Increasing government spending for power utilities along with growing energy demand will boost the market.
The global smart transformers market is expanding rapidly and is expected to grow at a CAGR of 14.9% from 2019 to 2027, starting at US$ 1.86 Bn in 2018.In view of raising the regional electrification index, the ongoing preferences for the replacement of existing grid infrastructure are anticipated to fuel the global market for smart transformers. Furthermore, numerous utilities will replace conventional single-phase power supplies with upgraded three-phase system networks, driving product demand even higher. According to the IEA, global transmission and distribution (T&D) investments totaled around US$ 260 billion in 2016, a 14% increase over 2015. Furthermore, rising public-private partnership investments will significantly address the demand-supply mismatch and completely stimulate business dynamics. Favored government regulatory inclination and a positive outlook for the establishment of sustainable energy mixes will further boost the market for smart transformers on a global scale.
Furthermore, grid integration, along with increased demand for sustainable technologies, is likely to lead to the expansion of microgrid networks, thereby fueling product deployment in the coming years. Several smart grid initiatives have been taken by numerous organizations like IEEE in order to maintain the development of the global distribution transformer market. For example, the Government of India (GoI) introduced the "Green Energy Corridor Project" in 2015, proposing a total investment of around US$ 1 billion for the development of renewable energy transmission via a separate energy corridor network. The aforementioned factors are projected to drive the market for smart transformers over the forecast period.
Market Synopsis
Rising demand for capacity utilization along with the implementation of government policies and schemes will drive the demand for distribution transformers globally.
Growing emphasis on renewable energy generation across the world, coupled with rising electrical infrastructure projects, is anticipated to drive the demand for distribution transformers in the coming years, which in turn will boost the smart transformers market globally. The smart transformers are being used in the distribution grid to work independently for voltage regulation and monitoring while maintaining a connection with the smart grid. This enables the transfer of transformer information and supplied power to remote administration, thereby enabling proper load management and resulting in improved power quality and fewer power outages. Moreover, the growing importance of renewable energy generation globally, coupled with an increase in the number of electrical infrastructure projects, is likely to propel the demand for distribution transformers over the forecast period, thereby boosting the revenue growth for smart transformers.
For example, the Government of India is taking the lead in strengthening the country's power transmission and distribution network and has launched initiatives such as the "UDAY Scheme" to help power distribution companies turn around their finances. Additionally, the government has estimated an investment of around Rs. 146,000 crores.
Regional Analysis
Dominance is led by rising power demand from residential and industrial communities coupled with intensifying utility investment to drive market growth.
The smart transformers market is expected to grow at a faster rate, with a market share of around 43 percent in the Asia-Pacific region, particularly in Japan, China, and South Korea. Growing energy demand across the region and the presence of emerging economies like Japan, China, India, and Singapore are likely to propel the demand for smart transformers across the region. Additionally, in 2017, the Asia-Pacific attracted a capital investment of around 45%, thereby leading to a potential for foreign direct investment (FDI) on a global scale. Moreover, increasing investments in improving infrastructure and urbanizing populations, particularly in emerging economies like India and China, are anticipated to drive the market for smart transformers across the region. Furthermore, growing investments and developments for smart cities and grid technologies like the installation of smart meters, distribution grid automation, and demand response systems in countries such as South Korea, Japan, and Australia would generate ample prospects for the smart transformer market.
For instance, in 2018, India was the third-largest electricity-generating nation, which generates power from both renewable and conventional sources across the globe. India has made numerous key developments in improving the accessibility and reliability of power in rural and urban societies through several government-led schemes such as "Power for All," "Saubhagya Scheme," "Integrated Power Development Scheme (IPDS)," and many more. Moreover, with the deployment of renewable sources of energy for power generation, electrification in remote localities becomes less expensive for the government of India. The aforementioned factors are projected to propel the revenue growth of smart transformers across the region.
Wilson Transformer Co Pty Ltd is a company based in Australia.
Mitsubishi Electric Corporation
Bharat Heavy Electricals Limited
CG Power and Industrial Solutions Ltd.
Howard Industries Inc.
SPX Corp
Alstom SA
Triad Magnetics
Powerstar
Key Industry Development:
In December 2019, ABB Ltd. was awarded a four-year contract framework worth approximately US$ 100 million to strengthen Italy's power transmission system, making it responsible for securing and providing electricity throughout the country.ABB was awarded a US$157 million contract in December 2019 to supply power, Azipod® electric propulsion, and digital solutions for universal-class Hong Kong cruise vessels.In December 2018, Hitachi Ltd. announced the purchase of 80.1% of ABB's Power Grids units for approximately US$ 11 billion. This acquisition will build an energy platform in order to realize more efficient use of electricity.
Periods of History and Forecast
This study report includes an analysis of each segment from 2017 to 2027, with 2018 as the base year. The compound annual growth rate (CAGR) for each of the respective segments is estimated for the forecast period from 2019 to 2027.
Market Segmentation
The current report also includes qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities to provide a complete picture of the global smart transformers market. Additionally, the global report also comprises a graphical representation of the competitive landscape based on their market initiatives and strategies, product portfolios, and business strengths.
Key questions are answered in this report.
What are the current market trends and dynamics in the smart transformer market, and what are the valuable opportunities for emerging players?
Which segment accounts for the fastest CAGR during the forecast period?
Which type of segment holds a larger market share and why?
Are low- and middle-income economies investing in the smart transformer market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and the Middle East and Africa?
Frequently Asked Questions:
The market for Smart Transformers Market is expected to reach US$ XX Bn By 2025.
The Smart Transformers Market is expected to see significant CAGR growth over the coming years, at 15.5%.
The report is forecasted from 2019-2027.
The base year of this report is 2018.
ABB Ltd., Siemens AG, Schneider Electric SE, Eaton Corporation PLC, General Electric Company, Mitsubishi Electric Corporation, Bharat Heavy Electricals Limited, CG Power and Industrial Solutions Ltd. are some of the major players in the global market.
