The global Power Transformer Market is estimated to be valued at Us$38.6 Bn in 2023 and is expected to exhibit a CAGR Of 7.7% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Power transformers are used to transmit electric power efficiently over long distances with minimal power losses. They work by stepping up transmission voltages to economically feasible levels for long-distance bulk transmission, and stepping down voltages for distribution to consumers. This allows power plants and utilities to generate electricity at bulk power network voltages while customers utilize power at levels suitable for applications.
Market key trends:
One of the major trends driving the growth of power transformer market includes growing focus on renewable energy. According to International Energy Agency, global renewable energy capacity additions increased by ~50% between 2015 to 2019. Moreover, renewable energy capacity additions increased by over 10% year-on-year as of 2019. Increasing adoption of renewable sources especially solar and wind energy is driving demand for power transformers, as renewable energy plants require transformers to step up voltages for transmission and distribution. In addition, grids need to receive renewable power generated far from load centers, which is boosting demand for new transmission lines and associated transformers.
Segment Analysis
The global power transformer market is segmented into distribution transformers, power transformers based on product types. Among these, the distribution transformer segment held the largest market share in 2022. Distribution transformers are installed in distribution networks to step down high transmission voltages to lower distribution voltages suitable for residential and commercial users. An increasing number of smart grid projects and renewable energy integration is driving the demand for distribution transformers.
Key Takeaways
The Global Power Transformer Market Demand is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing investments in grid infrastructure upgrades and expansion projects worldwide.
Regional analysis
Asia Pacific dominated the global power transformer market in 2022 and is expected to continue its dominance over the forecast period. Countries such as China, India, and Japan are witnessing strong growth in power demand owing to rapid industrialization and infrastructure development. According to the India Brand Equity Foundation (IBEF), India plans to invest over $800 billion over the next 5 years to increase renewable energy capacity and improve transmission networks.
Key players
Key players operating in the power transformer market are ABB Ltd., Toshiba Corp., Alstom SA, Siemens Energy, Bharat Heavy Electricals Limited, Mitsubishi Electric Corporation, Hyosung Power & Industrial Systems Performance Group, Hitachi, Hyundai Heavy Industries Co. Ltd., GE Co., and Crompton Greaves Ltd. ABB Ltd. and Siemens Energy together account for over 20% of the global market share.
