Market Trends of Large Power Transformer Industry
This section covers the major market trends shaping the Large Power Transformer Market according to our research experts:
Power Generation Segment to Dominate the Market
- With the growing number of industries, business expansions, and the developing service sector, the power demand is increasing Y-o-Y. According to the International Energy Agency (IEA), the global demand for energy may witness about a 60% increase by 2030. Additionally, the increasing population has been continuously adding to the demand for power, leading to increasing power generation projects.
- Moreover, the global power generation reached 26823.2 TWh in 2020, growing by over 9.52% compared to 24270.5 TWh generated in 2015. Also, the electricity demand has been increasing due to the increasing population and rapid urbanization. Developing countries like China and India witnessed an increase in electricity demand, which may drive the market for large power transformers during the forecast period.
- Developed countries are replacing old transformers to ensure a continuous and efficient supply of electricity. This trend is expected to increase during the forecast period. In the coming years, eco-friendly large power transformers are expected to witness significant growth due to their environmental viability and advanced features.
- Transformers play a major role in power storage and transmission in renewable-based electricity generation, i.e., from 33 kilovolt (kV) to 275 kV, which is done by a large power transformer that has a 120 megavolt-ampere (MVA) rating.
- Therefore, due to these factors, the usage of large power transformers in the power generation segment is expected to dominate the market during the forecast period.
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Asia Pacific to Dominate the Market
- Asia-Pacific dominated the large power transformer market in 2021. It is expected to continue its dominance in the coming years. The region saw an unprecedented increase in the demand for large power transformers during the past few years, which is expected to increase further during the forecast period.
- Industries such as automotive, chemical, fertilizers, and petrochemical are witnessing steady growth in the region, leading to an increase in electricity demand. This factor is expected to offer tremendous growth opportunities for the market players in the region.
- In 2020, the electricity generation for India was about 1560.9 Terawatt-Hour (TWh), which was higher than 1317.3 TWh in 2015. The increase in electricity generation exhibits an increase in the number of power generation stations, which are likely to use large power transformers to supply electricity to the consumers.
- In October 2021, Sterlite Power, a private sector power transmission and solutions provider, was awarded the Nangalbibra-Bongaigaon interstate power transmission project worth USD 43.446 million through tariff-based competitive bidding (TBCB). The project is likely to have 20 km of 132kV D/c line connecting Hatsinghmari in Assam to Ampati in Meghalaya. It may require several large power transformers to transmit the power across the region.
- Hence, such factors are likely to help boost the large power transformers market in Asia-Pacific during the forecast period.
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