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The current transformer market size is forecast to increase by USD 457.4 million at a CAGR of 8.09% between 2023 and 2028. The market expansion is influenced by multiple elements. Firstly, advancements in technology enable higher precision at minimal current levels, enhancing market potential. Secondly, the burgeoning demand for electricity in emerging economies fuels market growth. Lastly, the modernization of existing transformers through technological upgrades and replacement drives market progression. These factors collectively contribute to the market's robust growth trajectory. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
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The market experiences growth fueled by increasing electricity demand due to population growth and urbanization, driving the need for power systems solutions. With rising demand for measurement, monitoring, and protection of electrical currents, utilities seek advanced solutions for power transmission and smart grids integration, particularly with the rise of renewable energy sources like solar power. Digital control and real-time data capabilities enhance grid reliability and enable load monitoring and fault detection, while power quality analysis ensures efficient operation. Amidst concerns of cooling and leakage, modern current transformers offer oil-immersed and bar type options with easy installation features, mitigating health hazards and fire risks. The market's trajectory is driven by the imperative for enhanced measurement and safety in power distribution systems. Our researchers studied the market research and growth data for years, 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.
The increased demand for electricity from emerging economies is driving growth in the market. Urbanization is directly influenced by industrial development, which in turn drives up residential and commercial construction activity. India has one of the world's fastest rates of urbanization because of its growing population and rising incomes.
Moreover, the manufacturing industry in these regions has considerable growth potential, apart from the impact of industrialization and rapid urbanization. Thus, these countries are expected to become a hub for major manufacturing industries, which will increase the electricity demand. In many regions, this has encouraged private and public undertakings in the electricity industry to initiate their planned network capacity expansion projects. These projects indicate that the electricity demand is increasing significantly, thus leading to the growth of the market in the forecast period.
The use of advanced technologies and processes in transformer manufacturing is a primary trend in the market. The production of high-quality electrical equipment like ABB instrument transformers, which are the next generation is a result of very sophisticated manufacturing processes. These products have been developed through a modern design process consisting of the fusion of electrical and mechanical elements, using excellent quality insulation materials. The use of advanced simulation software helps engineers to develop new products without the need to invest in significant prototyping expenses.
Moreover, the APG process is subject to multiple casting parameters, such as temperature, pressure, and curing time. To obtain a better product, this variable is posed by epoxy producers as a challenge for optimizing the production process. However, APG makes it possible for engineers to optimize their casting process through its combination of modern simulation software with the most recent Resin handling, mixing, and control technologies. Such improvements help in creating a robust and cost-effective product. The technological innovations in the product and the demand for such technological innovations will drive the growth of the global market during the forecast period.
The high cost of upgrading electricity distribution networks is a major challenge in the market. Costs such as replacing transmission lines, distribution networks, energy delivery systems, substations digitization, and digital controls shall be included in the cost of upgrading smart grids. Consequently, power utilities and IPPs face the prospect of needing to make huge initial capital investments. It is anticipated that the cost of deploying smart grid technology in the US will reach billions of dollars over the next 20 years because of the aging power infrastructure, as well as the growing need to integrate renewable energy into electricity grids is the reason.
Therefore, power utilities are reluctant to upgrade their power grids to make them compatible with smart grid solutions because of the high costs involved. The various smart grid solutions are being widely marketed by energy companies as high-pressure products. This is projected to affect the growth in the global smart grid T&D equipment market and, at the same time, harm the world's existing transformer market. These factors will give rise to the high cost of power distribution, which will negatively impact the market during the forecast period.
The oil-immersed segment will account for a major share of the market's growth during the forecast period. One of the segments within the global market is oil-immersed variants. Oil immersion variants are meant to be immersed in insulating oil for better insulation and cooling. They are widely applied in high voltage applications, e.g. to generate electricity, transmission, and distribution systems.
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The oil-immersed segment was valued at USD 573.70 million in 2018. To measure the voltage and provide accurate readings for protection, meter reading, or control purposes, oil-immersed variants are normally located in outdoor substations and switchyards. The properties of oil-immersed variants contribute to their long operational life, ensuring reliable performance over an extended period; these benefits will drive the growth of the segment during the forecast period.
Based on the application, the market has been segmented into switchgear and power transformers. The switchgear segment will account for the largest share of this segment. An increase in investments in renewable energy projects worldwide is expected to drive steady growth in this segment. Several power transmission and building projects are currently underway, with many more on the horizon, in several emerging countries such as China and India. The growth in the segment of high voltage switchgear during this forecast period is expected to be driven by these factors. The initiatives taken will benefit companies of switchgear and will increase the adoption as the need for energy is expected to rise exponentially during the forecast period.
With the large-scale expansion and renovation activities taking place in the power T&D sector worldwide, there will be an ample need for the installation and retrofitting of power transformers, which is expected to create a huge demand during the forecast period. Therefore, a larger number of transformers will be needed in that capacity range and this would lead to increased market share for the segment. Power transformers are necessary devices that help connect power generation stations to transmission networks. It is anticipated that the increase in the utilization of renewable and non-conventional energy sources will spur growth in power transmission activities. Hence, to meet the increasing demand for electricity, more power transmission networks are required, which is expected to drive the demand
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APAC is estimated to contribute 48% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The demand for electrical power is high in APAC because of the growth in electricity-consuming sectors, such as manufacturing industries, which, along with rapid urbanization, has led to improved living standards and increased electricity consumption in many major countries in the region, such as China and India. In order to increase economic conditions in the area, it is essential that electricity continues to be supplied. The increase in private sector participation in the power transmission and distribution sector will result in a rise in investments in T&D networks.
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.
ABB Ltd. - The company offers current transformers such as ANSI AccuRange.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
ABB Ltd., CGS Instrument Transformers, Dalian Huayi Electric Power Electric Appliances Co. Ltd., Eaton Corp. Plc, Fanox Electronic SL, FRER Srl Vle, General Electric Co., Hammond Manufacturing Co. Ltd., Hyosung Corp., IMA Spa, Littelfuse Inc., Megacon Group, Murugappa Group, PREMO SL, Schneider Electric SE, Siemens AG, SOCOMEC Group, Sumitomo Electric Industries Ltd., Trench Ltd., and VACUUMSCHMELZE GmbH and Co. KG
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
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.
A significant growth driver in the energy sector is the current transformer demand, particularly with the expansion of wind power projects. As utilities emphasize accurate current measurement for effective power flow control and grid integration, maintenance and operational restrictions drive the need for reliable solutions. Additionally, the global focus on vaccination drives has accelerated global operations in the power sector, particularly for largescale power infrastructure. Modern current transformers with digital current capabilities offer enhanced accuracy and communication capabilities, featuring advanced options like digital outputs and toroidal or wound type designs. They serve critical roles in power plants, control rooms, and switchgears for metering purposes and managing high voltage current with various voltage ratings. The APAC region sees increased adoption, driven by evolving regulatory norms and growing energy demands.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 457.4 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.31 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, India, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., CGS Instrument Transformers, Dalian Huayi Electric Power Electric Appliances Co. Ltd., Eaton Corp. Plc, Fanox Electronic SL, FRER Srl Vle, General Electric Co., Hammond Manufacturing Co. Ltd., Hyosung Corp., IMA Spa, Littelfuse Inc., Megacon Group, Murugappa Group, PREMO SL, Schneider Electric SE, Siemens AG, SOCOMEC Group, Sumitomo Electric Industries Ltd., Trench Ltd., and VACUUMSCHMELZE GmbH and Co. KG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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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