“Increasing government spending for power utilities along with growing energy demand will boost the market”
The global smart transformers market is growing proficiently, projected to grow at a CAGR of 14.9% during the expected period from 2025 to 2033, starting from US$ 15.1 Bn in 2020.
In view of raising the regional electrification index the ongoing preferences for the replacement of existing grid infrastructure is anticipated to fuel the global smart transformers market globally. Additionally, replacements of conventional single-phase power supply with upgraded three phase system networks by numerious utilities will further drive the product demand. As per the IEA in 2016, the global transmission and distribution (T&D) investments were valued for around US$ 260 billion, which was 14% higher compared to the statistics in 2015. Moreover, rising investments from public and private partnership will significantly cater demand-supply mismatch will completely stimulus the business dynamics. Favored government regulatory inclination, positive outlook for the establishment of sustainable energy mix will further boost up the market for smart transformer on a global scale.
Furthermore, grid integration along with adption for sustainable technologies is likely to leadvthe expansion of micro-grid networks, thereby fuel the product deployment in the up coming years. Several smart grid initiatives have been taken by numerous organizations like IEEE in order to upkeep the development of global distribution transformer market. For instance, in 2015, introduction of “Green Energy Corridor Project” by the Government of India (GoI) have proposed an total investment of around US$ 1 billion for the development of renewable energy transmission through a separate energy corridor network. The aforementioned factors are projected to drive the market for smart transformers over the forecast period.
“Rising demand for capacity utilization along with the implementation of government policies and schemes will drive the demand for distribution transformers globally”
Growing emphasis on renewable energy generation across the world, coupled with rising electrical infrastructure projects, is anticipated to drive the demand for distribution transformers in the coming years, which in turn will boost the smart transformers market globally. The smart transformers are being used in distribution grid to work independently for voltage regulation and monitoring while maintaining a connection with the smart grid. This enables the transfer of transformer information and supplied power to remote administration, thereby enabling a proper load management, resulting towards improved power quality and low power outages. Moreover, growing importance for renewable energy generation globally, coupled with increase in number of electrical infrastructure projects, is likely to propel the demand for distribution transformers over the forecast period, thereby boost the revenue growth for smart transformers.
For instance, Government of India is taking foremost steps in order to reinforce the power transmission and distribution network across the country and have undertaken initativeness like “UDAY Sceheme” for financial turn-around of power distribution companies. Additionally, the government has estimated an investment of around Rs. 146,000 crore.
“Dominance is led by rising power demand from residential and industrial communities coupled with intensifying utility investments to drive the market growth.”
The smart transformers market is expected to grow at a faster rate with holding a market share of around 43% in the Asia-Pacific region, particularly in Japan, China, and South Korea. Growing energy demand across the region and presence of emerging economies like Japan, China, India, and Singapore is likely to propel the demand for smart transformers across the region. Additionally, in 2019 the Asia-Pacific tempted a capital investment of around 45%, thereby leading a potential for foreign direct investment (FDI) ona global scale. Moreover, increasing investments for improving infrastructure and urbanizing populations, particularly in emerging economies like India and China, is anticipated to drive the market for smart transformers across the region. Furthermore, growing investments and developments for smart cities and grid technologies like installation of smart meters, distribution grid automation, and demand response systems in countries such as South Korea, Japan, and Australia would generate an ample prospects for the smart transformers market.
For instance, in 2020, India was among the third-largest electricity-generating nation which generates power from both renewable and conventional sources across the globe. India has made numerous key developments in improving the power accessibility and reliability in rural and urban societies through several government-led schemes such as “Power for All”, “Saubhagya Scheme”, “Integrated Power Development Scheme (IPDS)”, and many more. Moreover, deployment of renewable source of energy for power generation, electrification in remote localities becomes less expensive for the government of India.The aforementioned factors are projected to propel the revenue growth of smart transformers across the region.
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Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Smart Transformers market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2023-2033 |
| Base Year | 2024 |
| Forecast Period | 2025-2033 |
| Historical Year | 2023 |
| Unit | USD Million |
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Key questions answered in this report
