The global distribution transformer market is anticipated to reach a value of USD 27.4 billion by 2028. Based on distribution transformer market analysis, the driving factors include Smart grid electrifying market. Organizations like IEEE have taken smart grid initiatives to support the growth of market. Large-scale implementation of smart grid technologies such as load forecasting techniques, AMI infrastructure, SCADA, have favored the market growth. Oil-filled distribution transformer have contributed to the growth of global distribution transformer market. However, oil-filled distribution transformer requires fire or oil resistance liquids to cool it. Thus, maintenance cost are high and require gases or oil for its operation.
The growing ground distribution loads and renewable energy installation sector provides a global CAGR of above 6.5% with a huge demand for the distribution transformer in the market over the forecast period. The demand in the market is anticipated by the rising demand for energy and growing global plans for power generation capacity. Energy demand has led to the replacement of old facilities and the addition of new capacity. Rising renewable generation, and strong demand for electricity has been attributed to the large development activities for the capacity addition plans, contributing to high demand for distribution transformers to supply the generated power to the loads.
Key Segments of the Global Distribution Transformer Market
Insulation Type Overview, 2018-2028 (USD Billion)
- Liquid immersed
Mounting Overview, 2018-2028 (USD Billion)
- Underground Vault
Power Rating Overview, 2018-2028 (USD Billion)
- Up to 500 kVA
- 501 kVA–2,500 kVA
- 2,500 kVA–10,000 kVA
- Above 10,000 kVA
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global distribution transformer market.
- Distribution transformer is widely used for various end uses in transmission & distribution utilities, power generation, owing to their excellent properties and the market is expected to gain traction over the coming years
- With the growing renewables, and power load sectors, there is a rise in the demand for distribution transformer which is further expected to have a positive impact on the overall market growth
What does the report include?
- The study on the global distribution transformer market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the distribution transformer industry and their strategic initiatives for the product development
- The study covers a qualitative and quantitative analysis of the market segmented based on Insulation Type and Mounting and Power Ratings. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global distribution transformer market. The report will benefit: Every stakeholder involved in the distribution transformer market.
- Managers within the distribution transformer industry looking to publish recent and forecasted statistics about the global distribution transformer market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of global distribution transformer market.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
The backbone of modern civilization is an effective, economically feasible, and eco-friendly electricity infrastructure. Smart grid ideas, growing demand for electric and autonomous vehicles, transfer of battery storage, accelerated energy transformation from traditional to green have undergone noticeable developments in the power sector in recent years. The ever-growing demand for electricity is due to reasons such as industrialization and urbanisation, while technical appliances are rising.
Both interconnections such as substations, circuits, switches, switchgear, and distribution transformers compose the power distribution network. In smart grid deployment projects, delivery transformers are highly important. As these nations lack adequate power supply networks, the widening gap between demand and supply generates strong demand for distribution transformers from developing nations such as South Korea, India and China.
Development is driven by changes in current power systems in developed countries, extension of existing transition and delivery sector programs, economic productivity smart grid projects, and development in the renewable sector. Calibration of proper machinery on the market is the main restraint. In Asia Pacific, the total electricity produced in the year 2016 was around 10,904.7 TWh, according to BP's report in 2017, while the overall consumption was just around 9,331 TWh. The factors help to provide a high demand for the distribution transformer in the global industry over the forecast period.
The segmentation of global distribution transformer market is based on power rating, mounting type, and insulating kind. Based on the power rating, the distribution transformer market is further divided into power ratings which ranges in 500 kVA, 2,501 kVA–10,000 kVA and 501 kV–2,500 kVA. Ranging in 2,501 kVA–10,000 kVA distribution transformer is widely used in industrial and marketable divisions, owing to high energy consumption as compared to housing energy consumption. The >2.5 MVA distribution transformer demand will be affected by positive government prospects to electrify the remote off-grid areas by installing micro grid networks. In addition, the commodity rollout over the projected timeframe will be complemented by growing expenditures to redevelop the infrastructure of different war-impacted nations. The 2.6 MVA to 10 MVA distribution transformer market is expected to experience significant penetration of more than 29 percent by the year 2028.
Moreover, based on insulation kind, the market share is apprehended with fluid immersed type transformer. Based on mounting type, the segmentation is extended into Pole-mounted, Underground vault and Pad-mounted. Pad mounted, based on type, projected more growth in the forecast period as it was mainly used in the distribution of electricity. Improvements in process for the control systems, technological developments and rapid development in urbanization and industrialization, are driving the demand for the products in the industry.
Geographically, the Asia-Pacific holds the maximum value in distribution transformer market share in 2019. On-addition, it is also the fastest growing region in distribution transformer market during the forecast period. Higher adoption rate of smart grid coupled with high government investment for the grid development in developing regions of Asia Pacific has boosted the market growth. APAC countries like South Korea, Japan, China and India are expected to see largest growth in the upcoming years. Increasing deployment of smart sensors, smart sensors, and other software and hardware networking technologies is likely to impact the market. As a result, this has promoted immense growth in Asia-Pacific.
The United Arab Emirates has planned to invest in renewable power, so as to discourage the dependency on subsidized natural gas power in stages. With the higher integration of renewable projects in the field of electricity generation, along with growing infrastructural development, higher population, thus favoring the global distribution transformer market in the country.
Different sectors of the UAE including the Northern Emirates of Sharjah, Umm al-Qaiwain, Fujairah, Abu Dhabi and Dubai, Ajman and Ras Al Khaimah have witnessed growing infrastructure to help tourist and residential development has encouraged increased electricity consumption and peak load demand. This has pressurized to ensure efficiency in distribution and transmission network by having efficient distribution transformers.
Major key players operating the global distribution transformer market are Aston Transformers A.S., BHEL (Bharat Heavy Electricals Ltd), Siemens AG, Daihen Corporation, ASEA Brown Boveri, Bemag Transformers, Bowers Electricals, Crompton Greaves, and Diamond Power Infrastructure Ltd. The distribution transformer market consists of top, medium level and a number of domestic players in the global market. In addition to this, the well-established players in the industry have made various strategies and research & developments to compete with other players in the regional and global market.