Global Power Transformers Market was valued at $20.2 Billion in 2015 and is estimated to grow at a CAGR of over 6.9% from 2016 to 2024.
The rising demands for electricity across the globe, growing investment in technology, infrastructure up gradation are expected to be key drivers for the market expansion. The growing number of initiatives pertaining to the development of smart grids, use of renewable energy and construction of several new power projects in emerging economies are anticipated to provide thrust to the short term and long term growth prospects.
The existing transformers are required to be updated to meet the current and future environmental and technological specifications. The growing demand for eco-friendly products and several supporting initiatives for the development of smart grid projects are also expected to drive the market growth in the future. Furthermore, the several developing and emerging economies are expanding the cross border electricity trade, and are significantly investing in modern infrastructure to reduce transmission losses and improve operational efficiency.
Integration of wind, solar, and thermal energy grids is leading to excess capacity on the present transmission lines, which can lead to frequent disruption of services. The industry participants are aggressively competing to update the old generation systems, and also to develop new Greenfield power projects.
Rising awareness about low-carbon emission, service expansion, growing number of Polychrolrinated Biphenyls (PCB) replacement programs, and increasing CAPEX in transmission and distribution network is also expected to boost the power transformers market over the next few years.
Global Power Transformers Market, By Rating, 2014 – 2024 (USD Million)
The power transformers market is segmented based on rating as high, medium and low. In 2014, low rating transformers accounted for the majority share of over 69%. The factors supporting the large share of this segment include wide adoption of these transformers for low and high voltage power transmission. The high rating power transformers segment is expected to register the fastest growth rate of 7.6% through 2016 to 2024.
“Optimal Price Point (OPP) for Power Transformers”
Estimated Average Product Cost – $ xx globally. However, expanding application areas, reducing product price, growing solution implementation and shift towards green energy, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
“Fluctuating raw material prices including crude oil, steel, copper, and aluminum are increasing pressure on power transformer manufacturers”
The prices and availability of key raw materials have a significant impact on the market dynamics. The power transformers are expensive than the traditional distribution transformers. The key raw materials used in the transformer manufacturing include steel, aluminum, and copper. The high costs of logistics, installation, coupled with fluctuation in the raw material prices are expected to impact the profitability of the major manufacturers.
“General Electric Company, Toshiba Corporation, Crompton Greaves Limited, Siemens AG,
and Mitsubishi Electric Corporation to lead market growth”
Manufacturers are aggressively competing for a lucrative market share, and are increasing investments across different geographical regions. The major players in the market include General Electric Company, Toshiba Corporation, Crompton Greaves Limited, Siemens AG,and Mitsubishi Electric Corporation
The key products in the market include 100 MVA to 500 MVA, 501 MVA to 800 MVA and 801 MVA to 1200 MVA. The growing preference for renewable energy projects, integration of different power grids is expected to drive the power transformers market. Continuous investment in research and development is expected to favorably reinforce market growth over the forecast period.