Transformers Market for Renewable Energy Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Japan, Germany - Size and Forecast 2024-2028

Transformers Market for Renewable Energy Forecast 2024-2028

The Global Transformers Market for Renewable Energy size is forecast to increase by USD 3.44 billion, at a CAGR of 4.65% between 2023 and 2028. The report covers market trends from 2018 to 2022, emphasizing key developments. It highlights a notable increase in demand for offshore wind farm installations, reflecting the growth of the renewable energy sector. Additionally, there is a significant rise in the adoption of solar energy in hybrid power systems, signaling a broader shift towards cleaner energy sources. These trends underscore the increasing focus on renewable energy and sustainability in the energy sector, driving innovation and investment in renewable energy technologies. Additionally, the digitalization of transformers emerges as a key trend, reflecting advancements in technology within the energy infrastructure sector.

Market Overview :

• Solar PV is fastest-growing segment during the forecast year
• The solar PV  was the largest segment and was valued at USD 7.50  billion in 2018. 
• The Regional Analysis consists of APAC, Europe, North America, South America, and Middle East and Africa
• APAC is is most dominating region during the forecast period
• The report offers a thorough analysis of transformer modernization through smart grid systems, underscoring advancements in energy infrastructure. Additionally, it examines the increasing prevalence of offshore wind farm installations, indicative of a shift towards renewable energy sources. Furthermore, it discusses the declining costs of solar PV modules, highlighting the growing affordability and accessibility of solar energy technology in the market.

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Market Trends 

The rising number of offshore wind farm installations is an emerging trend shaping the market growth. A standalone solar PV system cannot meet the needs of an entire building due to its intermittent nature. The issue of intermittency can be solved with the addition of an energy storage system, wherein the excess power can be stored and discharged for future use. Solar PV and power storage are a necessity in every home, as the power needs can be met by using solar during the day, and the excess energy generated can be stored in a battery for utilization at night and on rainy days. Thus, the addition of energy storage systems reduces the dependency on grid power and increases the cost savings due to self-consumption. 

Further, hybrid power systems, which combine solar with other energy sources with complementary generation profiles, such as wind or hydro, can achieve more consistent and predictable energy production throughout the day and across different weather conditions. Energy storage systems are eligible for incentives in some countries, which reduces the initial cost. Such initiatives have augmented the adoption of energy storage systems, as homeowners want to gain the incentives offered by governments and pair them with solar PV to generate clean electricity. These factors will propel the growth of the market for renewable energy during the forecast period.

Market Largest-Growing Segments 

The market is segmented across various aspects crucial to the production, distribution, and integration of renewable energy systems. This segmentation encompasses renewable power sources such as wind, geothermal, hydropower, geothermal, and biomass. These sources drive the need for specialized electrical infrastructure, including distribution transformers and dry-type transformers ranging from 5 MVA to 100 MVA. Moreover, considerations extend to carbon impact and sustainable energy systems, as well as the expansion of power grid infrastructure and transmission routes to ensure electricity availability even in rural and remote areas. With advancements in construction techniques, renewable energy projects are increasingly integrated into townships, housing developments, and built-up infrastructure, including wind farms. This comprehensive segmentation addresses the diverse requirements of the market, catering to both conventional and unconventional energy sources, particularly hydro energy. 

Application Analysis 

Solar PV 

The solar PV segment is estimated to witness significant growth during the forecast period. This is because of various factors, including growing environmental concerns and the depletion of power reserves. These factors are compelling governments across various regions to consider changing their old energy policies and constructing renewable energy-favouring policies. A solar PV system is designed to provide usable power through PVs. The global solar PV systems market has grown significantly because of the increased installation of PV systems in the utility, commercial, and residential sectors. 

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Moreover, according to the International Energy Agency (IEA), solar PV generation reached nearly 1,300 TWh in 2022, a record of 270 TWh (a 26%increase). Compared with all other renewable technologies, it had the highest absolute generation growth in 2022, surpassing wind power for the first time. The rise in solar PV generation was due to the sudden change in China's solar PV incentives to address grid integration challenges and curb costs to achieve more sustainable PV expansion. In addition, solar PV generation rose sharply in Southeast Asia because of the construction of new capacity in Vietnam from 0.1 GW to 5.4 GW. Thus, the increase in solar PV generation across different regions is expected to drive the growth of the segment in the market during the forecast period.

Market Regional Analysis

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APAC is estimated to contribute 72% 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. The market in the APAC region is expected to have a rapid growth rate because of the growing demand for renewable power during the forecast period. Growing penetration of renewable power in developed and undeveloped countries has been seen in the last 2-3 years. Countries such as India have set an ambitious goal of renewable power generation. This has led to the growth of renewable power-related markets. In addition, the market demand for electricity in APAC remains high due to the growing electricity consumption in the region. Rapid urbanization and better living standards are boosting electricity consumption in major countries such as China and India. Several utilities in the region are now operated by private players to ensure the efficient production and distribution of electricity.

However, such expansion by the private sector into the power generation sector has reduced the total price of electricity and intensified market competition in the power sector. The continuous supply of electricity has become crucial due to the improvements in the economic conditions of the region. The increase in private participation in the power transmission and distribution (T and D) market may result in higher investments in T and D networks in the region, especially in China, India, Pakistan, Australia, and Thailand, during the forecast period.

