Rising demand for safer power distribution to fuel dry type transformer installations
Global Market Insights, Inc. has projected that global transformer market size will exceed $90 billion by 2026. Technological advancements in line with the changing tendency to replace the existing techniques of insulation has led to move towards environmental sustainability and more efficient transformers. There has been a wide adoption of dry-type distribution transformers as they tend to offer a high level of safety and reliability.
Amidst the growing world population, the demand for electricity has been experiencing a notable boom, consequently impacting global transformer market over the years. Transformers help transfer electricity with changing levels of voltage but no change in the frequency. The equipment enhance the safety and efficiency of the power systems by conveniently changing the voltage levels whenever needed.
Massive urbanization needs a large amount of electricity for end-uses such as large appliances, transport, machinery, ICT and space cooling, among others. In 2018, the U.S. had recorded about 38.5% of electricity consumption across the residential sector, followed by 36.2% in the commercial sector, 25.1% in the industrial sector and lastly, 0.2% for transportation.
There has been a massive investment in the development of infrastructure in the world, especially across the emerging nations. Continued urbanization has induced development in the residential and commercial sectors of the nations. Significant power requirement has secured investments from the government to enhance the existing grid infrastructure as well as introduce smart grids, influencing transformer industry trends.
China experienced an increase in the investments for energy efficiency of about 25% while the market for smart grid technologies grew at 34%. The country has been focused on its power sector and has been investing in the modernization of its electricity infrastructure. The State Grid Corporation of China had built the 12th Five-Year plan to boost investments for grids by 68%, especially within the ultra-high voltage transmission lines.
According to the U.S. Energy Information Administration (EIA), the operational and maintenance spending has doubled as the electricity distribution systems are in dire need of replacements and equipment upgrades. While investments in wire, fixtures and overhead poles have risen by 69%, expenditure on substation transformers and other equipment has increased by 35% over the last decade.
While the oil-type cooling transformers can be dangerous as they cause leakages and are explosive, dry-type power transformers are fire-resistive and are ideally suited for critical operations. This technology can be installed across the central areas as it reduces the power and voltage losses as well as is resistive to short circuits and surges. Notable investments for the development of smart grid infrastructure will generate consistent demand for dry-type transformers over the years.
Burgeoning environmental concerns against carbon dioxide emissions have forced the government to opt for alternative energy production. Increased emphasis on the use of renewable energy sources to harness solar and wind energy in order to produce electricity will transform the grid systems and fuel transformer industry forecast in the coming years. Several countries have adopted targets favorable for the incorporation of alternative energy systems that shall help increase the demand for adept transformers in transmission infrastructure.