Power Transformers Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Power Transformers Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The power transformers market is expected to grow significantly, with the rising demand for electricity around the world. During 2018, the demand for electricity was around 26 thousand terawatt-hours (TWh), and it has been estimated to record nearly 6% CAGR by 2025. The growth in electricity demand is certain to increase the growth of power transformers, especially for high voltage long-distance transmissions. Power transformers are static machines used for transforming power from one circuit to another without changing the frequency. These transformers are generally above 200 MVA and are installed at the ending or receiving end of long high voltage transmission lines for step-up and step-down applications. The drivers of the power transformers market are the growing deployment of renewable infrastructure for power generation and the upgradation and expansion of existing grid infrastructure. However, the installation cost and logistics difficulty of power transformers are expected to act as restraints for the market to grow in the future.

Key Highlights

• With rising awareness of the climatic condition and increasing urbanization across the world, the demands for electricity and power transformer are expected to increase in the near future. The inclusion of electric vehicles and growing industries are few factors that are expected to increase with the increasing population.
• Among all the power transformers, the large power transformer is the most used transformer with varied uses in distribution and transmission networks. Such type of power transformer is expected to be a significant segment during the upcoming years.
• Asia-Pacific is one of the significant markets with the highest terawatt hour of electricity generation. With an increase in demand for power and cross-border transmission and initiatives to utilize renewable resources, the market for power transformers is expected to grow during the forecast period.

Power Transformers Market Trends

Large Power Transformers to Account for the Largest Share in the Market

• The large power transformer has the largest unit in the power transformer population. Its power ranges are normally above 200 megavolt ampere (MVA). Few companies produce large power transformers, and thus, the competition is low under this segment.
• Developed countries, globally, are replacing old transformers to ensure a continuous and efficient supply of electricity. This trend is expected to increase during the forecast period. In the coming years, eco-friendly large power transformers are expected to witness significant growth due to their environmental viability and related advanced features.
• In 2019, ABB's contract to supply converter transformers and high-voltage equipment for an 800 kilovolt (kV), ultrahigh-voltage direct current (UHVDC) transmission link, owned by the State Grid Corporation of China (SGCC), was one of the largest power transmission projects during the mentioned year.

Asia-Pacific as a Significant Market

• Asia-Pacific is a significant market for power transmission and distribution networks. With the largest section of people in the world, power requirement in the region is higher compared to other parts of the world.
• With rising per capita electricity consumption of around 0.1 MWh, the electricity demand for the region is expected to increase to nearly 11,000 terawatts by 2025, which, in turn, is likely to boost the power transformer market.
• China and India are expected to be the largest markets in the region. Nearly 30 gigawatts (GW) of wind and 60 GW of solar projects are expected to execute in China by 2020. Furthermore, 262 gigavolt ampere of new substations may get installed in the near future.

Power Transformers Industry Overview

The power transformers market is fragmented. The key owners in the market include ABB Group, Siemens Ltd, General Electric Company, Crompton Greaves Ltd, Toshiba Corporation, Hyundai Heavy Industries Co. Ltd, Mitsubishi Electric Corporation, Hyosung Corporation, Bharat Heavy Electricals Limited, and SPX Transformer Solutions Inc.

Additional Benefits:

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