Power Transformer Market Research Report- Global Forecast to 2027

Global Power Transformer Market By Cooling Type (Oil-Cooled Transformer, Air-Cooled Transformer), By  Power Rating (Small Power, Medium Power, Large Power) - Global Forecast to 2027

ID: MRFR/E&P/2359-CR | August 2018 | Region: Global | 111 pages

Please note that the assessment period of report has been updated from 2018-2023 to 2020-2027.Cordially fill the sample form for updated data.

Impact of COVID-19 on the Global Power Transformer Market
Power Transformer Market


Source: Primary Experts, Secondary Sources, and MRFR Analysis


COVID-19 has had detrimental effects on the global economy as many industries have been affected by the current circumstances, and operations of various sectors have come to a standstill. The power industry is among the industries affected. As per the Independent Commodity Intelligence Services, the nuclear power availability in the EU is likely to remain consistent as several countries, including the UK and Germany, have announced safety measures to ensure the continuation of operations. This is expected to be helpful for the power transformer providers in the EU to generate power and distribute to the facilities outside settlements, such as isolated houses, farmyards, and pumping stations. However, the ongoing lockdown has impacted the financial health of power distribution companies. For instance, India's daily power demand has declined by 25 to 28% since the beginning of the nationwide lockdown, driven primarily by the factory and office closures in the commercial and industrial sectors. Power transformer companies would have to incur higher aggregate technical & commercial (AT&C) losses than the levels specified by regulators as the T&D losses incurred are higher than earlier.


FIGURE: US-ELECTRICITY GENERATION, 20152019 (TERAWATT-HOURS)
US-ELECTRICITY GENERATION


Source: Secondary Sources


However, the impact of the pandemic might affect the forecast for electricity generation in the US. For instance, the retail sales of electricity to the commercial sector to fall by 4.7% in 2020 as businesses have been closed and industrial sales to fall by 4.2% as factories cut back their production. This would ultimately affect the electrical power distribution and transmission through power transformers in the country. Moreover, in China, the industrial sector, which accounts for approximately two-thirds of China’s electricity consumption, led the demand drop. The sector recorded a 12% decrease in electricity consumption, which is also expected to affect electricity distribution in the country in the near future.

Global Power Transformer Market – Summary


With the advent of electricity, the meteoric rise of industrialization in the 20th century started. And every passing year, the bond between the two only grew stronger. The 21st century is no exception. Leaving a definitive mark on their charted course that holds promises of further prosperity, the two are moving ahead with a steadfast conviction. When it comes to electricity, power transformers act like a pillar and supports the demand for the former substantially across all industrial verticals. The market is such that scaling a valuation of USD 34,510.2 million during the forecast period (2018-2023) looks like a rather trouble-free possibility.


Infrastructural development can impact the global market significantly. The urgency to replace the older machines with the latest ones to reduce cost, minimalize carbon footprint, increase reliability, and enhance efficiency can be validated by the exigent demands generated by various industries. According to World Energy Investment Outlook Special Report, for the first time since the competition began, electricity has taken the driver’s seat forcing oil and gas in the back one. The Organisation for Economic Co-operation and Development (OECD) countries have spent almost USD 3 trillion on revamping the infrastructure and empowering it with sustainable power sources. From here on, the market is only going to witness a stellar growth with electric utilities spending USD 3.2 trillion in the coming decade to refurbish the traditional methods of transmission.   


On the other hand, renewable energies are gaining an unprecedented momentum as the global trend is now focusing much on reducing hazardous emissions. Solar and wind energies are the market favorites. As per the report from the UNEP-FS collaborating center, a total of 157 GW of renewable power was commissioned in 2017 of which solar energy is the most significant contributor and is accounted for 98 GW, or 38% of the net added power capacity. Power transformers play an integral part by connecting high-quality renewables and other lower-carbon resources far from load centers. This can widen up the market possibilities for the power transformers.


However, high initial cost of power transformers can be considered a market deterrent. The initial cost and its lifetime running cost do not corroborate with the operational life of the transformers.


Industry Trend


Research and development are inspiring installation of the latest techniques that are taking the market forward and is assisting in the maintenance of social compliances. For instance, in April 2018, ABB Ltd. launched ABB Ability Power Transformer, which is first of its kind integrated solution for digitally enabled power transformers.


