Distribution Transformer Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.95 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Distribution Transformer Market Analysis
The Distribution Transformer Market size is expected to grow from USD 25.60 billion in 2023 to USD 34.18 billion by 2028, at a CAGR of 5.95% during the forecast period (2023-2028).
In 2020, COVID-19 had a detrimental effect on the market. Presently, the market has reached pre-pandemic levels.
- Over the long term, factors such as growing demand for replacing or refurbishing aging distribution transformers and increasing access to electricity are expected to drive the market during the forecast period.
- On the other hand, the delay in implementing electrification projects globally is likely to hamper the market's growth.
- Nevertheless, electrification projects are growing in the African and Asia-Pacific regions, with several initiatives suggesting that significant improvements are underway to improve the electrification rate. This is expected to create ample opportunities for the distribution transformer market players over the coming years.
Distribution Transformer Market Trends
Oil-filled Transformer Type to Dominate the Market
- Oil-filled transformers use liquids for cooling, making them highly suitable for outdoor applications. They are more efficient, have longer service lives, and feature more reliable overload capabilities.
- A liquid is a medium used for enhanced cooling, and such kinds of transformers are a better option than the dry types. The biggest advantage of an oil-filled transformer is that it can handle higher ratings and overloads.
- Countries like the United States, China, and India are expanding their transmission and distribution networks to increase their electrification rates, which is expected to drive the oil-filled distribution transformer market. For instance, the Indian government aims to electrify all households under the Pradhan Mantri Sahaj Bijli Har Ghar Yojana.
- Further, in accordance with the growth in electricity generation, there is an increase in the number of power generation stations, which will require new distribution transformers to supply electricity to consumers. According to U.S. Energy Information Administration, a total of 4,243 terawatt-hours (TWh) of electricity were generated in the United States in 2022, an increase of approximately 3% over the previous year.
- In September 2022, Baoding Tianwei Baobian Electric Co. Ltd. (BTW), a subsidiary of Baoding Tianwei Group Co. Ltd. based out of China, developed a 110 kW transformer using natural ester insulating oil. The first new Class 1 energy-efficient, intelligent 110 kV natural ester-insulated oil power transforme has passed all the type tests in one go under the witness of the National Transformer Quality Supervision and Inspection Center.
- In a bid to decarbonize its power sector, China is investing heavily in renewable energy, creating ample opportunities for distribution transformers to expand the country's market. The country is expected to increase its average annual investment in the distribution network, boosting the demand for oil-filled distribution transformers.
- Moreover, oil-filled distribution transformers are subject to periodic oil analysis, cleaning, and general inspection of working components, and repair costs are lower than for dry-type distribution transformers. Hence, oil-filled distribution transformers are expected to dominate the distribution transformer market during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be the largest and fastest-growing region for the market due to the increasing power generation capacity and electricity demand, particularly in China and India.
- China has witnessed high electricity demand, owing to the unprecedented growth of the economy coupled with factors such as rapid industrialization and urbanization. China's economy grew rapidly in recent years and maintained a positive growth rate during the COVID-19 pandemic.
- In China, utilities and governments are developing new generation projects, particularly renewable energy ones, to meet the rising electricity demand. This is likely to require transmission and distribution infrastructure to accommodate these projects, which is expected to drive the growth of distribution transformers in the country.
- In March 2022, the State Grid Corporation of China (SGCC), the country's main grid operator, ordered two 110 kilovolt, 63 megavolt, ampere EconiQTM power transformers from Hitachi Energy for an innovative substation project being carried out in Jiangsu Province on China's east coast. This project aims to advance the use of sustainable technology, which is consistent with the policies of SGCC and Hitachi Energy.
- In Australia, the electricity infrastructure is nearing the end of its lifespan. It has become crucial to refurbish or renovate the electricity distribution network to increase renewable energy generation. Moreover, the country has been taking initiatives to modernize its energy infrastructure, for which the government invests nearly USD 5 billion each year into the distribution network.
- The Indian government is strengthening its electrical network to build a strong and smart electrical grid throughout the country. As of February 2022, the Indian government approved projects worth USD 4.12 billion under the Integrated Power Development Program to strengthen sub-transmission and distribution networks in urban areas of the country, which is expected to aid in the growth of the distribution transformer market.
- Owing to the abovementioned factors, the Asia-Pacific region is likely to dominate the market during the forecast period.
Distribution Transformer Industry Overview
The distribution transformer market is moderately fragmented. Some of the key players in (no particular order) include Hitachi Energy Ltd, Siemens AG, Eaton Corporation PLC, Schneider Electric SE, and General Electric Company., among others.
