The Global Market for Distribution Transformers is Projected to Exceed US$20 Billion by 2022

Spiraling Energy Consumption and Robust Electricity Generation Drive Demand for Distribution Transformers, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Distribution Transformers market. The global market for Distribution Transformers is projected to exceed US$20 billion by 2022, driven by the unabated rise in power consumption and the resulting need for distribution and transmission networks.

Distribution transformers are critical network components intended to lower electrical voltages to usable and safe levels to ensure smooth power supply. Such critical assets are required to be constantly monitored and maintained and on need basis, replaced and refurbished, to sustain the reliability of the electric power supplied. Recent advances in terms of materials along with manufacturing techniques have made systems up to 60% more efficient in comparison to traditional units. While rebuilding power grids to improve efficiency levels is a challenging and cost-intensive task, replacement of inefficient distribution transformer units holds huge potential and represents the primary growth driver for the market. Growth in the global transmission and distribution (T&D) equipment market is also driven by the growing population and its demand for energy, new power projects coupled with expansion of the transmission and distribution network, ongoing industrialization in developing countries, higher standards of living, rising environmental awareness, and paucity of oil and gas reserves.

Healthy growth is projected for the market in the coming years driven by government projects intended to generate power through conventional sources such as oil & gas, coal; adoption of energy-efficient transformers; replacement of the aging power infrastructure; and efforts to integrate renewable energy to power grids. Another important growth driver is the growing demand for smart transformers driven by the establishment of smart power grids intended to respond to power requirements from load centers. Increasing share of renewable energy sources in the energy mix is expected to further fuel the demand for smart transformers as these devices offer multiple outputs as well as capable of working on a broad frequency range. Other factors benefiting market expansion include surge in residential, commercial, and industrial construction; robust infrastructure development, particularly in the developing countries, and growing need to mitigate energy losses during electricity transmission. Few of the many technological advancements that are expected to transform distribution transformers design and functionality include sophisticated solid-state transformers (SSTs) capable of doubling as inverters and chargers for solar panels and electric vehicles, respectively; and completely self-protected (CSP) transformers that safeguards transformers from secondary faults, lightning and acute overloads.

As stated by the new market research report on Distribution Transformers, Asia-Pacific represents the largest as well as the fastest growing market worldwide with a CAGR of 6.6% over the analysis period. Rapid industrialization; exponential increase in urban population; continuous migration of manufacturing units from Europe and North America to Asia-Pacific; growing construction activity; utility/power infrastructure investments, and implementation of energy-efficiency standards represents important growth drivers in the region. Driven by their low flammability and application in hazardous locations, Dry Type Distribution Transformers are projected to offer the highest growth potential. Oil filled distribution transformers are projected to retain their dominance, primarily due to cost efficiency benefits.

Major players covered in the report include Asea Brown Boveri (ABB), Crompton Greaves Ltd., DAIHEN Corporation, Emerson Industrial Automation, Eaton Corporation, EFACEC Group, General Electric Company, Hammond Power Solutions Inc., Howard Industries, IMP Power Limited, Kirloskar Electric Company Limited, Powertech Transformers (Pty) Ltd., Schneider Electric SA, Siemens AG, Shihlin Electric & Engineering Corporation, and Tebian Electric Apparatus Stock Co. Ltd., among others.

The research report titled "Distribution Transformers: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World. Equipment class analyzed in the report includes Oil Filled Distribution Transformers and Dry Type Distribution Transformers. End-use sectors analyzed include Utility and Non-Utility.

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