Smart Transformer Market

Smart Transformer Market Size (2024 - 2029):

The Global Smart Transformer Market is predicted to grow from US$ 2.41 billion in 2023 and is projected to reach a valuation of US$ 4.00 billion by 2029, at an annual expansion rate (CAGR) of 10.60% over the foreseen period 2024-2029.

Market Trends:

The smart transformer market is still nascent, but it has enormous expansion potential. Currently, the market is mainly driven by the rise of aging power distribution networks around the world. As part of development initiatives, governments in developing countries are making huge investments to expand the scope of electrification in different towns and cities. Smart transformers are employed in such projects, and therefore their implementation leads to market expansion. The smart transformer works independently to regulate voltage, maintain contact with the smart grid to allow remote access and provide feedback on a power supply system. The remote access provided by smart transformers saves users time and resources. A built-in intelligent transformer monitoring function improves reliability by monitoring critical components.

Market Drivers:

The worldwide smart transformer market is predicted to experience extraordinary expansion during the outlook period. The tremendous expansion of the electricity sector coupled with escalating population and rising call for energy has boosted the smart transformer market in various areas. The expansion is mainly attributed to the improvement of aging utility infrastructure, escalated investment in the industrial sector, and related government regulations that have improved the smart transformer market in several countries, which is predicted to continue in the future. The call for safer and more efficient power transmission, associated with environmental concerns about electricity production, has led to the development of numerous international and national regulations, such as the eco-design regulations of the European Commission, among others. These regulations are also boosting the global smart transformer market. The market is also positively influenced by the huge increase in the development of utility (transformer) and industrial infrastructure in emerging markets such as China and India, among others.

Market Restraints:

Access to affordable capital, cybersecurity, and data privacy are factors that hamper market expansion.

Market Opportunities:

The global smart transformer market is predicted to see a lot of developments during the foreseen period due to the incessant technological advances in the power sector related to the escalating call for power. The market is also likely to have a lot of expansion activity from well-established worldwide companies. Mergers and acquisitions activity is predicted to be observed over the foreseen period with various contracts and agreements between major contractors and governments around the world. The growing popularity of the electric vehicle market and the growing call for allied infrastructure will create lucrative expansion opportunities for this market during the foreseen period.

Market Challenges:

High initial investments can hamper market expansion during the foreseen period. Factors such as the high initial cost of installing electrical transformers and the lack of data for successful planning can limit business expansion.

Market Recent Developments:

• The Nepal Electricity Authority has made a decision to introduce a smart system to monitor its substations and transformers across the nation online. The Authority's energy skills department is installing the system in substations and large transformers throughout the country.(PowerTransformernews)

SMART TRANSFORMER MARKET REPORT COVERAGE:

Market Segmentation:

Smart Transformer Market - By Component:

• Converters
• Switches
• Transformers
• Hardware for Transformer Monitoring

Smart Transformer Market - By Type:

• Power
• Distribution
• Specialty
• Instrument

Based on the type, distribution transformers are predicted to be the fastest growing from 2022 - 2027. Distribution transformers are more efficient than power transformers because they are subject to load fluctuations and the risk of failure is greater.

Smart Transformer Market - By Application:

• Smart Grid
• Traction Locomotive
• Electric Vehicle Charging

Regarding the applications, the smart grid segment is predicted to be the largest market by 2026. One of the main uses of a smart transformer in smart grids is its role in integrating energy from the products distributed in the main network.

Market Regional Analysis:

The Smart Transformer Market includes are

• North America - U.S., Canada.

• Europe - The UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic & Rest of Europe.

• Asia Pacific - India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore & Rest of APAC.

• Latin America - Brazil, Mexico, Argentina, Chile & Rest of LATAM.

• Middle East & Africa - KSA, UAE, Israel, the rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, and the rest of MEA.

The Asia-Pacific region is moving towards clean energy on a large scale to efficiently meet its growing energy needs. India, China, and Singapore are among the potential expansion markets in the electricity and utility sectors. In addition, Asia-Pacific offered the highest potential returns for foreign direct investment and attracted 45% of all capital investment, worldwide, in 2019. Investment is predicted to increase in the modernization of infrastructure and urbanization of populations especially in developing economies like China and India is likely to boost the smart transformer market in Asia-Pacific. The Chinese market was by far the largest in the world in terms of infrastructure development in 2019. Escalated investment in smart grid and smart city technologies including automation of distribution networks, smart meters, and response systems to call in countries such as Japan, South Korea, and Australia would create opportunities for the smart transformer market.

Market Key Players:

The key players in the Global Smart Transformer Market market are

1. ABB Ltd. (Switzerland)
2. Siemens AG (Germany)
3. Schneider Electric SE (France)
4. Eaton Corporation plc (Ireland)
5. General Electric Company (U.S.)
6. Mitsubishi Electric Corporation (Japan)
7. Bharat Heavy Electricals Limited (India)
8. Crompton Greaves Ltd. (India)
9. Howard Industries. (U.S.)
10. SPX Transformer Solutions, Inc. (U.S.)
11. Alstom (France)
12. Ormazabal (Spain)