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The liquid-immersed transformers market size is forecast to increase by USD 12.45 billion at a CAGR of 6.36% between 2023 and 2028. The APAC market is witnessing significant economic growth and urbanization, leading to increased kWh demands in urban areas. Power transformers, including dry-type, pad-mounted transformers, are essential for meeting the energy needs of the residential, commercial, and industrial sectors. However, traditional transformer oils, such as mineral oils and silicone oils, have environmental concerns and fire hazards
The market has been witnessing significant growth in recent years due to the increasing demand for reliable and efficient power transmission solutions. These transformers offer several advantages over traditional dry-type transformers, including improved thermal performance, enhanced fire safety, and extended service life. The Stepped and Downturned Liquid-Immersed Transformers (SLIT and DLIT) are popular types in the market, catering to various power transmission requirements. Voltages in the LIT market range from Transformers (MV) to Extra High Voltage (EHV), making them suitable for diverse applications. The Transformers (MV) and Transformers (EHV) are used in Transmission Formers and Distribution Formers, respectively.
The LIT market is driven by factors such as increasing electricity demand, grid modernization, and the need for more efficient and reliable power transmission systems. Procurement of LITs is a critical decision for utilities and power companies, and factors such as cost, efficiency, and reliability play a significant role in the selection process. The industry is expected to continue its growth trajectory in the coming years, driven by ongoing infrastructure development and the increasing adoption of renewable energy sources.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The power transformer market is projected to experience substantial growth during the forecast period. Insights: The global transformer industry predominantly centers around Liquid-Immersed Transformers (LITs), with oil being the most commonly used insulating medium due to their extensive use in grid operations and cost-effectiveness. However, SF6 gas-insulated transformers provide superior insulation and are non-flammable and non-polluting, but their high cost limits their application, particularly in developing countries. These transformers are utilized in various sectors, including reactors, firefighting systems, air-conditioning systems,aircraft auxiliary power systems, building management systems, illumination systems, and industrial processes.
Transformers are indispensable in grid operations, enabling the efficient transmission of electricity by stepping up or down voltage levels. Their design process takes into account various factors, including electrical installation, maintenance, longevity, and economic costs. In industrial applications, transformers are vital for managing price fluctuations and ensuring consistent electricity consumption in industries such as steel and copper production. Transformers are also a crucial component of power transmission infrastructure, extending to electrical transformers, automotive applications, renewables, and industrialization.
Governments invest in power transmission infrastructure to meet growing energy demands and enhance electrical grid reliability. Consumer devices and electric transmission systems rely on transformers for efficient power conversion and distribution. Economic factors, including disposable income, consumer demand, and price fluctuations in raw materials like steel and copper, significantly impact the transformer market. Safety considerations are essential, with transformers required to comply with safety standards, such as fire resistance and insulation characteristics, to minimize the risk of accidents and ensure safe grid operation.
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The Power transformers segment accounted for USD 20040.00 million in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The power sector in APAC is experiencing significant growth, driven by increasing power needs in response to population expansion and industrial development. Power components, including transformers, are essential for power operations and facilities. Liquid-immersed transformers, filled with mineral oil as an electric insulating and arc-quenching medium, offer advantages such as power efficiency, reliability, and surge protection. APAC's power economy is dominated by countries like China, India, Vietnam, Thailand, and the Philippines, which exhibit increased demands for electrical energy. Transmission and distribution expansion are crucial to meet these needs, leading to increased installations and expansions of power facilities. Transformers, including step-up and step-down types, play a vital role in power transmission and distribution.
Liquid-immersed transformers are particularly important due to their ability to handle high voltages and reduce transmission losses. The operational temperature range of these transformers ensures power reliability even during short circuits. Power initiatives in APAC include the integration of renewable fuels such as solar, wind, hydroelectric, and geothermal into the power grid. On-grid installations of these power generating sources necessitate the use of liquid-immersed transformers to ensure power status consistency and maintain power challenges, such as voltage fluctuations, at bay.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Expansion of T and D driving the demand for liquid-immersed transformers is the key driver of the market. The APAC market is witnessing significant economic growth and urbanization, leading to increased kWh demands in urban areas. Power transformers, including dry-type, pad-mounted transformers, are essential for meeting the energy needs of the residential, commercial, and industrial sectors. However, traditional transformer oils, such as mineral oils and silicone oils, have environmental concerns and fire hazards. Natural and synthetic esters, including those derived from cellulose and oxygen, are eco-friendly biodegradable substitutes for transformer oils. Liquid-immersed power transformers, filled with these eco-friendly esters, offer longer operating lifecycles, reduced annual maintenance time, and lower costs, making them a cost-effective solution for large-scale power generation end applications.
