Power, distribution and specialty transformer global market 2021
The global transformer market is expected to grow from $184.21 B in 2020 to $202.08 B in 2021 at a compound annual growth rate (CAGR) of 9.7 %.
Image source: Business Wire
The global transformer market is expected to grow from $184.21 B in 2020 to $202.08 B in 2021 at a compound annual growth rate (CAGR) of 9.7 %.
The market is expected to reach $266.73 B in 2025 at a CAGR of 7%.
Favourable government policies to increase electrification contributed to the growth of the transformers market in the historic period. Countries around the world are implementing several initiatives to increase electrification across the countries. These initiatives increased the market for medium power transformers in the historic period. The increasing demand for medium, low and high-power transformers supported by favourable government initiatives positively impacts the growth of transformers market.
Instability in pricing of raw materials is a major restraint in the transformers manufacturing market. The instability is due to the volatility in the raw material prices of steel, copper, and crude oil. Steel and copper are predominantly used in manufacture of transformers. Increased tariffs on raw materials such as steel and copper, increased the volatility of prices, thereby limiting the growth of the market for medium power transformers. The increase in prices leads to increase in operating expense thereby hampering the growth of the market.
The transformers market covered in this report is segmented by transformer type: power transformer, distribution transformer. It is also segmented by type: low rated transformer, high rated transformer.
Transformers market is moving towards evolution of independent and self-regulating smart transformers. Smart transformers are programmed to constantly regulate voltage and maintain contact with the stakeholders and provide information and feedback on the power supply. They provide the exact amount of power that is needed and respond to fluctuations through a process known as voltage optimization.
They significantly reduce greenhouse gas emissions and power consumption as they supply electrical equipment with the ideal amount of power.
Key players: ABB, General Electric Corporation, Schneider Electric S.A., Mitsubishi Electric Corporation, etc.
Source: Business Wire
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