Market Trends of Asia Pacific Transformer Monitoring System Industry
Industrial Sector to Witness Major Growth
- The industrial sector witnessed remarkable growth in the Asia Pacific region, led by countries such as China, Japan, South Korea, India, and Taiwan. In the last few decades, China has established itself as the global manufacturing hub, and a major share of global companies have established their production hub in the country. For instance, according to China's National Bureau of Statistics, in 2023, the industrial sector generated around 31.7% of China's GDP.
- Countries such as Japan and South Korea also have an established industrial sector. In the last few years, the region has been witnessing an upsurge in industrial sector growth across countries such as India and Southeast Asian countries such as Thailand, Malaysia, Indonesia, and the Philippines, among others.
- As electricity is widely used in the industrial sector as a source of energy, such trends are anticipated to create a favorable ecosystem for the growth of the market in the region. For instance, according to the International Energy Agency, more than 50% of electricity consumed in the region is attributed to the industrial sector.
- With the industries scaling in size and the adoption of powerful machinery and industrial equipment continuing to grow, transformers are becoming an essential infrastructural requirement. For instance, transformers help industries of different types, including aerospace, data centers, manufacturing, telecommunication, etc., get the desired voltage inherent in jumbo equipment and giant machinery. Converter transformers are considered a perfect fit for various industrial applications, including pumping stations, blast furnaces, and rolling stock in mining applications.
- Using transformer monitoring systems (TMS) in an industrial environment has several other benefits. For instance, TMS helps minimize disruptions to industrial processes by ensuring a continuous electricity supply. Applying a predictive maintenance strategy based on TMS data makes it possible to significantly reduce downtime, which is highly important in every industry.
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China to Hold Major Market Share
- China is anticipated to remain a major market for transformer monitoring systems as the demand is anticipated to remain high across major end-user industries. According to the International Energy Agency, China is the leading energy producer and consumer among countries in Asia Pacific.
- Furthermore, factors such as an increasing rate of urbanization and growing electricity consumption by the industrial sector are also driving the demand for electricity in the country and driving investments in electricity infrastructure, which in turn is creating opportunities in the market studied.
- According to CEC, the country witnessed an even growth in the power generation capacity of different sectors in 2023. While thermal power generation capacity in the country increased to 1,390.32 gigawatts from 1,32.39 gigawatts in 2022, the installed capacity of hydro, solar, and wind power also grew significantly. Solar power generation witnessed the highest growth among other renewable sources as the installed capacity increased to 609.49 gigawatts in 2023 from 392.61 gigawatts in 2022.
- According to the National Energy Administration of China, renewable energy accounted for over 50% of the country's total installed power generation capacity in 2023.
- Due to the expansion of the power generation sector, investments in new electricity transmission lines are also growing. In June 2023, the State Grid Corporation of China announced the beginning of construction of an ultra-high voltage direct current (DC) transmission line. Stretching 1,634 km, the transmission line runs from the Chinese Ningxia Hui Autonomous Region to the central province of Hunan. As HVDC transformers are among the key components for long-distance DC transmission lines, such trends are expected to positively impact the growth of the market.
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