In March 2017, Siemens AG supplied power transformers of 405/20-kV 570- MVA capacity to EDF for promoting power generated from the high capacity nuclear power plants.


Segmentation


By type, the market can be segmented into oil-cooled transformer and air-cooled transformer. Being a good electrical insulator, oil is getting the privilege of ruling the market for now and the coming years with the fastest CAGR.


Based on power rating, the market includes small power, medium power, and large power. Small power transformers have 100 MVA-500 MVA capacity and are an ideal solution for standard applications including substations. Substations, to support domestic and commercial needs, install small power transformers, subsequently spurring the growth of the segment. However, large transformers of 800 MVA and above are expected to grow with the fastest CAGR during the forecast period. Major manufacturers are opting for the large ones to meet the infrastructural demand requirements. 


Regional Analysis


Region-specific segmentation of the market covers North America, Europe, Asia Pacific (APAC), and Rest-of-the-World (RoW).


The APAC is spearheading the segment driven by the continuous need to update and upgrade existing transmission and distribution infrastructure to substantiate the growing demand for electricity. At present, the market has command over 42.76% of the global share. This act as a strong influencer and can help the market maintain its current position in the foreseeable future with a robust CAGR. According to the Asian Development Bank, the region needs USD 1.7 trillion a year to develop the infrastructure that includes transmission and distribution. China has crossed other countries in terms of investment as it is now actively increasing the high voltage electricity transmission to expand the electricity output to its coastal load centers.


Europe assumes the second spot with Germany in charge of the region. Various initiatives of the country have affirmed a refurbishment of the grids to achieve stability. The country has also implemented favorable regulations that are leading to robust infrastructural development.  


Market Competitors


Burgeoning urbanization and industrialization have given rise to the demand for transformers in various sectors. In 2017, the global consumption of electricity went high up to 22,015 TWh and according to International Energy Agency, World Energy Outlook 2017, it has the potential to expand at a phenomenal rate of 30% by 2040. Furthermore, the aging infrastructure of transmission and distribution network needs overhauling for smooth operations of the transmission network. Various government initiatives to put up new power generation plants, mostly non-conventional plants, can speed up the growth of the transformer market during the forecast period.


The global market is getting operated by ABB Ltd, Siemens AG, Schneider Electric, Mitsubishi Electric Corporation, Toshiba Corporation, Crompton Greaves Ltd., Bharat Heavy Electricals Limited, SPX Transformer Solutions, Inc., Hyosung Power & Industrial Solutions, SGB-SMIT Group, Hyundai Electric & Energy Systems Co., Ltd, and others.

