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Market Overview

The power transformer is a type of transformer used to transfer electrical energy in any part of the electronic or electric circuit between the generator and distribution primary circuits. Power transformers connect electrical networks or systems of different voltage, in order to allow power exchange between them. Power transformers are used for power transmission, power generation, consumer application, and electro-intensive industrial applications. Power transformers are used in commercial applications such as hotels, hospitals, offices, airports, and universities.

The global Power Transformers Market was accounted for US$ 28.69 Bn in terms of value and 17,283 unit shipment in terms of volume in 2019 and is expected to grow at CAGR of 7.7% for the period (2020-2027).

Market Dynamics- Drivers

  1. Increasing global energy demands is expected to drive growth of the global power transformers market during the forecast period

Increasing electrification ration in emerging economies such as India, Brazil, China, and Russia has led to increase in demand for power generation. Moreover, increase in load growth and high transmission and distribution losses highlights the need for more substations. As there are rapid economic development and increased need for uninterrupted and reliable power supply in the aforementioned countries, the power demand is expected to increase in the near future. Therefore, these factors are expected to drive growth of the global power transformers market during the forecast period.

  1. Renewal and upgrading of existing networks in mature economies is expected to propel the global power transformers market growth over the forecast period

In the majority of mature countries, electrical grid infrastructure is reaching the end of its operational lifespan following a strong investment in the 1970s. The average useful life span of a transformer is around 25 to 30 years. Furthermore, aging equipment is incompatible with the current technical and environmental requirements. Many governments have also made attempts to extend the life of a transformer over the past 20 years, but today the need to replace already existing equipment with more efficient units compatible with latest standards and smart grids has arrived. Therefore, these factors are expected to propel the global power transformers market growth over the forecast period.

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Power Transformers Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 28.69 Bn
Historical Data for: 2017 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 7.7% 2027 Value Projection: USD 51.94 Bn
Geographies covered:
  • North America: U.S., Canada
  • Latin America: Brazil, Argentina, Mexico, Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Middle East and Africa: South Africa, North Africa, Central Africa
Segments covered:
  • By Power Rating: (100 MVA to 500 MVA, 501 MVA to 800 MVA and 801 MVA to 1200 MVA)
Companies covered:

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.

Growth Drivers:
  • Increasing global energy demands
  • Renewal and upgrading of existing networks in mature economies
Restraints & Challenges:
  • The volatility of raw material prices

Statistics:

Asia Pacific held dominant position in the global Power Transformers market in 2019, accounting for 41.2% share in terms of value, followed by North America Europe.

Figure 1: Global Power Transformers Market Share (%) in terms of Value, By Region, 2019

Power Transformer  | Coherent Market Insights

Market Dynamics- Restraints

  1. The volatility of raw material prices is expected to restrain growth of the global power transformers market during the forecast period

Raw materials used in the manufacturing of power transformers are copper, steel, aluminum, and oil. However, prices raw materials such as steel and oil have been highly volatile in the recent past. Cold-rolled coil steel is used for the manufacture of Cold Rolled Grain Oriented (CRGO) steel, which is in turn used for the manufacture of transformers. Similarly, crude oil prices have been very volatile and unpredictable over the past few years. The chart below illustrates the volatility in the price of crude oil in US$ per barrel over the past five years. Thus, these factors are expected to restrain growth of the global power transformers market during the forecast period.

  1. Lack of standardization of products is expected to hamper the global power transformers market growth over the forecast period

Another prevalent challenge in the market is the lack of standardization of products. Currently, there is no standardization of the product in the market, which makes it challenging for manufacturers to provide uniform products. Therefore, these factors are expected to hamper the global power transformers market growth in the near future.  

Market Opportunities

  1. Rising awareness regarding low carbon emissions in the development of smart grid can present lucrative growth opportunities in the global power transformers market

A smart grid is an enhancement over a traditional electrical network and acts as an automated monitoring and controlling system. Dynamic pricing and consumption data are the core functionalities provided and envisioned on a larger scale in the form of the grid. Moreover, new technologies ensure the stability of the electrical grid when it receives an intermittent supply of electricity. Smart grids help interconnect all assets and optimize network control. Thus, this factor is expected to accelerate growth of the power transformers market over the forecast period.

  1. Deployment of green transformers can provide major business opportunities in the global power transformers market

A green power transformer is a sustainable, eco-efficient product. Green power transfers offer a new alternatives for customers who want to preserve the environment. It lowers the carbon footprint, limited risk, and enhanced life cycle costs as it requires less maintenance. Many government authorities have to invest in green power transformers over conventional power transformers. Since these transformers have lower noise levels and improved fire safety, it is expected to witness massive demand in the near future.

Figure 2: Global Power Transformers Market Value (US$ Bn), 2017 - 2027

Power Transformer  | Coherent Market Insights

The global Power Transformers market was valued at US$ 28.69 Bn in 2019 and is forecast to reach a value of US$ 51.94 Bn by 2027 at a CAGR of 7.7% between 2020 and 2027.

