Large Power Transformers Market
Large Power Transformers Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020
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Large Power Transformers Market - Snapshot
Increased demand for electrical energy is forecasted to boost the global large power transformers market. A large power transformer or an LPT refers to a custom-built, large piece of equipment that is considered a vital component of the bulk transmission grid. It is due to the high cost and customized specifications, large power transformers are generally produced for extensive spare inventories nor are interchangeable with each other.
The global large power transformers market is forecasted to observe growth due to growing concern for environment. In addition, widening scope of application is expected to further bolster demand for large power transformers in near future.
Rising Demand from Several Industry Verticals is Expected to Shoot up Demand
Large power transformers find ample use in the process of power transmission and power generation, various consumer applications, and electro-intensive industrial applications. Applications of large power transformers can be broadly classified into the following
The industrial applications of large power transformers comprise paper and cement mills, substations and power generation, chemical plants, and mining. It also finds ample use in nuclear power plants, thermal power station, and hydel power stations.
Various factors such as rising concern for environment is expected to play an important role in the growth of the global large power transformers market in the years to come.
Global Large Power Transformers Market: Snapshot
Power transformers create a connection between electrical systems or networks of different voltages and further allow power exchange between them. Power transformers are extensively used for power transmission, power generation, electro-intensive industrial applications, and consumer applications. The rising electrification ratio in developing economies and developed economies is predicted to enhance the growth of the global large power transformers market in the next few years.
Environmental Benefits Offered by Large Power Transformers to Enhance Market Growth
According to the market research study by Transparency Market Research, in 2013, the global market for large power transformers was worth US$18.3 bn and is predicted to reach a value of US$18.3 bn by the end of 2020. The market is likely to register a promising 7.80% CAGR between 2014 and 2020. Furthermore, on the basis of volume, in 2013, the market stood at 11,223 units and is likely to reach 18,709 units by the end of 2020. The market is estimated to register a 7.70% CAGR between 2014 and 2020.
The favorable government rules and regulations for the production of green energy and power is considered as one of the major factors estimated to enhance the growth of the global large power transformers market in the coming few years. The rising environmental concerns related to the need for lower emissions and water conservation in both new and existing power plants is further predicted to accelerate the growth of the market in the near future. In addition to this, the growing focus on innovations and the advent of environmentally friendly products is estimated to support the growth of the market and generate potential growth opportunities for the market players in the next few years.
Asia Pacific to Register Strong Growth in Global Large Power Transformers Market
From a region outlook, the global large power transformers market has been categorized into Latin America, North America, Europe, Asia Pacific, and the Middle East and Africa. In the last few years, Asia Pacific led the market with a significant share and this region is expected to maintain its dominance in the coming few years. The increasing energy demand and the growing focus on technological advancements are the key factors that are predicted to enhance the growth of the Asia Pacific market in the near future. In addition to this, the presence of several new players is another major factor that is likely to accelerate the growth of the market in the coming few years. Furthermore, the Middle East and Africa is predicted to register a promising growth rate in the near future. Furthermore, Europe and North America are likely to observe a steady growth in the coming years, thanks to the rising upgradation initiatives.
The global market for large power transformers has been characterized by a high level of fragmentation, along with the presence of a large number of players operating worldwide. The rising focus of the leading players on technological advancements and innovations, which is predicted to enhance the growth of the overall market in the coming few years. In addition to this, the expansion of the product portfolio is expected to support the market growth in the near future. Some of the key players operating in the large power transformers market across the globe are TBEA Co. Ltd., Alstom SA, Siemens AG, Hyosung Power & Industrial Systems Performance Group, ABB Ltd., General Electric Co, Crompton Greaves Ltd., and Hyundai Heavy Industries Ltd.
Increasing Need for Electrification across Many Regions to Boost the Growth of the Large Power Transformers Market
The booming population numbers and the increasing need for electrical energy due to the same factor will prove to be a prominent growth generating aspect for the large power transformers market during the assessment period of 2014-2020. The rising urbanization and industrialization across various countries are also playing a major role in the growth of the large power transformers market.
- Large power transformers, abbreviated as LPTs are custom-built, large equipment that forms a critical component of the bulk transmission grid. They have large power capacities that help in seamless power generation and energy transmission functions. The benefits attached to these transformers will invite extensive growth prospects for the large power transformers market. The transformers are also segmented on the basis of power rating analysis mainly 100 MVA-500 MVA, 501 MVA-800 MVA, and 801 MVA-1200 MVA.
