An incredible rise in the energy consumption and distribution worldwide subject to the increasing population is projected to pave way for different transmission and distribution networks in the due course of time. The world currently consumes more than 580 million terajoules of energy.
As per IEA’s annual projections, with the global population rising from 8 billion in 2020 to 8.5 billion in 2030, the energy demand is anticipated to surge by 27% through the same year. These estimations support the augmented demand for T&D infrastructure, stimulating the need for distribution transformers over 2022-2030.
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A latest study by Global Market Insights Inc. demonstrated that the overall distribution transformers market accounted for a valuation of USD 24.5 billion in 2021. A rise in the government initiatives that ensure proper power transmission nationwide would offer positive impetus to the market growth.
Speaking on similar lines, Government of India announced taking up significant steps to bolster the power distribution network with the launch of initiatives like UDAY, that will allow financial turnaround of power distribution firms in the country. Besides, it also includes an additional investment of USD 3735 mega volt ampere of transformation capacity between 2017 to 2022. This move would not only strengthen the transmission network in the country but also accentuate the demand for distribution transformers.
Innovative strategies by power distribution companies to augment the business landscape
Different leaders operating in the power distribution industry like Hitachi Energy, General Electric, Mitsubishi Electric Corporation, ABB, Toshiba, and others, are expanding their business valuations with introduction to new strategies and innovations, stimulating the demand for distribution transformers.
In 2022, Hitachi Energy announced its plans to invest more than USD 10 million in the modernization and expansion of its distribution transformer unit in Missouri. As per officials, the capital would offer additional capacity and augment its production capabilities and highlight the robust growth in demand from utilities and other newer applications.
Growing adoption of shell type distribution transformers
The distribution transformer market size from shell core type segment is projected to expand at an appreciable rate over the foreseeable time frame. The progression can be reasoned to ample advantages associated with its deployment including-
- Superior dielectric and mechanical strength
- Excellent short circuit strength
- Flexible design
- Better control of leakage magnetic flux
- Easy transportation
These transformers have found uses across low voltage applications that include converters in power electronics and electronic circuits.
Europe- a potential investment ground for distribution transformer market
The Europe distribution transformer market is set to account for lucrative growth in the years to come on back of the expanding power distribution network and investments in the region. As per a 2021 report by Deloitte, the power distribution grids across Europe require an investment of nearly 375 to 425 billion euros over the span of 2020 to 2030.
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In addition to this, surging electricity and power generation across different European countries and the trend of renewable energy in the continent would add to the distribution transformer market outlook in Europe.
In a nutshell, increasing government initiatives to expand the power distribution network and infrastructure across different regions and deployment of renewable energy devices and grid infrastructure would impel the market dynamics over the forthcoming years.