Rising industrialization and sustainability: Why the global transformer market is growing
by CM Staff
According to Frost & Sullivan, distribution transformers will continue to dominate the overall transformer market growth opportunities due to rising urbanization and industrialization.
SAN ANTONIO — Increasing electricity demand alongside sustained increases in the utilization of renewable energy will boost investments in power transmission and distribution (T&D) infrastructure and grid assets, including transformers. Frost & Sullivan’s recent analysis, Global Transformer Market, finds that a surge in electrification rate and economic growth of countries across regions will expedite the demand for both power and distribution transformers globally. The market for global transformers will likely reach $64.24 billion by 2030 from $42.46 billion in 2021, an uptick at a compound annual growth rate (CAGR) of 4.7%.
“Grid equipment digitalization and sustainability are the top technological trends to drive the transformer market globally,” said Neha Tatikota, Energy & Environment Industry Analyst at Frost & Sullivan. “The former will inflate the demand for digital power and distribution transformers. On the other hand, the latter will boost demand for green transformers offering a wide range of benefits, such as smaller carbon footprints and higher safety.”
Tatikota added: “From technology type, distribution transformers will continue to dominate the overall transformer market, mainly due to rising urbanization and global industrialization. However, the growth of power transformer is attributed to economies’ strong transmission investments related to ambitious government targets for renewables.”
The expansion of the global transformer market will unlock lucrative growth opportunities for market participants, such as:
- Smart or intelligent transformers present a competitive advantage for manufacturers because digitally enabled transformers are a prerequisite in the power transformer segment.
- Utilities should invest heavily in AI-enabled digital services that provide different ways to compile data for live monitoring and performance trends analysis. This will add value to the overall operational efficiency of the substation.
- Offering new services/solutions such as maintenance history and load/demand forecasting at lower costs is expected to expand the manufacturers’ market footprint.
- Transformer manufacturers need to remain innovative and strengthen R&D because there’s a higher uptake of renewable energy. This will help to remain on par with developments of the new energy industry and products, create sustainable solutions, and gain more market share.