“Global Oil Immersed Power Transformer Market to reach a market value of USD 31.5 Billion by 2030 growing at a CAGR of 6.1%”
The Global Oil Immersed Power Transformer Market size is expected to reach $31.5 billion by 2030, rising at a market growth of 6.1% CAGR during the forecast period.
Governments and utilities in North America are undertaking grid modernization initiatives to enhance power systems' reliability, efficiency, and resilience. As part of these initiatives, there is an increased focus on deploying advanced transformers with smart technologies, leading to the demand for oil-immersed smart transformers. Consequently, the North American Region would acquire nearly, 30% of the total market share by 2030. For instance, the objective of energy reforms and government initiatives in Mexico is to improve the dependability and effectiveness of the power sector. These initiatives often involve investments in new power infrastructure, including transformers, to meet the growing electricity demand and support a more resilient and sustainable energy system.
Renewable energy sources, especially wind and solar, can exhibit fluctuations in power output due to weather conditions. Oil-immersed transformers can handle varying loads more effectively and stabilize the power grid. In addition, the extended operational life of oil-immersed transformers reduces the frequency with which they require replacements and maintenance. This characteristic is beneficial for renewable energy projects seeking long-term reliability. Oil-immersed transformers can be customized to meet specific requirements, making them adaptable to the unique characteristics of different renewable energy installations. This flexibility is valuable in optimizing the performance of the overall power system. Thus, these factors will boost the demand in the market. Additionally, many governments implement comprehensive infrastructure development programs, including expanding and modernizing the power grid. Moreover, energy efficiency is a key focus of many government initiatives. Upgrading to more efficient power transformers can contribute to energy savings and reduce losses in the transmission and distribution process. Hence, these aspects will drive the expansion of the market.
However, Stringent environmental regulations may encourage the power industry to transition towards more environmentally friendly alternatives. Manufacturers and utilities may shift their focus to dry-type transformers, considered more environmentally sustainable and do not require oil. In addition, regulatory restrictions on the use of certain transformer oils, especially if they are considered harmful to the environment, may limit the market opportunities for oil-immersed transformers. Hence, these factors can decrease demand for these transformers.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on voltage, the market is divided into low, medium, and high. In 2022, the medium segment witnessed a substantial revenue share in the market. Integrating renewable energy sources into the power grid has increased the demand for medium-voltage transformers. Connecting renewable energy generation facilities to the grid, such as wind farms and solar farms, frequently requires medium-voltage transformers; this facilitates the efficient distribution of renewable power. Thus, these factors will assist in the growth of the segment.
On the basis of end user, the market is divided into industrial, residential & commercial, and utilities. The industrial segment recorded a substantial revenue share in the market in 2022. Global industrialization trends, particularly in emerging economies, contribute significantly to the demand for power infrastructure. As industries grow and diversify, the need for robust electrical systems, including transformers, increases to support expanded manufacturing and production activities. These aspects will lead to increased demand in the segment.
On the basis of phase, the market is divided into single and three. The single segment recorded a significant revenue share in the market in 2022. Single-phase transformers are often preferred in rural areas with dispersed or smaller loads. They are suitable for electrification projects in remote locations with modest power demand, and the cost-effectiveness of single-phase solutions is advantageous. Therefore, these aspects will pose lucrative growth prospects for the segment.
Based on installation, the market is segmented into pad-mounted, pole-mounted, and substation installation. In 2022, the pole-mounted segment garnered a significant revenue share in the market. Pole-mounted transformers are well-suited for urban and residential areas where space is limited. Their compact design allows for easy installation on utility poles, minimizing the need for dedicated transformer substations and large ground-level installations. Hence, the segment will witness increased demand in the coming years due to these factors.
Free Valuable Insights: Global Oil Immersed Power Transformer Market size to reach USD 31.5 Billion by 2030
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured the highest revenue share in the market in 2022. The Asia Pacific region has witnessed a notable upswing in electricity demand due to the swift expansion of industry and urbanization. Urban and industrial centers require robust and reliable power infrastructure, including oil-immersed power transformers, to support the growing energy needs. Thus, the segment will grow rapidly in the coming years.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 19.85 Billion |
| Market size forecast in 2030 | USD 31.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 6.1% from 2023 to 2030 |
| Number of Pages | 265 |
| Number of Tables | 430 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Phase, Installation, Voltage, End User, Region |
| Country scope |
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| Companies Included | ABB Group, Siemens AG, Schneider Electric SE, Eaton Corporation PLC, Hitachi, Ltd. (Hitachi Energy Ltd.), General Electric Company, Fuji Electric Co. Ltd., Toshiba Corporation, Voltamp Transformers Limited and YueBian Electric Co.,Ltd. |
By Phase
By Installation
By Voltage
By End User
By Geography
This Market size is expected to reach $31.5 billion by 2030.
Growing integration of renewable energy are driving the Market in coming years, however, Environmental concerns related to oil immersed power transformers restraints the growth of the Market.
ABB Group, Siemens AG, Schneider Electric SE, Eaton Corporation PLC, Hitachi, Ltd. (Hitachi Energy Ltd.), General Electric Company, Fuji Electric Co. Ltd., Toshiba Corporation, Voltamp Transformers Limited and YueBian Electric Co.,Ltd.
The expected CAGR of this Market is 6.1% from 2023 to 2030.
The Three segment generated the highest revenue in the Market by Phase in 2022; there by, achieving a market value of $20.8 Billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; there by, achieving a market value of $11.6 Billion by 2030.
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