Press Release

North America Oil Immersed Shunt Reactor Market is Expected to grow at a robust CAGR of 5.18% through 2030F

The North America Oil Immersed Shunt Reactor Market is to be led by the United States, driven by robust investments in grid modernization and renewable energy integration, during the forecast period 2026-2030F.


According to TechSci Research report, “North America Oil Immersed Shunt Reactor Market – By Country, Competition, Forecast & Opportunities, 2020-2030F", The North America Oil Immersed Shunt Reactor Market was valued at USD 4.72 Billion in 2024 and is expected to reach USD 6.39 Billion by 2030 with a CAGR of 5.18% during the forecast period.

The growing electrification of industrial sectors across North America is driving significant investments in high-voltage equipment for grid interconnection, including oil immersed shunt reactors. As heavy industries such as steel manufacturing, automotive production, mining, and chemicals pursue decarbonization through electrified operations, their electricity consumption is rising substantially. These industrial users are increasingly sourcing power through dedicated high-voltage substations that connect directly to transmission grids. This trend requires precise voltage regulation and reactive power control to maintain system reliability during fluctuating industrial loads. Oil immersed shunt reactors play an essential role in these industrial interconnections by managing power factor correction and minimizing voltage swings that could otherwise damage sensitive production equipment or disrupt process continuity.

As industrial facilities expand the use of electric furnaces, heat pumps, and high-load electric motors, they impose substantial reactive power burdens on regional transmission systems. Utilities and private substation operators are proactively installing oil immersed shunt reactors to mitigate these issues and preserve grid stability. The presence of reactors allows for smoother power delivery and improved efficiency, especially in facilities operating across large campuses or multi-shift schedules. For example, in 2024, a major automotive manufacturing cluster in Ontario added three 230-kilovolt substations equipped with oil immersed shunt reactors to support electrified production lines. Such investments highlight the growing role of these reactors in the industrial power ecosystem as electrification deepens. A cluster of electrified automotive manufacturing plants in Ontario added three 230-kilovolt substations in 2024, each equipped with oil immersed shunt reactors, to manage reactive power fluctuations arising from high-load electric equipment.

Urban growth and industrial densification in major metropolitan areas across North America have created a rising demand for high-voltage power systems that can support large-scale electricity consumption with minimal fluctuations. This dynamic has led to a marked increase in the deployment of high-voltage oil immersed shunt reactors in densely populated and industrially active regions such as the Northeast United States, the Great Lakes corridor, and southern Ontario. These reactors are being installed at substations to stabilize voltages and prevent overvoltages associated with underground cables, especially in systems operating at 230 kilovolts and above.


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Based on Insulation Type, Silicone Insulation is the fastest-growing segment in the North America Oil Immersed Shunt Reactor Market. This rapid growth is driven by the superior thermal stability, moisture resistance, and dielectric strength that silicone-based materials offer, making them ideal for modern refining environments that demand high-performance and reliability. Silicone insulation is increasingly being adopted across critical components in refinery operations, especially in high-temperature and high-voltage areas where conventional insulation materials like paper or resin fail to maintain consistent performance. The shift towards automation and digital monitoring in refineries has further emphasized the need for durable and long-lasting insulation, accelerating the demand for silicone solutions.

The expansion of refining infrastructure across the United States and Canada, including upgrades and retrofitting of older systems, is fostering greater implementation of silicone insulation due to its longevity and reduced maintenance requirements. Environmental considerations are also playing a role, as silicone insulation tends to have a lower environmental impact over its lifecycle compared to traditional options. As refineries prioritize operational efficiency and safety, the silicone insulation segment is positioned to outpace other insulation types, achieving the fastest growth rate in the market. This trend is expected to sustain through the forecast period.

Based on country, ​ Mexico is quickly emerging as the fastest-growing country in the North America oil immersed shunt reactor market. The country's increasing demand for electricity, paired with its ongoing efforts to modernize its power grid, is driving the adoption of oil immersed shunt reactors. As Mexico expands its renewable energy sources, such as wind and solar, the need for voltage stabilization and grid reliability becomes crucial, positioning oil immersed shunt reactors as essential components of the grid infrastructure.

Government initiatives to improve energy efficiency and reduce transmission losses are fueling the growth of the market. With a growing focus on enhancing the transmission network, Mexico is expected to continue its strong market trajectory in the coming years.


Key market players in the North America Oil Immersed Shunt Reactor market are: -

  • General Electric Company
  • Siemens AG
  • Hitachi Ltd.
  • Schneider Electric SE
  • Mitsubishi Electric Corporation
  • Nissin Electric Co., Ltd.
  • Fuji Electric Co., Ltd.
  • Liyond Industry Co., Ltd.


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“The North America Oil Immersed Shunt Reactor Market is expected to experience consistent growth in the coming years, driven by increasing investments in power transmission infrastructure, grid modernization, and the integration of renewable energy sources. As electricity demand rises and high-voltage transmission lines expand, utilities are prioritizing solutions that enhance voltage stability and reduce reactive power losses. Oil immersed shunt reactors offer proven reliability and efficiency in high-voltage applications, making them vital for grid performance. With the United States and Canada upgrading their electrical networks and emphasizing energy security, the demand for oil immersed shunt reactors is set to strengthen steadily.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

“North America Oil Immersed Shunt Reactor Market 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 Insulation Type (Paper Insulation, Resin Insulation, Silicone Insulation), By Country, By Competition, Forecast and Opportunities, 2020-2030F”. has evaluated the future growth potential of North America Oil Immersed Shunt Reactor Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in North America Oil Immersed Shunt Reactor Market.

 

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