What is a power transformer?
A power transformer is a passive electrical device that moves electricity from one multiple-circuit electric system to another. The market growth of the power transformer industry is anticipated to be boosted by the increase in investments in the energy sector due to increased infrastructural developments. The primary driving force behind the surge in power transformer demand is the infrastructure-driven increase in demand for energy supply in developing nations.
Additionally, the encouraging initiatives for developing the smart grid have increased demand for power transformers. The governments of emerging nations are installing more sophisticated power transformers and promoting the modernization of the current power networks to increase energy efficiency and reduce losses, which are expected to accelerate the growth of the power transformer industry globally.
The announcement by Voltamp Power
On October 27, 2022, Voltamp Power, a division of Voltamp Energy (Oman), announced that the GCC's first and largest 400kV, 500 MVA power transformers would be designed, built, and built tested at its Sohar, Oman, site. This is a significant accomplishment for the Omani power sector, which with its high-precision engineering & technology and the 2040 vision, seeks to realize its self-sustainability and internal security goals. Additionally, this will improve and strengthen national capacities and competencies at the local level.
The main market obstacle is the long-term high cost associated with power transformers for the dominant market participants. Copper, steel, and aluminum are the three primary raw materials needed to make a power transformer. They are more expensive than the raw materials required to make conventional power distribution systems. Additionally, the expansion of the power transformer industry may be negatively impacted by the increase in raw material prices.
The geographic perspective of the power transformer industry
The global power transformer industry is divided into four regions: Asia-Pacific, North America, Europe, and the rest of the world. With a high CAGR, it is anticipated that the Asia-Pacific region will have the most significant market share over the projection period. The developing nations in this region are working continuously to update and improve the current transmission and distribution infrastructure to meet the electricity demand. Stable economic growth and the pressing need to improve access to electricity fuel this region's growth in the global market.
Additional causes for the advancement of the power transformer industry include the rise in foreign industry investments in large-scale power plants and infrastructure development in China, Japan, and India.
Innovations in cutting greenhouse gas emissions
In the coming years, there will likely be possibilities for the major market players due to the rise in demand and government initiatives to assist the development of the smart grid. Governments are introducing innovations to provide smart meters and smart grid technology to help cut greenhouse gas emissions and boost the effectiveness of energy production due to the increase in power use in homes, workplaces, and public spaces.
COVID-19 impact and the future scope
The COVID-19 pandemic impacted several businesses, and the power transformer industry is no exception. According to reports from Independent Commodity Intelligence Services, the availability of nuclear power in the EU will persist because developed nations like the UK and Germany have safety measures and backup operations to continue. This will likely positively impact the market and will encourage the EU to produce power supplies and distribute them to remote settlements like farmyards, isolated homes, and pumping stations. However, the lockdown phase financially impacted the power distribution firms. When the lockdown was announced, there was a significant drop in demand for power transformers in India. But after the pandemic, the market is back on its feet.