The Global Power Transformer Market size is expected to reach $33.7 billion by 2028, rising at a market growth of 6.8% CAGR during the forecast period.
A transformer is an electric device that transmits energy from one circuit to another. Transformers can decrease or increase current levels and voltage, prevent direct current from passing between two circuits, increase or decrease capacitor value, and isolate circuits.
A power transformer is the kind of transformer utilized mainly to obtain low-voltage electric power and transfer it through distribution channels over the power grid network. It forms a significant part of the power grid and assists in transmitting power from one network to another without any change in the frequency. Although, the generation of low voltage electric power is cost effective, it results in high current line. Efficient power transmission is allowed if the voltage of the incoming power rises. Thus, a power transformer is utilized to increase the voltage.
The power transformer market will be propelled by increasing research on transmission networks and the rapid utilization of renewable and non-renewable energy sources for producing electricity in remote areas. In addition, they guarantee efficient power and cooling delivery, which reduces carbon emissions. The growth of green transformers, strict government regulations to lower greenhouse gas emissions, and high-voltage transmission technologies will stimulate the increase of the international power transformer market throughout the predicted period.
The traditional transformers are anticipated to be replaced because of the advanced features of eco-friendly products and environmental safety precautions as these are not suitable for the present technological and environmental criteria. Furthermore, developed countries are integrating wind and other renewable resources in trading electricity with other nations, increasing pressure on traditional networks.
The COVID-19 pandemic had a crucial influence on the growth of the power transformers market due to the massive reduction in the demand for power from the commercial and industrial segments. This resulted in stopping upcoming power distribution schemes and postponing the under-construction plans. These suspensions in the projects led to a decrease in demand for power distribution equipment and decline the growth for equipment manufacturing businesses. In consideration to all this, the market for power transformer had a negative impact on the market growth.
The advancement of modern electric vehicles and the incentives to utilize them propel electricity consumption in the automotive sector. Most of the power plants are located in remote places. From there, the electricity is generated and then transmitted to the substations through HDVC power transmission lines, which are then distributed to the customers after step-down. The developing counties have underused energy resources, whereas the power infrastructure in the poorer nations needs improvement. As a result, the power transformer market is driven by the rising demand for electricity worldwide.
Power transformers are not only utilized in solar and wind power plants as they are also a crucial part of the power grids for various non-conventional energy sources. Power transformers could also be installed underwater and underground, making it possible to deploy them at the production point for geothermal and tidal power plants. As a result, the power transformers market has chances for long-term expansion as renewable energy becomes a noteworthy energy source.
Alteration in raw materials cost and high maintenance and installation price of power transformers than the current power distribution systems would further become an obstacle in the development of the power transformer market. Furthermore, the lack of accessibility of high-standard electrical steel, lengthy initialization and producing time of power transformers, and substantial capital investments needed to build infrastructure for the stable and smooth working of the transformer will negatively impact the market growth for power transformer throughout the predicted period.
Based on core, the power transformer market is segmented into closed, shell and berry. In 2021, the closed segment garnered a significant revenue share in the power transformer market. The closed-core power transformers provide flexible applications through changing voltage conditions and, thus, might obtain large-scale penetration by the next decade. Furthermore, the prime attributes linked with the technology, comprising effective operational life expectancy and sustainable transformation capacities, might lead to further development of the market in this segment.
On the basis of insulation, the power transformer market is fragmented into gas, oil, solid, air and others. In 2021, the oil segment held the largest revenue share in the power transformers market. As a medium of insulation, oil is frequently utilized in various businesses. This is due to its capability to maintain stability even in high temperatures. In addition, the qualities of oil as an electrical insulation, like its dielectric ability, decreases any incoming harm from the high voltage. These benefits place oil insulators as the preferred choice among manufacturers.
By phase, the power transformer market is divided into single and three. In 2021, the three segment witnessed the largest revenue share in the power transformers market. The three-phase transformers are mostly utilized in the manufacturing industry, precision machine tools, petrochemical industry, mining industry, telecommunication, and automation equipment, among others, for producing power and distributing power. The three-phase transformers produce a three-phase alternating current that flows in different conductors.
Based on rating, the power transformer market is classified into 100 MVA to 500 MVA, 501 MVA TO 800 MVA, and 801 MVA to 1200 MVA. In 2021, the 500 MVA to 800 MVA recorded a remarkable revenue share in the power transformers market. This development is accounted for the increasing acceptance of products as voltage regulators over long-distance transmission lines. Moreover, the rapid growth of T&D infrastructure supported by the rising engagement of various areas in inter-regional electricity transmission would stimulate the development of the power transformers market throughout the predicted period.
On the basis of application, the power transformer market is bifurcated into residential & commercial, utilities and industrial. In 2021, the residential & commercial segment procured a prominent revenue share in the power transformers market. The increasing acceptance of power transformers in residential & commercial usage and their affordability are propelling the demand for power transformers. In addition, research & development initiatives for integrating power transformers with developed power grids and creating renewable power grids with eco-friendly coolants will be very profitable for the power transformers market.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 21.4 Billion |
| Market size forecast in 2028 | USD 33.7 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 6.8% from 2022 to 2028 |
| Number of Pages | 295 |
| Number of Table | 540 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Insulation, Application, Rating, Phase, Core, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the power transformer market is analysed across North America, Europe, Asia Pacific and LAMEA. In 2021, the Asia Pacific region witnessed the highest revenue share in the power transformers market. Due to the rise in population, the growth of power transformers is assisted by rapid economic growth and surging necessity for reliable and uninterrupted power supply. China is investing in the electrical transmission and distribution system to fulfil the nation’s rising requirement for electricity due to quick urbanization and industrialization, which is further supporting regional market expansion.
Free Valuable Insights: Global Power Transformer Market size to reach USD 33.7 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Toshiba Corporation, ABB Group, General Electric Company, Siemens Energy AG, Alstom SA, Mitsubishi Electric Corporation, Hyosung Heavy Industries Corporation, CG Power & Industrial Solutions Ltd. (Murugappa Group), Hyundai Construction Equipment Co., Ltd. (Hyundai Heavy Industries Co., Ltd.), and Bharat Heavy Electricals Ltd.
By Insulation
By Application
By Rating
By Phase
By Core
By Geography
The global Power Transformer Market size is expected to reach $33.7 billion by 2028.
Increasing demand for electricity worldwide are driving the market in coming years, however, Transformer installation, logistics, and supporting infrastructure are expensive restraints the growth of the market.
Toshiba Corporation, ABB Group, General Electric Company, Siemens Energy AG, Alstom SA, Mitsubishi Electric Corporation, Hyosung Heavy Industries Corporation, CG Power & Industrial Solutions Ltd. (Murugappa Group), Hyundai Construction Equipment Co., Ltd. (Hyundai Heavy Industries Co., Ltd.), and Bharat Heavy Electricals Ltd.
The Industrial segment acquired maximum revenue share in the Global Power Transformer Market by Application in 2021 thereby, achieving a market value of $14.7 billion by 2028.
The Shell segment is leading the Global Power Transformer Market by Core in 2021 thereby, achieving a market value of $13.9 billion by 2028.
The Asia Pacific market dominated the Global Power Transformer Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $13.6 billion by 2028.
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