Energy demand is fueling the need for more transformers- Future Market Insights
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By Phyllis MUCHOKI
The global distribution transformers market was estimated to reach a valuation of USD 26.1 Billion in the year 2022. With a steady CAGR of 6% from 2023 to 2033, this market is expected to reach USD 27.5 Billion by 2023 and USD 49.4 Billion by 2033.
The globally increasing energy demand along with the introduction of various regulatory reforms for the improvement of distribution and transmission networks will accelerate the penetration of technology.
The rising investments in supporting the distribution networks to provide electricity in remote areas will also affect this technology positively during the forecast period. These networks are gaining huge popularity nowadays based on three aspects: compactness, cost-effectiveness, and simple installation features.
The key players in the global market are aimed at investing in innovative smart technology, like smart transformers, that would take immediate steps during any fluctuations and hence enhance the power quality being received at various homes.
Such factors are predicted to open up new opportunities for the manufacturers in this market.
During the projected period, the oil-filled distribution transformers segment is anticipated to rule the distribution transformer market. Liquids are used to cool the oil-filled transformers, which makes them ideal for outdoor usage.
They have more dependable overload capabilities, are more efficient, and have longer service lifetimes. The utilization of a liquid as a cooling medium makes these sorts of converters a better choice than dry ones.
The main benefit of an oil-filled transformer is its ability to take larger ratings as well as overloads. To enhance their rates of electrification, nations like India and China are extending their transmission & distribution networks, which is anticipated to drive the demand for oil-filled distribution transformers.
For instance, the Pradhan Mantri Sahaj Bijli Har program of the Indian government seeks to electrify every home.
Region-wise, one of the top regions for distribution transformer production is Asia-Pacific. Along with increased family income as well as urbanization, developing countries like India and China have seen rapid population expansion.
The market for distribution transformers is growing quickly as a result of the sudden increase in demand for power. To address the growing demand for power in China, the government is creating new generation projects, notably those utilizing renewable energy.
What is Driving Demand for the Distribution of Transformers?
Distribution transformers are used for providing final voltage transformation in electric power distribution systems. It steps down the high voltage used in the distribution line to the level used by consumers.
These are designed to provide maximum efficiency at lower loads hence they generally do not operate at full load.
Distribution transformers market growth is anticipated to be influenced by increasing demand for substituting and refurbishing aged transformers and initiatives for increasing power generation capacities around the globe.
The rising demand for electricity in emerging countries such as China, India, etc. is driving rapid investments in power transmission and distribution infrastructure subsequently augmenting the consumption of distribution transformers.
Power generation from the natural gas sector and renewable energy are increasingly taking over fossil fuels along with other conventional methods so as to meet the requirements.
The investments in renewable power infrastructure are projected to ascend the demand for distribution transformers.
The competition between the Power distribution and transmission sector with each other and partnerships with tech firms to deliver improved and innovative solutions is compelling the steady growth in the market.
The increasing activities for the expansion of electrical distribution networks and retrofitting of existing networks are fueling the consumption of distribution transformers.
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