Market Trends

  1. Contracts and orders is a major trend

Key companies are focused on contracts and orders, in order to expand the market presence. For instance, in April 2013, ABB received orders worth US$ 120 Billion from the Saudi Electric Company for the supply of power transformers to strengthen the Saudi Arabian Grid. In June 2013, Crompton Greaves Ltd. received an order worth US$ 37.23 Billion from PGCIL for the supply of seven 500 MVA single phase 765 kV autotransformers, thirty-eight 80 MVAR and 110 MVAR single phase 765 kV reactors, which are to be installed at various substations in India.

  1. Formation of strategic joint venture and partnerships is another key trend

Major companies in the market are focused on joint ventures and partnerships, in order to gain a competitive edge in the market. For instance, in May 2013, Korea Electric Power Corporation entered into a joint venture with Alstom Grid named KEPCO Alstom Power Electronics Systems. The joint venture will focus on delivering HVDC projects in Korea. Moreover, in August 2013, GE Energy partnered with XD Electric Group. The partnership would combine GE’s grid automation and XD Electric’s comprehensive product portfolio which comprises high voltage power equipment.

Value Chain Analysis

The raw materials used primarily in the construction of transformers are steel, oil, and copper. Steel accounts for about one-third of the overall transformer manufacturing cost. Cold Rolled Grain Oriented (CRGO) steel is vital for manufacturing of power and distribution transformers. The companies supplying CRGO steel to transformer manufacturers include Nippon Steel Corporation and J Pearson International Inc. The major transformer manufacturers include companies such as ABB Ltd., Alstom SA, Toshiba Corporation, Siemens AG, and Crompton Greaves Ltd. among others. These companies assemble the core and coil winding, carry out the drying out process, fabricate the tank, perform tanking and painting and finally test the transformers performance as per requirements.

Power Transformer  | Coherent Market Insights

Competitive Section

Major companies operating in the global 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.

Key Developments

  1. Key companies are focused on mergers and acquisitions, in order to enhance the market presence. For instance in July 2020, Hitachi Ltd. acquired ABB Ltd., a Swiss heavy electric equipment manufacturer.
  2. Major market players are involved in partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in September 2019, Bharat Heavy Electricals Limited collaborated with POWERGRID for development of optical current transformers.

Power transformer is a Power Rating of transformer used to receive low voltage generator electric power and transmit it across distribution channels in the power grid network. Power transformers find industrial applications in chemical plants, mining, substations, paper, cement mills, and power generation. There are different Power Ratings of power transformers such as autotransformers, small power transformers, medium power transformers, phase shifting transformers, HVDC converter transformers, shunt reactors, large power transformers, gas-insulated transformers, and converter transformers.

Market Dynamics

Renewable energy poses less impact on the environment and is present in abundance. However, current technologies are incapable of completing tapping and utilizing renewable sources to generate power. On the contrary, non-renewable sources of energy account for most of the power generation although they are responsible for pollution of the atmosphere. This, in turn, results in increased carbon dioxide levels in the atmosphere. The International Energy Agency has constantly warned and mentioned about the increase in carbon dioxide emissions over past years. Many international meetings and agreements have demanded both the emerging and mature economies to cut emissions significantly. As a result of this, there is a need for green energy generation, in order to reduce carbon dioxide emissions and overall environmental pollution. Therefore, these factors are expected to drive growth of the global power transformers market during the forecast period.

Market Taxonomy

This report segments the global market on the basis of Power Rating. On the basis of Power Rating, global Power Transformer market is segmented into 100 MVA to 500 MVA, 501 MVA to 800 MVA and 801 MVA to 1200 MVA. On the basis of region, global Power Transformer market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the global Power Transformer market and provides market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2020-2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global Power Transformer market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the global Power Transformer market include 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.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, architecture up gradation, market expansion, and marketing tactics
  • The global Power Transformer market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global Power Transformer market

Detailed Segmentation:

  • Global Power Transformer Market, By Power Rating:
    • 100 MVA to 500 MVA
    • 501 MVA to 800 MVA
    • 801 MVA to 1200 MVA
  • Global Power Transformer Market, By Region:
    • North America
    • Latin America
    • Europe
    • Asia Pacific
    • Middle East and Africa
  • Company Profiles
    • ABB Ltd.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Alstom SA
    • Bharat Heavy Electricals Limited
    • Crompton Greaves Ltd.
    • GE Co.
    • Hitachi
    • Hyosung Power & Industrial Systems Performance Group
    • Hyundai Heavy Industries Co. Ltd.
    • Mitsubishi Electric Corporation
    • Siemens Energy
    • Toshiba Corp.

Browse all the market data tables and figures on “Global Power Transformer Market - Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Power Rating
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Power Transformer Market - Impact of Coronavirus (Covid-19) Pandemic
    • Short Term
    • Long term
  5. Global Power Transformer Market, By Power Rating, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • 100 MVA to 500 MVA
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • 501 MVA to 800 MVA
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • 801 MVA to 1200 MVA
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  6. Global Power Transformer Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Power Rating, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Power Rating, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Power Rating, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Power Rating, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Power Rating, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  7. Competitive Landscape
    • Company Profiles
      • ABB Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Alstom SA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Bharat Heavy Electricals Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Crompton Greaves Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • GE Co.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hitachi
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hyosung Power & Industrial Systems Performance Group
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hyundai Heavy Industries Co. Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Mitsubishi Electric Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Siemens Energy
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Toshiba Corp.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on “Global Power Transformer Market -forecast to 2027”.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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