Four pivotal trends propelling transformer market growth over 2021-2027
Ongoing refurbishment of ageing grid and global demand for uninterrupted electricity supply have instigated the installation of transformers.
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Ongoing refurbishment of ageing grid and burgeoning global demand for uninterrupted electricity supply has instigated the installation of power transformers.
This is expected to provide lucrative growth prospects for global transformer market over the forthcoming years. In addition, factors such as effective long-distance power supply coupled with minimum line losses is supporting the product demand.
Favourable regulatory scenario regarding rural electrification as well as large scale suburban migration is complementing the application of power transformers on a much larger scale today. Citing an instance, in 2020, the European Commission approved, the acquisition of power grid division of ABB, Switzerland by Japanese multinational conglomerate under the EU Merger Regulation.
Speaking of the COVID-19 pandemic effects on the industry, several regions worldwide have gone through a difficult time restoring their operations and faced shortages in supply networks. However, growing electricity demand in healthcare sector is expected to enhance the product installation. Besides, several industries are slowly recovering from pandemic impact which will enhance the business outlook over the foreseeable future.
Prominent players operating in transformer market are inclined on developing technologically advanced solutions and are engaged in strategic initiatives such as mergers and acquisitions to gain strong market presence in the global industry. Such initiatives play a key role in enhancing the market growth.
With growing integration of wide range of frequency distribution infrastructure along with constant grid support mechanism, shell core transformers are gaining immense popularity. These transformers offer benefits such as minimal flux leakage, lower iron losses and effective mechanical strength. Public and private companies are also making hefty investment towards deployment of renewable sources of energy followed by supportive government schemes and incentives for encouraging the installation of solar power transformers is propelling the market potential.
Pole mounted transformers are being installed on a large-scale owing to increasing deployment of high voltage and long-route power supply networks. Stringent regulatory scenario mandating the integration of smart grids coupled with shifting consumer inclination towards sustainable electrical solutions is further enhancing the industry landscape.
Rising demand for electricity and increasing initiatives to refurbish existing electrical infrastructure in Middle East and Africa are the primary factors fostering the demand for transformers in the region. MEA is witnessing a significant shift in power consumption patterns across regional households and corporations which is complementing the business growth. Besides, growing investment towards installation of high-capacity alternative energy solutions across several countries such as UAE and Saudi Arabia will impel the product demand further. Considering the above-mentioned factors, transformer industry in Middle East and Africa is expected to register substantial CAGR of 7 % through 2027.
Key players: ABB, Schneider Electric, General Electric, Eaton, Siemens etc.
Source: Global Market Insights