Distribution Transformer Market Leaders
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Eaton Corporation PLC
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Schneider Electric SE
-
General Electric Company
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Siemens AG
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Hitachi Energy Ltd.
*Disclaimer: Major Players sorted in no particular order
Distribution Transformer Market News
- August 2022: RESA Power, LLC, a global provider of transformer service, power systems, electrical testing, and life extension solutions for power distribution equipment, announced the acquisition of Advanced Electrical Services, Ltd., based in Alberta, Canada. Advanced Electrical Services (AES) is a NETA-accredited company that provides electrical testing services throughout Western Canada.
- March 2022: Integrated Power Services (IPS), a North American company in the service and repair of distribution transformers and power transmission products, agreed to acquire ABB's US and Canadian transformers repair businesses. The sale includes ABB's Beloeil, Quebec, coil manufacturing facility and its Denver, Colorado, service center.
Distribution Transformer Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitute Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Oil-filled
- 5.1.2 Dry Type
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5.2 Capacity
- 5.2.1 Below 500 kVA
- 5.2.2 500 kVA - 2500 kVA
- 5.2.3 Above 2500 kVA
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5.3 Phase
- 5.3.1 Single-phase
- 5.3.2 Three-phase
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5.4 Mounting
- 5.4.1 Pole-mounted
- 5.4.2 Pad-mounted
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5.5 Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 Europe
- 5.5.2.1 Germany
- 5.5.2.2 France
- 5.5.2.3 Spain
- 5.5.2.4 United Kingdom
- 5.5.2.5 Rest of Europe
- 5.5.3 Asia-Pacific
- 5.5.3.1 China
- 5.5.3.2 India
- 5.5.3.3 Japan
- 5.5.3.4 South Korea
- 5.5.3.5 Rest of Asia-Pacific
- 5.5.4 South America
- 5.5.4.1 Brazil
- 5.5.4.2 Argentina
- 5.5.4.3 Rest of South America
- 5.5.5 Middle-East and Africa
- 5.5.5.1 Saudi Arabia
- 5.5.5.2 United Arab Emirates
- 5.5.5.3 South Africa
- 5.5.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Hitachi Energy, Ltd.
- 6.3.2 Bharat Heavy Electricals Limited
- 6.3.3 CG Power and Industrial Solutions Limited
- 6.3.4 Eaton Corporation PLC
- 6.3.5 General Electric Company
- 6.3.6 Mitsubishi Electric Corporation
- 6.3.7 Schneider Electric SE
- 6.3.8 Siemens AG
- 6.3.9 SPX Transformer Solutions Inc.
- 6.3.10 Wilson Transformer Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityDistribution Transformer Industry Segmentation
A distribution transformer is also mentioned to as an isolation transformer. The main function of a distribution transformer is to convert the high voltage into normal voltage, like 240/120 V, for power distribution. The distribution system has different types of transformers, such as single-phase, 3-phase, underground, pad-mounted, and pole-mounted transformers.
The distribution transformer market report is segmented by type, capacity, phase, and mounting type, and geography. By type, the market is segmented into oil-filled and dry type, By capacity, the market is segmented into below 500 kVA, 500 kVA - 2500 kVA, and above 2500 kVA. By Phase, the market is segmented into single-phase and three-phase. By mounting type, the market is segmented into pole-mounted and pad-mounted. The report also covers the market size and forecasts for the distribution transformer market across the major countries in the region. For each segment, the market size and forecasts have been done based on revenue (USD billion).
| Type | Oil-filled | |
| Dry Type | ||
| Capacity | Below 500 kVA | |
| 500 kVA - 2500 kVA | ||
| Above 2500 kVA | ||
| Phase | Single-phase | |
| Three-phase | ||
| Mounting | Pole-mounted | |
| Pad-mounted | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| France | ||
| Spain | ||
| United Kingdom | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| South Africa | ||
| Rest of Middle-East and Africa |
Distribution Transformer Market Research FAQs
What is the current Distribution Transformer Market size?
The Distribution Transformer Market is projected to register a CAGR of 5.95% during the forecast period (2024-2029)
Who are the key players in Distribution Transformer Market?
Eaton Corporation PLC, Schneider Electric SE , General Electric Company, Siemens AG and Hitachi Energy Ltd. are the major companies operating in the Distribution Transformer Market.
Which is the fastest growing region in Distribution Transformer Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Distribution Transformer Market?
In 2024, the Asia-Pacific accounts for the largest market share in Distribution Transformer Market.
What years does this Distribution Transformer Market cover?
The report covers the Distribution Transformer Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Distribution Transformer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Distribution Transformer Industry Report
Statistics for the 2024 Distribution Transformer market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Distribution Transformer analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
