Global Power Transformer Market - Growth, Trends, and Forecast (Outlook to 2028)

The global power transformer market is driving due to the growing consumption of electricity, the increasing focus on renewable electric power generation, deployment of smart grids and smart transformers, replacement of existing old power transformers are some other factors responsible for the global power transformer market growth.

Favorable government policies to increase electrification contributed to the growth of the transformers market in the historic period. Electricity consumption has skyrocketed in the past few years due to increasing digitization and a rise in population, and 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 and the increasing demand for medium, low and high-power transformers.

The countries are focusing towards sharing generated power with other countries to help them fill energy supply and demand gaps. With world switching attention towards onshore and offshore renewable energy to produce electricity, the demand for power transformer is expected to rise in upcoming years

The power transformer is primarily used to receive low voltage generator electric power and transmit it across distribution channels across the power grid network. It forms a crucial part of the power grid and helps in the transmission of power from one network to the other without change in frequency.

Power transformers are necessary devices, which help connect generating stations to transmission networks. Power transformers form a critical part of a power grid. With the increase in awareness related to CO2 emissions, the adoption of smart grids is expected to grow. Smart grid facilitates the remote access monitoring of grid instruments and instantly responds to fluctuating power demand. Smart power transformers are increasingly being used due to their advantages. It gives an optimized power supply, responds to voltage fluctuations quickly, offers efficient cooling, and is energy efficient; thus, it reduces CO2 emissions.

The transformers market is moving towards the evolution of independent and self-regulating smart transformers and green transformers. Smart transformers are programmed to constantly regulate voltage, maintain contact with the stakeholders, and provide information and feedback on the power supply. They provide the exact amount of power needed and respond to fluctuations through a process known as voltage optimization.

A smart transformer constantly regulates the voltage and maintains contact with the smart grid such that it allows remote administration in the power system. The growth of the smart power transformer market is driven by increasing investment in developing and strengthening the smart grid and the growing trend for digitalization in the power industry. Additionally, the increasing focus on renewable power generation and integration of energy mix results in the need for smart monitoring and voltage regulation. 

Green transformer offers a new alternative for customers who want to preserve the environment by offering a lower carbon footprint, limited pollution risk, and optimized life cycle costs thanks to less maintenance. Other advantages include reduced aging, lower noise levels, and increased fire safety.

The ability to minimize ohmic and core losses on account of transformer material reduction along with a propensity to provide enhanced voltage regulation will boost the auto power transformer market share. Lower product cost, compact size, and light weightiness will drive product adoption. Smart monitoring technologies integration across the large T&D networks to avoid the system's failures will improve the grid reliability & security.

This transformer plays a crucial role in the power system, starting from generation to the distribution end, where the efficiency of the transmission system is the primary factor. Higher efficiency is primarily catered by adopting advanced solutions and equipment such as Distributed Control system (DCS), Supervisory Control and Data Acquisition (SCADA), MATLAB, power quality monitoring system, and other solutions. These transformers significantly improve the efficiency of the transmission and distribution system by regulating voltage and are substantially driving the market. This will further increase the adoption of this kind of transformer in the power system on a large scale.

Power Transformers Opportunities:

• Growing government initiatives for grid strengthening projects are expected to create promising growth opportunities for the power transformer market.
• The booming real estate industry increased the opportunity for transformers.

Power Transformer Challenges:

• The current investment trends provide some warning signs for the adequacy of the power supply.
• Lack of proper standards for operating and maintenance of transformers.

Power Transformer Restraints:

• Instability in the pricing of raw materials.
• High Initial investment to deploy advanced systems
• The growing popularity of transformer deferral systems.

The small power transformer is the largest segment of the power transformer industry, primarily due to its various applications. However, large power transformers are the fastest-growing segment. With countries emphasizing reducing transmission losses, high voltage transmission technologies such as EHV, UHV, and HVDC have also increased.

Shell type power transformers will witness growth because of compact design, short circuit reliability, and easy transportation. Increasing applicability of these units across severe operating conditions coupled with rising deployment at critical nodes across high voltage transmission networks will positively stimulate the industry statistics. In addition, high dielectric current ability followed by high mechanical & thermal performance and improved magnetic flux technology will complement the product adoption.

The oil-cooled power transformer segment is projected to hold a larger market size than air-cooled power transformers. This is because oil-cooled power transformers are safer when dealing with high voltage applications. With growing high voltage transmission network expansion activities, the oil-cooled power transformer is expected to grow at a higher CAGR during the forecast period.

Asia-Pacific was the largest market for power transformers and is expected to dominate the market. Europe is the second-largest market, partly due to the replacement of aging infrastructure activities going on in the region. Meanwhile, Asia-Pacific is also the fastest-growing market for power transformers. The region is witnessing some of the most significant T&D expansions due to rapidly increasing demand in India and China.

The Global Power Transformer Market comprises sales of transformers for power transmission and distribution, residential and commercial projects, and industrial applications.

Blackridge Research's Global Power Transformer Market report provides insights into the current global and regional market demand scenario and its outlook.

The study presents a detailed analysis of various factors that affect power transformer market revenue. The study also comprehensively analyses the flow battery market by segmenting it based on geography (North America, South America, Europe, Asia-Pacific, Rest of the World), By Power Rating (Small Power Transformer, Medium Power Transformer, High Power Transformer), and By End-use (Utilities, Industries, Commercial and Residential).

The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the transformer market, critical commercial developments, trends, regions, and segments poised for the fastest-growing, competitive landscape.

Further, the report will include global transformer market size (CAGR), demand forecast, and growth rates.