1 Executive Summary

2 Market Introduction

2.1 Definition 15

2.2 Scope Of The Study 15

2.3 List Of Assumptions 15

2.4 Market Structure 16

3 Research Methodology

3.1 Research Process 18

3.2 Primary Research 18

3.3 Secondary Research 18

3.4 Market Size Estimation 18

3.5 Forecast Model 19

4 Market Dynamics

4.1 Introduction 21

4.2 Drivers 22

4.2.1 Rise In Transmission And Distribution Infrastructure Investments 22

4.2.2 Growth In Renewable Energy Sector 22

4.2.3 Drivers Impact Analysis 23

4.3 Restraints 24

4.3.1 High Initial Costs Of Power Transformer 24

4.3.2 Service Interruption Due To The Losses 24

4.3.3 Restraints Impact Analysis 25

4.4 Opportunity 25

4.4.1 Global Rise In Electricity Demand 25

5 Market Factor Analysis

5.1 Supply Chain Analysis 27

5.1.1 Raw Material Suppliers 27

5.1.2 Manufactures & Assemblers 27

5.1.3 End User 27

5.2 Porter’s Five Forces Model 28

5.2.1 Threat Of New Entrants 28

5.2.2 Bargaining Power Of Suppliers 28

5.2.3 Bargaining Power Of Buyers 28

5.2.4 Threat Of Substitutes 29

5.2.5 Intensity Of Rivalry 29

6 Global Power Transformer Market, By Cooling Type

6.1 Overview 31

6.1.1 Oil-Cooled Transformer 31

6.1.2 Air-Cooled Transformer 31

7 Global Power Transformer Market, By Power Rating

7.1 Overview 34

7.1.1 Small Power 34

7.1.2 Medium Power 34

7.1.3 Large Power 34

8 Global Power Transformer Market, By Region

8.1 Introduction 37

8.2 North America 38

8.2.1 U.S. 40

8.2.2 Canada 41

8.3 Europe 42

8.3.1 Germany 44

8.3.2 U.K 45

8.3.3 Russia 46

8.3.4 France 47

8.3.5 Rest Of Europe 48

8.4 Asia-Pacific 49

8.4.1 China 51

8.4.2 India 52

8.4.3 Japan 53

8.4.4 Rest Of Asia-Pacific 54

8.5 Rest Of The World 55

8.5.1 Latin America 57

8.5.2 Middle East 58

8.5.3 Africa 59

9 Competitive Landscape

9.1 Competitive Landscape 61

10 Company Profile

10.1 ABB Ltd. 64

10.1.1 Company Overview 64

10.1.2 Financial Overview 65

10.1.3 Products Offerings 66

10.1.4 Key Developments 66

10.1.5 SWOT Analysis 67

10.1.6 Key Strategy 67

10.2 Schneider Electric SE 68

10.2.1 Company Overview 68

10.2.2 Financial Overview 68

10.2.3 Products Offerings 69

10.2.4 Key Developments 69

10.2.5 SWOT Analysis 69

10.2.6 Key Strategy 69

10.3 Siemens AG 70

10.3.1 Company Overview 70

10.3.2 Financial Overview 70

10.3.3 Products Offerings 71

10.3.4 Key Developments 71

10.3.5 SWOT Analysis 71

10.3.6 Key Strategy 71

10.4 Crompton Greaves Ltd. 72

10.4.1 Company Overview 72

10.4.2 Financial Overview 73

10.4.3 Products Offerings 73

10.4.4 Key Developments 74

10.4.5 SWOT Analysis 74

10.4.6 Key Strategy 74

10.5 Mitsubishi Electric Corporation 75

10.5.1 Company Overview 75

10.5.2 Financial Overview 76

10.5.3 Products Offerings 76

10.5.4 Key Developments 76

10.5.5 SWOT Analysis 77

10.5.6 Key Strategy 77

10.6 Toshiba Corporation 78

10.6.1 Company Overview 78

10.6.2 Financial Overview 78

10.6.3 Products Offerings 79

10.6.4 Key Developments 79

10.6.5 SWOT Analysis 79

10.6.6 Key Strategy 79

10.7 Bharat Heavy Electricals Limited 80

10.7.1 Company Overview 80

10.7.2 Financial Overview 80

10.7.3 Products Offerings 81

10.7.4 Key Developments 81

10.7.5 SWOT Analysis 81

10.7.6 Key Strategy 81

10.8 Hyosung Power & Industrial Solutions 82

10.8.1 Company Overview 82

10.8.2 Financial Overview 82

10.8.3 Products Offerings 82

10.8.4 Key Developments 82

10.8.5 SWOT Analysis 82

10.8.6 Key Strategy 83

10.9 SPX Transformer Solutions, Inc. 84

10.9.1 Company Overview 84

10.9.2 Financial Overview 84

10.9.3 Products Offerings 85

10.9.4 Key Developments 85

10.9.5 SWOT Analysis 85

10.9.6 Key Strategy 85

10.10 SGB-SMIT Group 86

10.10.1 Company Overview 86

10.10.2 Financial Overview 86

10.10.3 Product Offerings 86

10.10.4 Key Developments 86

10.10.5 SWOT ANALYSIS 87

10.10.6 Key Strategy 87

10.11 Hyundai Electric & Energy Systems Co., Ltd. 88

10.11.1 Company Overview 88

10.11.2 Financial Overview 88

10.11.3 Product Offerings 88

10.11.4 Key Developments 89

10.11.5 SWOT ANALYSIS 89

10.11.6 Key Strategy 89

11 List Of Tables

TABLE 1 MARKET SYNOPSIS 13

TABLE 2 LIST OF ASSUMPTIONS 15

TABLE 3 GLOBAL POWER TRANSFORMER MARKET, BY COOLING TYPE, 2016–2023 (USD MILLION) 32

TABLE 4 GLOBAL POWER TRANSFORMER MARKET, BY POWER RATING, 2016–2023 (USD MILLION) 35

TABLE 5 GLOBAL POWER TRANSFORMER MARKET, BY REGION, 2020-2027 (USD MILLION) 37

TABLE 6 NORTH AMERICA: POWER TRANSFORMER MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 38