Market Dynamics and Customer Landscape

The market is driven by the increasing adoption of these systems such as wind, solar, hydropower, geothermal, and biomass. As the production and distribution of renewable power rise, integration into existing electrical infrastructure becomes crucial. Challenges include mitigating carbon impact and ensuring sustainability. Moreover, expanding power grid infrastructure and transmission routes to remote and rural areas pose challenges. Trends include the demand for distribution transformers, dry-type transformers, and 5 MVA to 100 MVA transformers to support hydropower and other renewable sources in diverse applications. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Drivers of the Market

Modernization of existing transformers by smart grid systems is notably driving market growth. The market is experiencing significant growth due to the increasing installation of new transformers and the replacement of outdated systems. With much of the T&D infrastructure globally in need of renovation to meet growing power demands, both replacement and expansion are crucial. In India, government funding through programs like APDRP supports state electricity boards in reducing losses. Similarly, in Russia, utilities like Chelyabenergo are upgrading substations, replacing old transformers with newer, higher capacity models. These initiatives are anticipated to drive demand for renewable power transformers across regions.

Additionally, the adoption of smart grid networks is on the rise globally, ensuring efficient, sustainable, and secure electricity delivery. Smart grid technologies optimize power transmission, with utilities increasingly focusing on installing more power transformers for effective power transmission. These factors are expected to fuel the growth of the market in the forecast period.

Significance Challenges of Market

The declining cost of solar PV modules is a significant challenge hindering market growth. Since the past decade, there has been a rise in the generation of power using solar PV. Solar PV has become one of the inexpensive sources of electricity generation, owing to factors such as an increase in the scale of production of components and intense competition among vendors in the value chain of the global solar power market. Ongoing developments in fuel storage systems are driving the use of solar power. As the cost of solar PV modules falls, there could be an increase in distributed solar installations, such as rooftop solar systems. While decentralization of fuel generation can benefit consumers and contribute to renewable fuel goals, it may result in lower investments in centralized grid infrastructure, such as transformers.

Moreover, subsidies and incentives such as FiTs and renewable portfolio standards provided by several governments are encouraging residential and commercial consumers to install solar PV. These factors are expected to increase the adoption of solar PV power, which is a major alternative to wind power, during the forecast period. Hence, a decline in the levelized cost of electricity (LCOE) of solar PV across the world will hamper the growth of the market during the forecast period.

Market Customer Landscape

The market forecasting research 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 and forecasting strategies.

Customer Landscape

Major Market Companies

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.

Bharat Heavy Electricals Ltd. - The company offers transformers for renewable energy, such as NIT 54578 and NIT 54603 power transformers for solar projects.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• CG Power and Industrial Solutions Ltd.
• Daihen Corp.
• Eaton Corp. Plc
• ENERCON GmbH
• Esennar Transformers Pvt. Ltd.
• General Electric Co.
• Hitachi Ltd.
• LC Magnetics Inc.
• Marsons Energy Pvt. Ltd.
• Northern Transformer Corp.
• Rajasthan Powergen Transformer Pvt. Ltd.
• S.E.A. Societa Elettromeccanica Arzignanese S.p.A.
• Schneider Electric SE
• Siemens AG
• STC Inc.
• Synergy Transformers Pvt. Ltd.
• TESLA TRANSFORMERS GLOBAL Pvt. Ltd.
• Voltamp Transformers Ltd.
• Westrafo Srl

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.

Segment Overview

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 2018 to 2028.  

• Application Outlook
  • Solar PV
  • Wind farm

•  Indication Outlook
  • Dry insulation
  • Liquid immersed insulation
  Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview 

The market is witnessing robust growth, driven by initiatives from organizations like the International Renewable Energy Agency (IRENA) to enhance global renewable energy capacity and combat climate change. With a focus on green energy and reducing greenhouse gas emissions, solar power plants and other green energy projects are on the rise across industries, healthcare facilities, educational institutions, and transportation sectors. This surge in renewable energy installations, especially in urban areas and emerging markets, necessitates dependable electrical supply and bidirectional power transmission facilitated by specialized transformers. However, challenges persist, including voltage demands, load profiles, and environmental circumstances affecting performance optimization and production costs.

Further, materials like copper, aluminum, and insulating materials are vital for transformer construction, particularly in severe weather conditions and remote locations. Adoption of renewable technologies and distributed systems is vital for reducing carbon footprints and reliance on fossil fuels, enhancing regional air quality, and addressing environmental issues. Standardization, technological advancements, and computerization initiatives aid construction advancement, but population growth poses challenges. The market emphasizes competence, employee training, and adherence to climatic conditions, while hydropower generation and capacity continue to play a significant role in the renewable energy landscape.

Market Scope
Report Coverage	Details
Page number	168
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.65%
Market Growth 2024-2028	USD 3.44 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.27
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 72%
Key countries	US, China, India, Japan, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Bharat Heavy Electricals Ltd., CG Power and Industrial Solutions Ltd., Daihen Corp., Eaton Corp. Plc, ENERCON GmbH, Esennar Transformers Pvt. Ltd., General Electric Co., Hitachi Ltd., LC Magnetics Inc., Marsons Energy Pvt. Ltd., Northern Transformer Corp., Rajasthan Powergen Transformer Pvt. Ltd., S.E.A. Societa Elettromeccanica Arzignanese S.p.A., Schneider Electric SE, Siemens AG, STC Inc., Synergy Transformers Pvt. Ltd., TESLA TRANSFORMERS GLOBAL Pvt. Ltd., Voltamp Transformers Ltd., and Westrafo Srl
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 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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