Canada Transformer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Canada Transformer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Canada transformer market is expected to grow at a CAGR of more than 1% over the forecast period of 2020-2025. Canada's transformer market is expected to be driven over the forecast period on the back of increasing investment in the construction sector, need to replace aging grid infrastructure, and the need to meet the growing demand for new electricity generation in all regions across the country. With the penetration of renewable energy, the companies focus on delivering energy-efficient products that will contribute to a rise in market revenue in the coming years. However, the growth of the market can be restrained by the delays in T&D grid expansion and refurbishment projects.

Key Highlights

• The distribution transformer segment is expected to have significant growth in the Canadian transformer market over the forecast period.
• The demand for T&D infrastructure expansion is expected to increase with the falling cost of renewable-based power generation, thereby creating an opportunity for the players involved in manufacturing and supplying the transformers.
• Incresaing deployment of renewable energy is expected to drive the Canada transformer market during the forecast period.

Key Market TrendsDistribution Transformers is Expected to Witness Significant Growth

• The final voltage transition in the electric power distribution system is provided by the distribution transformers. Using distribution transformers, the voltage used in the distribution lines is reduced to the amount used by the consumer. Hence, it is the most commonly used in commercial buildings and by industrial users, as well as in electrical utilities, especially in areas where electricity leaks are more expensive.
• Canada is a developed nation, where the economy, health and safety, and national security depend on the effective distribution of electricity. The Smart Grid organization in Canada has taken initiatives to meet the growing electricity demand and modernize the old grid system by making it more efficient, smarter, and competent to match the developing technology.
• With customer demand for electricity on a steady rise, investments in new energy and infrastructure projects and the need to gradually replace and upgrade aging grid infrastructures are driving the market growth.
• There's a huge opportunity for distribution transformers in Canada. One of the major market opportunities is the electricity generation from renewable energy sources. Canada depends largely on hydropower for power generation, which accounted for 57.8% of electricity generation in the country in 2019.
• Large government-owned, integrated public utilities play a leading role in producing, transmitting and distributing electricity in most provinces. Over the last decade, Ontario and Alberta have developed electricity markets to improve investment and competitiveness in this economic sector.
• The growth of transformers can mainly be attributed to the rise in electricity generation. Canada's electricity generation has reached 660.4 TWh in 2019 with an annual growth rate of 1.2%. Distribution transformers are also useful to bridge the gap between supply and demand of electricity generated.

Increasing Deployment of Renewable Energy to Drive the Market

• The countries power supply is undergoing a major transition, moving away from fossil fuels and shifting toward renewable energy sources. Moreover, investments in new renewable power capacity have outstripped the amount invested in fossil-based generating capacity, with most of the installation of new renewable energy capacity in the country.
• The growth of the transformer market in the country is primarily due to several factors such as upsurge in transmission & distribution infrastructure investments, and evolution in the renewable energy sector.
• Renewable power generation accounted for 7.4% of net electricity produced in the country in 2019. Canada’s renewable power generation has seen a decent growth of 4.7% in 2019 producing 49.3 TWh of power. The strong growth in renewable energy in the country is a result of the increasing competitiveness of wind and hydropower.
• Utilities across Canada are making large investments in the maintenance of aging infrastructure and in the construction of new power lines and substations to connect new renewable generation sources to the bulk power system.
• Hence, demand for renewables in electricity generation is expected to drive the Canada transformers market over the forecast period.

Competitive Landscape

The Canada transformer market is moderately fragmented. Some of the major players in the market include Siemens AG, Schneider Electric SE, Electric Power Inc, Northern Transformer Corporation, and Eaton Corporation Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Siemens AG
Schneider Electric SE
Electric Power Inc
Northern Transformer Corporation
CES Transformers
Hammond Power Solutions Inc
Atlas transformer Ltd
Eaton Corporation Inc

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