs in 2024 and what CAGR should investors model to 2031?
How do price-per-MVAr and average unit price assumptions change the implied global unit shipments and what sensitivity ranges should financial models use?
Which recent project wins and vendor deliveries indicate where short-term demand will materialize regionally?
How do Asia and ASEAN procurement patterns, localisation rules and renewable corridors influence vendor selection and delivery timelines?
Which five suppliers have the proven EHV platforms, factory test capacity and after-sales capability that make them the best candidates for partner-level diligence or acquisition?
Chapter Outline
Chapter 1: Introduces the report scope of the report, executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the market and its likely evolution in the short to mid-term, and long term.
Chapter 2: key insights, key emerging trends, etc.
Chapter 3: Manufacturers competitive analysis, detailed analysis of the product manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 4: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 5 & 6: Sales, revenue of the product in regional level and country level. It provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 7: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 8: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 9: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 10: The main points and conclusions of the report.

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