Distribution transformer consumption to escalate with increasing demand for dry-type transformers
The global distribution transformer market is poised to register appreciable gains over the coming years. This can be ascribed to the rising adoption of dry-type transformers as these are cumbersome and oil-free and decrease the level of fire hazards.
The installation of dry-type transformers help in the reduction of investment in the prevention of fires and also saves civil construction and corresponding disaster prevention investment. In addition, as these transformers have no problem of oil leakage, the strain of distribution transformer maintenance is considerably reduced.
Driven by these factors, the distribution transformer market size is slated to exceed USD 30 billion by 2024.
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This growth is attributed to the surging investment initiatives towards the development of long-distance power supply networks in North America. The demand for different types of distribution transformers is propelled by the rising focus of regulatory bodies towards the replacement of old electrical equipment with advanced high-quality systems.
The distribution transformer industry is further witnessing an escalated demand for oil-immersed transformers with continuous advancements in the field of science and technology. These transformers have a corrugated fuel tank, and the cold shrinkage and thermal expansion of transformer oil could be adjusted via the elasticity of the corrugated sheet. The sheet is isolated from the air and resolves the issue of oil leakage.
Rising digital transformer demand to positively influence product penetration
Digital transformers help enterprises in monitoring, collection, and analysis of data trends and major parameters that assist in evaluating the health of the power system and transformers. They also provide visibility of assets and operations to businesses, which allows them to take the required maintenance and preventive measures at the right time for the prevention of downtime.
Speaking on the similar lines, in October 2020, Hitachi ABB Power Grids accepted an order for the TXpert Enabled digital distribution transformer from Kuwait Steel’s Rolling Mill-1. Such developments are set to propel the business landscape in the ensuing years.
Mounting strategic expansion moves by industry players
Prominent distribution transformer manufacturers are focused on the adoption of strategic initiatives such as mergers, acquisitions, and collaborations for reinforcing their position in the industry. Few instances of the same are as follows:
· In September 2021, the Lagos State Government inked a MoA (Memorandum of Agreement) with Ikeja Electric and Sahara Power Group for extending the electricity supply to all communities in the state. The agreement indicated the commencement of the Lagos’ Light up Project, that entails targeted investments in the upgrades of distribution transformers and feeders, and the metering of consumers.
· In March 2021, Siemens Energy, a prominent distribution transformer manufacturer, announced its plans of installing 22 distribution transformer units at Yuhuan Offshore Wind Power Project Phase 1, which is China’s first commercial 66 kV offshore wind farm.
· In May 2020, Hyundai Electric & Energy Systems secured two contracts in Saudi Arabia having an overall value of $28.6 million for supplying gas insulated switchgears and power transformers to oil company Saudi Aramco and the state utilities firm Saudi Electricity Company.
Similar advancements coupled with significant R&D investment initiatives are expected to augment the demand for distribution transformers across various regions.
In a nutshell, the rising number of product development programs by leading industry participants will impel distribution transformer market expansion over the projected period.
