The global market value is set to reach $14.32bn in 2022, growing at a modest CAGR of 1.6% between 2018 and 2022, says the report, ‘Distribution Transformers Market, Update 2018'.
“Systemic transformation of the global power sector is contributing to the requirement for power technologies, which support low carbon power generation. Markets in the US and Europe are primarily replacement markets, with initiatives undertaken to enhance the adaptability of the grid to changing market conditions. Other countries in APAC and Middle East are constructing new grid networks to support and sustain the growing power generation segment and demand requirement,” said Nirushan Rajasekaram, Power Analyst at GlobalData.
The need for grid expansion and upgrades within APAC is greatly influencing the distribution transformers market. China and India, with their large populations and industrial bases, are driving the regional market. “China and India have laid out plans for grid expansion to improve rural electrification, accommodate growing renewable asset portfolios, and support their economic growth. In addition, favorable economic conditions and market reforms among smaller markets such as Indonesia and Vietnam will result in strong growth, where new infrastructure is expected to be developed,” said Rajasekaram.
However, despite APAC being the largest market for distribution transformers, EMEA is forecast to experience the highest market growth over the forecast period, with the market estimated to reach $3.7bn in 2022.
The push for sustainability and clean power generation, increasing electricity and peak demand, and economic diversification are likely to increase the need for distribution transformers within the Middle East and Africa. However, the established networks in Europe will require the replacements of transformers more suited to enhance the integration of smart technologies into the grid, according to the report.
“Rapid changes in the power generation segment, rising electricity consumption and the existing lack of suitable facilities for power transfer would propel the installations of distribution transformers globally. Growing integration of distributed technologies at low voltage networks is leading to