LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global power transformers market to grow at a CAGR of more than 7% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global power transformers market for 2017-2021. The global power transformers market can be segmented into liquid-immersed and dry-type, based on the type of insulating medium being used. The liquid-immersed segment accounted for more than 73% of the market share in 2016.
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global power transformers market:
- Modernization of existing transformers
- T&D expansion leading to increase in transformer installations
- Expansion in renewable power generation capacity
Modernization of existing transformers
Factors such as the increase in installation of new transformers and the replacement of old transformers with new ones are fueling the growth of the global power transformers market. Much of the T&D infrastructure globally needs renovation, mainly because the existing networks are unable to meet the growth in the demand for power. There is a need to replace the old systems with new ones as well as the need to expand the existing infrastructure.
“Smart grid networks are also being increasingly used in many countries. A smart grid refers to an electricity network that delivers an economical, sustainable, and secure electricity supply by intelligently integrating the actions of all users, whether they are consumers, generators, or those capable of both in an efficient manner,” says Gaurav Mohindru, a lead analyst at Technavio for unit operations research.
The use of innovative products and services along with intelligent metering, monitoring, control, communication, and self-healing technologies enables a smart grid system to perform a variety of roles. The use of smart grid systems has enabled utilities to focus on the installation of more power transformers for the effective transmission of electric power.
T&D expansion leading to increase in transformer installations
APAC is one of the regions that is undergoing far-reaching changes in many ways. Countries including China, Thailand, the Philippines, Vietnam, India, Japan, and Australia, are experiencing substantial economic growth along with industrial development and commercialization. Therefore, the demand for power in these countries is also increasing.
Industrial development has a direct impact on urbanization, which results in increased construction activities in the residential and commercial sectors. India has one of the fastest rates of urban development worldwide due to the rapid population growth and rising disposable incomes. China is also experiencing a similar urbanization trend.
“This has spurred activity among private and public power sector companies in many regions to commence projects of planned network capacity expansion which entails the setting up of several power stations, substations, and distribution stations. This will result in the need for more step-up and step-down power transformers,” says Gaurav.
Expansion in renewable power generation capacity
In 2014, China and the US each accounted for about one-fifth of the global power generation capacity. Most of the significant expansion activities are taking place in renewable energy. To meet stringent carbon emission goals and reduce the dependence on depleting fossil fuel resources, may countries are adopting renewable sources of energy like wind and solar.
Many end-users have embraced alternative forms of energy instead of depending on power generators that operate on fossil fuels. Solar power, wind power, and other forms of renewable energy are becoming increasingly popular among all categories of electricity end-users. In 2016, the total wind power installed across the European Union was 142 GW, as per Global Wind Energy Council (GWEC). Onshore installed capacity was approximate 92% while the remaining was based on offshore facilities.
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