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Industry Drivers
Transformer Market size exceeded USD 45 billion in 2021 and is projected to expand a CAGR of 7.1% from 2022 to 2030. This growth is credited to the rising implementation of grid modernization programs.
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Smart grid development projects undertaken worldwide will push the business growth. Numerous research efforts are being initiated to develop advanced technologies for optimum grid operations. Solid-state transformers and power flow controllers, for instance, are designed to optimize power delivery and consequently enhance resilience, which could contribute to market development. Moreover, the integration of intelligent communication and control systems, adaptive networks, and other interactive functionalities will bolster the industry outlook.
| Report Coverage | Details |
|---|---|
| Base Year: | 2021 |
| Market Size in 2021: | 49,317.8 Million (USD) |
| Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 7.1% |
| 2030 Value Projection: | 93,416.9 Million (USD) |
| Historical Data for: | 2018 to 2021 |
| No. of Pages: | 950 |
| Tables, Charts & Figures: | 2,210 |
| Segments covered: | Cooling, Product, Voltage Rating, Application, and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Rising demand for closed core transformers
The closed core transformer market is predicted to observe a 6.4% growth rate till 2030. The industry has widely adopted closed core power transformers due to their multifaceted applicability across different voltage conditions. In addition, the expanded transformation capacity to accommodate renewable energy aligns with efficient operational life expectancy.
Supportive regulatory norms to increase the usage of power transformers
The power transformer segment surpassed USD 17 billion in 2021. Growing infrastructural spending supported by favorable norms related to the expansion and refurbishment of existing grid networks has escalated the demand for power transformers. Furthermore, rapid urbanization in addition to the rapid industrial expansion in developing economies will boost the demand for power transformers.
Increasing operational capability of auto transformers
The auto winding transformer market is poised to witness 7.8% gains through 2030. This growth can be attributed to the effective operational flexibility of the transformer in comparison to its counterparts. Additionally, sustainable costs, compact unit structure, and high efficiency are other characteristics fostering product adoption.
Improved safety features increase sales of dry-type transformers
In recent years, dry-type transformers have garnered significance, on account of their competitive cost framework and operational safety in comparison to available options. Despite this, the market presence of these transformers across high-voltage applications is still in its nascent stage, which indicates lucrative growth opportunities over the coming years.
Sustainable transformation characteristics will increase the demand for oil-insulated transformers
The oil-insulated segment dominated with around 58% of the transformer market share in 2021. Since the introduction of transformers in electrical infrastructure, oil-insulated transformers have been one of the most primitive technologies. These systems can withstand high temperatures and have effective insulation abilities along with sustainable product implementation, which will propel business development. However, the introduction of novel insulation approaches supported by technological advancements may negatively impact industry growth.
Widespread industrial applicability to upsurge the adoption of ≤ 10 MVA rated transformer
The ≤ 10 MVA rated transformer segment held nearly 48% of the market revenue share in 2021 on account of its wide adoption across power, process industries, and infrastructure sectors. Furthermore, the growing integration of renewable sources across the residential infrastructure, coupled with the accelerated expansion of micro-grid networks, will drive the market demand.
Large-scale deployment of pole-mounted transformers to define industry landscape
The pole-mounted segment in the transformer market is estimated to attain 7% CAGR between 2022 and 2030, led by large-scale deployments of pole-mounted units to serve long-haul electrical supply networks. Long-distance load centers across regions with restricted grid access will also provide opportunities for technological expansion.
Development of energy-efficient corridors to promote product adoption
The utility application is expected to showcase substantial gains during the forecast period owing to the surging expansion of cross-border electrical networks. Additionally, growing concerns related to the development of energy-efficient infrastructure and the initiatives undertaken by administrative authorities to deal with the same will stimulate the industry demand from utility applications.
Soaring demand for electricity will increase the deployment of transformers across the APAC region
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The Asia Pacific transformer market accounted for about 37% of the revenue share in 2021 owing to the surging demand for electricity across developing economies. China and India are frontrunners in this regard and are emerging as lucrative hubs given their commitment to improving existing power capacities and infrastructure to accommodate evolving energy demands.
Growing adoption of transformers across the North America region
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North American transformer market valued at more than USD 13 billion in 2021. This valuation can be primarily credited to an increased focus towards replacing current electrical equipment with high-quality advanced transformer systems.
Acquisitions to remain a key growth strategy
Major participants operating in the industry include General Electric, Siemens Energy, Mitsubishi Electric Corporation, ABB, Schneider Electric, Toshiba International Corporation, Elsewedy Electric, Eaton, CG Power & Industrial Solutions Ltd., IMEFY GROUP, Voltamp, Ormazabal, ARTECHE, Pfiffner Group, Trench Group, Amran Inc, MEHRU, Raychem RPG Private Limited, and Kirloskar Electric Company. These companies often engage in acquisitions and partnerships to retain their market position.
The impact of COVID-19 on the global transformer industry
The COVID-19 pandemic disrupted business operations and new product deployments across the globe, creating roadblocks to the market growth. Although the electricity demand soared with an increased preference for remote working, the outbreak limited the installation of new transformers that could cater to this demand, thereby asserting a negative influence on industry dynamics.
The transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units” & “USD” from 2018 to 2030, for the following regions:
- 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
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