The Special Transformer market is estimated to be valued at US$ 2.61 Mn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Special transformers are commonly known as distribution transformers, power transformers, instrument transformers or rectifier transformers. They are specially designed transformers used in applications requiring unique performance characteristics. They are used in power generation, transmission and distribution systems to step up or step down voltages and transmit electric power efficiently over long distances. They are also used in industrial sectors such as oil & gas, mining, steel manufacturing etc. The increasing demand for power globally is expected to drive the demand for special transformers over the forecast period.
Market Dynamics:
The key factors expected to drive growth of the special transformer market include growing investments in transmission and distribution infrastructure projects globally. According to the United Nations Environment Programme (UNEP), over $13 trillion needs to be invested in electricity generation, transmission and distribution infrastructure globally by 2030. Furthermore, increasing production of renewable power such as solar and wind energy will also necessitate installation of special transformers for step up/step down of voltages. For instance, higher capacity step up transformers are required to efficiently transmit power from offshore wind farms located away from coast. The growing demand for electricity from industrialization is also expected to contribute to market growth over the forecast period. Additionally, the replacement of aging power infrastructure in developed economies presents new opportunities for special transformer manufacturers. However, volatility in raw material prices may hamper market growth over the forecast period.
SWOT Analysis
Strength: The special transformer market provides customized solutions to the customers which is a key strength. The transformers are designed as per the unique requirements of applications which helps companies to attract customers. Many manufacturers have strong research and development capabilities which allow them to deliver innovative transformer solutions.
Weakness: The development and manufacturing process of special transformers is complex and requires high technical expertise which increases the cost. The maintenance of these transformers also involves significant expenses. Due to customized nature, scaling up the production is challenging for manufacturers.
Opportunity: Rising focus on renewable energy generation especially wind and solar energy is creating demand for special transformers. These transformers help in effective power transmission from renewable energy sources. Modernization of existing power infrastructure in developing nations also offers scope for special transformer manufacturers.
Threats: Presence of local and low cost manufacturers especially in Asia Pacific region poses pricing pressure challenge for established players. Stringent environmental regulations regarding energy efficiency and reduction in carbon footprint may require modifications in transformer designing and manufacturing.
Key Takeaways
The global special transformer market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing investments in upgrading aging power infrastructure and expansion of renewable energy sector. Modernization of grids along with commissioning of new power generation facilities will drive the demand for special transformers that can efficiently transmit electricity over long distances and varying voltages.
Regional analysis
Asia Pacific dominates the global special transformer market and is expected to maintain its leading position during the forecast period. This is attributed to huge investments by governments in nations such as China and India to expand and refurbish their power networks. Rapid industrialization and growing need for stable power supply from various end-use industries also boost the adoption of special transformers in the region. Other promising markets include North America and Europe owing to ongoing efforts to integrate renewable power with conventional grids through investments in smart grids and energy storage technologies.
Key players
Key players operating in the special transformer market are Mitsubishi Electric Corporation, Sunten Electric Equipment Co., Ltd., Siemens Ltd., Alstom, Schneider Electric, ABB, Wolong Electric Group Co.,Ltd., Toshiba India Pvt. Ltd., TBEA India, Baoding Tianwei Group, Wuzhou Transformer Co., Ltd., and Jinan XD Special Transformer Co.,Ltd. The special transformer manufacturers are focusing on new product launches and strengthening