Power Transformer Market

The rising demand for electrical, renewable, and conventional fuel-based energy worldwide promises tremendous growth for power transformer market in near future. Moreover, power transformer continue to play a key role in worldwide energy initiative with local distribution of energy, which leads to higher efficiency in energy transfer, lower loads on power distribution, and lower distribution costs. The worldwide initiative to build more efficient energy grids have also led to a shift away from Large Power Transformer systems or LPTs. The LPTs remained a major driver for growth in the power transformer market traditionally. However, according to the US department of Energy 2014 report, this equipment can cost millions, and weigh between 100 to 400 tons. Moreover, the procurement, and manufacturing for these remained a complex procedure.

The procurement process also involves complex regulations such as prequalification of manufacturers, the purchase of raw materials, competitive assessment, and special modes of transportation. In case of purchasing manufacturing component, a delay can require waiting periods of up to 20 months. Moreover, reliance on special grade electric steel, and copper, and their exuberant costs also remained a major challenge for manufacturing LPTs.  Despite the major challenges, thanks to conventional demand, the US accounts for largest base of LPTs in the world. Furthermore, average LPT systems in United States were aged 25 in 2014, with a life-span of 40 years. The rising burden of failure on conventional LPT systems, and growing demand shift towards small, and mid sized power transformers will remain a major driver for growth in the power transformer market.

Changing Production of Electricity Remains a Major Promise for Growth

According to International Energy Agency or IEA, the electricity generation from combustible fuels accounted for 66.3% of total electricity output globally in 2018. These fuels included coal, oil, natural gas, animal products, industrial waste, and solid biomass, among others. The IEA also noted the same year, the growth for renewable sources like solar witnessed a 24.3% growth, while wind energy registered 12.4% growth. Furthermore, the traditional industrial sector consumes less electrical power as compared to residential, commercial, and public services sector in the past. In 2018, its consumption was marginally more than the other sectors, and this has been a historic trend. On the other hand, the transport sector promises to experience strong growth in electricity consumption as electric vehicle promise major expansion in near future. The growing shift to renewables, thanks to growing consumer, and demand of sectors like road transport, will pick up in near future. The shift to renewable which are in their infancy require far more transparency in distribution of electricity, more efficiency in production as the conversion remain extremely low as compared to fuel-based electricity generation, and due to prospects like electric vehicle. This will likely drive growth for renewable fuels, and high demand for power transformers of all sizes in the near future.

The Demand for Electricity Generation in Asia Pacific will Remain High, Thanks to Rising Facility Centres

Rising number of institutes, institutions, and facilities like hospitals in Asia Pacific continue to demand 24/7 access to electricity. However, despite major strides in electricity production, facilities, and industries in Asia Pacific continue to suffer major power outages, production delays, and major interruptions in critical service infrastructure.  Hence, among infrastructure improvements power infrastructure remains critical to growth in countries like India, China, Japan, among others. The rising demand for energy generation, and improvements in energy distribution will offer major growth opportunities for players in the power transformers market in Asia Pacific region.

The key players of the global power transformers market are ABB Ltd., Crompton Greaves Ltd., General Electric Company, Hyosung Power & Industrial Systems Performance Group, Hyundai Heavy Industries Co. Ltd. Mitsubishi Electric Corporation, SGB-SMIT International GmbH., Siemens AG, SPX Corporation, Toshiba Corporation and others.

The Power Transformers Market is Segmented as Below:

By Core

• Closed
• Shell
• Berry

By Winding

• Two Winding
• Auto-Transformer

By Installation

• Outdoor
• Indoor

By Cooling

• Dry type
  • Self-air
  • Air blast
• Oil Immersed
  • Self-Cooled
  • Water cooled
  • Forced oil
  • Others

By Insulation

• Gas
• Oil
• Solid
• Air
• Others

By Phase

• Single phase
• 3 - phase

By Rating

• 100 to 500 MVA
• 501 to 800 MVA
• > 800 MVA

By Mounting

• Pad
• Pole
• PC/PCB
• Others

By Application

• Residential & Commercial
• Hotels
• Hospitals
• Apartments
• Others
• Utility
• Industrial
• Railways
• Cement
• Power distribution
• Oil & gas
• Others

By Region

• North America
• U.S.
• Canada
• Europe
• Germany
• UK
• France
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• Japan
• China
• India
• Australia
• Rest of APAC
• South America
• Brazil
• Rest of South America
• Middle East & Africa
• UAE
• South Africa
• Saudi Arabia
• Rest of MEA