Allied Market Research published a report titled A Report on the Global Distribution Transformer Market by Product Type. Phase Type, Insulation Type, Power Rating, and End-Use Industry: Global Opportunity Analysis and Industry Forecast, 2024–2033 was published by Allied Marker Research. As per it, the global distribution transformer market which was valued at $25.2 billion in 2023, will most likely reach $47.5 billion by 2033. A CAGR of 6.6% from 2024 to 2033 is thereby anticipated.
Prominent factors of growth
There are numerous factors why the global distribution transformer market has gone on to experience progress; an increase in demand for electricity happens to be one of them. But, volatility within the raw material prices is likely to hinder the market growth to some extent, and apart from that, the adoption of smart grid technologies is also anticipated to offer remunerative opportunities when it comes to the expansion of the global distribution transformer market.
It is worth noting that the single-phase segment is anticipated to lead all across the forecast period.
When we talk of phase type, the three phase segment went on to have the highest market share in 2023. It accounted for almost two-thirds of the global distribution transformer market revenue and is most likely to keep its dominance the way it is all across the forecast period. In the case of a single-phase segment, it is the fastest-growing segment and is anticipated to grow with the CAGR of 6.8%. The single-phase distribution transformers, in backup power systems or standalone power systems, may as well be used in order to step down voltage from generators or also alternative energy sources in order to supply the single-phase loads.
The growth of underground vaults is anticipated to be faster throughout the forecast period.
When we talk about product type, the pad-mounted segment had the highest market share in 2023. As a matter of fact, it comprised over half of the distribution transformer market income. This, in all likelihood, is attributed to the fact that pad-mounted transformers get frequently used in areas where the underground distribution lines happen to be a common occurrence or where aesthetics as well as the space considerations go on to make the overhead lines less desirable. These happen to be often seen across residential neighborhoods, commercial areas, and even the industrial zones.
But the underground vault segment undoubtedly is the fastest-growing segment when it comes to the distribution transformer market by way of growing at a CAGR of 7.1%. The installation of distribution transformers within the underground vaults has to have a careful planning and coordination in tandem with other underground utilities such as water, sewer, and even the spread-out telecommunication lines. Proper insulation and also waterproofing are critical in order to prevent water ingress.
The 2,501 kVA to 10,000 kVA bracket went on to dominate the distribution transformer market in 2023.
When it comes to power rating, the 2,501 kVA to 10,000 kVA segment went on to hold the highest market share in 2023, comprising one-third of the market share, and is most likely to retain dominance all across the forecast period. The over 10,000 kVA segment has the title of being the fastest-growing segment and is anticipated to see growth with a CAGR of 7.2%. Distribution transformers with capacities greater than 10,000 kVA are used in HVDC transmission systems in order to convert the voltage between AC and DC when it comes to long-distance power transmission. Shopping malls, office buildings, and even other large commercial developments make use of high-capacity transformers to go ahead and distribute power efficiently across the facility.
Throughout the forecast period, the dry segment is expected to lead.
When we talk of insulation type, the immersed segment had the highest market share in 2023, comprising more than three-fifths of the worldwide distribution transformer market revenue, and is most likely to maintain its authority in the forecast period. The distribution transformers often happen to be immersed in the insulating oil, like mineral oil, which helps to cool transformer and even offers electrical insulation. The windings, along with the core of the transformer, get completely submerged in this oil. Apparently, the dry segment is the fastest-growing segment, which is most likely to grow at the CAGR of 6.9%.
The residential segment is most likely to lead the market all across the forecast period.
When it comes to the end-use industry, the residential segment can be regarded as the fastest growing segment in market growing at an effective and consistent CAGR of 7.4% throughout the forecast period. The industrial segment dominated the distribution transformer market, comprising almost half of the market share throughout the forecast period. The point is that industrial facilities often happen to have diverse power needs for machinery, heating, lighting, and other operations. Distribution transformers go on to disseminate power across numerous sections of the facility, thereby making sure of a stable and reliable electricity supply.
Asia-Pacific to be dominant until 2032.
When we talk of the region, Asia-Pacific will have the highest market share in revenue in 2022, comprising over one-third of the global distribution transformer market revenue, and is anticipated to dominate in terms of revenue all across the forecast timeframe. On the other hand, Asia-Pacific is also the fastest growing segment, which is all set to grow at a CAGR of 7.0% in the forecast period. When we talk of a particular country, it is China that has a massive demand for distribution transformers. The nation’s rapid industrialization and urbanization have, as a matter of fact, driven extensive investments in the electricity infrastructure, like distribution transformers. Japan, on the other hand, happens to have a well-established electricity infra wherein the distribution transformers play a crucial role in terms of delivering power throughout the residential, commercial, as well as industrial consumers. Japan has been focusing on modernizing the grid infrastructure to elevate efficiency and reliability.
Some of the major players mentioned within the flow of the report are Schneider Electric, ABB, Siemens, HD HYUNDAI ELECTRIC CO., LTD, Toshiba Corporation, Fuji Electric Co., Ltd., Lemi Trafo Jsc., and Padmavahini Transformers Private Limited.
There is indeed a detailed analysis of the above-mentioned major players in the global distribution transformer market. All of them have embraced distinct strategies like new product launches, expansion, collaborations, joint ventures, agreements, and also others in order to increase their market share and, at the same time, maintain dominant shares across varied regions.
