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The Current Transformer Market size is estimated to increase by USD 422.01 million between 2022 and 2027 and the size of the market is forecast to grow at a CAGR of 8%. The growth of the market depends on several factors, such as the enhanced accuracy at extremely low current levels, the increased demand for electricity from emerging economies, and the modernization of existing transformers.
Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
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 544.856 million in 2017 and continued to grow until 2021. 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.
The global market can be segmented into various types, and one of the segments is the dry-type current transformers. Dry-type variants are designed to operate without the use of any insulating liquid, such as oil or silicone. Instead, they rely on solid insulation materials to provide electrical isolation and protect against short circuits. Due to their security features, lower maintenance requirements, and a greater focus on environmental protection, the demand for dry-type modern transformers is increasing.
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 power 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 46% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during 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.
CGS Instrument Transformers - The company offers current transformers such as ANSI and CSA.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies 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 is witnessing substantial growth amidst increasing energy consumption and the modernization of power distribution infrastructure. With rising concerns over power usage and transmission losses, there's a growing demand for energy-efficient transformers and digitalization in power networks. Despite high initial costs, the market is buoyed by the transition towards renewable energy sources and the proliferation of electric vehicles. Modern transformers and circuit breaker bushings, equipped with smart sensors and oil-based insulation, offer enhanced reliability and environmental sustainability. As transmission and distribution networks evolve to meet energy efficiency standards, the demand for current transformers continues to rise, contributing to the reduction of power wastage and environmental impact while ensuring reliable energy distribution across various sectors.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Current Transformer Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
Market growth 2023-2027 |
USD 422.01 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.0 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 46% |
Key countries |
US, Canada, China, India, and Germany |
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, Trench Ltd., VACUUMSCHMELZE GmbH and Co. KG, and Sumitomo Electric Industries Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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