The United States power transformer market is expected to rise at a CAGR of more than 1.0% during 2020 - 2025. Factors such as modernization of transmission and distribution networks are expected to drive the market. However, decreasing electricity generation in the country is expected to restrain the growth of the market.
- Oil-insulated type is expected to be the largest segment in the forecast period due to its higher durability and flexible working parameters.
- Increasing advancements in the power transformers technology coupled with the use of Internet-of-things is expected to provide ample opportunity to the market players in the forecast period.
- The three-phase segment is expected to dominate the market due to its lower cost and higher usability relative to the other segment of the market.
Key Market Trends
Oil Insulated Segment to Dominate the Market
- Transformer oils are orders of magnitude better at cooling than ambient air. This allows oil-filled transformers to be smaller, lighter, and produce lower noise levels than dry-type transformers of equivalent power ratings. Oil-insulated transformers can be used where space is a significant constraint in the planning of the station. These advantages have made oil-filled power transformers the primary technology for today’s globally installed transformer market.
- Power transformers are generally used in the transmission network for stepping up or down the voltage level. It operates mainly during high or peak loads and has maximum efficiency at or near full load. Increasing renewables have developed the issue of high unreliability in the utility grid, which may directly hamper the working of the power transformer. However, new transformers with better ability to handle fluctuations are under research and development, and this is expected to aid the growth of the market.
- Increasing adoption of the smart grid is expected to reduce the power losses in transmission and distribution and increase the transformer longevity. Power transformer usually works at high voltage, and therefore the damage to the system in case of fluctuation may be much greater. Oil-insulated transformers have increased in the usage, and some companies are expected to put forward the next-generation digital power transformers, which are expected to aid the growth of the market.
- Electricity generation in the United States decreased by 1.3% to 4401.3 Terawatt-hours, in 2019 from 4457.4 Terawatt-hours, in 2018. The energy consumption is expected to increase in the forecast period and may aid the growth of the market.
- Hence, the Oil-insulated segment is expected to dominate the market in the forecast period due to the increase in energy consumption and advancements being made in the equipment.
Increasing Deployment of Three Phase Transformer to Drive the Demand
- The advantages provided by three-phase transformers are the requirement of less copper in the transformer, and hence, small space requirement compared to the output provided, fewer safety risks involved, lower labor cost for installation and maintenance of the transformers, better conductor efficiency that ensures lesser losses, and its ability to provide higher power load. Three-phase distribution transformers are generally used for applications with a power requirement of more than 1,000 kW. They find application in the industrial sector and the commercial industry, with substantial load requirements, such as data centers, and in apartments, where the cumulative load requirement of residents is high.
- With growing population density in urban areas, around the world, and the resultant space constraints, the housing sector is moving from independent houses to apartments. The growing share of apartment buildings in the housing industry, in urban areas, is expected to support the demand for three-phase distribution transformers during the forecast period.
- Air-insulated power transformers have gained appreciable market penetration subject to their safe & reliable operations and flexible product applications. The ability to avoid combustibility, environment-friendly operations, and limit the secondary effects of internal failure has enhanced product adoption. It allows complete integration of substation equipment with resultant space and cost savings, thereby fueling product penetration. This is expected to improve the reliability and aid in the growth of the market.
- In 2018, ABB Ltd launched the Ability Power Transformer solution. In addition to providing actionable intelligence at the local level, it is expected to enable users to leverage the full ecosystem of software solutions and services at the station and enterprise levels. In addition to enhancing efficiency and product life, the new digital capability will boost reliability and mitigate outages through preventative action. Advancements in technology are expected to aid the growth of the market.
- Primary energy consumption in the United States decreased by 1.0% to 94.65 exajoules, in 2019 from 95.60 exajoules, in 2018. The energy consumption is expected to increase further in the forecast period and may drive the United States Power Transformer Market.
- Hence, three-phase segments is expected to dominate the United States power transformer market due to the increase in the investments in systems related to the smart grid and increasing urbanization.
The United States power transformer market is partially fragmented. Some of the key players in this market include Hitachi Ltd., Kirloskar Electric Co. Ltd., Schneider Electric SA, Siemens AG, and Eaton Corporation Inc
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