Global Power Transformer Market Grows Steadily at a CAGR of 8.0%

Introduction

A specific type of transformer known as a power transformer is used primarily to transmit low voltage generator electricity across distribution channels within the power grid network. It assists in the frequency-invariant transmission of power from one network to the next and is a crucial part of the electrical grid. Although producing electricity at low voltage is less expensive, it has high line currents. There are increased line losses because of the high transmission current. However, increasing the voltage of the incoming power makes it possible for efficient power transmission. As a result, a power transformer is primarily used to raise the voltage.

Market Dynamics

Growing Demand for Electricity Drives the Global Market

Power transformer sales are rising globally due to fast industrialization and increasing domestic power demand. The electricity demand is steadily rising globally, which has led to an increase in the consumption of energy resources. Additionally, electricity consumption in the automotive sector is rising due to the development of modern electric vehicles and incentives to use them. Most power plants are located in rural areas; the electricity they produce is then sent over HVDC power transmission lines to the substations, which are then distributed to the final consumers after stepping down. While most less developed nations might improve their electricity infrastructure, most developing nations underuse their energy resources. As a result, the demand for electricity globally is currently driving the global market for power transformers.

Increasing Use of Renewable and Non-Conventional Energy Sources Creates Tremendous Opportunities

Government regulations that support reducing greenhouse gas emissions are the primary drivers of renewable energy production, followed by clean energy initiatives. Nuclear, biomass, and geothermal energy are the three primary non-conventional energy sources, whereas wind, solar, and hydroelectricity are the three primary renewable energy sources. Power transformers are used to integrate these new plants into the existing transmission networks. The transformer converts the alternating current from the hydroelectric power plant into a high voltage current. This converted energy is delivered to the national grid, which then makes it available for use by homes and businesses. Renewable energy is the fastest-growing energy source globally and in the US. Solar energy generation is anticipated to grow from 11% of all renewable energy produced in the United States in 2017 to 48% by 2050, making it the fastest-growing source of electricity.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global power transformer market and is expected to grow at a CAGR of 9.10% during the forecast period. Australia, China, and India are just a few countries in the Asia-Pacific region that regularly invest in the power industry to upgrade their electrical infrastructure. The most increased average solar radiation per square meter is received in Australia, which contributes significantly to the growth of renewable energy. As two economies with the fastest expansion rates, China and India rank among the top electricity producers and have extensive transmission networks. Both countries have prioritized developing intelligent grids and incorporating renewable energy sources into the domestic power grid. Three UHV AC transmission networks and one UHV DC power transmission network have each received significant financial investments from China. In these countries, replacing outdated units has opened up new opportunities.

North America is expected to grow at a CAGR of 7.4%, generating USD 15.97 billion during the forecast period. North America is expected to experience faster market growth than other regions due to its high current adoption rate. A project by the Beijing-based Global Energy Interconnection Development and Cooperation Organization (GEIDCO) to combine UHV AC and DC transmission will be used by State Grid in China. It entails a system of 800-kV UHV DC lines that widely distribute solar and wind energy from east to west across the United States. In contrast, Canada's sizable hydropower plants would be accessible to the continent via north-south lines. A second UHV DC line stretching 5,200 kilometers from Mexico to Peru could enable power exchanges with South America. Although the project is still under review by the governments of the United States, Mexico, and Canada, such investments put North America in a position to offer chances to grow the world market for power transformers.

The moderate adoption rate in Europe is anticipated to drive market expansion over the forecast period. Europe needs both a modernized power grid and the adoption of renewable energy sources because of its industrial dominance. Russian transmission networks are extensive due to the country's size, whereas the UK and Germany have more sophisticated power infrastructures. Nuclear energy and other renewable energy sources are replacing coal-based electricity generation in European countries.

Key Highlights

• The global power transformer market was valued at USD 32.1 billion in 2021. It is expected to reach USD 64.16 billion by 2030, growing at a CAGR of 8.0% during the forecast period (2022–2030).
• Based on the rating, the global power transformer market is bifurcated into low, medium, and high. The medium segment is the highest contributor to the market and is expected to grow at a CAGR of 8.80% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global power transformer market and is expected to grow at a CAGR of 9.10% during the forecast period.

Competitive Players

1. Cg Power and Industrial Solutions Ltd
2. Siemens Ag
3. Schneider Electric Se
4. TBEA Co. Ltd
5. EMCO Ltd.
6. Kirloskar Electric Co. Ltd.
7. Toshiba Corporation
8. Hitachi Ltd.
9. Bharat Heavy Electricals Ltd.
10. General Electric Company

Recent Developments

• August 2022- At InnoTrans 2022, Siemens Mobility unveiled its brand-new digital business platform, Siemens Xcelerator. Siemens Xcelerator is an open digital business platform designed to create a robust ecosystem of partners that can collaborate to drive digital transformation and sustainability in mobility at scale.
• May 2022- As the push for green energy increases, Schneider Electric considered partnerships with Indian businesses. Indian corporations are interested in partnerships with French main Schneider Electric, which supplies energy management and industrial automation solutions to enterprises globally.

Segmentation

1. By Rating
   1. Low (5 MVA to 100 MVA)
   2. Medium (100MVA to 500 MVA)
   3. High (above 500 MVA)