October 6, 2014

Power transformer market review

Trends that shape the transformer market There are many trends that shape the global transformer market right now. In this article a number of trends...

---

1387325ab956c8c74bb3ab7914759e29

Trends that shape the transformer market

There are many trends that shape the global transformer market right now. In this article a number of trends and market drivers, are looked at in order to discuss the transformer market outlook. A clearer market view can support a better strategy creation and tactics planning. Market drivers are changing and more focus is on the renewable energy generation as well as energy efficiency and smart grid investments, while at the same time the globalisation of the manufacturing base including high tech transformer capabilities is continuing.

Keywords: transformer market, market changes, market drivers, trends, growth, competition

Transformers have existed for over 130 years and even though base materials have improved, the fundamental transformer physics are still the same as when these were defined during the second half of the 19th century. Despite the relatively old age of basic transformer technology, current trends in society and technology shape the transformer business faster than ever before. In this article we will look at what these trends are and how they shape our business future. Using trendspotting as a tool for shaping strategies is an old school method with new opportunities given by the ever increasing flow of information.

Today we can easily gain information even from countries where we do not know the language, simply by pushing the “translate internet page” button on the browser, and gain access to updated information from all parts of the world. My trendspotting will start with what information technology can do for us in the transformer business, and all the way to what the new market drivers will do for the global transformer market.

Which are then the trends that shape the transformer business environment? Let us have a look:

The Internet as a game changer for global transformer business

The Transformers Forum on LinkedIn just celebrated the 6th anniversary and it is interesting that on the anniversary day, we could see that new members joined from all the continents! This to me shows that the interest for what is happening within transformer technologies and market is subject to a wide interest. Most of you that have been in the business long remember that the transformers world was much more local than what it is now. Today a lot more players can and will go global in order to grow the business potential. One of the most important matters as we shape our strategies, be it developing new technologies or looking at new markets, is to have timely and correct information. Today, this is easily available without having large organisations for market research, and can be done with very simple means at your desk or even on the go when travelling. Today we have to assume that everybody is equally updated on what is going on, therefore strategies have to be kept updated accordingly.

At the same time the available information makes prospective employees updated on what and how companies are doing, which is shaping their understanding and brand attitude. The Internet is therefore shaping our understanding of the business from all aspects and the global impact is instant.

Mergers and acquisitions (M&A) as well as partnering through joint ventures (JV) are also moving more rapidly and shaping new constellations in order to have a broader product portfolio and deeper market reach. By partnering, new JVs can get a larger geographical reach, business scope and capacity. The pace of change is high where strategies and tactics need to be fluid in a way we have never seen before. The Internet may not create new business as such, but with the free flow of information it will have an impact on how the global transformer business is conducted.

Subscribe to Transformers Magazine