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Pad Mounted Transformer Market Size By Cooling (Dry Type, Oil Immersed), By Rating (≤ 1 MVA, > 1 MVA - ≤ 10 MVA, > 10 MVA), By Phase (Single, Three), By Application (Residential, Commercial, Industrial), & Forecast 2023 - 2032
- Report ID: GMI5492
- Published Date: Mar 2023
- Report Format: PDF
Industry Statistics
Pad Mounted Transformer Market size valued at USD 18.5 billion in 2022 and is projected to expand at more than 7% CAGR from 2023 to 2032 driven by favorable regulatory policies and schemes toward the refurbishment of conventional technologies.
Increasing demand for electricity is expected to accelerate business growth. The upsurge in Purchasing Power Parity (PPP) in recent years has positively influenced the electricity demand. In addition, the peak load demand has significantly escalated across the globe as a result of the expanding population and continuous suburban movement. As per U.S. Energy Information Administration, the average electricity consumption for a U.S. home was 10,632 kWh annually in 2021 and was set to increase by 2.4% by 2022.
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Soaring capital prices may restrain industry progression
The high initial cost coupled with an escalation in replacement prices of transformers may hinder industry growth. Pad mounted transformers have a higher initial price than other transformers, which is likely to augment the growth of alternate options. Moreover, the limited availability of raw materials due to their expensiveness and dearth, and the slow economic growth of various nations are decreasing the demand for pad mounted transformers. Nonetheless, supportive investment toward the expansion of electricity networks is slated to help the market overcome this issue in the upcoming years.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 18.5 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 7.1% |
| 2032 Value Projection: | USD 38.2 Billion |
| Historical Data for: | 2019 to 2022 |
| No. of Pages: | 400 |
| Tables, Charts & Figures: | 933 |
| Segments covered: | Cooling, Rating, Phase, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Cost-effectiveness and availability from supplier utilities to bolster > 1 MVA - ≤ 10 MVA transformers demand
Based on rating, the > 1 MVA - ≤ 10 MVA pad mounted transformer market surpassed over USD 5 billion in 2022 as privately owned substations are increasingly being used to supply power to factories and commercial buildings. Furthermore, these pad mounted transformers are extensively utilized in enhancing microgrid networks with significant expenditures in the modernization and retrofitting of the existing grid infrastructure owing to their cost-effectiveness and easy availability from supplier utilities compared to counterparts.
Prevalent efforts to enhance product technology to impel three-phase transformers adoption
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The three-phase pad mounted transformer market size is anticipated to reach nearly USD 27.5 billion by 2032, propelled by its higher efficiency, long-term affordability, and compact unit designs. Moreover, positive efforts by industry players on product technology are bolstering segment adoption. In August 2022, Sunbelt Solomon and CORE Transformers formed a joint venture on the prepared-to-transport and short lead time requests of liquid-filled three-stage pad mounts, substations, and dry transformers. The partnership consolidated the strengths of each organization to provide pivotal insights to clients in the commercial and modern business sectors.
Rising demand for compact transformers to push oil-immersed transformers segment growth
In terms of cooling, the oil-immersed transformer segment recorded a valuation of over USD 13.5 billion in 2022 impelled by the ongoing demand for effective compatibility across heavy-duty applications, along with improved cooling technology in contrast to dry counterparts. Additionally, low operational costs, easier core cycle, high-end product flexibility across high voltage applications, and higher power ratings are stimulating product deployment. They are less complex and require fewer components for the cooling process, which is foreseen to promote segment uptake.
Electrical distribution network expansion to boost product usage for industrial applications
Pad mounted transformer market from the industrial application segment is speculated to progress at 6.5% CAGR over the next ten years. The rise of the cross-border electrical distribution network and the rising awareness for energy-efficient electricity corridors in emerging nations are contributing to segment growth. To cite a recent instance, Ireland’s CRU and France’s CRE, in November 2022, announced the completion of the Celtic Interconnector project by 2027 subsidized by the EU for an amount of over USD 568 million.
Supportive rebate programs to help North America emerge as a prominent revenue pocket
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North America pad mounted transformer market is poised to grow at nearly 6% CAGR from 2023 and 2032 attributed to the favorable regulatory framework for the integration of sustainable grids, together with the funding support offered by respective national utility companies. In April 2022, the Department of Energy allocated a USD 20 million rebate fund under Bipartisan Infrastructure Law to elevate grids and commercialize equipment. The rebate program aims to support electricity system upgrades, thereby supplementing transformer penetration across the region.
Expansion of production capabilities to foster the industry outlook
Top participants operating in the global pad mounted transformer market are ABB, Eaton Corporation, General Electric, Schneider Electric, Hitachi Energy Ltd., Siemens Energy, WEG, Olsun Electrics Corporation, Sunbelt Solomon, Rockwill Electric Group Co., Ltd, Pearl Electric Co., Ltd., Servokon Systems Ltd., ELSCO, Jiangshan Scotech Electrical Co., and Southwest Electric Co. These firms are engaging in production capacity expansion tactics to attain a competitive edge. For instance, in May 2022, Hitachi Energy, a power technologies and energy systems provider, extended its distribution transformer office in Missouri to increase capacity and upgrade its manufacturing abilities. The manufacturing plant produces pad-mounted, liquid-filled, and submersible distribution transformers for electric grids, industrial offices, and business structures.
Impact of COVID-19 on the pad mounted transformer market trends
During the COVID-19 pandemic, supply chain constraints impacted the prices and availability of important components required for electric services. Pad mounted transformers witnessed a decline in demand owing to labor shortages and stringent lockdowns. Major economies focused on revising electricity and energy policies to tackle the situation. For instance, in 2020, ElectriCities Utility, the American Public Power Association (APPA), and the Department of Energy and Department of Homeland Electricity’s Electricity Subsector Coordinating Council discussed the distribution of transformers, conductors, utility poles, and large transformers. In the post-pandemic scenario, increasing disposable income and a rising need for electricity is set to propel product demand.
The pad mounted transformer market research report includes in-depth coverage of the industry with estimates & forecasts in terms of “Units” & “USD” from 2019 to 2032, for the following segments:
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Market Insights, By Cooling
- Dry Type
- Oil Immersed
Market Insights, By Rating
- ≤ 1 MVA
- > 1 MVA - ≤ 10 MVA
- > 10 MVA
Market Insights, By Phase
- Single
- Three
Market Insights, By Application
- Residential
- Commercial
- Industrial
The above information has been provided for the following regions and country:
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- Russia
- UK
- Italy
- Spain
- Netherlands
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Middle East & Africa
- Saudi Arabia
- UAE
- Qatar
- Egypt
- South Africa
- Nigeria
- Latin America
- Brazil
- Peru
- Argentina