Power transformer market to hit $37.7bn by 2026
Power transformer installation is likely to be driven by growing investment toward expansion of transmission networks along with inclusion of sustainable energy mix across the total installed electricity generation capacity. Power transformers are witnessing massive deployment across industries on account of their advantageous features including easy transportation, short circuit reliability and compact size.
Expansive fund flow by government and private organisation for electrification programs is also creating growth avenues for transformer component business. Moreover, refurbishment and retrofitting of existing electricity network across the globe may further offer lucrative scope for the industry growth in the coming years. Estimates suggests that power transformer market size will witness an annual installation of over 42,000 units by 2026.
Shifting focus towards safe and reliable operations has led to growing adoption of air insulated transformers. The transformers offer flexible configurations and excellent reliability and safety during operations.
Lower secondary effects through internal failure, environment friendly operations and capability to avoid combustibility are some other advantages offered by these units. Compactness of the unit aid in adoption of substation equipment with significant space and cost savings, which in turn will strengthen the product demand.
Transformer units with 100 to 500 MVA capacity will observe growth due to their low installation cost and compact size. These units are extensively deployed across electric power, healthcare industries and oil & gas plants.
Moreover, large-scale installation of these units at generating stations and electrical substations to convert electrical power to low or high voltage transmission will supplement industry trends.
Pole mounted transformer market will be mainly driven by the product capability to service urban as well as rural residential and commercial loads. These transformer units are likely to experience robust demand due to faraway load centres and constrained grid accessibility in several regions.
These units are also limiting the risk of harm to animals and minimising vandalism. Easy deployment and compact size of single poles may boost the product penetration in the coming years
Increasing government and private investments towards electrification programs will favor the deployment of power transformers on a large scale. In 2014, the African government introduced initiative to support stand-alone grid electricity access in a bid to add 60 million new business and residential connections by the end of 2030.
Growing energy-efficiency concerns along with emphasis on the adoption of wide-range frequency distribution links is likely to spur commercial and residential power transformer business landscape.
Asia Pacific power transmission market is likely to show tremendous growth on account of increased government efforts to expand exiting power infrastructure in order to meet the growing demand for electricity. Ongoing industrialisation and urbanisation trends across developing countries across the region, with growing focus on renewable electric network will stimulate business landscape over the coming years.
Escalating electrification rate and robust funding toward the development of new transmission network will favour product deployment. In 2019, ADB sanctioned $300m for the development of transmission infrastructure in Bangladesh.