Transformers Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global transformers market reached a value of about USD 31.1 billion. The industry is projected to grow at a CAGR of around 3.9% in the forecast period of 2022-2027 to reach a value of USD 38.9 billion by 2027.

The transformers industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is primarily propelled by the increasing demand for power and the rise in the population, and the worldwide disposition toward renewable-based power production and related alterations in the transmission structure. The key demand indicator in the industry report is the highest category spender by region — Asia Pacific.

Industry Definition and Segmentation

Transformers are electrical equipment that transmits electricity with different voltage levels from one circuit to another. As an increase in current leads to a rise in voltage levels, transformers are intended to deliver the desired voltage level by adjusting or stepping the voltages as required. The global warehousing services industry report comprises segments based on type (power and distribution), application (power, oil and gas, mining, metallurgy, and manufacturing) and regions (Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia-Pacific region holds the largest share in the industry due to rising electricity consumption in rural and semi-urban areas. Recently, many Asian countries have seen a steady growth of power distribution networks to access power-deprived populations and enhance existing power infrastructure in semi-urban areas. China and India have the most significant electricity demand. Due to the increased use of HVDC transmission projects decreases, transmission loss during long-distance transmission.

The market is primarily driven by the large-scale integration of renewable energy sources and increased electrification plans, notably in emerging nations. Furthermore, Government regulations that encourage the rehabilitation of existing grid infrastructure and growing consumer interest in smart monitoring devices and sustainable electrical networks will boost the market growth. Moreover, Due to the Increased regulatory attention to integrating energy-efficient electrical supply systems, the industry is set to witness growth in tandem with the fast deployment of innovative grid technologies.

However, factors such as volatility in raw material prices and lack of skilled personnel hamper the market's expansion.

Best Procurement Practices

The global transformers industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by transformers utilising regions across the globe, such as contract terms, engagement models, and buyer and supplier negotiation levers.

Category Management Studies

A transformer is a passive electrical device that uses electromagnetic induction to transmit electrical energy from one circuit to another. It's typically used to step up or down voltage levels between circuits. Electrical power can be exchanged between circuits via mutual induction between two or more windings (also known as coils).

The Rise in the Development of Micro Grid and Power Generation and Transmission Technologies are Further Drive the Procurement of Transformers

The industry is being aided by the surge in adoption and demand for more flexible electrical transformers due to the development of microgrids and energy utilities. Many applications in the electronics industry use 5V, 6V, 9V, 12V, 24V, and 48V in step-down transformers. Step-down transformers are also used extensively in the electrical industry. As microgrids and power systems develop in the electrical sector, so does the need for step-down transformers. Step-down transformers are used in extremely high voltage electrical distribution networks to ensure minimal loss and provide a cost-effective solution for long-distance power transmission. As a result, the industry is augmenting.

The key zones in the industry are Europe, North America, Latin America, the Asia Pacific, the Middle East and Africa.

Key Industry Players Mentioned in the Transformers Industry Report

• Siemens Energy
• Hyundai Electric & Energy Systems Co., Ltd.
• Toshiba
• General Electric
• TBEA

Market Landscape

The power transformer industry is expected to increase at a rapid rate. A robust business environment has emerged due to rising infrastructure expenditure and advantageous standards related to the renovation and growth of long-distance T&D networks. The growing use of high-rated power transformers in extensive solar and wind power facilities is expected to boost product demand and further market growth.

Key Initiatives by Companies

• In April 2021, French power distribution company Enedis awarded Imefy, a European pioneer in transformer production, a contract to provide Cast Resin Distribution Transformers. The deal was signed for the next three years, possibly extending it for another two years.
• In July 2021, GE Renewable Energy's grid solutions division received numerous orders from Power Grid Corporation of India Limited (PGCIL), India's biggest state-owned transmission company, to deliver 765 kV transformers and reactors. During the anticipated period, the contract will be in effect.