Shunt Capacitor Market Size To Reach $1.61 Billion By 2030

Shunt Capacitor Market Growth & Trends

The global shunt capacitor market size is anticipated to reach USD 1.61 billion by 2030 and is anticipated to expand at a CAGR of 7.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. The increasing need for power factor correction, voltage stabilization, and energy efficiency in industrial, commercial, and utility applications drives the market. The rapid expansion of power transmission and distribution (T&D) networks and the integration of renewable energy sources like wind and solar have heightened demand for reactive power compensation. Additionally, government initiatives for grid modernization, smart grids, and electrification of transport systems further accelerate market growth. Technological advancements, such as IoT-enabled capacitor monitoring and high-performance dielectric materials, enhance product efficiency and reliability, making shunt capacitors essential for modern power infrastructure.

Rapid expansion of renewable energy sources, such as solar and wind power, is also one of the key drivers of the market's growth. As these intermittent energy sources are integrated into power grids, shunt capacitors play a critical role in stabilizing voltage levels, improving power factor correction, and ensuring reliable power delivery. Governments and utilities worldwide are investing heavily in renewable energy projects to meet sustainability goals, further boosting the demand for shunt capacitors.

Industries with high power consumption, such as manufacturing, data centers, and oil & gas, rely on shunt capacitors for power factor correction to reduce energy costs and comply with regulatory standards. The rise in industrial automation and the need for uninterrupted power supply further amplify this demand. Additionally, government regulations aimed at reducing carbon emissions and improving energy efficiency are pushing industries to adopt shunt capacitors, making them a critical component in achieving energy-saving targets. These factors collectively underscore the growing importance of shunt capacitors in modern power systems and industrial applications. 

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Shunt Capacitor Market Report Highlights

• Based on voltage rating, low & medium-voltage shunt capacitors held a revenue share of around 70% of the global market in 2024

• Based on application, the industrial segment holds the largest revenue share in the market, with a revenue share of about 42% in 2024. The increasing need for power factor correction, voltage stabilization, and energy efficiency in industrial applications drives the demand for industrial shunt capacitors

• Asia Pacific is the dominant region for the market, with a revenue share of over 40.0% in 2024 due to rapid industrialization, expanding power transmission and distribution infrastructure, and growing investments in renewable energy projects

• Key industry participants include ABB Ltd., Schneider Electric, General Electric Company, Siemens AG, and Larsen & Toubro Ltd.

Shunt Capacitor Market Segmentation

Grand View Research has segmented the global shunt capacitor market report based on voltage rating, application, and region:

Shunt Capacitor Voltage Rating Outlook (Revenue, USD Million, 2018 - 2030)

• Low & Medium

• High

Shunt Capacitor Application Outlook (Revenue, USD Million, 2018 - 2030)

• Industrial

• Utility

• Manufacturing

• Others

Shunt Capacitor Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • Spain

  • France

  • Italy

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

List of Key Players in Shunt Capacitor Market

• ABB Ltd.

• Schneider Electric

• General Electric Company

• Siemens AG

• Larsen & Toubro Ltd

• Eaton Corporation Plc

• Aerovox Corp.

• Magnewin Energy Private Limited

• CIRCUTOR, SA

• Energe Capacitors Pvt Ltd.