Global Distribution Transformer Market Size, Share, Growth Analysis, By Type(Oil, Water), By Mounting(Pole, pad) - Industry Forecast 2023-2030

Global Distribution Transformer Market size was valued at USD 24.5 billion in 2021 and is poised to grow from USD 26.53 billion in 2022 to USD 52 billion by 2030, growing at a CAGR of 8.3% in the forecast period (2023-2030).

As the final voltage transition in the system, a distribution transformer-also referred to as a service transformer-steps down the voltage used in power distribution. A device known as a "transformer" is a piece of machinery that transfers electrical energy from one alternating-current circuit to one or more other circuits by either increasing (voltage stepping up) or decreasing (voltage stepping down). Transformers are used for a wide range of purposes, including raising the voltage from electric generators so that electric power may be transported over long distances and operating low-voltage devices like doorbells and toy electric trains. A distribution transformer, also known as a service transformer, provides the last voltage transformation in the electric power distribution system by stepping down the voltage in the distribution lines to the level used by the customer.

Distribution transformers typically don't function at full load; instead, they perform best at lighter loads. Voltage regulation is also minimised in these transformers to improve efficiency. Distribution transformers have a low leakage reactance as a result. Transformers under 500 kVA are commonly referred to as distribution transformers. Distribution transformers with voltage distribution less than 33 kV are used in the industry, while 380V/220V transformers are used in homes. Different distribution transformers can service varying amounts of customers depending on the overall number of consumers in an area.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Distribution Transformer Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Segments covered in this report:

The global distribution transformer market has been segmented based on type, mounting, and region. By type, the Distribution Transformer market is segmented into oil-filled, and dry types. Based on the mounting Distribution Transformer market is classified as pole and pad. Based on region distribution transformers are segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Driver

Due to the increased energy demand from several remote load centres, high tension electrical networks are now required. This has also led to the outside construction of distribution transformer systems. The advantages of outdoor installations, such as quick setup and straightforward fault identification, have recently affected consumer demand for goods. Additional grid system upgrades in the suburbs and measures to improve international networks will also promote product uptake.

The market for distribution transformers for pad mounting will experience considerable expansion due to the increasing penetration of large transformers, which require reliable earthing systems and a sturdy foundation. In recent years, mounting systems have become more and more popular thanks to factors including improved safety, reduced land needs, low installation costs, and enhanced aesthetics. There is also considerable applicability across utilities and important sectors as a result of the global demand.

Restraint

The price volatility of raw materials has a considerable impact on the transformer market. The instability is a result of the fluctuating prices of basic resources like copper, steel, and crude oil. Steel and copper are used extensively in the construction of transformers. The market for medium power transformers known as distribution transformers has been restricted by rising tariffs on raw materials like steel and copper that have led to more volatile raw material prices. For instance, the US administration intended to raise import taxes by 25% and 10%, respectively, on derivative steel and aluminium. Price rises result in greater operational expenses, which restrains the market growth for distribution transformers.

Market Trends

Transformer sales are shifting in favour of the creation of independent, self-contained smart transformers. Smart transformers have been developed to communicate with all parties, continuously manage voltage, and provide information and feedback on the power supply. They deliver the exact amount of electricity needed and respond to fluctuations through a process called as voltage optimisation. They supply the appropriate amount of power to electrical devices, which significantly reduces energy use and greenhouse gas emissions. To hasten technological advances in Solid State Transformer (SST) technology, the Energy Research Institute and the National Research Foundation of Singapore will collaborate. The endeavour is a part of Singapore's Energy Grid 2.0 initiative, which aims to create the next-generation grid system and revolutionise energy management by fusing multiple energy sources into a single intelligent network that is more efficient, resilient, and sustainable.