Global Smart Transformers Market Size, Share, and COVID-19 Impact Analysis, By Type (Power, Distribution), By Application (Smart Grid, Traction Locomotive, Electric Vehicle Charging, Others), and by Region (North America, Europe, Asia-Pacific, South America, Middle East and Africa) Analysis and Forecast 2022-2030
KEY MARKET INSIGHTS
The smart transformers market was valued at US$ 1.9 Bn in 2021 and is projected to reach US$ 5.1 Bn by 2030, at a CAGR of 12.1%. A smart transformer is a device that acts as a buffer between the electricity grid and external systems such as residences and businesses. To serve the electrical system, these devices have enhanced capabilities and capability.
The global production of alternative energy, the digitalization of power utilities, and massive investment in smart grids and energy systems are all driving the smart transformer market forward. These transformers are frequently used to adjust voltage and maintain contact with the smart grid, allowing for power system administration from afar. Increased investment in establishing and upgrading the smart grid, as well as the growing trend of digitization in the power industry, are driving market expansion.
The global smart transformers market is negatively impacted with the outbreak of COVID-19. The COVID-19 crisis is affecting industries all around the world, and the global economy is expected to be hit the most in 2020 and 2021. The COVID-19 outbreak has wreaked havoc on the critical smart transformer supply chain, including microchips. Furthermore, the pandemic in 2020 reduced electricity use, affecting electricity distribution businesses' earnings and project funding. Governments have implemented rigorous laws to preserve safe environments in all manufacturing businesses, thus the market is projected to rise once the COVID-19 situation has been resolved. Wireless charging is widely used in the xx and automobile industries at the moment.
Increasing Rate of Adoption of Smart Transformers Across Different Applications
The key driving factor for this market is the increasing adoption of smart transformers in different industries are likely to propel the growth of the global smart transformers market. Most electronic devices, such as smartphones, laptops, wearable electronics, and portable devices, require wireless power transfer. Rising digitalization in power sector is likely to boost device longevity is expected to propel the smart transformers market to major growth. In addition, the Internet of Things (IoT) is gaining traction and is being referred to be the third wave of type. The growing popularity of the IoT market is likely to generate opportunities for market expansion.
Surging Urbanization and Digitalization Around the World
The demand for digitization and infrastructure advancement, such as smart lighting, smart streets, and bullet trains. This has boosted the use of power transmission type, enabling power transmission vendors and framework makers all over the world to build effective products and arrangements. The sector is being catalyzed by advances in digitization by implementing smart grids with online components which will offer better opportunities for residential and commercial purposes. Operational proficiency and the reduction of electric misfortune are two of the unique features of wireless power transfer that are aiding its adoption.
Introduction of Electric Vehicles Favoring the Market Growth
The increasing adoption of electric vehicles are propelling the global smart transformers market. For improved production activities, efficient information exchange between different units in industries is critical. With the use of IoT and IP networks, it allows manufacturers to better comprehend the process of converting raw materials into completed commodities. The smart transformers market is expected to grow throughout the forecast period with the rising sales of electric vehicles (EVs).
High Costs Associated with Implementing Smart Transformers Hampering the Market Growth
The high cost of implementing smart transformer are likely to hamper the growth of the global smart transformers market due to the high equipment cost of smart transformers is a key impediment to their implementation. These transformers, on the other hand, provide dependability, harmonics suppression, and power factor enhancement, all of which are important in making the overall energy system efficient, productive, and cost-effective. Furthermore, because of their capacity to survive adverse weather conditions, smart transformers are becoming less popular. However, the market's growth is expected to be hampered by the high-cost type for its integration and slower charging compared to alternative charging technologies.
The global smart transformers market is segmented by Type (Power & Distribution), by Application (Smart Grid, Traction Locomotive, Electric Vehicle Charging & Others), and region. Based on the type, the market is categorized into power & distribution. Based on application, the market is categorized into the smart grid, traction locomotive, electric vehicle charging & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
Based on the type segment, the global smart transformers market is categorized into power and distribution. The distribution segment accounted largest market share in 2020 due to the enablement to power numerous devices from a single charge. The most adaptable smart transformers type, and used to charge electric cars, laptops, desktops, and vacuum cleaners. Increasing demand for distribution transformers is likely to drive the smart transformers market during the forecast period, owing to a growing emphasis on renewable energy generation around the world, as well as increased electrical infrastructure projects.
Based on the application segment, the global smart transformers market is categorized into the smart grid, traction locomotive, electric vehicle charging, and others. The smart grid segment accounted largest market share in 2020 due to the increasing projects of the smart city and developments regarding it. Smart meters will be used for end-user interactions, while smart transformers will be used in the network to improve communications and eliminate power outages.
The global smart transformers market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Asia Pacific is expected to dominate the market share of global smart transformers market owing to the investment in intelligent grid initiatives and enhancing grid stability are two major goals. As a result, including a transformer into a smart grid improves electricity quality and system stability. China Southern Power Grid, for example, aims to invest USD 105 billion in grid network building between 2021 and 2025. As a result, the regional market benefits from increasing intelligent grid investments and government initiatives.
For instance, in February 2022, government of Madhya Pradesh in India planned to develop and modernize its power network using EUR 140 million obtained from German bank KfW to deploy smart meters and smart grid technologies. The smart grid's modernization is expected to encompass all aspects of technology, including smart transformers. These investments are projected to help the industry grow in the future years. However, North America is anticipated to emerge as the fastest-growing region over the forecast period.
The market is driven by increasing need for grid strengthening and growing digitization in the power industry. The US holding held the largest share and is concentrating their efforts on extending, refurbishing, and replacing ageing grid infrastructure, which will help to enhance power quality, grid monitoring, and energy efficiency.
· Hitachi Energy Ltd
· Schneider Electric
· Mitsubishi Electric Corporation
· Ormazabal (Velatia, SL)
· CG Power and Industrial Solutions Limited
· Triad Magnetics
KEY INDUSTRY DEVELOPMENTS:
October 2021- Prolec GE has acquired SPX Corporation to expand its portfolio and to increase its customer base in America.
March 2021- Hitachi and ABB Power Grid have partnered up with Nanyang Technological University, Singapore (NTU Singapore) for a government leads smart grid project, which is a part of the Singapore Government Energy 2.0 initiative to shape and transform the grid system.
- Smart Grid
- Traction Locomotive
- Electric Vehicle Charging
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy
- Asia-Pacific- China, Japan, India
- Latin America- Brazil, Argentina, Colombia
- The Middle East and Africa- United Arab Emirates, Saudi Arabia