PUBLISHER: The Business Research Company | PRODUCT CODE: 1388013
PUBLISHER: The Business Research Company | PRODUCT CODE: 1388013
“Transformer Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on transformer market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for transformer? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The transformer market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
A transformer serves as a device for transferring energy from one electrical circuit to another. It accomplishes this by either increasing or decreasing voltage and current levels, adjusting capacitor values, blocking the passage of direct current between two circuits, and isolating the circuits from each other. Transformers play a crucial role in the production of power, distribution of electricity, and in specialized transformer applications.
The primary categories of transformers include power transformers and distribution transformers. Power transformers are specifically designed for transferring electrical energy between the generator and the primary circuits in distribution systems. These transformers facilitate the transition between higher and lower voltage levels in the distribution network. They come in two main variants: low-rated transformers and high-rated transformers. These transformers are used by a wide range of consumers, including utility companies, residential households, commercial establishments, and industrial facilities.
The transformers market research report is one of a series of new reports from The Business Research Company that provides transformers market statistics, including transformers industry global market size, regional shares, competitors with a transformers market share, detailed transformers market segments, market trends, and opportunities, and any further data you may need to thrive in the transformers industry. This transformers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The transformer market size has grown strongly in recent years. It will grow from $89.31 billion in 2023 to $95.32 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The growth observed during the historical period can be attributed to several key factors, including the widespread electrification and industrialization of various sectors, substantial infrastructure development, overall economic expansion, and the establishment and enforcement of regulatory standards.
The transformer market size is expected to see strong growth in the next few years. It will grow to $119.05 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. The anticipated growth in the forecast period can be ascribed to various factors, including the integration of renewable energy sources, the modernization of electrical grids, the electrification of transportation, the effects of increased urbanization, and a growing demand for more efficient transformers. Significant trends expected in the forecast period encompass the adoption of smart transformers, the development of energy-efficient transformer designs, the production of compact and environmentally-friendly transformers, the creation of transformers for renewable energy integration, and an increased emphasis on resilience and reliability in transformer technology.
The transformers market is poised for growth in the forecast period, driven by favorable government policies aimed at increasing electrification worldwide. Countries are implementing initiatives to expand electrification, such as the UK government's plan to decarbonize the electricity system by 2030 introduced in October 2021. These efforts are expected to boost the market for medium power transformers. The rising demand for medium, low, and high-power transformers, supported by government initiatives, will have a positive impact on the transformers market's growth.
The increasing consumption of electricity is expected to be a key driver for the transformers market. Growing electricity consumption across various sectors, including transportation and heating, contributes to the market's expansion. For example, according to the International Energy Agency (IEA) in July 2023, net electricity output reached 980.6 TWh, marking a 13.5% increase compared to the same month in the previous year. This surge in electricity demand is anticipated to drive the transformers market's growth.
The market for transformers faces a major restraint due to the instability in raw material prices, particularly steel, copper, and crude oil. These materials are vital in transformer manufacturing, and their prices have exhibited volatility. Increased tariffs on raw materials like steel and copper have led to price fluctuations, impacting the growth of the medium power transformers market. For instance, as of September 2022, according to NABH, an Indian healthcare organization, the cost of distribution transformers had risen by 40.1% over the past year and 60.7% since January 2021. Transformer components such as cores have also experienced cost increases, raising operating expenses and hindering market growth.
The transformers market is evolving towards the adoption of independent and self-regulating smart transformers. These smart transformers are designed to continuously regulate voltage, maintain communication with stakeholders, and provide information and feedback on power supply. They deliver precise power levels and respond to fluctuations through voltage optimization, resulting in reduced greenhouse gas emissions and power consumption. For instance, Hitachi ABB Power Grids collaborated with Nanyang Technological University, Singapore (NTU Singapore) in 2021 on a smart grid development project, aiming to advance Solid State Transformer (SST) technology. The project aligns with Singapore's Energy Grid 2.0 initiative, focused on creating a more efficient, sustainable, and resilient energy management system.
Major companies in the transformers market are embracing innovative technologies, including oil-free and plug-and-play traction transformers. These innovations eliminate the need for oil, reducing maintenance costs, downtime, and improving efficiency and safety. They are particularly suitable for rail electrification systems where reliability, safety, and efficiency are critical. For example, in September 2022, Hitachi Energy introduced an oil-free and plug-and-play traction transformer with a factory-installed cooling system that eliminates the need for oil, enhancing safety and security.
In October 2021, Royal SMIT Transformers, a Netherlands-based electrical equipment company, acquired DNV to strengthen its high-quality transformer portfolio. DNV, based in Norway, is an independent company operating in the transformers sector. This strategic acquisition further bolsters SGB-SMIT Group's transformer services.
Major companies operating in the transformer market include ABB Ltd., General Electric Corporation, Schneider Electric S.A., Mitsubishi Electric Corporation, Schneider Electric, Toshiba Corporation, Siemens Energy AG, SGB-SMIT, Hammond Power Solutions Inc., Hitachi Energy, Alstom, Eaton Corporation, SPX Transformer Solutions, Kirloskar Electric Company, RITZ Instrument Transformers GmbH, TBEA Co. Ltd., Jefferson Electric, Mace, Performance Group, Fortune Electric Co. Ltd., Schaffner Holding AG, EFACEC Power Solutions SGPS, Fuji Electric Co. Ltd., Hyosung Heavy Industries Co. Ltd., Hyundai Electric & Energy Systems Co. Ltd., JSHP Transformer Co. Ltd., Altran Corp., Bharat Heavy Electricals Limited (BHEL), CG Power and Industrial Solutions Limited, Crompton Greaves Limited, Daelim, Delta Star Inc., ELANTAS PDG Inc., Emerson Electric Co., Howard Industries Inc., Hyundai Heavy Industries, Pacific Transformer Corp., Pico Electronics
Asia-Pacific was the largest region in the transformers market in 2023. Western Europe was the second-largest region in the transformer market analysis. The regions covered in the transformer market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the transformer market report are: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada
The transformer market consists of sales of instrument transformers, medium-power transformers, and other types. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.