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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.
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.
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.
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.
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.