Market Trends of Dry-Type Transformer Industry
Distribution Transformer to Dominate the Market
- The dry-type transformer technology does not cause any environmental degradation and possesses better impulse and short circuit strengths, thereby providing a vast array of applications ranging from residential buildings to small commercial complexes.
- Distribution transformers are designed to offer maximum efficiency at lower loads. Moreover, the transformers' voltage regulation is kept to a minimum to improve efficiency. As a result, distribution transformers are designed to have a small leakage reactance.
- The Middle East and African countries, such as Oman and Saudi Arabia, are also investing in expanding and restructuring distribution power grids, which is expected to increase the growth prospects of the dry-type transformer market.
- In January 2022, the Government of India approved Green Energy Corridor (GEC) Phase II. It is expected to facilitate grid integration and power evacuation for approximately 20 GW of renewable energy (RE) power projects in seven states: Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh. The estimated investment in this phase is INR 12,031 crore. Under this phase, 10,750 kilometers of transmission lines will be constructed, and 27,500 MVA of new substations are planned to be added. This is expected to drive the dry-type transformer market.
- Additionally, the European Network of Transmission System Operators stated that around USD 10 billion of annual transmission spending is required through 2030. In Europe, investments have remained stable at nearly USD 50 billion, with an increase in spending to support upgrading and refurbishing the existing grid as variable renewables and electrification have grown significantly in the region.
- Therefore, owing to the above points, the distribution transformer type is expected to witness dominant growth during the forecast period.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region is expected to dominate the dry-type transformer market during the forecast period, owing to the growing industrialization and urbanization.
- China's National Energy Administration (NEA) is promoting the concept of green certificates along with an aggressive renewable energy portfolio (REP). This is expected to boost the wind power market in China. With increasing renewable energy integration, particularly from wind and solar PV, the demand for dry-type transformers is expected to remain high in the country.
- Fossil-based power generation dominated India's power sector in 2022, making up almost 60% of the total installed capacity. The country has identified the potential of renewable energy for decarbonizing the economy and meeting targets as per the Paris Agreement.
- The country's renewable energy (including hydro) accounted for 40% of the total installed capacity by the end of 2022. With the increasing share of renewable energy, demand for upgrading the existing transmission and distribution (T&D) infrastructure is expected to increase.
- With countries like the Philippines, South Korea, and Australia targeting renewable integration to meet their energy demand, the need for dry-type transformers in the Asia-Pacific region is expected to register robust growth during the forecast period.
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