Analysis of the Transformer Market: Assessment of Market Size, Trends, Statistics, and Competitors
Global Transformer Market by Core (Closed, Shell, Berry, and Insulation), by Insulation (Gas, Oil, Solid, and Other), by Phase (Single and Three), by Mounting (Pad, Pole, and Others), by Rating (100 MVA to 500 MVA, 501 MVA to 800 MVA, and 801 MVA to 1200 MVA), by Cooling (Air and Oil), by Application (Residential, Commercial & Industrial, and Utility), and by Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Market Size, Share, COVID-19 Impact, Regional Analysis & Forecast Till 2030
Category - Energy & Power
Report Code - OMR-EP-147
Format: PDF, PPT, and Excel
Transformer Market Overview
An electrical transformer is a passive device moving electricity across different circuits. When the current through one coil of a transformer varies, the magnetic flux through the core also changes, resulting in an electromotive force (EMF) that varies across all of the coils wound around the same core. The market's growth prospects are bolstered by the rising demand for energy-efficient power distribution networks and the severe government measures to decrease energy waste. New prospects for expansion in the market are expected to arise due to rising innovation aimed at setting up a centralized power distribution network, the ongoing adoption of smart monitoring systems, and the development of power distribution infrastructure. Moreover, most emerging and poor countries work to raise the bar for rural electrification and increase the percentage of their population served by the grid. Since copper, steel, and aluminum make up the majority of transformers, their relative costs as raw materials directly impact the retail price. The shipping and installation costs are also rather high, representing about 25% of the overall cost of ownership. The time needed to make power transformers is another problem. Despite the favorable influence of unique technology breakthroughs and increasing rural electrification projects, the worldwide transformers industry has been hampered by the COVID-19 epidemic. Since the government's focus has shifted from developing the nation's electricity infrastructure to addressing the urgent healthcare issue, the market's operations have been seriously impeded.
Transformer Market Growth Factors
Rising Demand for Power and Increasing Electrification Among the Rural Areas to Propel Market Demand
Over the projected period, the primary factor driving the market's growth is anticipated to be the rising demand for energy in both developing and developed countries and increased investment in infrastructure. Power transformer market growth over the next five years is anticipated to be positively impacted by the requirement for smart meters brought about by rising demand and supportive actions for smart grid development. The demand for power transformers is expected to increase due to several government programs aimed at introducing cutting-edge technology into the industry and updating the current power networks to boost energy efficiency and reduce losses. During the assessment period, the power transformer market will be driven by the increased study of transmission networks and the rapid adoption of alternative and renewable energy sources for electricity generation in remote areas. Smart grids can promptly adapt to electricity demand because of their remote accessibility and monitoring. In addition to reducing pollution, they ensure efficient power and cooling delivery. The global power transformer market is expected to expand during the forecast period due to the advancement of environmentally friendly transformers, high voltage transmission technologies, and stringent government regulations to reduce greenhouse gas emissions. Traditional transformers are predicted to be replaced by eco-friendly goods due to their advanced features and environmental protections. These don't meet the standards set by today's technology and ecology. Furthermore, wealthy countries include wind and other renewable sources in cross-border electricity trading, further straining already overburdened infrastructure.
Rising Utilization of Non-Conventional And Renewable Power Sources Will Augment Growth
The aging of the nation's infrastructure also increases the frequency with which problems like short circuits occur, providing enough opportunity to expand the power transformer market. Because of rising concern over low-carbon emissions, the construction of a super grid and a smart grid is underway. Power transformers are expected to benefit greatly from the PCB mentioned above replacement programs, the growth of green efforts, and the development of service in resource-based industries. The transformers market benefits from technological developments such as smart transformers for smart grids. Power supply systems can benefit from smart transformers because they can adjust voltage independently, monitor and manage power demand fluctuations, and offer feedback. Smart transformers provide the utility company remote access as well. While China has been employing ultra-high voltage (UHV) direct current (AC) transmission since 2009, India is only able to transmit power at 1200 kilovolts (KV). A power transformer's primary function is an interface between two networks operating at different voltages. Transformers transmit electrical current from one network to another. Higher transmission voltages are a primary factor in the growing need for more powerful power transformers. The alternating current from the hydroelectric power plant can be transformed into a high-voltage current using the transformer. The processed energy is fed into the national grid, making it available to consumers. Also, renewable energy is the fastest-growing energy source in the world and the United States.
