New Delhi, Aug. 07, 2024 (GLOBE NEWSWIRE) -- ASEAN power transformer market was valued at US$ 2,187.7 million in 2023 and is anticipated to reach valuation of US$ 4,300.8 million by 2032 at a CAGR of 7.8% during the forecast period 2024–2032.
The ASEAN region, encompassing ten Southeast Asian countries, is experiencing rapid economic growth that is significantly driving up power consumption. Energy consumption in Asia is expected to grow by 3.1% in 2024, with Southeast Asia projected to see robust annual electricity demand increases of 5% on average through 2026. This surge is primarily due to rapid urbanization and industrialization, which necessitate expanded and upgraded power infrastructure. Notably, energy consumption in the region grew from 1,200 TWh in 2010 to 2,100 TWh in 2020, underscoring the accelerating demand for electricity.
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Renewable energy integration is also a significant factor in the power transformer market, with ASEAN countries boasting over 28 GW of operating utility-scale solar and wind capacity, a 20% increase from the previous year. Combined solar and wind generation in the region has seen a dramatic rise from 4.2 TWh to 50 TWh between 2015 and 2022. To meet its renewable energy goals, the region needs to add an additional 10.7 GW of utility-scale projects. Vietnam leads with 19 GW of installed capacity, and the Philippines holds a substantial 99 GW of prospective solar and wind power capacity. Additionally, Thailand and Indonesia have set ambitious targets to achieve 30% and 23% renewable energy in their energy mix by 2030, respectively. These developments underline the essential role of grid modernization to accommodate variable and decentralized renewable energy sources.
Potential is Immense
The potential for power transformer market in ASEAN countries is immense, as highlighted by the projected market valuation of US$ 4,476.29 million by 2032. Investments in clean energy are expected to exceed $3.3 trillion in the next decade, with the Asia Pacific solar power market alone anticipated to reach US$ 2,738.9 billion by 2032, at a CAGR of 25.7%, says Astute Analytica’s recent report. Government initiatives, such as India's Production Linked Incentive (PLI) scheme and Japan's revamped feed-in tariff system, have played a pivotal role in the rapid success of the solar industry. However, challenges such as supply chain risks for critical raw materials and regulatory compliance must be addressed to sustain this growth. The region's push for energy storage solutions, including a projected 15 GW of battery storage capacity by 2030, further emphasizes the demand for robust power infrastructure.
Technological advancements in power transformer design and manufacturing processes enhance efficiency, reliability, and performance, further driving market demand. Innovations such as high-voltage direct current (HVDC) transformers and smart grid technologies are pivotal for managing increased renewable energy integration. The integration of renewable energy sources necessitates grid modernization, creating substantial opportunities for power transformer manufacturers. Strong government support, significant investments in clean energy, and the need for sustainable power infrastructure underscore the potential for robust growth in the ASEAN power transformer market, positioning the region as a critical player in the global energy transition. Additionally, the ASEAN countries are expected to collectively achieve a renewable energy share of 23% by 2025, reinforcing the region's commitment to a sustainable energy future.
Key Findings in ASEAN Power Transformer Market
| Market Forecast (2032) | US$ 4,300.8 Million |
| CAGR | 7.8% |
| By Transformer Type | Three Phase Transformer (86.4%) |
| By Cooling Technique | Oil-immersed (59.3%) |
| By Equipment | Transformer (70.8%) |
| By Insulation Material | Transformer Oil (45.1%) |
| By Voltage | 101 MVA to 500 MVA (37.2%) |
| By Industry | Electricity (70.4%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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From Grid Stability to Renewable Integration, Transformers Emerged as Key Equipment in ASEAN Power Transformer Market, Capture Over 70.8% Market Share
The dominance of transformers in the power transformer industry can be attributed to several key factors, primarily revolving around their critical role in energy efficiency, grid stability, and the growing demand for renewable energy integration. In 2024, the global transformer market is projected to reach $78.3 billion, representing a compound annual growth rate (CAGR) of 6.2% from 2020. This growth is driven by the increasing need for electricity worldwide, anticipated to rise by 3% annually, with the International Energy Agency (IEA) predicting a 50% increase in electricity demand by 2040.
Transformers are pivotal in minimizing energy losses during transmission and distribution. For instance, high-efficiency transformers can reduce losses by up to 40%, making them essential for sustainable energy management. The transition to smart grids is also fueling power transformer market demand, with smart grid technology investments expected to hit $61 billion by 2024. This is crucial for handling the intermittent nature of renewable energy sources like wind and solar, which are set to account for 30% of global electricity generation by 2030, up from 10% in 2020.
Additionally, urbanization and industrialization are accelerating transformer deployment. Approximately 68% of the global population is projected to live in urban areas by 2050, up from 55% in 2018, necessitating robust and reliable power infrastructure. Transformers are integral to this infrastructure, as evident from the increasing installation of high-voltage transformers, expected to see a 7.5% CAGR through 2024. Moreover, the rise in electric vehicle (EV) adoption, with sales predicted to exceed 40 million units annually by 2030, further underscores the importance of transformers in supporting fast-charging stations and grid stability. Consequently, transformers are not just a cornerstone of current electrical systems but are also indispensable for future advancements in energy distribution and sustainability.
Electrifying Progress: The ASEAN Surge in Three-Phase Transformer Demand Generates Over 86.4% Revenue in Power Transformer Market
Three-phase transformers are experiencing a significant rise in demand across ASEAN countries, driven by rapid urbanization and industrialization. ASEAN's urban population is expected to reach 47% by 2025, necessitating enhanced power distribution networks. Manufacturing output in the region is growing at 3.5% annually, increasing the need for efficient power systems. Over $2 trillion is committed to infrastructure projects by 2030, with significant allocations to power infrastructure. Electricity consumption in ASEAN is expected to rise by 4.7% annually until 2030.
The push for renewable energy, with ASEAN aiming for 23% of its primary energy from renewables by 2025, requires advanced transformers for grid stability. The region's GDP is forecasted to grow at an average rate of 5.2% annually, driving energy demand, giving a boost to the power transformer market. Favorable government policies and incentives for modernizing power grids boost the adoption of three-phase transformers. Industries require high reliability, with three-phase systems offering better power quality and efficiency. Growing urban centers need robust power systems; three-phase transformers are ideal for dense urban environments and are up to 15% more efficient than single-phase counterparts, providing long-term operational savings due to reduced energy losses.
Technological advancements enhance performance and reduce maintenance costs, with the transformer segment capturing a substantial 86.4% market share in 2023. ASEAN's smart grid market is set to reach $13.2 billion by 2024, with three-phase transformers as a backbone. Increased automation in industries necessitates reliable three-phase power systems. EV adoption is expected to increase by 30% annually, requiring robust charging infrastructure. Enhancing energy security through resilient and efficient power distribution systems, efforts to electrify rural areas with reliable power solutions, and better resilience against extreme weather conditions all contribute to the growing demand for three-phase transformers in ASEAN.
Oil-Immersed Cooling Technique to Shine Bright in ASEAN Power Transformer Market Thanks to Rapid Urbanization, Industrial Growth, and Infrastructure Investments
The ASEAN region, with its burgeoning infrastructure and rapid industrialization, has embraced oil-immersed cooling techniques as the primary choice for power transformers due to renowned for their superior cooling efficiency. A recent study revealed that 82% of power transformers in ASEAN countries use oil-immersed cooling due to its ability to dissipate heat more effectively compared to dry-type counterparts. This efficiency is crucial in tropical climates where ambient temperatures regularly exceed 30°C. In line with this, the technique accounts for over 59.3% market share. Additionally, the maintenance cost for oil-immersed transformers is 25% lower than for dry-type transformers, making them a cost-effective solution for long-term operations.
The reliability and longevity of oil-immersed transformers are significant considerations in ASEAN power transformer market. In 2024, it was reported that oil-immersed transformers have a lifespan of up to 40 years, compared to 25 years for dry-type transformers. This extended lifespan, coupled with an average failure rate of just 0.2% per year, makes them a dependable choice for power grids across ASEAN nations. Moreover, the ability to handle higher loads without overheating (as evidenced by a 15% higher load capacity) ensures continuous and stable power supply, which is critical for the region's economic growth.
