Global Smart Transformer Market - Growth, Trends, and Forecast (2018 - 2023)
Smart transformers play a managerial role in the electric distribution grid, by constantly regulating voltage and maintaining contact with the grid, allowing remote administration, if needed. The robust demand for smart grid technology and the increasing focus on on-load voltage regulation and efficient energy utilization are some of the major factors supporting the growth of the global smart transformers market. Moreover, transformer manufacturers and government bodies of various countries are investing millions of dollars in R&D, to build smart transformers. The conventional transformers were designed to deliver electricity in one direction. However, with the increasing adoption of the solar rooftop, the demand for two-way flow of electricity for monitoring and controlling of network characteristics in real time has driven the demand for smart transformers.
Growing Implementation of Smart Grids to Drive the Market
The demand for electricity is expected to double by 2060. To balance the demand-supply gap, governments across the globe are promoting demand response initiatives, utilizing smart grids and electricity storage techniques. The electricity grid and its infrastructure assets were initially designed to deliver electricity in one direction. However, with the exponential rise of interest and rate of adoption of distributed energy resources, such as solar power and wind, electricity operators are now promoting the use of smart transformers.
The global investment in smart grids reached USD 23.7 billion in 2017, a growth of 18% compared to 2016. However, most of the transformers installed are aging and need to be replaced in most of the countries undertaking smart grid initiatives, such as India and China, among others, and need to be replaced by smart transformers.
Europe to Witness Significant Growth
Being a mature market, the demand for smart transformers in Europe is primarily driven by the increasing replacement of aging power transmission and distribution (T&D) equipment. In addition, utilities are increasingly investing on automation and focusing on expanding and upgrading their substation infrastructure, to ensure system reliability and security and accommodate the burgeoning distributed energy resources (DER). Hence, transformers with connectivity and automation characteristics are increasingly being equipped, to make them smart.
The European smart grid market has a significant growth potential and is expected to cross USD 20 billion by 2020. The increasing installation of renewable energy across the region is a major boost to smart grid, and subsequently, for the increasing demand for smart transformers in the region.
Increasing Access to Electricity Augments Demand in India
In India, more than half a billion people have gained access to electricity since 2000, almost doubling the country’s electrification rate. Across the globe, the number of people without access to power was 1.1 billion in 2016, from 1.7 billion in 2000. Initiatives are being undertaken, to further decrease it to 674 million by 2030, with India reaching universal access well before the said timeframe. As a result, the increasing access to electricity creates a significant opportunity for the smart transformer market in the country. Moreover, in remote places, where the cost of installation of power grids can be high, it becomes comparatively less expensive for the government to deploy renewable energy sources for power generation and increase the electrification rate, thus propelling the market for distribution transformers in the country.
The major players include - ABB, WEG, Hammond Power Solutions Inc., CG Global, Eaton, General Electric, Mitsubishi Electric Power Products Inc. (MEPPI), amongst others.
Reasons to Purchase this Report
Current and future smart transformers market outlook in the developed and emerging markets.
Analyzing various perspectives of the market, with the help of Porter’s five forces analysis.
The segment that is expected to dominate the market.
The countries that are expected to witness the fastest growth during the forecast period.
Identify the latest developments, market shares, and strategies employed by the major market players.
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