Global transformer market to exceed $19bn by 2020
Demand by China, India and the Middle East a major boost
Driven by emerging countries’ extensive power plant capacity additions, economic growth and the need to improve access to electricity, the global power transformer market is expected to increase from US$10.3bn in 2013 to US$19.7bn in 2020, at a compound annual growth rate (CAGR) of 9.6 per cent, forecasts research and consulting firm GlobalData.
According to the company’s latest report, the increase in electricity demand by China, India and the Middle East is the major boost behind the global power transformer market’s forecast growth. Between 2013 and 2020, global electricity consumption is expected to increase from 20,248 terawatt hours (TWh) to 25,415 TWh.
Although the global power transformer market is highly fragmented, seven leading companies accounted for more than 50 per cent of its share in 2012. ABB led the market with a 12 per cent share, followed by Tebian Electric Apparatus Stock Co (TBEA) with 11 per cent, Siemens with 10 per cent and Alstom Grid with 7 per cent.
Sowmyavadhana Srinivasan, GlobalData's Senior Analyst covering Power, says: “The growth of global electricity demand is driving the construction of new power plants, as is the need to improve the connectivity of the electricity grid and ensure that demand is met.”
Additionally, the need to replace and upgrade old transformers in North America and Europe will also be a key market driver.