TABLE 7 NORTH AMERICA: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 39

TABLE 8 NORTH AMERICA: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 39

TABLE 9 U.S.: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 40

TABLE 10 U.S.: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 40

TABLE 11 CANADA: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 41

TABLE 12 CANADA: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 41

TABLE 13 EUROPE: POWER TRANSFORMER MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 42

TABLE 14 EUROPE: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 43

TABLE 15 EUROPE: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 43

TABLE 16 GERMANY: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 44

TABLE 17 GERMANY: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 44

TABLE 18 U.K: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 45

TABLE 19 U.K: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 45

TABLE 20 RUSSIA: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 46

TABLE 21 RUSSIA: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 46

TABLE 22 FRANCE: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 47

TABLE 23 FRANCE: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 47

TABLE 24 REST OF EUROPE: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 48

TABLE 25 REST OF EUROPE: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 48

TABLE 26 ASIA-PACIFIC: POWER TRANSFORMER MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 49

TABLE 27 ASIA-PACIFIC: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 50

TABLE 28 ASIA-PACIFIC: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 50

TABLE 29 CHINA: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 51

TABLE 30 CHINA: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 51

TABLE 31 INDIA: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 52

TABLE 32 INDIA: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 52

TABLE 33 JAPAN: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 53

TABLE 34 JAPAN: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 53

TABLE 35 REST OF ASIA-PACIFIC: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 54

TABLE 36 REST OF ASIA-PACIFIC: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 54

TABLE 37 REST OF THE WORLD: POWER TRANSFORMER MARKET, BY REGION, 2020-2027 (USD MILLION) 55

TABLE 38 REST OF THE WORLD: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 56

TABLE 39 REST OF THE WORLD: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 56

TABLE 40 LATIN AMERICA: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 57

TABLE 41 LATIN AMERICA: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 57

TABLE 42 MIDDLE EAST: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 58

TABLE 43 MIDDLE EAST: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION) 58

TABLE 44 AFRICA: POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020-2027 (USD MILLION) 59

TABLE 45 AFRICA: POWER TRANSFORMER MARKET, BY POWER RATING, 2020-2027 (USD MILLION)

12 List Of Figures

FIGURE 1 RESEARCH PROCESS OF MRFR 18

FIGURE 2 TOP DOWN & BOTTOM UP APPROACH 19

FIGURE 3 DRIVERS, RESTRAINTS, AND OPPORTUNITY OF GLOBAL TRANSFORMER MARKET 21

FIGURE 4 DRIVERS IMPACT ANALYSIS: POWER TRANSFORMER MARKET 23

FIGURE 5 RESTRAINTS IMPACT ANALYSIS: POWER TRANSFORMER MARKET 25

FIGURE 6 VALUE CHAIN: POWER TRANSFORMER MARKET 27

FIGURE 7 PORTER'S FIVE FORCES ANALYSIS OF THE GLOBAL POWER TRANSFORMER MARKET 28

FIGURE 8 GLOBAL POWER TRANSFORMER MARKET, BY COOLING TYPE, 2020 (IN %) 32

FIGURE 9 GLOBAL POWER TRANSFORMER MARKET, BY POWER RATING, 2020 (IN %) 35

FIGURE 10 GLOBAL POWER TRANSFORMER MARKET SHARE, BY REGION, 2020 (% SHARE) 37

FIGURE 11 NORTH AMERICA: POWER TRANSFORMER MARKET SHARE, BY COUNTRY, 2020 (IN %) 38

FIGURE 12 EUROPE: POWER TRANSFORMER MARKET SHARE, BY COUNTRY, 2020 (IN %) 42

FIGURE 13 ASIA-PACIFIC: POWER TRANSFORMER MARKET SHARE, BY COUNTRY, 2020 (IN %) 49

FIGURE 14 REST OF THE WORLD: POWER TRANSFORMER MARKET SHARE, BY REGION, 2020 (IN %) 55

FIGURE 15 BENCHMARKING OF MAJOR COMPETITORS 61

FIGURE 16 MAJOR MANUFACTURER MARKET SHARE ANALYSIS, 2020 (IN %) 62

Global Power Transformer Market: Competitive Landscape


ABB Ltd, Siemens AG, Schneider Electric, Mitsubishi Electric Corporation, and Toshiba Corporation. collectively accounted for more than 41.75% of the market share of the global power transformer market in 2017. These companies continue to retain their strong global presence through expansions followed by the partnerships and collaborations.


