Transformers Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Transformers

The APAC will continue to dominate the market, in terms of growth prospects through to 2019.Increasing demand for electricity in emerging and developed countries, backed by increasing investment in infrastructure, is expected to drive the transformers market globally. Also, initiatives taken to replace aging transformers with energy- efficient transformers, especially in North America and Europe, are further expected to drive the power transformers market

The top transformer material suppliers (percentage of global transformers revenue for 2018): ABB: 13–14 percent | Siemens: 11–12 percent | GE (acquired Alstom): 10–11 percent | Hyundai Heavy Industries: 2–3 percent | TBEA: 2–3 percent | Others: 54–56 percent. 

The global transformers market size: $44.3 billion (2019 E): Expected to grow at a CAGR of 5–7 percent to $49.35 billion by 2021.

The impactful cost components in the transformer market include Raw materials: ~70 percent Design and labor: ~16 percent, Fixed components: ~14 percent.

The High Transformers Market Maturity Regions: APAC and Europe, while the medium transformers market maturity regions are North America, South America, and Middle East.

The emerging engagement strategies: Partnering suppliers/service providers equipped with the best technology infrastructure and know-how (Example: GE’s acquisition of Alstom).

Global Market Maturity

Increasing demand for electricity in emerging and developed countries, backed by increasing investment in infrastructure, is expected to drive the transformers market globally. However, slowdown of economy and investments in the mining sector are likely to affect the demand for transformers in this particular segment

Global Market Size and Trend

• The global transformers market was around $33.2 billion in 2014, and it is expected to reach $46.9 billion by 2020, growing at a CAGR of 5-7 percent during 2014–2020
• Increasing demand for electricity in emerging and developed countries, backed by increasing investment in infrastructure, is expected to drive the transformers market globally. Also, initiatives taken to replace aging transformers with energy-efficient transformers, especially in North America and Europe, are further expected to drive the power transformers market
• The growth of the large power transformers segment is higher, due to the increasing adoption of HVDC transmission projects, in the APAC region, so as to reduce transmission loss during transmission over large distances
• Volatility in raw material prices, such as copper and steel, may restrain the growth of transformers industry globally

Global Drivers and Constraints

Drivers

• Increasing demand for electricity in emerging and developed countries, such as China, India, Germany, and the UK, backed by increasing investment in infrastructure, is expected to drive the transformers market globally
• Governments have started taking initiatives for improving energy efficiency and minimizing loss by putting pressure on the utilities to replace old transformers, and in turn, install technologically advanced power transformers, thereby, modernizing the existing power grids. Such is the case in China, India, Germany, and the UK
• Developed countries are integrating wind and other renewable energies, thereby increasing load flow on aging grids, which may lead to frequent short-circuit situations, and thus provide more opportunities for the transformer industry growth
• Improvements in the mining sector is expected to further boost the growth of the transformer industry in this region

Constraints

• Volatility in steel, copper, and crude oil prices is expected to restrain the growth of transformers globally
• Such volatility in raw material prices has created pressure on manufacturers' profit margin, due to which, some of the global players in the industry have shifted their production facilities to regions that facilitate lower cost of manufacturing as well have a higher demand, like China, India, etc.
• Power transformers are special ordered machineries and require highly skilled workforces. Low availability of skilled service engineers is likely to hinder the growth in this industry

Market Overview

The Transformer material suppliers Market Share (2019E): ABB - 13-14%, Siemens 11-12%, GE (Acquired Alstom) - 10-11%, Hyundai 2-3%, TBEA - 2-3%, Mitsubishi 2-3%, and Others - 54-56%.

Initiatives to replace aging T&D infrastructure is the major driver for the transformers industry in the North America region.

Increasing T&D network expansion projects in developing countries, like China and India, are the major driver for the transformers industry in the APAC region.

Increasing industrialization and growing demand for power are the major drivers for the transformers industry in South American region.

Currently, there is no technology or product, which provides an alternative to transformers from the end use/application point of view.

Why You Should Buy This Report

• The report gives information on the transformers market size, maturity, drivers and constraints, and the regional market outlook of North America, APAC, Middle East, Europe.
• It gives the Porter’s five force analysis of the global transformers market, the supply landscape and swot analysis of transformer industry.
• The report analyzes the cost breakup, pricing trends, price drivers, etc. It lists out the best industry practices, sourcing and contract models and technological innovations.