Power Transformers Market size to grow by USD 11.5751 billion from 2022 to 2027; The modernization of existing transformers drives the market

Jul 17, 2023

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17 Aug, 2023, 17:30 ET

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NEW YORK, Aug. 17, 2023 /PRNewswire/ -- The power transformers market size is estimated to grow by USD 11,575.07 million from 2022 to 2027 at a CAGR of 6.15%, according to Technavio.

Power Transformers Market Insights -

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Power transformers market - Customer LandscapeTo help companies evaluate and develop growth strategies, the report outlines –

Power transformers market - Company Insights

The growing competition in the market is compelling vendors to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. Technavio report analyzes the market's competitive landscape and offers information on several market vendors including ABB Ltd., ALTRAFO Srl, Altro Transformers Pty. Ltd., CG Power and Industrial Solutions Ltd., DuPont de Nemours Inc., Eaton Corp. Plc, Etel Transformers Pty ltd, Fuji Electric Co. Ltd., General Electric Co., Hammond Power Solutions Inc., Hitachi Ltd., Hyundai Electric and Energy Systems Co. Ltd., Kirloskar Electric Co. Ltd., Layer Electronics Srl, MGM Transformer Co., Schneider Electric SE, Siemens Energy AG, Southern Electronic Services, Tyree Industries, and Wilson Power And Distribution Technologies Pvt. Ltd.

Power Transformers Market – Market Dynamics

Major Drivers

The modernization of existing transformers is notably driving market growth. The growth of the market is being propelled by factors like the increasing adoption of new transformers and the replacement of older ones. The demand for power has outpaced existing networks, driving the necessity for substantial updates to transmission and distribution infrastructure worldwide. The concept of a smart grid involves an intelligent integration of actions among users, including consumers and generators, to ensure an economical, sustainable, and secure electricity supply. The incorporation of smart grid systems has empowered utilities to focus on deploying additional power transformers for efficient electricity transmission. Consequently, the requirement for transformer oil is concurrently on the rise, given the increasing installation of transformers into the grid. These dynamics collectively contribute to substantial growth in the global market during the forecast period.

Significant Trends

The digitalization of transformers is an emerging trend shaping market growth. The evolving landscape of power networks, incorporating new energy sources for generation and updated distribution demands, necessitates a high degree of adaptability and effectiveness. As a response, the digitization of power network assets is emerging. Within this context, distribution transformers, crucial components of power networks, are undergoing digitization through the integration of advanced sensors, monitoring platforms, and software solutions. The digital transformation of distribution transformers provides end-users with data insights that optimize their operational capacity and facilitate predictive maintenance. This digital evolution enables streamlined grid operations, swift responses, and proactive maintenance practices. The utilization of data visualization tools for analytical purposes further accelerates the integration of digitization into transformers. These advancements are swiftly permeating the distribution transformers market. Amidst heightened competitive dynamics on a global scale, the digitalization of power transformers is poised to significantly influence market growth during the forecast period.

Key challenges

The volatility in raw material prices is a major challenge hindering market growth. Steel stands as the primary material for power transformers, while copper and aluminum constitute other transformer components and serve as coatings for primary coils. Considering the diverse range of end-users addressed by market vendors, raw materials are procured in varying forms to suit distinct requirements, including extrusions, castings, powder metal, metal sheets and strips, forging billets, bar stock, and plastic pellets. The costs of these raw materials exhibit significant fluctuations, influenced by distinct macroeconomic factors and geopolitical considerations. Given their pervasive use across industries, alterations in demand within other sectors can also trigger price variations. The inherent volatility in raw material prices has led to uncertainty among manufacturers, including power transformer manufacturers, regarding raw material procurement strategies, subsequently engendering a supply-demand discrepancy. This factor is projected to restrict the expansion of the market during the forecast period.

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The distribution transformers market is estimated to grow at a CAGR of 4.98% between 2022 and 2027 and the size of the market is forecast to increase by USD 5,087.9 million. This report extensively covers market segmentation by end-user (power utilities and industrial and commercial), type (oil-filled and dry type), and geography (APAC, North America, Europe, Middle East and Africa, and South America). Rising requirements for power from residential, industrial, and commercial sectors is the key factor driving the growth of the global distribution transformers market.

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Power Transformers Market Scope

Report Coverage

Details

Base year

2022

Historic period

2017-2021

Forecast period

2023-2027

Growth momentum & CAGR

Accelerate at a CAGR of 6.15%

Market growth 2023-2027

USD 11,575.07 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

5.76

Regional analysis

APAC, Europe, North America, Middle East and Africa, and South America

Performing market contribution

APAC at 37%

Key countries

US, China, Japan, India, and Germany

Competitive landscape

Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks

Key companies profiled

ABB Ltd., ALTRAFO Srl, Altro Transformers Pty. Ltd., CG Power and Industrial Solutions Ltd., DuPont de Nemours Inc., Eaton Corp. Plc, Etel Transformers Pty ltd, Fuji Electric Co. Ltd., General Electric Co., Hammond Power Solutions Inc., Hitachi Ltd., Hyundai Electric and Energy Systems Co. Ltd., Kirloskar Electric Co. Ltd., Layer Electronics Srl, MGM Transformer Co., Schneider Electric SE, Siemens Energy AG, Southern Electronic Services, Tyree Industries, and Wilson Power And Distribution Technologies Pvt. Ltd.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Table of contents

Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Type

7 Market Segmentation by End-user

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

About USTechnavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

ContactTechnavio ResearchJesse MaidaMedia & Marketing ExecutiveUS: +1 844 364 1100UK: +44 203 893 3200Email: [email protected]Website: www.technavio.com

SOURCE Technavio