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Power Transformer Market size exceeded USD 19 billion in 2022 and is projected to expand at over 6.5% CAGR from 2023 to 2032. The increasing deployment of renewable energy backed by escalating environmental concerns and an increased emphasis on mitigating carbon and GHG emissions will propel the demand for power transformers. Major economies, including China, several North American and Eurozone nations, and others, are taking up necessary initiatives and implementing stringent targets and regulations to ensure environmental sustainability.
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Such norms, in turn, have compelled various countries to adopt cleaner energy sources, including renewables, thus, augmenting power transformer market revenues. For instance, as of October 2022, India achieved its NDC target with total non-fossil-based installed energy capacity reaching 159.95 GW, accounting for an estimated 41.4% of the overall installed electricity capacity. In addition, as per the updated NDC, the country commits to decreasing the Emissions Intensity of its GDP by almost 45% from the 2005 level by 2030.These elevated renewable generation targets will boost the requirement to update the existing grid infrastructure to integrate decentralized grids into the main network, further strengthening the industry outlook. However, the high initial costs and surging replacement prices associated with the product may act as a growth barrier.
|Market Size in 2022:||19.2 Billion (USD)|
|Forecast Period:||2023 to 2032|
|Forecast Period 2023 to 2032 CAGR:||6.8%|
|2032 Value Projection:||37.6 Billion (USD)|
|Historical Data for:||2019 to 2022|
|No. of Pages:||950|
|Tables, Charts & Figures:||1,993|
|Segments covered:||Core, Winding, Cooling, Insulation, Rating, Mounting, Application|
|Pitfalls & Challenges:|
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In terms of winding, the power transformer market from two winding segment is poised to attain nearly 6% growth rate between 2023 and 2032. Two winding transformers provide constant power output, have a high internal impedance, and offer good voltage regulation, thus finding extensive utilization in a variety of applications. Furthermore, they are relatively less economical than auto transformers on account of their larger size and high maintenance costs, which may impede their demand through the ensuing years.
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Closed core power transformer market size registered more than USD 6 Billion in 2022. Closed-core power transformers offer versatile applications across varying voltage conditions and hence may gain extensive penetration over the next ten years. Moreover, the key attributes associated with the technology, including sustainable transformation capacities and effective operational life expectancy, may further create favorable growth prospects for the closed-core power transformer segment.
The > 500 MVA to ≤ 800 MVA-rated power transformer market is predicted to depict around 7% gains through 2032. This growth is credited to the accelerating product adoption as voltage regulators across long-distance transmission lines. Furthermore, the rapid expansion of T&D infrastructure backed by the increasing engagement of several regions in inter-regional electricity transmission will complement the business growth.
Power transformer market from gas insulation segment recorded a valuation of USD 4 billion in 2022. The broad application spectrum of gas-insulated power transformers across substations in restricted spaces will propel segment revenues. These units can operate at high temperatures and can be easily and quickly integrated with gas-insulated switchgear while involving a lower risk of environmental and fire hazards. The remarkable product attributes may create optimistic growth scenarios for the power generators industry.
|Power Transformer Market, By Cooling, 2022, (USD Billion)|
|Cooling||Market Size, 2022|
In terms of cooling, the power transformer market from oil-immersed segment is slated to grow over 6% CAGR through 2032. Oil-immersed transformers exhibit reliable compatibility and better cooling quality across high-tension applications, which offer them a competitive advantage over their counterparts. Besides, they are easy to install and have an ideal cooling strength, further boosting the technology adoption. In contrast, the susceptibility of these units to leakage may induce several health concerns for the operation and may even lead to fire hazards.
The pole-mounted segment held over 30% of the power transformer market share in 2022 due to the numerous features associated with pole-mounted transformers, including low space requirements and compact size. Besides, the high product acceptance rates across rural areas and regions with limited grid access and space constraints to ensure adequate voltage supply in homes & commercial facilities will positively influence the industry sales trajectory.
Power transformer market from the commercial & industrial applications segment is expected to exhibit nearly 7% growth rate between 2023 and 2032. Transformers are a critical component in electrical systems distribution for commercial buildings as they efficiently modify voltage levels to deliver electrical loads based on their voltage requirements. The expanding commercial infrastructure supported by accelerating urbanization and rapid industrial growth will enhance segment share.
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North America power transformer market is estimated to observe substantial growth during the forecast period impelled by the rising investments in the deployment of long-distance transmission lines. For instance, in 2022, The Midcontinent Independent System Operator (MISO) approved a USD 10.3 billion investment across grid expansion projects in the U.S. The move will drive grid reliability and renewable energy integration while reducing system costs across long-distance networks. Additionally, an increased emphasis on replacing conventional electrical equipment with high-end systems will further enhance regional revenues.
Top companies operating in the global power transformer market are General Electric, Toshiba Energy Systems & Solutions Corporation, Hyosung Heavy Industries, Hyundai Electric & Energy Systems Co., Ltd., Schneider Electric, Mitsubishi Electric Corporation, WEG, CG Power & Industrial Solutions Ltd., Celme S.r.l., Kirloskar Electric Company, Daihen Corporation, Siemens Energy, Hammond Power Solutions, Bharat Heavy Electricals Limited, Grupo Comtrafo, Pfiffner Group, JSHP Transformer, Hitachi Energy Ltd., Hangzhou Qiantang River Electric Group Co., Ltd.(QRE), YueBian Electric Co., Ltd., and Bharat Bijlee Limited.
These leaders have been undertaking several R&D initiatives to offer efficient and reliable solutions and improve the existing transformer technology. For instance, in January 2022, General Electric launched a range of power transformers that support renewable energy. Transformers such as GE-Mistral-14, 275 kV to 400 kV, two 340 MVA large power transformers, and MBH Power are installed in numerous wind farm projects across several countries. The wide range of GE power transformers with different voltage levels finds applications in power generation, transmission, and distribution.
The mass production shutdowns and supply chain bottlenecks caused as a result of unprecedented lockdown and stringent regulatory norms imposed during the COVID-19 pandemic severely impacted the industry operations. The unforeseeable closure of several industrial verticals during the crisis significantly downsized the demand for power, which, in consequence, impeded industry progression. However, the accelerating transition toward digitalization and the extensive utilization of IoT, AI, Cloud, and blockchain technologies accentuated the demand for uninterrupted power supply, favoring the overall industry dynamics.
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Market Insights, By Core
Market Insights, By Winding
Market Insights, By Cooling
Market Insights, By Insulation
Market Insights, By Rating
Market Insights, By Mounting
Market Insights, By Application
The above information has been provided for the following regions and countries: