New York, Feb. 23, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Transformers Global Market Report 2023" - https://www.reportlinker.com/p06248554/?utm_source=GNW
The global transformer market will grow from $82.22 billion in 2022 to $89.05 billion in 2023 at a compound annual growth rate (CAGR) of 8.3%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The transformer market is expected to grow to $117.73 billion in 2027 at a CAGR of 7.2%.
The transformers market consists of sales of low-rated transformers and high-rated transformers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers.The value of goods in this market includes related services sold by the creators of the goods.
A transformer transfers energy from one circuit to another. Transformers increase or decrease voltage and current levels, increase or decrease capacitor value, prevent direct current from passing between two circuits, and isolate circuits.
The main types of transformers market are low-rated transformers and high-rated transformers.The low-rated transformer is transmitted to the receiving end.
This low voltage power if transmitted results in greater line current which is causing more line losses.The transformer types are power transformer and distribution transformer.
The phases are single-phase and three-phase. The applications are residential and commercial, utility and industrial.
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 countries.
For instance, in September 2021, The U.S. Department of Agriculture announced an investment of $ 464 million to build or improve renewable energy infrastructure to support rural communities. Moreover, in April 2021, according to the Ministry of New and Renewable Energy, the government of India, launched the "National Programme on High-Efficiency Solar PV Modules" Production Linked Incentive Scheme with a budget of Rs. 4,500 crores to support and encourage the production of high-efficiency solar PV module. Therefore, favorable government policies to increase electrification will positively impact the growth of the transformers market.
Instability in the 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 the 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 October 2021, the United States and the European Union reached an agreement on the lifting of US tariffs of 25 percent on imports of steel from the EU and 10 percent on imports of aluminum from the EU. The increase in prices leads to an increase in operating expenses thereby hampering the growth of the market.
The transformers market is moving towards the 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, the U.S. Department of Energy (DOE) invested a total of $20 million in funding for innovative research and development in artificial intelligence (A.I.) and machine learning. DOE’s Office of Electricity has selected eight projects to receive nearly $7 million in total to explore the use of big data, artificial intelligence, and machine learning technologies for improving existing knowledge and discovering new insights and tools for better grid operation and management. Companies should consider investing in technologies to produce smart transformers for commercial establishments.
In June 2020, Northern Transformer Corp, a Canada-based manufacturer of transformers acquired VRT Power for an undisclosed amount.Through this acquisition, Northern Transformer Corp aims to provide North American clients with unsurpassed local service, quality, and technology in the utility industry.
VRT Power is an Israel-based Manufacturer of electrical industrial power transformers.
The regions covered in the transformers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The countries covered in the transformers market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for a specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The transformers market research report is one of a series of new reports that provides transformers market statistics, including transformers industry global market size, regional shares, competitors with a transformers market share, detailed transformers market segments, market trends, and opportunities, and any further data you may need to thrive in the transformers industry. This transformers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
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