The market size for power transformers was valued at over $25 billion in 2019 and is anticipated to witness an annual installation splurge of over 42,000 units by 2026. There are several factors motivating this growth including the expansion of transmission networks and transformation of the energy mix.
The rise of expansive fund flows by governments and private organisations for electrification programmes is creating growth avenues for the transformer component business. Moreover, in the coming years, refurbishment and retrofitting of existing electricity networks across the globe may further offer lucrative scope for the industry growth.
This is according to research conducted by Global Market Insights (GMI), which further suggests that increasing regulatory focus on the adoption of sustainable energy sources to promote emission reduction has instigated the power transformer market demand. Ambitious renewable targets coupled with redundancy towards the expansion of conventional electrical networks have instituted a favourable business scenario.
Air insulated transformers
Shifting focus towards safe and reliable operations has led to growing adoption of air insulated transformers. The GMI research indicates that these transformers offer flexible configurations and excellent reliability and safety during operations.
Lower secondary effects through internal failure, environment-friendly operations and capability to avoid combustibility are some other advantages offered by these units. The compactness of the unit aids in the adoption of substation equipment with significant space and cost savings, which in turn will strengthen the product demand.
Units for electrical substations
Transformer units with 100MVA to 500MVA capacity will observe growth due to their low installation cost and compact size. These units are extensively deployed across electric power, healthcare industries, and oil and gas plants.
Moreover, large-scale installation of these units at generation power plants and electrical substations to convert electrical power to low or high voltage transmission will supplement industry trends.
Pole mounted transformers
Increasing demand for pole mounted transformers will be mainly driven by the product’s capability to service urban as well as rural residential and commercial loads. These transformer units are likely to experience robust demand due to faraway load centres and constrained grid accessibility in several regions.
These units are also limiting the risk of harm to animals and minimising vandalism. Easy deployment and compact size of single poles may boost the product penetration in the coming years.
Boost to Africa’s grid installations Increasing investments by private and governmental organisations for electrification programmes will further complement industry trends. As an example, the Beyond the Grid Fund for Africa (BGFA) initiative, managed by Nordic Environment Finance Corporation (NEFCO), supports off-grid electricity access to achieve its goal of adding 60 million new residential and business connections by 2030.
Ongoing retrofitting of the existing networks along with growing cross-border electrical network expansion will significantly drive utility power transformer growth. Increasing emphasis on the development of energy-efficient and renewable electricity corridors across varied nations will further stimulate product demand.
Growing energy-efficiency concerns along with an emphasis on the adoption of wide-range frequency distribution links are likely to reshape commercial and residential power transformer business landscapes.
Transmission infrastructure across the Asia-Pacific region
The Asia Pacific power transmission market is likely to show tremendous growth on account of increased government efforts to expand existing power infrastructure to meet the growing demand for electricity. Ongoing industrialisation and urbanisation trends in developing countries across the region, with a growing focus on renewable electric networks, will stimulate business landscapes over the coming years.
Across the world, the power transformer market is positively affected by escalating electrification rates and robust funding towards the development of new transmission networks, which favour product deployment. ESI