The global power industry is experiencing significant growth: the global power transformer market is expected to reach $23.6 billion and the distribution transformer market is expected to reach $27.73 billion by 2028. In 2023, the Asia-Pacific (APAC) region emerged as a market leader, driven by increased business activity in Southeast Asia and substantial demands for assets in China and India, data and analytics firm reveals GlobalData.
Grid development plans, renewable energy integration and concerns about end-of-life reliability of assets are some of the common market drivers across regions.
Bhavana Sri Pullagura, Senior Energy Analyst at GlobalData, comments: “Policies, economic and social factors and environmental concerns are driving the utilization of technologies and techniques that support low-carbon energy generation. “New networks are being built to sustain growing energy demand and improvements are being made to increase network adaptability to rapidly changing market conditions.”
Countries are experiencing increasing demand for energy, as a result of economic and social progress, which is driving capacity development programs. Renewable energy generation is gaining importance around the world and is expected to increase further with the global trend towards green generation.
The effective integration of these sources is essential for the safe operation of the grid, which contributes to the transformer market. Additionally, investment is being made to improve cross-border interconnections to increase security and modernize assets, driving the market.
The latest GlobalData report, “Transformers Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Key Players and Forecast, 2023-2028“, reveals that the APAC power transformer market has reached $8.57 billion and is estimated to reach $12.74 billion by 2028. With the increase in power demand in the Middle East and Africa, the region is estimated to EMEA will be the fastest growing, with a CAGR of 11.5%, during the forecast period.
With respect to distribution transformers, APAC is estimated to be the largest and is estimated to reach $14.65 billion by 2028. Growth in EMEA is likely to be at a CAGR of 8.7% over the forecast period and The American market is estimated to grow at a CAGR of 4.8%.
Pullagura concludes: “A gradual expansion of generation capacities is taking place around the world to sustain the growing demand for energy. In the interests of sustainability, energy generation sources are being readjusted, placing greater emphasis on renewable energy. This change is driving the adoption of advanced transformers that meet strict safety standards for grid maintenance. Furthermore, inadequate infrastructure to support growing energy demand, changes in energy generation sources, thriving economies, insufficient energy evacuation facilities and the increased use of distributed technologies in low voltage networks are contributing factors. to the emergence of viable transformer markets.”
