The Global Power Transformer Market, By Power Rating (100 MVA to 500 MVA, 501 MVA to 800 MVA and 801 MVA to 1200 MVA) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 51.94 Billion by 2027, exhibiting a CAGR of 7.7% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Power transformer is a type 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 types 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.
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.
Favorable government regulations are expected to boost the global power transformers market growth over the forecast period
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.
Growing adoption of HVDC transmission methods for long-distance transmission can present lucrative growth opportunities in the global power transfers market
Many government authorities have started adopting high-voltage direct current (HVDC) transmission for long-distance transmission. This is due to the fact that HVDC transmission provides various benefits such as economical transmission of the bulk power, decrease in a number of conductors, reduction in line loss, reduction in the size of the conductor, reduction in a number of intermediate substations, and use of an underground cable. Key companies in the market can capitalize on these major opportunities by providing innovative products and expand the market presence.
Reluctance to replace aging infrastructure is expected to hamper the global power transmissions market growth over the forecast period
In many countries, the electricity transmission infrastructure has aged and exceeded its operational lifecycle. There is a desperate need to replace the aging infrastructure and replace it with advanced power transformers and smart grids. However, many government authorities are showing a lack of interest in upgrading the existing infrastructure. Thus, these factors are expected to hamper the global power transformers market growth over the forecast period.
Among regions, North America is expected to witness significant growth in the global power transformers market during the forecast period. This is owing to the replacement and refurbishment of existing transmission grids and infrastructure across the region. Furthermore, increasing expenditure on electricity infrastructure and smart grids is expected to boost the regional market growth over the forecast period.
Europe is expected to register robust growth rate in the global power transformers market over the forecast period. This is owing to growing deployment of large-scale renewable energy projects across the region. Furthermore, the up-gradation of the existing grid network is expected to propel the regional market growth over the forecast period.
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.