CWIEME Berlin 21-23 May 2019 Messe Berlin

26 - 28 May 2020
Messe Berlin

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GLOBAL TRANSFORMER MARKET TRENDS

by: Mladen Banovic, PhD, Editor-in-Chief, Transformer magazine

Find out what the key transformer market trends and predictions are for the coming years

Transformers Magazine brings the latest transformer technology and market trends. Based on the market research analyses and reports made available over the past few months, we have identified the key transformer market trends and predictions for the coming years.

The future of the electric transmission and distribution equipment market looks promising with opportunities in the power utility, residential, commercial, and industrial sectors.

 

The global electric transmission and distribution equipment market, which includes wire and cable, switchgears, transformers, meters, insulators and capacitors, is expected to reach an estimated $304 billion by 2022 and is forecast to grow at a CAGR of 6.2% from 2017 to 2022.

 

Overall, increasing demand for safe and reliable power, rising urban population coupled with modernization of existing power grids, increased investments in renewable energy, as well as adoption of smart grid technology will be the main drivers for the global power transmission components market, and consequently for the transformer market in next five years.

The global electric transmission and distribution equipment market, which includes wire and cable, switchgears, transformers, meters, insulators and capacitors, is expected to reach an estimated $304 billion by 2022 and is forecast to grow at a CAGR of 6.2% from 2017 to 2022.

Asia-Pacific is expected to remain the largest market by value and is also expected to witness the highest growth over the forecast period due to an increase in construction activities, increasing electric access, urbanization, and rapid industrialization.

HVDC power transmission equipment market is fuelled by rising demand for energy transmission over long distance and adoption of the high-voltage direct current technology across the world. However, high cost as well as lengthy approval procedures for HVDC projects are major challenges before the global market.

The market is predicted to grow over 8% during the period 2016-2024. Countries such as China, India, the U.S., the UK and Brazil are investing in the development of UHVDC structures, further boosting the industry growth. Asia Pacific is the leading region in the global converter transformer market owing to higher acceptance of this technology.

The global power transformer market is expected to grow at a CAGR of 7.1% from 2016 to 2022 and reach $37.3 billion by 2022. Increasing demand for power and cross-border power transmission, global initiative to utilize more renewable and non-conventional energy sources, smart grids, and a global need to upgrade transmission networks all boost the global power transformer market.

The global liquid-immersed transformer market is projected to grow at a CAGR of 4.9% during the period 2017-2021. The market is driven by expansion of power transmission and distribution networks leading to an increase in transformer installations. The main market trend is to use environmentally-friendly and more fire-resistant insulating liquids.

The global dry-type transformer market is projected to grow at a CAGR of 5.3% during the period 2017-2021. The increase in installation of new transformers and the replacement of old units with new ones is fuelling the growth of the market.

The three-phase transformer market is primarily driven by the need for price-effective solutions in the power industries. Moreover, increasing power demand from power and industrial sectors is fuelling investment demand in this sector globally.

The major restraining factors are huge price of standby units as well as the cost of spare parts. Technological innovations are likely to act as one of the major opportunities in the market, including the introduction of magnetic material and implementation of thermodynamic principle.

The market for single phase dry-type transformers is expected to witness a strong growth during the period 2016-2024. These transformers are largely used in mining, marine, oil & gas and other industries which have specific voltage requirements, owing to importance of fire safety in these sectors.

Currently, Asia Pacific is dominating the market in terms of revenue, followed by North America and Europe. Developing economies such as China, India, Russia, Brazil and South Africa are likely to be attractive markets.

The global medium-voltage transformer market is expected to expand at a promising CAGR during the forecast period 2015-2025. One of the key factors driving the growth of the market is rising urbanization in developing countries, while price fluctuation of raw material, maintenance and aging costs, as well as compliance with specifications, quality and testing are a few factors limiting the growth of the market.

 

Asia-Pacific is the largest market for the global distribution transformer market mainly due to rapid expansions in the industrialization, construction and infrastructure activities.

 

The global distribution transformer market will grow at CAGR of 6.0% by 2022. On the basis of insulation, oil-immersed distribution transformer market accounted for the largest share in the insulation segment, mainly due to advantages such as energy efficiency, lower sound level, and longer operating life. On the other hand, the growing focus on safety and environmental protection is driving the demand for dry-type transformers.

Asia-Pacific is the largest market for the global distribution transformer market mainly due to rapid expansions in the industrialization, construction and infrastructure activities. It is expected to grow at the fastest pace during the forecast period.

The global shunt reactor market is valued at $2.15 billion in 2016 and is expected to reach a value of $ 3.44 billion by the end of 2022, growing at a projected CAGR of 8.2% during the forecast period 2017 – 2022. The need to increase the efficiency of the system and provide reliable power is increasing the global demand for shunt reactors.

The global high-voltage instrument transformer market is expected to grow at an elevated CAGR in the period by 2021.

The global electrical steel market size is estimated to grow from $27.84 billion in 2016 to $38.98 billion by 2021, at a CAGR of 7.0%. This market covers grain-oriented and non-grain-oriented steel used in transformers, motors and inductors.

The global transformer oil market will be driven by the increasing oil-filled transformer market, but the shift towards renewable liquids may restrain the mineral-based transformer oil market.

Asia-Pacific transformer oil market is expected to continue to lead the market in terms of consumption, followed by North America, South America and Europe. China, India and also Brazil will dominate the market.

The global dissolved gas analyser market is expected to grow in the period by 2024, fuelled by the growing upgradation and installation of power transformers worldwide as well as the aim of end-user industries to improve the reliability of their equipment and reduce the risks involved in using them by accurate detection of fault gasses in transformers.

Asia-Pacific dominates the global market as the emerging countries in the region are experiencing infrastructural developments; the number of power transformers in the region is growing along with the emergence of online DGA analysis. Europe and North America will also grow significantly owing to the existence of aging power transformers requiring secure monitoring.

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