COVID-19 Impact on the Transformer Monitoring System Market
The spread of the COVID-19 pandemic has negatively impacted the global transformer monitoring system market owing to the lockdowns imposed in the majority of the countries across the globe since December 2019. A transformer monitoring system is defined as an assembly of connected components that senses and monitors various parameters like current, voltage, temperature, and possibly the phase angle of a ground transformer, which are vital to its functionality. The battery backup located inside the system prevents system failure if the power is out. The demand for transformer monitoring systems has risen due to the increasing number of power grid networks and the rapid installation of power transformers. Transformer monitoring systems are commonly used in chemical plant industries, mining, radio circuits, and switching power supplies. The demand for these products has been interrupted due to the temporary shutting down of businesses in recent months. However, several countries’ efforts to restore their economic conditions, coupled with the numerous advantages offered by these products is anticipated to boost the product demand in the coming years.
FIGURE: GLOBAL NEW INVESTMENT IN CLEAN ENERGY, 2006-2019 (USD BILLION)
The major factors driving the growth of the global transformer monitoring system market include rising investments in the renewable energy sector. According to Bloomberg New Energy Finance (BNEF), the demand for electricity increased, as the global investment in clean technologies reached USD 138.2 billion in 2018. This rise in the demand for electricity is driving the growth of the transformer monitoring system market. Countries across the globe are shifting their focus on renewable power generation. For instance, the Chinese government aimed at spending USD 360 billion on renewable energy by 2020, leading to an increase in the demand for transformer monitoring systems in the country. Increasing access to electricity in developing countries is expected to propel the growth of the transformer monitoring system market in the next few years. Governments around the globe are taking initiatives to develop smart cities for conserving energy, which is also projected to drive the market growth for transformer monitoring systems. According to Bloomberg NEF, the global electricity demand would reach around 38,700 terawatt-hours by 2050 from 25,000 terawatt-hours in 2017, driving new investments in the power sector, which is expected to increase the demand for transformer monitoring systems.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary Sources