by The Power Transformer Market is estimated to be valued at Us$ 38.6 Bn in 2023 and is expected to exhibit a CAGR Of 7.7% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Power transformers are used to increase or decrease transmission voltage levels for efficient power transmission and distribution. They are mostly used along with transmission and distribution networks to increase or decrease voltage levels according to transmission requirements. Some key uses of power transformers include stepping up voltage for long distance bulk transmission, voltage regulation and power quality management, coupling electricity generation to transmission grids, and stepping down voltage for distribution to residential, commercial and industrial users.
Market Dynamics:
The growing investments in transmission and distribution infrastructure expansions across regions such as Asia Pacific, North America, and Europe are expected to drive the power transformer market growth. According to the Global Transmission and Distribution Monitor report published by Ey, in 2021, T&D investments by utilities worldwide were estimated to total $306 billion, up 5% from 2020 levels. This was primarily due to increased spending to transition grids toward renewable energy integration and increased spending in emerging markets. This trend towards grid modernization and adoption of renewable energy is expected to continue over the coming years, significantly boosting demand for power transformers.
Additionally, the increasing adoption of smart grids globally to facilitate two-way power flows, enable demand response programs, and enable greater access to renewable energy sources is also expected to fuel market growth. Smart grids deploy advanced monitoring technologies and automated controls which aid utilities better manage their grids in real time. This increases the need for flexible and intelligent power transformers that can support these modern grids.
Segment Analysis
The global power transformer market is dominated by utility transformer sub segment. Utility transformers accounted for over 60% share of the total market in 2022. This is because utility transformers are used extensively throughout the power transmission and distribution networks by utilities and bulk power providers to stepped down high voltage to required medium or low voltage for power supply.
PEST Analysis
Political: Stable regulatory policies related to power infrastructure expansion and renewable energy integration are promoting investments in transmission and distribution networks, driving demand for power transformers.
Economic: Growing investments in modernization of aging power grids along with increasing electrification rate in developing economies is fueling market growth.
Social: Rising global energy demand owing to rapid urbanization and industrialization is positively impacting the market.
Technological: Advancements in materials and cooling technologies has led to more efficient transformers with compact sizes and lighter weight, enhancing grid reliability.
Key Takeaways
The Global Power Transformer Market Demand is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing investments in modernization of aging power infrastructure across regions. The market size for power transformer is estimated to reach US$ 67.4 Bn by 2030.
Regional analysis: Asia Pacific dominated the global market in 2022 and is expected to continue its dominance during the forecast period. This is attributed to massive infrastructure investments and expansion of transmission & distribution networks underway in China and India.
Key players operating in the power transformer market are ABB Ltd., Toshiba Corp., Alstom SA, Siemens Energy, Bharat Heavy Electricals Limited, Mitsubishi Electric Corporation, Hyosung Power & Industrial Systems Performance Group, Hitachi, Hyundai Heavy Industries Co. Ltd., GE Co., and Crompton Greaves Ltd. Key players are focusing on introducing innovative and more efficient transformers to strengthen their positions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
