Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
Additionally, significant contributions to investments come from emerging nations, notably China and India. As an illustration, in 2018, the government of Bangladesh inked two financing agreements amounting to USD 515 million with the World Bank. These agreements aimed to support the expansion of the electricity transmission network throughout the nation.
The impetus behind these investments lies in the expanding urbanization and industrialization trends, accompanied by the establishment of new data centers globally. These developments continuously enhance technological aspects, leading to an increased demand for electrical appliances and overall infrastructure improvement in the sector. The surge in demand is intricately linked to the growth of transmission and distribution networks, necessary for supplying power to these expanding sectors with appropriate power ratings and frequencies.
These factors collectively play a pivotal role in fostering the development of new transmission and distribution networks on a global scale, consequently providing a substantial boost to the transformer market. In essence, the involvement of emerging economies and their substantial investments, exemplified by the Bangladeshi government's collaboration with the World Bank, underscores the global nature of this transformative trend in the energy sector. The interconnected dynamics of urbanization, industrialization, and technological advancements propel the need for robust electrical infrastructure. As the demand for electrical appliances rises in tandem with the expansion of data centers, the requisite growth in transmission and distribution networks becomes imperative.
This symbiotic relationship between evolving global needs and the development of energy infrastructure solidifies the transformer market's role as a key player in facilitating a reliable and efficient power supply across diverse sectors worldwide.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Cooling Type, Power Rating, and Region |
Power Transformer Market Highlights:
Global Power Transformer Market Overview:
Power Transformer Market Size was anticipated at USD 18.66 Billion in 2023. The Power Transformer market industry is projected to grow from USD 20.24 Billion in 2024 to USD 35.84 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.40% during the forecast period (2024 - 2032). Increased investment in distribution & transmission infrastructure and development in the renewable energy sector are the key market drivers contributing to market growth and expansion.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Power Transformer Market Trends
-
The growing investment in distribution & transmission infrastructure is driving the market growth
The rising investment in distribution & transmission infrastructure is driving the market CAGR for Power transformers. The increasing need for electricity and government efforts in emerging economies to expand infrastructure for manufacturing, transmission, and distribution are projected to fuel the expansion of the power transformer market share globally. Furthermore, the industry will be propelled by expanding transmission network study and the quick adoption of non-conventional alternative energy sources for producing electricity in remote locations.Â
Smart grids can quickly adapt to variations in electricity consumption and can be monitored and analyzed remotely to ensure efficient electricity and cooling delivery, which reduces carbon emissions. Its growth will be supported throughout the forecast period by the advancement of green transformers, high-voltage transmission, and stringent government restrictions targeted at reducing emissions of greenhouse gases.
Additionally, the government's emphasis on producing renewable energy is significant in the market's expansion. The most significant drivers are the increasing demand for electricity and the replacement of conventional power transformers, the expansion of the economy, the increase in expenditure on new power initiatives where electricity is produced using renewable resources, and an upsurge in the production of renewable energy.Â
Electricity usage in the automobile sector is rising due to the emergence of modern electric vehicles (EVs)Â and subsidies to use them. Most power plants are located in rural locations; the electricity they produce is sent across high voltage direct current (HDVC) transmission lines to the substations, which are subsequently supplied to the final consumers after being stepped down. As a result, the need for energy globally is now driving the worldwide demand for power transformers.
The COVID 19 pandemic has impacted several businesses, including the power transformer industry. The lockdown had a negative financial impact on power distribution businesses, leading to a significant drop in demand for power transformers in India, which plummeted by 25–28% due to the shutdown of the industrial and commercial sectors. During the projected period, factors like growing environmental issues and rising energy consumption are anticipated to boost the market. The market for large power transformers is anticipated to grow due to increasing expenditure on renewable energy sources.
For instance, a report from the International Energy Agency predicts that by 2030, there may be a 60% rise in the world's energy demand. Furthermore, as the population has grown, so needs power, driving the development of more power-producing projects. As a result, it is anticipated that demand for Power transformers will increase throughout the projection period due to the rising investment in distribution & transmission infrastructure. Thus, driving the power transformer market revenue.
Power Transformer Market Segment Insights:
Power Transformer Cooling Type Insights
The Power Transformer market segmentation, based on cooling type, includes Air-cooled and Oil-cooled. The oil-cooled category dominated the market, accounting for 71% of market revenue (USD 12.2 billion) in 2022. They benefit over other types of cooling-type due to their consistent compatibility and superior cooling performance in high-tension operations. They are simple to set up and offer an optimum cooling strength, which further encourages the use of technology.
Figure 1: Power Transformer Market by Cooling Type, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Power Transformer Power Rating Insights
The Power Transformer market segmentation, based on Power Rating, includes Large Power, Medium Power, and Small Power. The medium power category generated the most income, about 46% (USD 7.9 billion) in 2022. The increase in electrification, mostly by sectors that require reliable electric power, is largely responsible for the expansion. Due to the rising need for electricity, particularly in emerging nations, using large power rating transformers in the electricity generation industry is anticipated to drive the market substantially.
Power Transformer Regional Insights
By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American power transformer market area will dominate this market, owing to an increase in expenditure on laying transmission lines to cover long distances. In addition, the rising renewable energy and grid reliability collaboration to diminish costs across the networks will boost the market growth in the North American region.
Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Power Transformer Market Share by Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe region’s Power Transformer market is anticipated to grow significantly during the projected timeframe due to the advancement of grid technology and the emergence of power grids. Further, the German Power Transformer market dominates the market share, and the UK Power Transformer market is expected to grow steadily in the European region.
The Asia-Pacific Power Transformer Market accounts for the second-highest market share. This is due to economic growth, the need for improved access to electricity, and improvement in the existing distribution and transmission infrastructure that will boost market growth. Moreover, China’s Power Transformer market dominates the market share, and the Indian Power Transformer market is expected to grow rapidly in the Asia-Pacific region.
Power Transformer Key Market Players & Competitive Insights
Leading market players are invested heavily in research and development (R&D) to boost production capacity while extending product life, which will help the Power Transformer market grow further. Market participants are also undertaking a strategic approach to provide effective solutions for existing technology to strengthen their footprint, with important market developments including new product innovations, partnerships, mergers & acquisitions, higher investments, and strategic alliances with other organizations. The Power Transformer industry must offer cost-effective solutions to survive in fragmented market conditions.
Manufacturing locally to minimize expenses is one of the key business strategies organizations use in the Power Transformer industry to benefit customers and capture untapped market revenue. The Power Transformer industry has offered significant advantages to transmission and distribution networks.Â
Major players in the Power Transformer market, including SGB-SMIT Group (Germany), Crompton Greaves Ltd. (India), Siemens AG (Germany), SPX Transformer Solutions Inc. (U.S.), Schneider Electric (France), Hyundai Electric & Energy Systems Co. Ltd. (South Korea), Bharat Heavy Electricals Limited (India), Hyosung Power & Industrial Solutions (South Korea), ABB Ltd. (Switzerland), Toshiba Corporation (Japan), Mitsubishi Electric Corporation (Japan), are attempting to capture market sector by investing in research and development to provide advance solutions.
Siemens AG, German energy-related technology and manufacturing business. It was founded in 1966, and Munich serves as its corporate home. Siemens & Halske AG, Siemens-Schuckertwerke, and Siemens-Reiniger-Werke AG are combined to form this company. It conducts business throughout more than 200 nations and regions and offers a wide range of products and services in industries like power production, telecommunications, and medical engineering.Â
The business is one of the largest holders of patents worldwide and makes significant investments in research and development. In August 2022, Siemens Mobility announced Siemens Xcelerator, a newly created digital company platform, at InnoTrans. It created the open-source digital business ecosystem Siemens Xcelerator to build a strong ecosystem of collaborators that can work together to accelerate technological advancement in digitalization and environmental sustainability in transportation at scale.
POWERGRID primarily conducts business in the power transmission industry. It was incorporated on 23 October 1989. With its Indian transmission system and the installation of optical ground wire (OPGW), the company has expanded into the telecom sector. It is in charge of running national and local load dispatch centers and developing, implementing, operating, and maintaining interstate transmission infrastructure.Â
A joint venture deal was signed in January 2022 by Power Grid Corporation (India) and Africa50 to develop the Kenya Transmission Project through a public-private partnership (PPP). The project entails creating, funding, building, and operating the 220kV Kisumu-Musaga and 400kV Lessos-Loosuk lines of transmission, with PowerGrid India serving as the venture's technical and operational advisor.
Key Companies in the Power Transformer market include
- SGB-SMIT Group (Germany)
- Crompton Greaves Ltd. (India)
- Siemens AG (Germany)
- SPX Transformer Solutions Inc. (U.S.)
- Schneider Electric (France)
- Hyundai Electric & Energy Systems Co. Ltd. (South Korea)
- Bharat Heavy Electricals Limited (India)
- Hyosung Power & Industrial Solutions (South Korea)
- ABB Ltd. (Switzerland)
- Toshiba Corporation (Japan)
- Mitsubishi Electric Corporation (Japan)
Power Transformer Industry Developments
August 2022: Siemens Mobility announced Siemens Xcelerator, a newly created digital company platform, at InnoTrans in 2022. Siemens created the open-source digital business ecosystem Siemens Xcelerator to build a strong ecosystem of collaborators that can work together to accelerate technological advancement in digitalization and environmental sustainability in transportation at scale.
May 2022:Â The Transmission Company of Nigeria received 10 mobile transformers and 10 substations from Siemens Energy in May 2022. The business obtained the agreement in July 2020, and it was finished in May 2022.
January 2022: A joint venture deal was signed in January 2022 by Power Grid Corporation (India) and Africa50 to develop the Kenya Transmission Project through a public-private partnership (PPP). The project entails creating, funding, building, and operating the 220kV Kisumu-Musaga and 400kV Lessos-Loosuk lines of transmission, with PowerGrid India serving as the venture's technical and operational advisor.Â
Power Transformer Market Segmentation
Electrical Transformer Cooling Type Outlook
- Air-cooled
- Oil-cooled
Power Transformer Power Rating Outlook
- Large Power
- Medium Power
- Small Power
Power Transformer Regional Outlook
-
North America- US
- Canada
-
Europe- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World- Middle East
- Africa
- Latin America
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