Transformer Industry Segmentation
Core
• Closed
• Shell
• Berry
Insulation
• Gas
• Oil
• Solid
• Other
Phase
• Single
• Three
Mounting
• Pad
• Pole
• Others
Rating
• 100 MVA to 500 MVA
• 501 MVA to 800 MVA
• 801 MVA to 1200 MVA
Cooling
• Air
• Oil
Application
• Residential
• Commercial & Industrial
• Utility
North America
o U.S.
o Canada
o Mexico
Europe
o Germany
o U.K.
o France
o Spain
o Italy
o Rest of Europe (RoE)
Asia Pacific (APAC)
o Japan
o China
o India
o South Korea
o Rest of APAC
Latin America
o Argentina
o Brazil
o Rest of Latin America
Middle East & Africa
o South Africa
o UAE
o Saudi Arabia
o Rest of MEA
Core Insight
Commercial and Industrial Applications to Maximize Revenue Due to Increased Manufacturing Activities
Based on core, the global market can be split between closed, shell, and berry.
In 2022, the market share for shell core was the largest, and its growth rate was the highest for the anticipated time frame. These are frequently employed in high-output, low-voltage applications. The shell core is also widely used in low-voltage power and electrical circuits. These transformers optimize the cost of a circuit since their square or rectangular cross-sectional core is less expensive. In addition, the shell core provides several benefits, including an effective cooling system, design versatility, seismic resistance, effective leakage magnetic flux control, and high short circuit strength.
Insulation Insight
Oil Insulation to Offer Premium Protection Owing to Higher Dielectric Properties
Based on insulation, the global market can be split into gas, oil, solid, and other.
In 2022, oil insulation held the greatest share of the market, and projections for the years 2023 through 2030 indicate positive CAGR growth for this segment. Due to its high-temperature resilience, oil is frequently employed as an insulation medium in various sectors. Its dielectric properties prevent high voltage from doing any harm because of its insulation properties. With these benefits, oil insulators are the top pick for industrial use.
Oil also protects other parts from harm, such as copper coils, by preventing them from overheating and catching fire. High-voltage switches, circuit breakers, oil-filled transformers, and fluorescent light ballasts employ oil as insulators. Insulation materials in transformers often include mineral oil (mostly naphthenic), silicone, and bio-based oils.
Phase Insight
Three-Phase Transformers to Account for Dominant Market Owing to Varied Application
Rating Insight
100-500 MVA Transformers to Accumulate Largest Market Owing to Rising Industrialization and Urbanization
By rating, the market can be differentiated into 100 MVA to 500 MVA, 501 MVA to 800 MVA, and 801 MVA to 1200 MVA.
In 2022, transformers with ratings between 100 MVA and 500 MVA occupied the maximum share of the market, and between 2023 and 2030, that segment is projected to increase at the quickest pace. Transformers in the 100 MVA to 500 MVA range have wide-ranging uses, from industrial applications to powering vehicle motors. Worldwide industrialization and urbanization have resulted in a rise in electricity consumption, which has led to a rise in the need for transformers with ratings between 100 MVA and 500 MVA. Improvements in technology and ease of implementation also contribute to the widespread adoption of these transformers.
Regional Insights
Asia Pacific to Dominate Sales of Transformers Owing to Increasing Government Initiatives
Based on the regional landscape, the market can be differentiated between North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.
Countries in the Asia-Pacific area, such as Australia, China, and India, often invest in the electricity sector to upgrade their power grids. Power distribution networks have rapidly expanded in several Asian countries over the past few years, bringing electricity to previously vulnerable areas and enhancing the power grid in semi-urban regions. The Central Electricity Authority (CEA) reported in May 2022 that India's installed capacity for renewable energy sources was 159.94 GW. The nation is on track to meet its renewable energy goal of 175 GW by 2022. The Indian government set a new goal of 500 GW for non-fossil energy capacity by 2030 in November 2021. As a result of these trends, the transformers market is anticipated to grow fastest in Asia-Pacific over the coming years.
