Power transformers market size to grow by USD 11,575.07 million from 2022 to 2027; Driven by modernization of existing transformers - Technavio
NEW YORK , June 22, 2023 /PRNewswire/ -- The power transformers market size is expected to grow by USD 11,575.07 million during 2022-2027, progressing at a CAGR of 6.15% as per the latest Technavio market research report. APAC is estimated to account for 37% of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In APAC, the market demand for electricity remains high due to the increasing electricity consumption in the region. In major countries such as China and India, rapid urbanization and better living standards are increasing electricity consumption. Due to the improvement in economic conditions in the region, a continuous supply of electricity has become crucial. This is positively impacting the market growth in the region.
China expects to expand its T&D network by almost half a million circuit kilometers (Ckm). This will drive the government and utility companies to connect the demand and supply centers located across that nation. Furthermore, power generation capacity is expected to grow substantially, which will drive the demand for power transformers and related accessories in the country.
However, the country is also planning to add a significant amount of hydropower and wind power capacity, which is likely to fuel the market for power transformers in the future. Additionally, in India, rapid developments in both commercial and industrial infrastructure are supporting the growth of the market in APAC. Therefore, such factors will drive the market's growth in APAC during the forecast period. For more insights on the market share of various regions- Download a sample report in MINUTES
Power Transformers Market: Market Dynamics
Power Transformers Market: Challenge
The modernization of existing transformers is notably driving the power transformer market growth. Factors such as the rise in the installation of new transformers and the replacement of old transformers with new ones are generating growth. Globally, the majority of the T&D infrastructure needs renovation, mainly due to the existing networks being unable to meet the growth in the demand for power. For instance, in Russia, Chelyabenergo, a subsidiary of the utility interregional distribution grid companies (IDGC), completed its reconstruction work on the 110/10 kV Miass substation in the Urals in 2015. Such factors are expected to drive the demand for power transformers. In many countries, smart grid networks are also being increasingly used. However, a smart grid refers to an electricity network that provides an economical, sustainable, and secure electricity supply by intelligently integrating the actions of all users, whether they are consumers, generators, or those capable of both in an efficient manner. The use of smart grid systems has allowed utilities to focus on the installation of more power transformers for the effective transmission of electric power. Therefore, the need for transformer oil is also rising, with more transformers being installed into the grid. Hence, such factors will lead to significant growth in the global market during the forecast period.
Power Transformers Market: Trend
The digitalization of transformers is a major trend shaping the power transformer market. A changing power network landscape with new energy sources for power generation and new loads in terms of distribution demands a high level of flexibility and efficiency. Ultimately, this has given rise to the digitization of power network assets. As distribution transformers are essential parts of a power network, they are witnessing digitization with the help of advanced sensors, monitoring platforms, and software tools. However, the digitization of transformers allows optimized grid operation, quicker action, and predictive maintenance. All relevant stakeholders in the power network value chain can remain updated on the health of a transformer, thus supporting standardization and lowering unplanned outages. Furthermore, the use of data visualization tools for analytical purposes expedites the need for digitization in transformers. Such advancements are witnessing rapid penetration in the distribution transformers market. With growing competitive intensity in the global market, the digitalization of power transformers is expected to play a major role in the growth of the market during the forecast period.
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Some of the key Power Transformers Market Players:
The power transformers market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market. Some of the key market players are mentioned below:
ABB Ltd., ALTRAFO Srl, Altro Transformers Pty. Ltd., CG Power and Industrial Solutions Ltd., DuPont de Nemours Inc., Eaton Corp. Plc, Etel Transformers Pty ltd, Fuji Electric Co. Ltd., General Electric Co., Hammond Power Solutions Inc., Hitachi Ltd., Hyundai Electric and Energy Systems Co. Ltd., Kirloskar Electric Co. Ltd., Layer Electronics Srl, MGM Transformer Co., Schneider Electric SE, Siemens Energy AG, Southern Electronic Services, Tyree Industries, and Wilson Power And Distribution Technologies Pvt. Ltd.
Power Transformers Market: Market Segmentation
The power transformers market is segmented into type (liquid immersed and dry type), end-user (commercial power, residential power, and industrial power), and geography (APAC, Europe, North America, Middle East and Africa, and South America).
The market share growth by the liquid-immersed segment will be significant during the forecast period. The use of oil as an insulating medium is more widely prevalent. Power transformers are mostly located inside the safe perimeters of a substation or a distribution station, and hence, the probabilities of injuries or fatalities due to any accidents are less when compared with distribution transformers. Moreover, due to better-insulating properties and other factors, SF6 gas, which is non-flammable and non-polluting, is also used for insulation, but it is more costly. Much of the demand for liquid-immersed power transformers originates from the Middle East and APAC. Increasing population and emerging economies have led to expanded electricity coverage in these regions, especially in the Middle East, driving the installation of new grid networks. Furthermore, In APAC, rapid industrial development in India and China has increased the demand for electricity, leading to increased investment in power infrastructure. In addition to the new installation, the replacement demand for liquid-immersed power transformers is witnessing growth across the regions, mainly in North America and Europe. Post-financial crisis in 2008, industrial activities gained momentum, which led to increasing investments in power generation in the US and European countries. This directed the expansion of power generation capacities, which resulted in the replacement of the existing power transformers with high-efficient power transformers. Thus, such factors are anticipated to drive the liquid-immersed power transformers segment of the global market during the forecast period.
