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Smart Transformers Market by Type (Power Transformers, Distribution Transformers, Instrument Transformers, and Others), End Users (Energy & Utilities, Oil & Gas, Mining & Steel, Transportation, and Others) & Geography - Global Forecast to 2031
Report ID: MRSE - 1041110 Pages: 200 Feb-2024 Formats*: PDF Category: Semiconductor and Electronics Delivery: 24 to 72 Hours Download Free Sample ReportThe Smart Transformers Market is projected to reach $3.16 billion by 2031, at a CAGR of 7.6% during the forecast period of 2024–2031. The growth of this market is driven by rising digitalization in power utilities and increasing investment in smart grids. In addition, the increasing focus on alternate power generation sources is expected to offer significant growth opportunities for the stakeholders in the smart transformers market. However, high capital & installment costs may restrain the market's growth. Furthermore, data privacy & security issues are expected to challenge the growth of the smart transformers market.
Smart grids are electricity networks that use digital technologies, sensors, and software to better match the supply and demand of electricity in real time while minimizing costs and maintaining the stability and reliability of the grid. One of the main components of a smart grid is the smart transformer: it consists of a transformer based on power electronic devices provided with efficient control and communication systems. It allows the electrical separation of low-voltage and medium-voltage grids as they act independently. In this way, it is possible to allow bidirectional power flows and improve the electric power quality of the system, filtering and mitigating disturbances such as flicker, sags, and harmonics flowing from one side to another of the smart transformer.
Smart grids co-ordinate the needs and capabilities of all generators, grid operators, end users, and electricity market stakeholders. It allows the operation of all parts of the system as efficiently as possible, minimizing costs and environmental impacts while maximizing system reliability, resilience, flexibility, and stability. The development of smart grids provides various advantages such as energy-saving through reducing consumption, reducing balancing costs, leveling the peak demand, accuracy in the electric bill, and other benefits.
This benefit makes the power transmission through the grid system more flexible and creates more opportunities for smart grids for both utilities and customers. Due to such economic and environmental benefits, several countries have announced substantial funding to modernize and digitalize their electricity grids. For instance, In October 2022, the European Commission adopted the Digitalising the Energy System - EU action plan. The Commission expects about USD 633 billion (EUR 584 billion) of investments in the European electricity grid by 2030, of which USD 184 billion (EUR 170 billion) would be for digitalization.
Smart Grid Grants increase the flexibility, efficiency, and reliability of the electric power system, with a particular focus on increasing the capacity of the transmission systems. Such an increase in investment for smart grid applications is expected to support the growth of the smart transformers market.
Recent investments in smart grid are as follows:
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Based on type, the global smart transformers market is broadly segmented into power transformers, distribution transformers, special application transformers, and instrument transformers. In 2024, the distribution transformers segment is expected to account for the largest share of the global smart transformers market. The large market share of this segment is attributed to factors such as an increase in the generation capacity of both conventional and non-renewable sources and the growing demand for upgrading aging infrastructure to increase grid reliability. The rising requirements for power from residential, industrial, and commercial sectors and increased development of energy projects also contribute to the segment’s large share.
Based on end users, the global smart transformers market is segmented into energy & utilities, automotive transportation, oil & gas, water treatment facilities, mining & steel, manufacturing, commercial & residential, transportation, and other end users. In 2024, the energy & utilities segment is expected to account for the largest share of the global smart transformers market. The large market share of this segment is attributed to the growing use of smart transformers for enhancing grid management, load balancing, and demand response capabilities. The increasing focus of utilities on intelligent asset management practices and the rising focus of the energy sector on alternative power generation sources also contribute to the large share of the segment.
In addition, the increasing focus on the development of IoT-based smart transformers by key players is also contributing to the large market share. For instance, in February 2023, TELAWNE POWER EQUIPMENTS PRIVATE LIMITED (India) launched an IoT-based smart transformer that aims to help reduce the maintenance costs of utilities.
Based on geography, the global smart transformers market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of the global smart transformers market. The large market share of the region is attributed to factors such as the growing focus of the region on the development of smart grids, and increased investment by countries to modernize and digitalize their electricity grids.
In addition, the growing focus of key players on the advanced development of transformers is also contributing to the large market share. For instance, in July 2021, Hitachi Energy Ltd. (Switzerland) (Formerly Hitachi ABB Power Grids), a global technology leader, and Nanyang Technological University (Singapore), a leading research-intensive university, worked together to advance developments in Solid State Transformer (SST) technology. The project is part of the Singapore Government’s flagship Energy Grid 2.0 initiative aimed at shaping the next-generation grid system and transforming how energy is managed by consolidating multiple energy sources into a single intelligent network that is more efficient, sustainable, and resilient.
Some of the key players operating in the global smart transformers market are Hitachi Energy Ltd. (Switzerland), Schneider Electric SE (Germany), General Electric Company (U.S.), Ormazabal (Spain), Hyosung Heavy Industries (South Korea), Efacec (Portugal), Siemens Energy AG (Germany), Eaton Corporation plc (U.K.), Mitsubishi Electric Corporation (Japan), Alstom SA (France), Wilson Transformers (Australia), Bharat Heavy Electricals Limited (India), CG Power & Industrial Solutions Ltd. (India), and Toshiba Corporation (Japan).
Particulars |
Details |
Number of Pages |
200 |
Format |
|
Forecast Period |
2024-2031 |
Base Year |
2023 |
CAGR |
7.6% |
Estimated Market Size (Value) |
$3.16 billion by 2031 |
Segments Covered |
By Type
By End Users
|
Countries Covered |
North America (U.S., Canada), Europe (Germany, France, U.K., Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Latin America, and the Middle East & Africa. |
Key Companies |
Hitachi Energy Ltd. (Switzerland), Schneider Electric SE (Germany), General Electric Company (U.S.), Ormazabal (Spain), Hyosung Heavy Industries (South Korea), Efacec (Portugal), Siemens Energy AG (Germany), Eaton Corporation plc (U.K.), Mitsubishi Electric Corporation (Japan), Alstom SA (France), Wilson Transformers (Australia), Bharat Heavy Electricals Limited (India), CG Power & Industrial Solutions Ltd. (India), and Toshiba Corporation (Japan) |
The smart transformers market is projected to reach $3.16 billion by 2031, at a CAGR of 7.6% during the forecast period.
In 2024, the distribution transformers segment is expected to account for the largest share of the global smart transformers market.
The growth of this market is driven by rising digitalization in power utilities and increasing investment in smart grids.
The key players operating in the smart transformers market are Hitachi Energy Ltd. (Switzerland), Schneider Electric SE (Germany), General Electric Company (U.S.), Ormazabal (Spain), Hyosung Heavy Industries (South Korea), Efacec (Portugal), Siemens Energy AG (Germany), Eaton Corporation plc (U.K.), Mitsubishi Electric Corporation (Japan), Alstom SA (France), Wilson Transformers (Australia), Bharat Heavy Electricals Limited (India), CG Power & Industrial Solutions Ltd. (India), and Toshiba Corporation (Japan).
Europe is projected to register the highest CAGR during the forecast period and offer significant growth opportunities for market players.
Published Date: Jul-2024
Published Date: Oct-2024
Published Date: Jun-2023
Published Date: Jun-2024
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