Forecasts indicate that expenditures in constructing long-distance transmission lines will drive the power transformer market in North America to expand significantly over the next several years. In 2022, for instance, the Midcontinent Independent System Operator (MISO) in the United States will have sanctioned a USD 10.3 billion investment across grid development projects. This change will reduce system costs across long-distance networks and boost grid dependability and renewable energy integration. Regional incomes will also benefit from a greater push toward upgrading outdated electrical infrastructure with modern, high-tech alternatives.
The emergence of new long-distance power transmission projects aids the growth of the power transformer market. Growth in Europe's market is anticipated to be moderately paced due to the region's relatively slow adoption rate. With its extensive manufacturing base, Europe needs both a modernized power grid and renewable energy sources. Russia's size necessitates sophisticated transmission networks, yet the United Kingdom and Germany boast more modern electricity grids.
Transformer Industry Analysis
Power transformer market leaders include Siemens AG, Crompton Greaves Ltd, ABB Ltd, Alstom SA, Toshiba Corp, and GE Co. Many companies in this market are boosting their manufacturing capacity and working to extend the lifespan of their products to capture a larger market share. Companies of note have expanded their offerings to include shunt reactors, HVDC lighting, and phase-shifting versions.
Transformer Market Recent Developments
• In May 2022, 10 mobile transformers and ten substations were shipped from Siemens Energy to the Transmission Company of Nigeria. The company acquired this contract in July 2020, which was fulfilled in May 2022.
• In January 2022, the Kenya Transmission Project will be developed by Power Grid Corporation of India Ltd and Africa50 as a public-private collaboration. PowerGrid India will provide technical and operational experience for developing, funding, constructing, and operating the 400kV Lessos- Loosuk and 220kV Kisumu- Musaga transmission lines.
• In January 2022, the state utility company of Madhya Pradesh, Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co Ltd., has issued a new request for proposals (RFP) to purchase the digital 3-phase distribution transformer.
Global Transformer Market Prominent Players
• Crompton Greaves Ltd. (India)
• GE Co. (U.S.)
• Hyundai Heavy Industries Co. Ltd. (South Korea)
• General Electric (U.S.)
• Siemens Energy (Germany)
• Mitsubishi Electric Corporation (Japan)
• Bharat Heavy Electricals Limited (India)
• Alstom SA (France)
• Hyosung Power & Industrial Systems Performance Group (South Korea)
• ABB (Switzerland)
• CG Power & Industrial Solutions Ltd (India)
• JSHP Transformer (U.S.)
Frequently Asked Questions (FAQs)
At what rate will the Transformer Market Expand?
Objective Market Research states that the transformer market will grow at a CAGR of 6.9% during the forecast period.
What are the factors driving the global Transformer Market?
The global transformer market will expand during the forecast period owing to rising utilization within the renewable energy sector and increasing push for widening power requirements.
Which segment accounted for the largest Transformer Market share by insulation?
The Oil-based insulation will account for the largest market share due to its frequent applications in high-output, low-voltage applications
What region holds the major share in the global market scape?
The region of Asia Pacific is expected to witness the largest revenue stream for the global market, owing to increased government spending and increased focus on renewable energy sources.
Which are the dominating players in the market during the forecast period?
Some prominent players in the global transformer market are Crompton Greaves Ltd. (India), GE Co. (U.S.), Hyundai Heavy Industries Co. Ltd. (South Korea), General Electric (U.S.), and Siemens Energy (Germany), among others.