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Power Transformers Market Scope | |
Report Coverage | Details |
Base year | 2022 |
Historic period | 2017-2021 |
Forecast period | 2023-2027 |
Growth momentum & CAGR | Accelerate at a CAGR of 6.15% |
Market growth 2023-2027 | USD 11,575.07 million |
Market structure | Fragmented |
YoY growth 2022-2023 (%) | 5.76 |
Regional analysis | APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution | APAC at 37% |
Key countries | US, China, Japan, India, and Germany |
Competitive landscape | Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled | ABB Ltd., ALTRAFO Srl, Altro Transformers Pty. Ltd., CG Power and Industrial Solutions Ltd., DuPont de Nemours Inc., Eaton Corp. Plc, Etel Transformers Pty ltd, Fuji Electric Co. Ltd., General Electric Co., Hammond Power Solutions Inc., Hitachi Ltd., Hyundai Electric and Energy Systems Co. Ltd., Kirloskar Electric Co. Ltd., Layer Electronics Srl, MGM Transformer Co., Schneider Electric SE, Siemens Energy AG, Southern Electronic Services, Tyree Industries, and Wilson Power And Distribution Technologies Pvt. Ltd. |
Market dynamics | Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview | If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Table of Content
1 Executive Summary
1.1 Market overview
2 Market Landscape
2.1 Market ecosystem
3 Market Sizing
3.1 Market definition
3.2 Market segment analysis
3.3 Market size 2022
3.4 Market outlook: Forecast for 2022-2027
4 Historic Market Size
4.1 Global power transformers market 2017 - 2021
4.2 Types Segment Analysis 2017 - 2021
4.3 End-user Segment Analysis 2017 - 2021
4.4 Geography Segment Analysis 2017 - 2021
4.5 Country Segment Analysis 2017 - 2021
5 Five Forces Analysis
5.1 Five forces summary
5.2 Bargaining power of buyers
5.3 Bargaining power of suppliers
5.4 Threat of new entrants
5.5 Threat of substitutes
5.6 Threat of rivalry
5.7 Market condition
6 Market Segmentation by Type
6.1 Market segments
6.2 Comparison by Type
6.3 Liquid immersed - Market size and forecast 2022-2027
6.4 Dry type - Market size and forecast 2022-2027
6.5 Market opportunity by Type
7 Market Segmentation by End-user
7.1 Market segments
7.2 Comparison by End-user
7.3 Commercial power - Market size and forecast 2022-2027
7.4 Residential power - Market size and forecast 2022-2027
7.5 Industrial power - Market size and forecast 2022-2027
7.6 Market opportunity by End-user
8 Customer Landscape
8.1 Customer landscape overview
9 Geographic Landscape
9.1 Geographic segmentation
9.2 Geographic comparison
9.3 APAC - Market size and forecast 2022-2027
9.4 Europe - Market size and forecast 2022-2027
9.5 North America - Market size and forecast 2022-2027
9.6 Middle East and Africa - Market size and forecast 2022-2027
9.7 South America - Market size and forecast 2022-2027
9.8 China - Market size and forecast 2022-2027
9.9 US - Market size and forecast 2022-2027
9.10 Japan - Market size and forecast 2022-2027
9.11 Germany - Market size and forecast 2022-2027
9.12 India - Market size and forecast 2022-2027
9.13 Market opportunity by geography
10 Drivers, Challenges, and Trends
10.1 Market drivers
10.2 Market challenges
10.3 Impact of drivers and challenges
10.4 Market trends
11 Vendor Landscape
11.1 Overview
11.2 Vendor landscape
11.3 Landscape disruption
11.4 Industry risks
12 Vendor Analysis
12.1 Vendors covered
12.2 Market positioning of vendors
12.3 ABB Ltd.
12.4 ALTRAFO Srl
12.5 Altro Transformers Pty. Ltd.
12.6 CG Power and Industrial Solutions Ltd.
12.7 DuPont de Nemours Inc.
12.8 Eaton Corp. Plc
12.9 Etel Transformers Pty ltd
12.10 Fuji Electric Co. Ltd.
12.11 General Electric Co.
12.12 Hammond Power Solutions Inc.
12.13 Hitachi Ltd.
12.14 Schneider Electric SE
12.15 Southern Electronic Services
12.16 Tyree Industries
12.17 Wilson Power And Distribution Technologies Pvt. Ltd.
13 Appendix
13.1 Scope of the report
13.2 Inclusions and exclusions checklist
13.3 Currency conversion rates for US$
13.4 Research methodology
13.5 List of abbreviations
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