Smart Transformers Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 2.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Smart Transformers Market Analysis
The smart transformers market is expected to record a CAGR of more than 2.5% over the forecast period, 2022-2027. The COVID-19 pandemic has caused significant disruptions in the essential smart transformer supply chain, such as microchips. Further, the pandemic in 2020 had caused a decrease in electricity consumption, impacting the revenue of electricity distribution companies and project finance. Factors such as the increasing focus of governments across the developed and emerging economies on adopting smart technology in power grid infrastructure and rising challenges, such as aging transmission and distribution (T&D) infrastructure, electric vehicle charging, and distributed generation, are expected to benefit the growth of smart transformers across the globe. Moreover, the increasing demand for smart grid technologies and energy storage initiatives is likely to further drive the smart transformers market during the forecast period. The challenge, however, is the problem of low accessibility to electricity in underdeveloped nations across the world and poor government regulations and initiatives to expand and modernize the grid infrastructure, which is expected to limit the growth of the market studied.
- Distribution transformers, which are used to communicate with consumers and for continuous load monitoring, are expected to be a significant segment of the smart transformers market.
- A number of governments of both emerging and underdeveloped nations worldwide are increasingly viewing smart grid technology as a strategic infrastructural investment that will sustain their long-term economic prosperity and help them achieve their carbon emission reduction targets. This, in turn, is expected to provide an ample amount of opportunity to the companies involved in the smart transformers market in the near future.
- Asia-Pacific is the largest and is expected to be the fastest-growing region, primarily driven by the transmission and distribution developments and industrial growth in Southeast Asia, China, and India.
Smart Transformers Market Trends
This section covers the major market trends shaping the Smart Transformers Market according to our research experts:
Distribution Transformers to Dominate the Market
- The growing emphasis on renewable energy generation across the world, coupled with increasing electrical infrastructure projects, is expected to drive the demand for distribution transformers during the forecast period, in turn driving the smart transformers market.
- In an electric distribution grid, smart transformers work independently to monitor and regulate the voltage while maintaining contact with the smart grid. This enables the information about the transformer and the power supply to be provided even by remote administration. Hence, this enables proper load management, resulting in better power quality and lesser power outages.
- In 2021, India was the third-largest electricity-generating nation in the world. The power is generated from both conventional and renewable sources. The country has made major strides in improving access to power among both rural and urban communities through various government-led schemes focused on Power for All. These systems have been largely driven through the use of distribution transformers.
- Furthermore, developed economies, such as the United States, European Countries, and Japan, contribute to the significant demand for smart transformers, owing to the increasing replacement of aging power distribution equipment and the increase in the integration of renewables into the grid.
- In February 2022, Ameren Missouri planned to upgrade its aging infrastructure and invest in smart technology across the state during the 2022-2027 period. Ameren filed its updated Smart Energy Plan with Missouri's Public Service Commission (PSC), pledging to put USD 8.4 billion toward replacing equipment, some of which is up to 50 years old, and setting new technology into practice to improve service and resiliency for its customers including expected distributed transformers.
- According to International Energy Agency, in 2021, USD 289 billion was spent on smart grid development, increasing from USD 262.6 billion in 2020. This trend is expected to continue in the coming years and further aid the growth of the market.
- Hence, distribution transformers are expected to dominate the market due to growing demand in large economies to further extend reliable distribution.
Asia-Pacific to Dominate the Market
- Asia-Pacific has dominated the smart grid network market in 2018 and is expected to continue its dominance in the coming years as well backed up by countries such as China, India, and Japan.
- China has the ambition to become a world leader in electrical power equipment by 2025. This is a national strategy outlined in the Technology Roadmap (2017) of the Made in China 2025 program. Innovation and technology are heavily focused on in the federal program. Large amounts of funding are allocated to support the development.
- In India, the distribution segment is fraught with aging infrastructure, high network losses, and poor financial performances. To reduce these challenges, it is essential to augment the performance of sub-transmission and distribution networks. Smart transformers bring a notion of smartness. This smartness enhances the value for the end consumer through improved availability of electricity. The need and necessity for smart transformers in India are well established. It is, in fact, all the more relevant to be smart about the usage of energy and electricity to deliver low-cost electricity.