Apart from this, the technological advancements and regulatory support in ASEAN countries further bolster the adoption of oil-immersed cooling techniques. The latest data indicates that 70% of new transformer installations in the region are equipped with enhanced oil-immersed cooling systems. Government incentives and subsidies for energy-efficient technologies have also played a role, with 65% of ASEAN countries offering financial benefits for adopting oil-immersed transformers. These factors collectively underscore why oil-immersed cooling remains the dominant choice for power transformers in the ASEAN region.
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Indonesia's Power Landscape: A Surge in Solar and Transformer Demand to Keep Its Dominance Intact Across ASEAN Power Transformer Market, Poised to Grow at CAGR of 9.7%
Indonesia's power consumption and production have seen significant changes over the years, driven by a combination of rising demand and a strategic shift towards renewable energy. The country's electricity consumption reached 256.74 billion kWh annually, with a production capacity of 280 billion kWh, indicating a robust energy infrastructure. However, the reliance on fossil fuels remains high, accounting for 82.3% of the total energy mix. The government has ambitious plans to increase renewable energy's share, aiming for 23% by 2025 and 31% by 2050, primarily through solar and geothermal sources. This shift is crucial as Indonesia's electricity demand is expected to triple by 2040, driven by the industrial and household sectors.
Solar energy is at the forefront of Indonesia's renewable energy strategy. The country plans to install 264.6 GW of solar capacity by 2050, with solar expected to surpass natural gas and coal in energy generation by the mid-2040s. As of the first half of 2023, Indonesia's power transformer market witnessed solar capacity reaching 322.6 MW, marking an 800% increase over the past decade. The government has set a target of 6.5 GW by 2025 and 45 GW by 2050, reflecting a strong commitment to solar energy. The recent Just Energy Transition Partnership (JETP) aims to mobilize $20 billion to support this transition. Despite these efforts, the current installed capacity is still a fraction of the potential, with significant room for growth.
Indonesia's status as the largest power transformer consumer in ASEAN is linked to its extensive electrification efforts and industrial growth. The country has made significant strides in extending electricity access, reducing the number of people without access from 100 million in 2000 to 23 million in 2016. This expansion, coupled with the need to support a growing industrial sector, has driven the demand for power transformers. Additionally, Indonesia's position as the largest economy in Southeast Asia and its active participation in global economic forums like the G20 and ASEAN power transformer market further underscore its substantial energy needs. The government's focus on renewable energy and infrastructure development is expected to sustain this demand, ensuring a steady growth trajectory for the power sector.
ASEAN Power Transformer Market Key Players
- CG Power and Industrial Solutions Ltd.
- Siemens AG
- Schneider Electric SE
- TBEA Co. Ltd.
- EMCO Ltd.
- Kirloskar Electric Co. Ltd.
- Toshiba Corporation
- Hitachi Ltd.
- Bharat Heavy Electricals Ltd.
- General Electric Company
- Other Prominent Players
Key Segmentation:
By Type
- Single-phase Transformer
- Three-phase Transformer
By Equipment
- Transformers
- Switchgear
- GIS
- Drive Products (inverters, motors)
- Control equipment (DCS, PLC)
- Disk (LV, MV disk)
- Others
By Cooling Technique
- Dry Type
- Self Air
- Air Blast
- Oil Immersed
- Self-Cooled
- Water Cooled
- Forced Oil
- Others
By Insulation Material
- Transformer oil
- Electrical grade paper
- Pressboard
- Wood and insulated wood
- Insulating tape
- Phenolic laminated paper base sheet
- Phenolic laminated cotton fabric sheet
- Others
By Voltage
- < 100 MVA
- 101 MVA to 500 MVA
- 501 MVA to 800 MVA
- 800 MVA
By Industry
- Petrochemical
- Electricity
- Semiconductor
- Data Center
- Metal & Mining
- Steel
- Nonferrous
- Construction (Cement)
- Others
By Country
- Thailand
- Singapore
- Vietnam
- Indonesia
- Malaysia
- Philippines
- Cambodia
- Rest of ASEAN
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