- The overwhelming utilization of renewable energy resources across a large number of countries and regions will serve as a growth-accelerating factor. Green energy has occupied a major place and is playing a significant role in terms of energy conservation. Thus, these aspects will add extra stars of growth.
- The expanding influence of electrification across many developing economies such as India and China will turn the tables of growth. The governments of these countries are undertaking novel initiatives and schemes that will ensure last-mile electrification. The Indian Government’s Pradhan Mantri Sahaj Bijli Har Ghar Yojana is a classic instance.
- The COVID-19 pandemic has completely changed the growth projections of numerous sectors and businesses around the world. The large power transformers market is no exception. The rising prevalence of the novel coronavirus transmission across various regions forced many countries to go into stricter lockdowns. These lockdowns led to the closure of diverse manufacturing units and factories. However, the easing of lockdown restrictions will bode well for the growth of the large power transformers market.
Large power transformers connect electrical networks or systems of different voltages to allow power exchange between them. Large power transformers are used for power generation, power transmission, electro-intensive industrial applications and consumer applications. The industrial applications include mining, paper and cement mills, chemical plants, substations and power generation. Various applications of large power transformers include hydel power station, thermal power station, and nuclear power plant among others.
This market research study analyzes the large power transformer market on a global level, and provides estimates in terms of volume (Unit shipment) and revenue (USD Billion) from 2013 to 2020. It recognizes the drivers and restraints affecting the industry and analyzes their impact over the forecast period. Moreover, it identifies the significant opportunities for market growth in the coming years.
The report segments the market on the basis of geography into North America, Europe, Asia Pacific, and Rest of the World (RoW), and estimated in terms of volume (Unit shipment) and revenue (USD Billion). In addition, the report segments the market based on power rating into 100 MVA to 500 MVA large power transformers, 501 MVA to 800 MVA large power transformers and 801 MVA to 1200 MVA large power transformers. Each power rating segment has also been estimated on the basis of geography in terms of volume (Unit shipment) and revenue (USD Billion).
Asia Pacific and Rest of the World economies are expected to be the most attractive and fastest growing regions. The growth of the global large power transformers market is attributed to the increasing demand for electricity in both the mature and emerging economies of the world. Increasing industrialization and modernization is enhancing the demand for large power transformers globally. Most widely used large power transformers globally are the segment with power rating 100 MVA to 500 MVA. This segment is expected to constantly dominate the global large power transformers market during the forecast period. large power transformers between the power ratings of 801 MVA and 1200 MVA are expected to be used for HVDC and UHVDC power generation in the Asia Pacific and Middle East regions on account of rising energy demands in these regions in the near future.
The governments across the world are undertaking initiatives to modernize the existing power grids and install technologically enhanced power transformers. The initiatives adopted by the European nations for the deployment of green transformers is also providing substantial positive shift to the global large power transformers market. However, the market also encounters certain economic restraints such as the volatility of the raw material prices in the international markets.
For better understanding of the global large power transformers market, we have given detailed analysis of the PESTLE and value chain. Moreover, a detailed Porter’s five forces analysis has been given for a better understanding of the intensity of competition present in the market. Furthermore, the study comprises of a market attractiveness analysis, where the applications are benchmarked based on their market scope, growth rate and general attractiveness. Awareness about the low carbon emission transformers is growing worldwide and offer growth opportunities in the future. Smart grids and smart networks are also enhancing the market opportunities for the large power transformers market during the forecast period.
The report provides company market share analysis of the various industry participants. Key players have also been profiled on the basis of company overview, financial overview, business strategies, SWOT analysis, and recent developments in the field of power transformers. Major market participants profiled in this report include ABB Ltd., Alstom SA, Crompton Greaves Ltd., Siemens AG, GE Co, Hyosung Power & Industrial Systems Performance Group, Hyundai Heavy Industries Co. Ltd., and TBEA Co. Ltd. among others.
Large Power Transformers Market: Power Rating Analysis
- 100 MVA to 500 MVA
- 501 MVA to 800 MVA
- 801 MVA to 1200 MVA
Large Power Transformers Market: Regional Analysis
- North America
- Asia Pacific