Industry Overview:
Transformer Market size was valued at more than USD 27.3 Billion in 2022 and is projected to attain at over 4.9% CAGR through 2023 - 2032. By the end of the forecast period, the market is expected to reach a valuation of around USD 49.2 Billion.
A transformer is a device that is used to transfer electrical energy from one circuit to another through electromagnetic induction. It is a passive electrical component that is commonly used in power transmission and distribution systems to change the voltage level of an alternating current (AC) electrical signal. The basic concept of a transformer is that it consists of two coils of wire that are wound around a common magnetic core. The primary coil is connected to the input voltage source, and the secondary coil is connected to the output load. When an AC voltage is applied to the primary coil, it creates a changing magnetic field in the core, which in turn induces a voltage in the secondary coil.
Transformers can be used to step up or step down the voltage of an AC signal. For example, a step-up transformer increases the voltage of the input signal to a higher voltage level, while a step-down transformer reduces the voltage to a lower level. This is achieved by changing the number of turns in the coils of the transformer. Transformers are widely used in the power industry because they provide a simple and efficient method of transferring electrical energy over long distances. By increasing the voltage of the electrical signal, transformers reduce the amount of current that is needed to transmit the same amount of power, which reduces energy losses and improves the efficiency of the system.
Drivers:
- Power Grid Modernization
- Increasing Energy Demand
- Growing Renewable Energy Sources
- Rise in Industrialization and Urbanization
Restraints:
- High Initial Cost
- Fluctuations in Raw Material Prices
Power grid modernization is one of the prominent drivers in the transformer market
The modernization of power grids has been a major driving force behind the demand for transformers in recent years. As the world's energy needs continue to grow, the need for more efficient and reliable power grids is becoming increasingly important. This is driving the demand for transformers that can handle larger amounts of power, while also being more efficient and cost-effective.
Furthermore, increasing use of renewable energy sources such as solar and wind power, it produces power in a decentralized manner, often at a smaller scale than traditional power plants. This requires the development of new technologies to manage the flow of power across the grid, including the use of smart grids and microgrids. According to the International Energy Agency (IEA), renewable energy consumption increased by 3% in 2020, while demand for all other fuels was decreased. Solar PV and wind power are significant sources of renewable energy demand. In 2021, China alone accounted for nearly half of the global increase in renewable electricity, followed by the United States, the European Union, and India.
Regional Overview:
The Asia Pacific region is one of the largest and fastest-growing markets for transformers in the world. This is due to a number of factors, including the region's rapidly growing population and increasing demand for energy, as well as the ongoing modernization of power grids in many countries throughout the region. China is the largest market for transformers in the region, and is also one of the largest markets globally. The country's rapidly growing economy, along with the ongoing expansion of its power grid, is driving significant demand for transformers in the country. In addition, the Chinese government's ongoing efforts to promote renewable energy sources such as wind and solar power are also contributing to the growth of the transformer market in the country.
Key Development:
- In January 2023, Franklin Electric has announced the launch of the INCON Distribution Transformer Monitor (DTM) in the Power Grid Monitoring product line. The DTM provides remote access to real-time transformer health data and automated alarms for condition-based maintenance planning by continuously monitoring the key indicators of a transformer's performance.
- In September 2022, Nynas has announced the release of NYTRO RR 900X, a circular transformer fluid based on the most powerful and effective re-refining technology. With this announcement, the company invites utilities and OEMs to join the circular economy and contribute to greenhouse gas reduction goals.
- In September 2022, Hitachi Energy has introduced the RESIBLOC Rail, an innovative oil-free traction transformer with an integrated cooling system and voltages up to 25 kilovolts. (kV), This traction transformer includes a factory-fitted cooling system that is integrated into the design of the traction transformer. This oil-free, plug-and-play traction transformer is the result of Hitachi Energy's deep commitment to innovation in order to provide significantly lower operating costs with lower energy consumption and CO2 emissions, while also requiring minimal asset maintenance.
Top players include in the global transformer market:
- Toshiba Energy Systems & Solutions Corporation
- Eaton
- Rockwell Automation, Inc.
- GE
- Hitachi Energy Ltd.
- Mitsubishi Electric Corporation
- HYUNDAI ELECTRIC & ENERGY SYSTEMS CO., LTD.
- TDK Corporation
- Kirloskar Electric Company
- Schneider Electric
- Siemens Energy
In-depth analysis of Transformer market along with industry coverage and forecasting for the following segments:
Market Size, By Type
- Distribution Transformer
- Power Transformer
- Instrument Transformer
- Electronic Transformer
- Others
Market Size, By Voltage Range
- Up to 500 VA
- 501 VA to 5000 kVA
- 5001 kVA to 1000 MVA
- 1001 MVA to 1500 MVA
- Above 1500 MVA
Market Size, By Phase
- Single Phase
- Three Phase
Market Size, By Application
- Residential
- Commercial
- Industrial
Market Size, By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- Latin America