Power Transformers Market is expected to grow significantly, with the rising demand for electricity around the globe. During 2018, the demand for electricity was around 26 thousand terawatt hour (TWh), and it has been estimated to grow by nearly 6% CAGR by 2025. The growth in electricity demand is certain to increase the growth of power transformers, especially for high voltage long distance transmissions. Power Transformers are static machines used for transforming power from one circuit to another without changing the frequency. These transformers are generally above 200 MVA and are installed at the ending or receiving end of long high voltage transmission lines for step-up and step-down applications. The drivers of the power transformers market are the growing deployment of renewable infrastructure for power generation and upgradation and expansion of existing grid infrastructure. However, the installation cost and logistics difficulty of power transformers are expected to act as restraints for the market to grow in the future.
- With rising awareness of the climatic condition and increasing urbanization across the globe, demand for electricity and power transformer is expected to get an increase in the near future. The inclusion of electric vehicles and growing industries are few factors that are expected to increase with increasing population.
- Among all the rating power transformers, large power transformer is the mostly used transformers with varied uses in distribution and transmission networks. And such type of power transformers is expected to be a significant segment during the upcoming years.
- Asia-Pacific is one of the significant markets with the highest terawatt hour of electricity generation. With an increase in demand for power and cross border transmission, initiatives to utilize renewable resources, the market for power transformer is expected to grow during the forecasting period.
Key Market Trends
Large Power Transformers to Account for the Largest Share in the Market
- The large power transformer has the largest unit in the power transformer population. Its power ranges are normally above 200 megavolt ampere (MVA). Large power transformers are produced by a few numbers of companies, and so does the competition is low under this segment.
- Developed countries globally are replacing old transformers to ensure continuous and efficient supply of electricity. This trend is expected to increase during the forecast period. In the coming years, environment-friendly large power transformers are expected to witness significant growth due to their environmental viability and related advanced features.
- During 2019, ABB contract to supply converter transformers and high-voltage equipment for an 800 kilovolt (kV), ultrahigh-voltage direct current (UHVDC) transmission link, owned by the State Grid Corporation of China (SGCC), is one of the large power transmission projects during the recent year.
Asia-Pacific as a Significant Market
- Asia-Pacific is a significant market for power transmission and distribution networks. With largest section of people of the globe, power requirement in the region is higher as compared to other parts of the world.
- With rising per capita electricity consumption of around 0.1 MWh, electricity demand for the region is expected to get increased to nearly eleven thousand terawatts by 2025, which in turn is expected to boost the power transformer market.
- China and India are expected to be the largest market in the region. Nearly 30 gigawatts (GW) of wind and 60 GW of solar projects are expected to execute in China by 2020. Furthermore, 262 gigavolt ampere of new substations is expected to get installed in the near future.
The power transformers market is fragmented. The key owners in the market include ABB Group, Siemens Ltd., General Electric Company, Crompton Greaves Ltd., Toshiba Corporation, Hyundai Heavy Industries Co. Ltd., Mitsubishi Electric Corporation, Hyosung Corporation, Bharat Heavy Electricals Limited, and SPX Transformer Solutions, Inc.
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