As per a new report that happens to be published by Allied Market Research, the power transformer market was valued at $27.7 billion in 2019, and is all set to reach $50.8 billion by 2027, thereby registering a CAGR of 7.9% right from 2020 to 2027.
It is well to be noted that power transformers happen to play a critical role when it comes to electricity transmission as well as distribution networks, and hence facilitating efficient as well as safe transfer in terms of electrical energy over long distances as well as varying voltage levels. Their design, construction, along with the operations happen to be essential considerations so as to make sure of reliability along with the stability of electrical power systems.
The rise in demand in terms of electricity throughout the world, the replacement of the present transmission networks, and, at the same time, a rise in adoption when it comes to smart grids have gone ahead and boosted the progress of the global power transformer segment. But, high installation, logistics costs, as well as supporting the infrastructure costs concerning the transformer, do go on to hamper the market.
The worldwide power transformer market throughout the Asia-Pacific happened to hold the largest share in 2019, therefore accounting for over two-fifths of the market. Furthermore, the region is in all likelihood anticipated to manifest the highest CAGR, which is 9.0% across the forecast period, due to the ongoing power grid expansion projects, mostly set across India and China. It is well to be noted that the market across North America, on the other hand, happened to hold more than one-fourth of the market.
It is well to be noted that major players within the power transformer industry are CG Power and Industrial Solutions Ltd., Bharat Heavy Electricals Ltd., EMCO Ltd., Schneider Electric SE, General Electric Kirloskar Electric Co. Ltd., Siemens AG, TBEA Co. Ltd., Hitachi Ltd., as well as Toshiba Corporation.
The fact is that it was the medium segment that held the largest share
Notably, the medium segment went on to dominate the global power transformer market across 2019, thereby accounting for almost half of the market. Apart from this, the segment is all set to register the highest CAGR of 8.7% across the forecast period, owing to the replacement of the present power transformers as well as also new power grid projects.
It is worth noting that a power transformer happens to be a part of the transmission system and a key element within the power delivery value chain. It helps in the evacuation of power from generating stations and also in its delivery to load the centers.
Power transformers happen to be generally used within the transmission network for stepping up or even down the voltage level. These transformers happen to function at their peak load and are indeed designed to give out the maximum efficiency, and that too at full load.
Power transformers go on to help the power transmission from low-voltage to high-voltage by way of one network to the other sans any change when it comes to the frequency.
Increase in the electricity consumption, the replacement of the present power transformers in terms of integration with renewable energy sources, as well as the rollout concerning smart power grids happen to be the major drivers that are indeed pushing the worldwide power transformer market.
The rise in the demand when it comes to the electricity and the emergence as far as the renewable power sources are concerned go on to increase the embracement in terms of high voltage transmission technologies like UHV, HVAC, as well as HVDC power transformers.
The development when it comes to modern electric cars as well as the incentives to roll them out happens to be raising the consumption of electricity within the automotive sector.
For efficient dispersal when it comes to power towards the deficit regions, strengthening as well as the enhancement of the transmission system network are indeed needed.
Aging infrastructure happens to be one of the key factors that’s boosting the growth of the worldwide global power transformer market. Aging equipment happens to have a higher risk of failure and is indeed unreliable. Frequent failure within the transmission hampers the customer development, as in the scenario of industries as well as other commercial consumers in terms of electricity that go on to demand stable supply as far as electric power is concerned.
Progress when it comes to the renewable energy investment goes on to slow down because of certain grid limitations. Therefore, upscaling the capacity when it comes to the power transformers happens to be a very crucial element so as to meet the rising future demand, which is estimated for electricity.
It is worth noting that the worldwide power transformer market surge varies across every region depending upon the investments by the government, economic development, as well as private utility companies’ nods and willingness so as to upgrade from the existing transmission networks.
Power transformers happen to be majorly used so as to step up the voltage since the transmission when it comes to high voltage power happens to be much more efficient as compared to low-voltage transmission. It is often used as far as the generation step-up units- GSU, industrial plants such as oil and gas refineries, transmission substation chemicals and petrochemicals, mining industry, cement industry, desalination plants, metros, malls, as well as other infrastructural fields are concerned.
The high-voltage direct current- HVDC has gone ahead as well as emerged as one of the preferred transmission technologies when it comes to the long-distance bulk power supplies.
It is well to be noted that countries like the U.S. as well as China have constructed long-distance power transmission networks in order to transfer more energy by way of UHV DC, hence making sure to maximize usage in terms of renewable energy while at the same time, slashing the dependence in terms of coal. The usage of ultra-high-voltage transmission technology happens to be already used across numerous countries, China being one of them.
