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 & Sullivans recent analysis, Global Transformer Market, finds that a surge in the electrification rate and economic growth of countries across regions will expedite the global demand for power and distribution transformers. 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 driving 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 more 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 transformers 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 they offer a distinctive value proposition in their products and services.
Utilities should invest heavily in artificial intelligence-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 for product differentiation and innovations because theres a higher uptake of renewable energy. This will help remain on par with developments in the new energy industry and products, create sustainable solutions, and gain more market share.
Global Transformer Growth Opportunities is the latest addition to Frost & Sullivans Energy & Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.