Smart Transformer Market

Smart Transformer Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Smart Transformer Market grew at a CAGR of 10.2% between 2017-2021 and is estimated to be US$ 1,743.2 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 14.6% and is expected to reach a valuation of US$ 6,810.7 Mn by 2032 end.

Throughout the projected period, With the increasing investment in emerging and fortifying the smart grid and the power industry, as well as the surging trend for embracing automation, this market is expected to grow. Moreover, renewable energy resolutions such as solar systems are linked to the basic power grid and modify its operations.

Market Dynamic

GROWING DIGITALIZATION IN THE POWER SECTOR DRIVES THE MARKET FOR

The power industry has switched from centralized, conventional, and security systems to distributed generation and progression. Digitalization plays an essential part in the power industry. Digitalization has been incorporated with equipment and devices that enhance system proficiency, such as transformers, a necessary part of the smart grid, which works autonomously to adjust the voltage and permit remote administration in the system.

HIGH INVESTMENT COSTS HAMPER THE MARKET GROWTH

Smart transformers can prevent any failure in the transformer to achieve efficient production and operation of the power system. They include extensive settings, like transform input and output, transformer coil configuration and performance, valves, and transistors. These smart transformers are affordable compared to traditional ones, which have higher costs mainly owing to their reliability features. Smart transformers can handle weather conditions by forming a better protection mechanism but cannot withstand lightning strikes.

RISE IN ALTERNATIVE ENERGY SMART GRIDE WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

Alternative fuel is a term used to describe energy sources that do not directly produce useable thermal energy but can be converted into thermal energy. The term alternative fuel includes both fossil fuel and nuclear power, some of which are considered green. Fossil fuels are fossilized remains of organisms that lived in the distant past, including coal, petroleum products, and natural gas. Nuclear power is a method of producing electricity by using the energy released by splitting atoms or ionizing radiation (such as from atomic fission) that results in heat being converted to electrical power.

COVID-19 Impact

The global market has been immediately affected by the outbreak of this global health problem, as governments worldwide have taken various steps to eliminate the spread of the virus by imposing lockdowns, travel restrictions, social distancing, and the closing of workplaces which have changed the lifestyle and working of people around the world. The notable delays in constructing renewable projects and requirements for social distancing have delayed the development of renewable energy projects and improvements and up-gradation of grid networks. The market value might not catch up to the pre-COVID-19 value until 2027.

Market Segments Covered in Report

By Type:

• Power Transformers
• Distribution Transformers
• Specialty Transformers
• Instrument Transformers

By Application:

• Smart Grid
• Traction Locomotive
• Electric Vehicle Infrastructure
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are Distribution Transformers projected to ensure the most revenue during the forecast period?

The distribution type segment is estimated to hold the largest revenue market position over the forecast period as it has been widely used to regulate and optimize the voltage power supply for many commercial and industrial sites. Distribution transformers are less efficient when compared to power transformers as they are subject to load fluctuation and the chances of failure are higher. These Transformers are used in large commercial facilities to utilize and distribute energy more effectively, resulting in more efficiency, reducing the cost and power consumption, and going greener.

Why is the Smart Grid segment expected to expand the fastest during the forecast period?

In 2021, Smart transformers will be used in traction locomotives to provide electricity to traction motors, connecting multiple traction motors to a group of wheels. This smart transformer can be installed on a rail cars, locomotives, tracks, or bridges. Smart transformers also ensure a smooth power flow from one pole to another and provide additional benefits such as energy efficiency, vibration isolation, and reliability.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the North American market held a sizeable revenue share of 32.5%. North America is the largest market in our report. It is projected to witness healthy market growth during the projected period as utilities upgrade their grid infrastructure to meet the increase in power demand.
• Asia Pacific is an important region in the global market. Understanding smart grid transformers have helped countries in the Asia Pacific to invest in high-tech and intelligent grid projects to improve power quality and grid stability.

Competition Analysis

As a leader in the industry, the biggest players in the market continue to search for skilled marketing strategies to boost their brands and promote the growth of the product at the same time. Among the pool of strategies, one operative tactic is attaining competitor firms and fortifying a financial benefit for both companies.

Some of the key developments that have taken place in the Smart Transformer Market include:

• In July 2020, ABB sold Hitachi 80.0% of its Power Grid business. As a result, ABB is better equipped to concentrate on important market trends and client requirements for electrification, automated manufacturing, digital solutions, transportation, industry, and sustainable product development.
• In January 2021, Vietnam and Hitachi ABB collaborated to increase local transformer production. As a result, Hitachi ABB can improve its electrical system and include more renewable energy.

A list of some of the key suppliers present in the market are:

• ABB
• Schneider Electric
• Siemens
• Mitsubishi Electric Corporation
• Eaton
• Alstom
• GE Power
• Powerstar
• CG Power and Industrial Solutions Limited
• Ormazabal
• SPX Transformer Solutions Inc.
• Triad Magnetics

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.