The Power Transformer Industry Is Getting Influenced By The Need Of Smart Grid Technology

What does a power transformer do?

A power transformer is an electrical device that doesn't use any power itself but moves electricity from one multiple-circuit electric system to another. The power transformer industry is expected to grow as more money is put into the energy sector because of improvements in infrastructure. The main reason for the rise in demand for power transformers is the growing need for energy supply in developing countries due to infrastructure improvements. 

Also, the smart grid's promising projects have made power transformers more popular. To make power networks more modern and improve energy efficiency, the governments of emerging countries are putting in more advanced power transformers. This is expected to speed up the growth of the global power transformer industry. 

Voltamp Power's announcement 

Voltamp Power, a part of Voltamp Energy (Oman), said on October 27, 2022, that it would design, build, and test the GCC's first and largest 400kV, 500 MVA power transformers at its Sohar, Oman, site. This is a big step forward for the Omani power sector, which wants to reach its goals of self-sufficiency and internal security through high-precision engineering and technology and the 2040 vision. This will also make local governments and communities stronger and better at what they do. 

The high cost of power transformers over the long term is the biggest problem for the main market players. The three main raw materials needed to make a power transformer are copper, steel, and aluminum. The raw materials needed to make regular power distribution systems cost less than these. The rise in raw material prices could also hurt the growth of the power transformer industry. 

The power transformer industry from a geographic point of view 

There are four regions in the world for the power transformer industry: Asia-Pacific, North America, Europe, and the rest of the world. The Asia-Pacific region is expected to have the biggest market share over the projection period because it has a high CAGR. The developing countries in this area are always working to improve and update the current transmission and distribution infrastructure so that it can meet the demand for electricity. This region's growth in the global market is due to steady economic growth and the urgent need to make it easier for people to get electricity. 

The power transformer industry is also growing because more foreign companies are investing in big power plants and building infrastructure in China, Japan, and India. 

New ways to cut down on greenhouse gas emissions 

In the next few years, the major players in the market will probably have more opportunities because of the rise in demand and government efforts to help the smart grid grow. Because people are using more power in their homes, workplaces, and public spaces, governments are coming up with new ways to give people smart meters and smart grid technology. These technologies will help lower greenhouse gas emissions and make energy production more efficient. 

The effects of COVID-19 and what lies ahead 
The COVID-19 pandemic had an effect on many businesses, and the power transformer industry was no different. Independent Commodity Intelligence Services says that nuclear power will still be available in the EU because developed countries like the UK and Germany have safety measures and backup operations in place. This will probably be good for the market and will encourage the EU to make power supplies and send them to places like farmyards, isolated homes, and pumping stations. But the lockdown hurt the power distribution companies' finances. When the lockdown was announced, the need for power transformers in India dropped a lot. But the market is back on its feet now that the pandemic is over.