*Our reports are available on a region/wise and chapter/wise basis as well. For any additional personalization contact our sales representative directly at sales@objectivemarketresearch.com
Table of Content
1. Introduction
1.1 Market Definition
1.2 Objective of the Study
1.3 Market Scope
1.4 Years Considered in the Study
1.4.1 Historic Year: 2019-2021
1.4.2 Base Year: 2022
1.4.3 Forecast Period: 2023-2030
1.5 Currency Used in the Study
1.6 Boundaries for the Study
1.7 Collaborators/Stakeholders/Benefactors
2. Research Methodology
2.1 Research Outline
2.2 Data Collection Methods
2.3 Data Sources
2.3.1 Secondary Sources
2.3.1.1 Paid Sources
2.3.1.2 Unpaid Sources
2.3.2 Primary Sources
2.4 Market Estimation Methodology
2.4.1 Top-Down Approach
2.4.2 Bottom-Up Approach
2.5 Data Triangulation
2.6 Assumptions of the Study
2.7 Limitations of the Study
3. Executive Summary
3.1 Market Outlook
3.2 Analysts Perspective
4. Market Overview
4.1 Market Dynamics
4.1.1 Drivers
4.1.1.1. Increased Government Spending on Infrastructure
4.1.1.2. Rising Focus on Upgrading Older Equipment
4.1.2. Restrain
4.1.2.1. Higher Raw Material Costs
4.1.3. Opportunities
4.1.3.1. Rising Installation of Renewable Energy Installations
4.1.4. Impact of Market Dynamics
4.2. Impact of COVID-19 pandemic
4.3. Value Chain Analysis
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Buyers
4.4.2. Bargaining Power of Suppliers
4.4.3. Threat of Substitution
4.4.4. Threat of New Entrants
4.4.5. Competitive Rivalry
5. Global Transformer Market Analysis & Forecast, by Core from 2019-2030 (in USD million) (Units)
5.1. Closed
5.2. Shell
5.3. Berry
6. Global Transformer Market Analysis & Forecast, by Insulation from 2019-2030 (in USD million) (Units)
6.1. Gas
6.2. Oil
6.3. Solid
6.4. Other
7. Global Transformer Market Analysis & Forecast, by Phase from 2019-2030 (in USD million) (Units)
7.1. Single
7.2. Three
8. Global Transformer Market Analysis & Forecast, by Mounting from 2019-2030 (in USD million) (Units)
8.1. Pad
8.2. Pole
8.3. Others
9. Global Transformer Market Analysis & Forecast, by Rating from 2019-2030 (in USD million) (Units)
9.1. 100 MVA to 500 MVA
9.2. 501 MVA to 800 MVA
9.3. 801 MVA to 1200 MVA
10. Global Transformer Market Analysis & Forecast, by Cooling from 2019-2030 (in USD million) (Units)
10.1. Air
10.2. Oil
11. Global Transformer Market Analysis & Forecast, by Application from 2019-2030 (in USD million) (Units)
11.1. Residential
11.2. Commercial & Industrial
11.3. Utility
12. Global Transformer Market Analysis & Forecast, by Region from 2019-2030 (in USD million) (Units)
12.1. North America
12.1.1. North America Transformer Market Analysis & Forecast, By Country
12.1.1.1. U.S.
12.1.1.2. Canada
12.1.1.3. Mexico
12.1.2. North America Transformer Market Analysis & Forecast, By Core
12.1.3. North America Transformer Market Analysis & Forecast, By Insulation
12.1.4. North America Transformer Market Analysis & Forecast, By Phase
12.1.5. North America Transformer Market Analysis & Forecast, By Mounting
12.1.6. North America Transformer Market Analysis & Forecast, By Rating
12.1.7. North America Transformer Market Analysis & Forecast, By Cooling
12.1.8. North America Transformer Market Analysis & Forecast, By Application
12.2. Europe
12.2.1. Europe Transformer Market Analysis & Forecast, By Country
12.2.1.1. Germany
12.2.1.2. UK
12.2.1.3. France
12.2.1.4. Spain
12.2.1.5. Italy
12.2.1.6. Rest of Europe (RoE)
12.2.2. Europe Transformer Market Analysis & Forecast, By Core
12.2.3. Europe Transformer Market Analysis & Forecast, By Insulation
12.2.4. Europe Transformer Market Analysis & Forecast, By Phase
