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Knowledge Hub

02 May 2018 knowledge hub
  • | TRANSFORMER
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Trends and developments across the transformer industry segments

In the following overview, a synthesis of most recent market studies is offered, analysing the trends and developments across the transformer industry segments in the years to follow.

According to one of most recent reports on the global electric power transmission & distribution infrastructure market, it is projected that the global market will generate $284.9 billion in 2018.

The global medium voltage transformers market is expected to grow at a CAGR of 4.5 % over the forecast period 2017–2027, and reach $14.8 billion by the end of 2027. 1,200 kVA segment is anticipated to grow at a CAGR of 5.2 % by the end of 2027, while oil-immersed type medium voltage transformers market is estimated to expand at a CAGR of 4.7 % during the forecast period. Three-phase transformers are likely to replace single-phase transformers owing to less power losses in three-phased equipment. By region, APEJ accounts for more than 50 % of the market share in terms of value in the global market.

“The global electric power T&D infrastructure market is projected to generate $284.9 billion in 2018” 

Global traction transformer market is expected to grow at a CAGR of 4.2 % over the forecast period 2017-2024, according to recent reports. The market is driven by the positive growth of locomotive industry on the back of rising GDP figures across the globe. Europe, accounting for the biggest market of rail traction transformer in term of revenue, has the largest train transport network across the globe which is projected to boost the demand for rail traction transformer in this region. However, the presence of weak rail infrastructure in underdeveloped nations is anticipated to hamper the growth of rail traction transformer market.

The global solid-state transformers market is anticipated to grow with an attractive CAGR of 24.75 % during the forecast period 2017-2023. Some of the major drivers that boost the market growth include a growing use of traction locomotives and electric vehicles, huge investments in smart grids and energy systems, increasing electricity production, growth in industrialization and increasing preference for renewable energy sources. By region, Europe is the largest market share for solid-state transformers market while North America is the most significant high growth market due to huge investments in the smart grids and energy systems.

“Europe is the largest market share for solid-state transformers market while North America is the most significant high growth market due to huge investments in the smart grids and energy systems.”

The global smart transformer market is projected to rise at a stable rate and will record CAGR of 15.25 % during the period 2017-2021. The market is mainly driven by renewable power generation capacity expansion, while high investment needed from a financially weak distribution sector for upgrading networks is the main market challenge.

The global shunt reactor market is projected to grow at a 7.37 % CAGR in the period 2018-2022. The main market driver is expansion of the renewable power generation capacity, while emergence of smart grids is recognized as a market trend. The market is challenged by reduced earnings of the global power distribution sector.

Trends and developments across the transformer industry segments

Most recent studies on the global instrument transformers market indicate the market is expected to grow from an estimated $7.32 billion in 2017 to $9.06 billion by 2022, registering a CAGR of 4.35% during the forecast period. This growth is primarily due to the increasing emphasis on alternative energy production, refurbishment of aging infrastructure, and huge investments in smart grids and energy systems across the world. With regard to the type segment, capacitive potential transformers are expected to constitute the fastest growing market from 2017 to 2022.

The global transformer core market is expected to grow at a CAGR of 4.2 % over the forecast period from 2017 to 2025. Increase in demand for electricity production across the globe and growth in the integration of renewable energy sources to generate electricity are some major aspects driving the market growth. On the basis of type, power transformer accounts for a major share in the global transformer core market owing to increasing demand for electricity generation. Asia Pacific is expected to be the dominant region due to increasing population and increasing demand for sustainable sources of energy.

The global market for dissolved gas analyzers is predicted to showcase tremendous growth over the coming years, primarily thanks to the emergence of the utility sector. The increasing installations and upgradation of power transformers worldwide are expected to drive the market’s growth in the forecast period 2017-2025, as well as a growing number of resolutions related to rising environmental pollution and government initiatives across the globe to reduce the carbon footprint. The demand for dissolved gas analyzers is expected to rise in the coming years as the end user industries are working toward maximizing reliability of their equipment and minimizing the risks involved in using them. Asia Pacific is expected to dominate the global market in the near future as the developing countries in the region are undergoing infrastructural developments.

The global Buchholz relay market is projected to increase by 5% between 2018 and 2022. The market, which includes power and distribution transformers, is expected to experience a growth due to the changing energy landscape and growing utilities need for flexible power systems. Increasing energy investments in emerging economies including India, Mexico, Africa and the Middle East are expected to positively impact the global Buchholz relay market during the forecast period. On the other hand, high costs associated with deploying Buchholz relays will have a negative impact on the market.

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