Power transformer sales remain healthy, buoyed by demand for power grids
The global power transformer market raked in revenues of over US$20 billion in 2019, said a report from research firm Future Market Insights (FMI)
Global efforts to upgrade existing grid networks with modern energy technology are driving demand for power transformers in the market.
The global power transformer market raked in revenues of over US$20 billion in 2019, said a report from research firm Future Market Insights (FMI).
Over a forecast period from 2019 – 2029, power transformer sales will witness a “healthy CAGR”, said the report.
Growing efforts towards electrification of rural areas in developing countries such as South Africa, China, and India, are expected to create “noteworthy demand” for single-phase power transformers, said FMI.
Replacement of old power grid networks with modern and efficient equipment is anticipated to create significant growth opportunities for transmission power transformers, the report said.
Wet insulation type power transformers will remain the most preferred type in the power industry due to their higher durability, efficiency, and low maintenance costs, it said.
According to FMI, South Asia, driven by power generation capacity additions in India and the Middle East & Africa, on the back of heavy investment inflow from China in power grid infrastructure, is anticipated to witness rapid growth in the power transformers market.
High efficiency requirements, need for distinct raw materials and custom design necessities have been some of the prominent trends impacting the lead times in the market, the research firm said.
With renewable energy expected to play a significantly larger role in meeting the global energy demand by 2030, power transformer manufacturers are anticipated to witness an influx of demand for setting-up of new energy grids supporting the renewable power infrastructure.
FMI predicted that factors such as China’s increasing investments in African nations to develop the local power grid, as well as developed regions like the US and Europe concentrating on improving matured grid networks, would ensure the power transformer market registers “steady growth” during the first half of the forecast period.