Lagos — The global power industry is witnessing significant growth, with the global power transformers market projected to reach $23.60 billion, and the distribution transformers market expected to hit $27.73 billion by 2028.
In 2023, the Asia-Pacific (APAC) region emerged as the market leader, fueled by heightened commercial activity in Southeast Asia and substantial asset demands in China and India, reveals GlobalData, a leading data and analytics company.
Grid development plans, renewable integration and reliability concerns over asset end-of-life are some of the common drivers of the market across various regions.
Bhavana Sri Pullagura, Senior Power Analyst at GlobalData, comments: “Policies, economic and social factors, and environmental concerns are prompting the utilization of technologies and techniques that support low-carbon power generation. New grid networks are being constructed to sustain the growing demand for power and upgrades are being undertaken to enhance grid adaptability to rapidly altering market conditions.”
Countries are witnessing growing demand for power, as a result of economic and social progress, which is driving capacity development programs. Renewable power generation is gaining prominence globally and is expected to rise further with the world moving towards the green generation.
Effective integration of these sources becomes critical for safe grid operations and thereby contributing to the transformers market. Furthermore, investments are being made to improve cross border interconnections for enhanced security and asset upgrades, propelling the market.
GlobalData’s latest report, “Transformers Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Key Players and Forecast, 2023-2028,” reveals that the APAC power transformers market reached $8.57 billion and is estimated to reach $12.74 billion in 2028. With the demand for power set to increase in the Middle East and Africa, the EMEA is estimated to be the fastest growing region, with a CAGR of 11.5%, over the forecast period.
With respect to the distribution transformers, APAC is estimated to be the largest and is estimated to reach $14.65 billion in 2028. Growth in the EMEA is likely to be at a CAGR of 8.7% over the forecast period and the Americas market is estimated to be growing at a CAGR of 4.8%.
Pullagura concludes: “There is a gradual expansion of generation capacities globally to sustain the growing demand of power. In the pursuit of sustainability, power generation sources are being realigned, placing a heightened emphasis on renewables. This shift is propelling the adoption of advanced transformers that meet stringent safety standards for grid maintenance. Additionally, inadequate infrastructure to support escalating power demands, shifts in power generation sources, thriving economies, insufficient power evacuation facilities, and increased use of distributed technologies in low voltage networks are all factors contributing to the emergence of viable transformer markets.”
