Impact of COVID-19 on the Smart Transformers Market
The outbreak of COVID-19 has resulted in the reduction of industrial activities since the governments have enforced lockdowns to curb the spread of the pandemic. The global economy has been severely impacted due to these lockdowns. Industrial operations have come to a standstill, lowering the demand for power mainly from the industry verticals that have a high consumption of electricity to run industrial machinery. The lower demand has also resulted in a reduction in per-unit prices of electricity. The US has reported the largest fall in its consumption of electricity amidst the COVID-19 pandemic. In 2020 the consumption declined by 5.7% as compared to the year 2019. This fall is expected to hamper the growth of the smart transformers market due to the lowered demand from power distributors, which account for the largest share in the smart transformers market.
Figure: Electricity Consumption Forecast 2020, The U.S.
Power distribution companies are aiming at keeping their resources online, catering to healthcare institutions and pharmaceutical companies with uninterrupted power supply. Also, companies are being proactive in aiding society by postponing the collection of payments and providing complementary services to the unemployed. However, with certain relaxations as well as guidelines to operate during the current crisis, industries are gradually resuming operations following strict guidelines and best hygiene practices to prevent the spread of the virus and recover the losses incurred. Nonetheless, rapid advancements in the smart transformers industry are expected to boost market growth in the next few quarters.
Source: US Energy Information Administration
Source: Primary Experts, Secondary Sources, and MRFR Analysis