Power Transformer Market - By Rating , By Cooling Type , By Phase Configuration , By Technology , By Insulation Type , By Application, By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”
Power Transformer Market Overview
Power Transformer market size is forecast to reach US$36.9 billion by 2030, after growing at a CAGR of 5.9% during 2024-2030. The global power transformer market is experiencing significant growth, driven by increasing electricity demand, grid modernization, renewable energy integration, energy efficiency initiatives, and urbanization. Green power transformers, with their enhanced energy efficiency, reduced environmental impact, and improved safety features, are emerging as a key segment in the market. Major players like Hitachi Energy and Toshiba are investing heavily to expand their production capacities and meet the growing demand for these sustainable solutions. A major trend in the market is global focus on energy efficiency. The global shift towards sustainable energy practices has significantly impacted the power transformer market. The need for energy-efficient power transformers is being driven by utilities and industry around the world making energy efficiency their top priority. According to International Electrotechnical Commission standards, ultra-high-voltage transmission systems can significantly reduce transmission losses over long distances up to 30%. Another trend is smart grid technologies. The integration of smart grid technologies in the power transformer market is driving significant growth. Smart grids enable real-time monitoring, control and optimization of the power grid, improving efficiency, reliability and sustainability.
Market Snapshot:
Power Transformer Market - Report Coverage:
The “Power Transformer Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Power Transformer Market.
COVID-19 / Ukraine Crisis - Impact Analysis:
The COVID-19 pandemic significantly disrupted global supply chains, manufacturing operations and economic activity that impacted various industries including the power transformer market. Disruptions in the supply of raw materials such as steel, copper and insulating oil impacted the production of power transformers. Additionally, due to lockdowns and transportation restrictions the movement of components and finished products was impacted.
The Russia-Ukraine war had a significant impact on the global supply chain including the power transformer market. The war further disrupted global supply chains making it difficult to transport power transformers and their components. This resulted in increased costs for raw materials, transportation and labor ultimately impacting the affordability and accessibility of essential power infrastructure.
Key Takeaways
APAC dominates the market
The Asia-Pacific (APAC) region occupied the largest market share in 2023. This dominance is primarily driven by with growing power demand, increasing use of renewable energy and increasing industrialization across countries like China, India, Japan, and South Korea. According to India Government, For the fiscal year 2023-24, India aimed to generate 1750 billion Units (BU) of electricity, including renewable energy sources. This target represents a 7.2% increase over the actual generation of 1624.158 BU in the previous year (2022-23). In 2022-23, the country generated 1624.158 BU, marking an 8.87% growth compared to the 1491.859 BU generated in 2021-22. As long as these nations continue to place a high priority on sustainable energy and infrastructure development, the APAC region is anticipated to hold its dominant position in the global power transformer market.
Low Rating Transformers (100 MVA to 500 MVA) are the largest segment
Low-rating power transformers, typically in the range of 100 MVA to 500 MVA, continue to dominate the global market. These transformers are widely used in distribution networks, industrial applications and smaller power plants. The National Grid Corporation of the Philippines (NGCP) energized a 100 MVA power transformer at its Toril substation in Davao City, marking a significant milestone in the second phase of its Mindanao Substation upgrading program. The modernization of power grids, combined with the growing adoption of renewable energy, electric vehicles and the electrification of industries and commercial sectors is driving the significant demand for low-rating transformers. These transformers play a crucial role in reducing partial discharge, noise, and loss, coupled with a very strong resistance to lightning and short circuits, make these transformers highly reliable. Their superior functionality and high overload tolerance, allowing continuous operation at 150% overload, further enhance their performance and durability.
Oil-Cooled Transformers dominates the market
Oil-cooled transformers have been the dominant type of power transformer due to their reliable performance, cost-effectiveness, and ability to handle high power ratings. An oil-cooled distribution transformer which is enclosed in a steel tank filled with insulating oil use oil as a cooling medium to maintain optimal operating temperatures. They are primarily used in power plants, substations, solar and wind power plants, and transportation equipment. They offer increased durability, better energy economy, and silent operation and excel in both insulation and heat dissipation, enabling transformers to handle high voltages and capacities. Additionally, the transformer's recyclable coil assembly and core provide a sustainable design. Oil-immersed transformers, in particular, can achieve ratings of 100 MVA or more due to the effective heat dissipation provided by oil and radiators. As the world moves towards sustainable energy solutions, there will be a growing demand for eco-friendly transformer technologies.
Urbanization and Infrastructure Development Boosts the Market
Rapid urbanization and infrastructure development are significant drivers of the power transformer market. As cities expand and populations grow, the demand for electricity increases exponentially, necessitating the installation of new power infrastructure, including power transformers. Urbanization leads to a surge in electricity demand for residential, commercial, and industrial applications. NEOM, a visionary project that is set to transform Saudi Arabia into a futuristic city was launched by Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister. The Saudi Arabian Public Investment Fund has invested $500 billion into NEOM’s city, the Line, which will be carbon neutral due to the absence of cars and roads. The goal of this new city is to run on 100% renewable energy and preserve 95% of the natural land for people’s well-being. As governments are spending a lot of money on power infrastructure, such as new power transformers, to fulfil the growing demand for electricity in cities. This trend is expected to continue in the coming years, driving the growth of the power transformer market.
Raw Material Costs to Hamper the Market
Growing raw material costs have become a major obstacle for the power transformer industry, having a big effect on profit margins and production costs. Transformer manufacture requires key components such electrical steel, copper, aluminium, and insulating oils. According to the Global Trade Research Initiative’s October 2024 report, India's power sector faces a 30% shortage of CRGO steel crucial for transformers and electric motors, with domestic production meeting only 10-12% of demand. Commodity prices for raw materials such as Grain Oriented Electrical Steel (GOES) have doubled since January 2020, while copper prices have increased approximately 50% over the same time frame. In order to overcome these obstacles, new transformer designs, the use of alternative components, and government assistance will be needed to keep costs steady and ensure the continuous installation of vital infrastructure.
For more details on this report - Request for Sample
Key Market Players
Global Power Transformer top 10 companies include:
- ABB Ltd.
- Bharat Heavy Electricals Limited
- GE Vernova
- Siemens
- Mitsubishi Electric Corporation
- Schneider Electric SA
- Hitachi Energy
- Tebian Electric Apparatus
- Toshiba Corporation
- CG Power and Industrial Solutions Limited
Comments
Post a Comment