- Moreover, in remote places, where the cost of installation of power grids can be high, it becomes comparatively less expensive for the government to deploy renewable energy sources for power generation and increase the electrification rate, thus propelling the market for distribution transformers in the country.
- In February 2022, the Indian state government of Madhya Pradesh was set to expand and modernize its electricity network by deploying smart meters and smart grid technologies using EUR 140 million secured from German bank KfW. The modernization of the smart grid is expected to include all facets of technologies, including smart transformers. Such investments are expected to aid the growth of the market in the coming years.
- Hence, Asia-Pacific is expected to dominate the market due to its growing population, increasing purchasing power, and rising demand for energy.
Smart Transformers Industry Overview
The smart transformers market is moderately fragmented. Some of the key players in this market are ABB Ltd, Siemens AG, Schneider Electric SE, Eaton Corporation PLC, and General Electric Company.
Smart Transformers Market Leaders
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ABB Ltd.
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Siemens AG
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Schneider Electric SE
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Eaton Corporation PLC
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General Electric Company
*Disclaimer: Major Players sorted in no particular order
Smart Transformers Market News
- In March 2021, Hitachi ABB Power Grids partnered with research institute Nanyang Technological University, Singapore (NTU Singapore) on a government-led smart grid development project. The partnership is expected to also work on the creation of next-gen transformers compatible with the smart grid.
- In September 2021, Noor Energy 1 adopted the latest technologies from Huawei's line of products, consisting mainly of the string inverters and Smart Transformer Stations that allow for a more modular system to be built on a fast-track basis.
- In December 2021, Chinese PV inverter manufacturer Huawei planned to supply its string inverters and smart transformer station for Soudia Agro Solar PV Power Plant in Bangladesh.
Smart Transformers Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Distribution Transformers
5.1.2 Power Transformers
5.2 Application
5.2.1 Smart Grid
5.2.2 Traction Locomotive
5.2.3 Other Applications
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 ABB Ltd
6.3.2 Crompton Greaves
6.3.3 Siemens AG
6.3.4 General Electric Company
6.3.5 Hitachi Ltd
6.3.6 Schneider Electric SE
6.3.7 Mitsubishi Electric Corporation
6.3.8 SPX Transformer Solutions Inc.
6.3.9 Eaton Corporation PLC
6.3.10 KONCAR - Electrical Industry Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Smart Transformers Industry Segmentation
The smart transformers market report includes:
| Type | |
| Distribution Transformers | |
| Power Transformers |
| Application | |
| Smart Grid | |
| Traction Locomotive | |
| Other Applications |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle East & Africa |
Smart Transformers Market Research FAQs
What is the current Smart Transformers Market size?
The Smart Transformers Market is projected to register a CAGR of greater than 2.5% during the forecast period (2024-2029)
Who are the key players in Smart Transformers Market?
ABB Ltd., Siemens AG, Schneider Electric SE, Eaton Corporation PLC and General Electric Company are the major companies operating in the Smart Transformers Market.
Which is the fastest growing region in Smart Transformers Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Smart Transformers Market?
In 2024, the Asia Pacific accounts for the largest market share in Smart Transformers Market.
What years does this Smart Transformers Market cover?
The report covers the Smart Transformers Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Smart Transformers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Smart Transformers Industry Report
The global Smart Transformers market is experiencing significant growth, driven by advancements in technology and increasing demand for efficient power distribution systems. The market is segmented by type, including distribution transformers and power transformers, and by application, such as smart grid, traction locomotive, and other applications. The market analysis indicates a robust market forecast and market growth, with key market leaders driving the industry forward.
The industry report provides a comprehensive industry analysis, covering market share, market size, and market trends. The market overview highlights the key factors influencing the market, while the market forecast offers insights into future market growth. The industry reports and industry research provide valuable industry information, including industry outlook, industry statistics, and industry trends.
The market segmentation includes detailed market data, market value, and market predictions, offering a thorough market review. The report example and report PDF provide an in-depth look at the market, with research companies contributing to the market research. The industry sales and industry size are also covered, providing a complete picture of the market dynamics.
Overall, the Smart Transformers market is poised for continued growth, with a strong industry outlook and positive market trends. The industry information and market data presented in the report offer valuable insights for stakeholders, helping them make informed decisions in this rapidly evolving market.
Smart Transformers Market Report Snapshots
