New York, March 25, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Transformer Global Market Report 2022" - https://www.reportlinker.com/p06247451/?utm_source=GNW
The global transformer market is expected to grow from $75.89 billion in 2021 to $95.51 billion in 2022 at a compound annual growth rate (CAGR) of 25.9%.The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $220.40 billion in 2026 at a CAGR of 23.3%.
The transformers market consists of sales of transformers and related services which are used in manufacturing of power, distribution and specialty transformers.A transformer transfers energy form one circuit to another.
Transformers increase or decrease voltage and current level, increase or decrease capacitor value, prevent direct current from passing between two circuits and isolate circuits.
The main types of transformers are power transformer and distribution transformer.The power transformer is a type of transformer that is used to transfer electrical energy between the generator and the distribution primary circuits.
In distribution systems, these transformers are used to connect step up and step-down voltages. It is available as low rated transformer and high rated transformer that are used by utility, residential and commercial, industry end users.
Asia Pacific was the largest region in the transformers market in 2021.Western Europe was the second-largest region in the transformers market.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Favorable government policies to increase electrification will contribute to the growth of the transformers market in the forecast period.Countries around the world are implementing several initiatives to increase electrification across the countries.
For example, in 2019, the Indian government launched the ‘One Nation One Grid’, an initiative aimed at offering affordable power to all the states.These initiatives will increase the market for medium power transformers in the forecast period.
The increasing demand for medium, low and high-power transformers supported by favorable government initiatives will positively impact the growth of transformers market.
Instability in pricing of raw materials is a major restraint in the transformers manufacturing market.The instability is due to the volatility in the raw material prices of steel, copper, and crude oil.
Steel and copper are predominantly used in manufacture of transformers.Increased tariffs on raw materials such as steel and copper, increased the volatility of prices, thereby limiting the growth of the market for medium power transformers.
For instance, in February 2020, USA administration decided to raise tariffs on derivative steel and aluminum imports by 25% and 10%, respectively. The increase in prices leads to increase in operating expense thereby hampering the growth of the market.
Transformers market is moving towards evolution of independent and self-regulating smart transformers.Smart transformers are programmed to constantly regulate voltage and maintain contact with the stakeholders and provide information and feedback on the power supply.
They provide the exact amount of power that is needed and respond to fluctuations through a process known as voltage optimization.They significantly reduce greenhouse gas emissions and power consumption as they supply electrical equipment with the ideal amount of power.
For instance, in 2021, Hitachi ABB Power Grids has collaborated with Nanyang Technological University, Singapore (NTU Singapore) on a government-led smart grid development project.The two organizations will collaborate to advance developments in Solid State Transformer (SST) technology, led by the Energy Research Institute and supported by the National Research Foundation of Singapore.
The project is part of Singapore’s Energy Grid 2.0 initiative, which aims to shape the next-generation grid system and transform energy management by combining multiple energy sources into a single intelligent network that is more efficient, sustainable, and resilient.
In June 2019, Hitachi, Ltd., a Japan-based energy solution provider company acquired 80.1% of ABB’s power grids business for $11 billion. The acquisition was aimed to broaden the product portfolio of Hitachi, by combining ABB’s power grids, and to offer enhanced energy solutions globally. ABB is a Switzerland-based company that specializes in manufacturing power grids products such as power transformers.
The countries covered in the transformers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
Read the full report: https://www.reportlinker.com/p06247451/?utm_source=GNW
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