12.2.5. Europe Transformer Market Analysis & Forecast, By Mounting
12.2.6. Europe Transformer Market Analysis & Forecast, By Rating
12.2.7. Europe Transformer Market Analysis & Forecast, By Cooling
12.2.8. Europe Transformer Market Analysis & Forecast, By Application
12.3. Asia-Pacific (APAC)
12.3.1. Asia-Pacific Transformer Market Analysis & Forecast, By Country
12.3.1.1. Japan
12.3.1.2. China
12.3.1.3. India
12.3.1.4. South Korea
12.3.1.5. Rest of the APAC
12.3.2. Asia-Pacific Transformer Market Analysis & Forecast, By Core
12.3.3. Asia-Pacific Transformer Market Analysis & Forecast, By Insulation
12.3.4. Asia-Pacific Transformer Market Analysis & Forecast, By Phase
12.3.5. Asia-Pacific Transformer Market Analysis & Forecast, By Mounting
12.3.6. Asia-Pacific Transformer Market Analysis & Forecast, By Rating
12.3.7. Asia-Pacific Transformer Market Analysis & Forecast, By Cooling
12.3.8. Asia-Pacific Transformer Market Analysis & Forecast, By Application
12.4. Latin America
12.4.1. Latin America Transformer Market Analysis & Forecast, By Country/Region
12.4.1.1. Argentina
12.4.1.2. Brazil
12.4.1.3. Rest of Latin America
12.4.2. Latin America Transformer Market Analysis & Forecast, By Core
12.4.3. Latin America Transformer Market Analysis & Forecast, By Insulation
12.4.4. Latin America Transformer Market Analysis & Forecast, By Phase
12.4.5. Latin America Transformer Market Analysis & Forecast, By Mounting
12.4.6. Latin America Transformer Market Analysis & Forecast, By Rating
12.4.7. Latin America Transformer Market Analysis & Forecast, By Cooling
12.4.8. Latin America Transformer Market Analysis & Forecast, By Application
12.5. Middle East & Africa
12.5.1. Middle East & Africa Transformer Market Analysis & Forecast, By Country/Region
12.5.1.1. South Africa
12.5.1.2. UAE
12.5.1.3. Saudi Arabia
12.5.1.4. Rest of Middle East & Africa
12.5.2. Middle East & Africa Transformer Market Analysis & Forecast, By Core
12.5.3. Middle East & Africa Transformer Market Analysis & Forecast, By Insulation
12.5.4. Middle East & Africa Transformer Market Analysis & Forecast, By Phase
12.5.5. Middle East & Africa Transformer Market Analysis & Forecast, By Mounting
12.5.6. Middle East & Africa Transformer Market Analysis & Forecast, By Rating
12.5.7. Middle East & Africa Transformer Market Analysis & Forecast, By Cooling
12.5.8. Middle East & Africa Transformer Market Analysis & Forecast, By Application
13. Competitive Landscape
13.1. Market Share Analysis (2022)
13.2. Market Positioning of Top Players (2022)
13.3. Key Developments & Growth Strategies (2020-2022)
13.3.1. Product Launches
13.3.2. Merges, Collaborations & Agreements
13.3.3. Expansion
13.4. SWOT Analysis
14. Company Profiles (Business Overview, Products Offered, Financial Details*, Recent Developments)
14.1. Crompton Greaves Ltd. (India)
14.1.1. Company Snapshot
14.1.2. Business Overview
14.1.3. Financial Data
14.1.4. Key Products Offered
14.1.5. Recent Developments
14.2. GE Co. (U.S.)
14.3. Hyundai Heavy Industries Co. Ltd. (South Korea)
14.4. General Electric (U.S.)
14.5. Siemens Energy (Germany)
14.6. Mitsubishi Electric Corporation (Japan)
14.7. Bharat Heavy Electricals Limited (India)
14.8. Alstom SA (France)
14.9. Hyosung Power & Industrial Systems Performance Group (South Korea)
14.10. ABB (Switzerland)
14.11. CG Power & Industrial Solutions Ltd (India)
14.12. JSHP Transformer (U.S.)
14.13. Others
15. Appendix
15.1. Currency Exchange Rate to USD
15.2. Abbreviations
* Financial details captured might be subjected to information available and not be given for privately-held companies or for companies that do not report it in the public domain