ABB Ltd. held the largest market share of 12.05%. ABB Ltd. is a pioneering technology leader that works closely with utility, industry, transport, and infrastructure customers. The company has its operations in four segments, namely, electrification products, robotics and motion, industrial automation, and power grids. Under electrification products, ABB manufactures and sells products and services including electric vehicle charging, solar inverters, modular substation packages, switchgear, UPS solutions, circuit breakers, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions designed to integrate and automate the lighting, heating and ventilation, and security and data communication networks. In April 2018, ABB announced the launch of ABB Ability Power Transformer, which is the world’s first integrated solution for digitally enabled power transformers. Besides, the company announced that all the power transformers manufactured by the company will be digitally automated. The company has intentions to lead in terms of technology in all its products.


Siemens AG held a market share of 10.76%. Siemens AG is an industrial conglomerate that operates power and gas, wind and renewables, power generation, energy management, building technologies, mobility, digital factory, process industries and drives, finance, healthcare, and real estate sectors. It offers power generation products for utilities, independent power producers, and industrial customers, as well as engineering, procurement, construction customers; operates onshore and offshore wind power projects; and installs hydropower plants. The company also provides factory/field support, maintenance, repair, replacements, and modernizations and upgrade services; high-voltage and medium-voltage switchgear and devices, energy automation products, transformers, low-voltage power distribution products, and smart grid products; and fire safety, security, building automation, and energy management products, as well as heating, ventilation, and air conditioning products. In addition, it offers mobility management, projects and electrification, mainline transport, and customer services; urban transport products; automation systems, industrial controls, industrial communication products, power supplies, operator control and monitoring systems, industry software, PC based automation, motion control, online support services, and more; and drive technology, integrated drive technology, process automation, and more.


Schneider Electric is a leading company in the digital transformation of energy management and automation in homes, buildings, data centers, infrastructure. The company is a complete power and automation solution provider for many end-use industries including oil and gas, mining, minerals, and metals, water and wastewater, cloud and service providers, and healthcare. Schneider Electric offers products for residential & small business, building automation & control, low voltage products & systems, solar & energy storage, access to energy, medium voltage distribution and grid automation, critical power, cooling & racks, industrial automation & control and software. The company offers a wide range of power transmission and distribution equipment, which include power and distribution transformers. The power transformers offered by the company are of low and medium power rating and cast resin transformers, and control power transformers.


Mitsubishi Electric Corporation is a diversified company with presence in more than 100 countries. The company is a leading manufacturer and seller of electric and electronic equipment that seek applications from energy and electric systems, industrial automation, information and communication systems, electronic devices, and home appliances. The business operations of the company are developing, manufacturing, distributing, and sales of power and electronic equipment, worldwide. Mitsubishi offers a wide range of products for energy and power systems, which include nuclear power plant, turbine generators, and power electronics equipment such as circuit breakers, switch control, motors, transformers, gas insulated switches and display devices and particle therapy systems. Mitsubishi offers a large variety of transmission and distribution transformers such as generator step-up transformers, autotransformers, transformers for slim rectifiers, substation transformers for factories, gas-insulated transformers, and traction transformers. The company earns its revenue predominantly from Asia-Pacific, where the company has 168 offices.


Toshiba Corporation, together with its subsidiaries, manufactures and markets electronic and electrical products and systems worldwide. It operates through six segments namely energy systems and solutions, infrastructure systems and solutions, retail and printing solutions, storage and electronic devices solutions, and industrial ICT solutions. Toshiba pioneered in development of transformers in Japan, introducing the first commercially successful unit in 1894. To satisfy the ever-increasing electricity demand, transmission voltages and capacity are continuously increasing with Toshiba at the forefront of producing transformers to meet these requirements ever since the early stages. In fact, Toshiba broke the previous Japanese high-voltage-capacity record with the development and commercialization of an 800kV transformer.


The global power transformer market is characterized by the presence of many global, regional, and local players. The market is highly competitive with all the players competing to gain market share. Intense competition, rapid advances in technology are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and aftermarket service. It is crucial for the vendors to provide cost-efficient and high-quality power transformer, in order to survive and succeed in an intensely competitive market environment.