Technological advancements, such as real-time internal inspection using wireless robots and digital distribution transformers, further enhance the functioning of these transformers. With the largest consumer base and the need for energy efficiency, the liquid-filled power transformer market is expected to experience significant growth in the coming years. Global experts predict that the market will continue to expand, driven by economies of scale and the repairable equipment's overall capital expenditure.
Increasing popularity of bio-based and naphthenic transformer oil is the upcoming trend in the market. The global shift towards renewable energy sources is driving the expansion of renewable power generation capacity, with China's capacity expected to grow annually until 2035. Urban areas are leading the charge, with end-users increasingly embracing wind and solar energy to meet carbon emission goals and reduce reliance on fossil fuels. Power transformers, including liquid-filled types like Liquid-Immersed Transformers (LITs), play a crucial role in this transition. LITs use various cooling mediums such as natural esters, synthetic esters, mineral oils, and silicone oils. These transformers are widely used in residential, commercial, and industrial applications, with dry-type and pad-mounted transformers also in use.
Operating lifecycles, annual maintenance time, costs, outages, and fire hazards are key considerations for LITs. Power capacities range from small to large scales, with overall capital expenditure and economies of scale influencing market trends. Repairable equipment and technological advancements are essential for the power generation end. LITs' windings are made of cellulose, oxygen, and other materials, with environmental impacts and carbon footprint driving the search for ecofriendly biodegradable substitutes. Global experts are focusing on energy efficiency, functional improvements, and real-time internal inspections using wireless robots and digital distribution transformers. LITs' decimal units and energy efficiency are essential for meeting kWh demands.
Technological advancements continue to shape the market, with LITs playing a vital role in the transition to a more sustainable energy future.
New regulations increasing cost of power transformers is a key challenge affecting the market growth. The market is experiencing significant growth due to the increasing demand for power and the need to replace outdated T&D infrastructure. In urban areas, the shift from dry-type transformers to liquid-filled transformers, such as liquid-immersed transformers, is prevalent. These transformers use natural esters, synthetic esters, mineral oils, or silicone oils as coolants. Power transformers, including pad-mounted transformers, have operating lifecycles and require annual maintenance time, which incurs costs and potential outages. Fire hazards are a concern, and power capacities range from residential to commercial and industrial applications. The overall capital expenditure includes economies of scale and the cost of repairable equipment.
Technological advancements have led to the development of eco-friendly biodegradable substitutes for traditional coolants. Large-scale requirements and the largest consumer base are primarily in the power generation end. Liquid-filled power transformers, such as liquid-immersed transformers, require internal inspection for functioning, with digital distribution transformers and real-time monitoring offering advantages. Global experts emphasize energy efficiency, decimal units, and wireless robotics in the functioning of these transformers. Environmental impacts and carbon footprint are crucial considerations, with a focus on energy efficiency and the use of cellulose, oxygen, and other materials in the windings.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Liquid-Immersed Transformer market is experiencing significant growth due to the increasing demand for reliable and efficient power solutions. These transformers offer several advantages over traditional dry-type transformers, current transformer including enhanced thermal stability, improved fire safety, and increased power density. The Energy sector is a major consumer of Liquid-Immersed Transformers, particularly in the generation, transmission, and distribution of electricity. The Management of these transformers is crucial to ensure their longevity and optimal performance. The Climate and geothermal conditions are essential factors in the selection and installation of Liquid-Immersed Transformers. The Fossil fuel industry also utilizes these transformers in power generation processes.
The future of Liquid-Immersed Transformers looks promising, with advances in technology leading to more efficient and cost-effective solutions. The sector is expected to continue to grow, driven by the need for more sustainable and reliable power solutions. The Indian and US markets are expected to be key contributors to the growth of the Liquid-Immersed Transformer market. The sector is expected to face challenges, including the high initial investment costs and the need for specialized maintenance and repair services. Despite these challenges, the long-term benefits of Liquid-Immersed Transformers make them a worthwhile investment for businesses and organizations in the power sector.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.36% |
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Market growth 2024-2028 |
USD 12450 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.95 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 39% |
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Key countries |
China, US, India, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., ALTRAFO Srl, Celme Srl, CG Power and Industrial Solutions Ltd., China XD Group Co. Ltd., DuPont de Nemours Inc., Eaton Corp. Plc, EL Sewedy Electric Co., General Electric Co., Hitachi Ltd., Hyosung Heavy Industries Corp., Hyundai Heavy Industries Group, IMEFY GROUP, ISMET GmbH, LS ELECTRIC Co. Ltd., MGM Transformer Co., Schneider Electric SE, Siemens AG, Toshiba Corp., and Vantran Transformers |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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