The global Power Transformer market size is projected to reach approximately $50.8 Billion by 2030, at a CAGR of 7.9% from 2022 to 2030. A power transformer is an integral part of a power distribution system. It receives the electricity produced by a generator and sends it to another area of the grid, after changing its voltage. It forms an indispensable part of the power grid. It helps in the transmission of power from one network to the other without any change in frequency. Generation of electric power in a low voltage plant is cost-effective but leads to high lining current. High currents lead to more line loss, but if the voltage is increased and transmitted over a longer distance, it can be efficiently turned into power. Power transformers are used to increase the voltages so they can travel farther.
COVID-19 Impact Analysis
The latest outbreak of Covid-19 has already had large effects on various industries. The Power Transformer industry is one of them. According to the reports of the Independent Commodity Intelligence Services, Nuclear power in the EU is becoming more widely available due to safety measures that countries throughout the region have set up. The industry expects this to be a positive impact on the market in general. For the EU, this move will be an important one as it would generate power and distribute it to settlements that don’t have regular public grid access. However, the power distribution companies have been affected financially by the announcement of the lockdown due to a significant decline in demand. The fall was recorded at 25-28% post announcement.
The factors driving the growth of the global Power Transformer market include a rise in demand for electricity, stringent government regulations regarding carbon emissions, and the emergence of renewable power sources.
Ø Constant Upgrades in the Existing Electrical Networks
The increasing emphasis on the integration of broad-ranging frequency distribution links along with the growing energy-efficiency concerns is expected to boost the demand for power transformers in the commercial and residential sectors. The surge in investments by private and governmental organizations for electrification programs further contributes to the market growth. In 2014, the government of Africa launched the “Beyond the Grid sub- Initiative” to support off-grid electricity access to achieve their goal of adding 60 million new residential and business connections by the year 2030.
Ø Volatility in Raw Material Prices to Hamper the Market Growth
Raw materials such as copper, steel, aluminum, and oil are used to manufacture power transformers. However, these raw materials have been subject to volatility in recent months. Cold-rolled coil steel is used in the manufacturing of Cold Rolled Grain Oriented steel, which then is used to make transformers. Crude oil prices have been very volatile and unpredictable over the past few years; similarly, cold-rolled coil steel has gone up and down in various markets around the world. These factors are expected to restrain the market’s growth during the forecast period.
⮚ Large Adoption of Green Transformers to create Major Business Opportunities
Green power transfers are a sustainable option that offers eco-friendly solutions for those who want to preserve the environment. They help users lower their carbon footprint, mitigate risks and improve life cycle costs. To stay competitive and protect the environment, a lot of government authorities have begun investing in new green power transformers. These appliances are much quieter and safer than conventional power transformers. As a result, it is expected that there will be a widespread increase in demand for these transformers shortly.
Based on the Installation, the Power Transformer market is segmented based on Outdoor and Indoor. The Outdoor segment is anticipated to account for the large market share. These generators are made from an exotic metal-containing unusual property capable of withstanding the high voltages and heat associated with industrial environments. They have very little material usage and minimal fire hazards. Maintenance is low, and they stay cool in a natural way.
Based on the Cooling, the Power Transformer market is segmented based on Dry Type and Oil Immersed. The Oil Immersed segment is anticipated to account for the large market share. Oil Immersed power transformers account for the majority of power transformer types due to their reliability and safety. They are expected to be the go-to transformer type in the future, with a growing transmission network expansion rate.
Based on Insulation, the global Power Transformer market has been divided into Gas, Oil, Solid, and Air. The Air segment is expected to hold the largest market share. The support of these units will increase the adoption of offshore wind because they have a lot of benefits like reducing internal failure effects, as well as avoiding combustible atmosphere. Stringent government policies will make the industry landscape more eco-friendly and pave the way for zero carbon emission usage.
Based on Rating, the global Power Transformer market has been divided into 100 To 500 MVA, 501 To 800 MVA, and > 800 MVA. The 101-500 MW transformer market is expected to grow due to the low installation cost, compact size, and demand for power in key industries like healthcare, oil and gas, and power sectors. The deployment of these units across electrical substations and generating stations will more than likely boost industry forecasts.
Global Power Transformer Market Share, by Segmentation
Based on region, the global Power Transformer market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific is projected to dominate the use of the Power Transformer market followed by the North America and Europe regions.
Asia Pacific Market
The Asia Pacific dominates the global market due to the upcoming power grid expansion projects and an upsurge in renewable power generation. In addition, the growth in electricity demand along with the increased government funding toward the establishment of new transmission lines propels the market growth in the region.
North America Market
North America is expected to witness the highest growth during the forecast period which is attributed to the increasing modernization and industrialization in the region. Furthermore, the rising penetration of sustainable energy sources coupled with the increasing focus on upgrading the aging power infrastructure contributes to the market growth.
The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as ABB, SPX Transformer Solutions Inc., Calmes s.r.l, Kirloskar Electric Company, Hyosung, Bharat, Heavy Electricals Limited, Daihen Corporation, General Electric, Siemens, and Schneider Electric, lead the global Power Transformer business. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.
- SPX Transformer Solutions Inc.
- Calmes s.r.l
- Kirloskar Electric Company
- Bharat Heavy Electricals Limited
- Daihen Corporation
- General Electric
- Schneider Electric
In April 2020, ABB announced its partnership with China’s State Grid to integrate large-scale renewables.
Scope of the Report
Global Power Transformer Market, by Installation
Global Power Transformer Market, by Cooling
- Dry Type
- Oil Immersed
Global Power Transformer Market, by Insulation
Global Power Transformer Market, by Rating
- 100 To 500 MVA
- 501 To 800 MVA
- 800 MVA
Global Power Transformer Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World
|Market Size||2030: $ 50.8 Billion|
|CAGR||7.9% CAGR (2022-2030)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Key Segmentations||Installation, Cooling, Insulation, and Rating|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, Middle East, Africa|
|Key Vendors||ABB, SPX Transformer Solutions Inc., Calmes s.r.l, Kirloskar Electric Company, Hyosung, Bharat, Heavy Electricals Limited, Daihen Corporation, General Electric, Siemens, and Schneider Electric|
|Key Market Opportunities||Large Adoption of Green Transformers to create Major Business Opportunities|
|Key Market Drivers||Constant Upgrades in the Existing Electrical Networks|
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Power Transformer market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Power Transformer market historical market size for the year 2020, and forecast from 2021 to 2028
- Power Transformer market share analysis at each product level
- Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Power Transformer market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Global Power Transformer Market FAQs
1. What is the study period of this market?
● The study period of the global Power Transformer market is 2020 – 2030
2. What is the growth rate of the global Power Transformer market?
● The global Power Transformer market is growing at a CAGR of ~ 7.9% over the next 7 years
3. Which region has the highest growth rate in the global Power Transformer market?
● North America is expected to register the highest CAGR during 2022 – to 2030
4. Which region has the largest share in the global Power Transformer market?
● Asia-Pacific holds the largest share in 2021
5. Who are the key players in the global Power Transformer market?
● ABB, SPX Transformer Solutions Inc., Calmes s.r.l, Kirloskar Electric Company, Hyosung, Bharat, Heavy Electricals Limited, Daihen Corporation, General Electric, Siemens, and Schneider Electric are the major companies operating in the global Power Transformer market.
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● Yes, we offer 16 hours of analyst support to solve the queries
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● Yes, we provide regional as well as country-level reports. Other than this we also provide a sectional report. Please get in contact with our sales representatives.