Market Trends of Europe Transformer Industry
This section covers the major market trends shaping the Europe Transformer Market according to our research experts:
Distribution Transformer Expected to Dominate the Market
- A distribution transformer or service transformer is used to provide the final voltage transformation in the electric power distribution system. It will then step down the voltage applied in the distribution lines to the level used by various customers of the residential, commercial, and industrial sectors.
- Countries in the European region such as the United Kingdom, Germany, and France already have 100% access to electricity. They are now indulged in the up-gradation and expansion of the existing transmission and distribution system. Moreover, countries in the region have also signed projects to share the power generated in the country with North African countries to help them with energy shortage.
- In 2018, the electricity generation for Europe was about 5494.7 Terawatt-Hour (TWh), which was higher than what the world produced in 2017, 5443.5 TWh. The increase in electricity generation exhibits an increase in the number of power generation capacity, which is likely to use new distribution transformers for transmission of electricity to the consumers.
- The EuroAfrica Interconnector comprises the electricity interconnection between the grids of Egypt-Cyprus-Greece through a subsea direct current cable and with high voltage direct current (HVDC) onshore converter stations at each connection point, with a total capacity of 2000 megawatts (MW). The project is an energy highway connecting Africa and Europe, with a full length of 1396 kilometers. It creates an alternative route for the transfer of electric energy to and from Europe. The project is expected to use several transformers to transfer electricity into countries grids and is expected to be complete by 2023.
- In January 2020, General Electric Company was awarded a multi-million dollar project for the design, supply, construction, and commissioning of onshore and offshore wind substations for the Neart na Gaoithe (NnG) offshore wind farm, in Scotland. The project is jointly owned by EDF Renewables and ESB. GE is responsible for the delivery of all infrastructures within the perimeter, including groundworks and civil construction. The substations in the project are likely to use several distribution transformers to step down the electric voltage. NnG is scheduled to be fully operational by the end of 2023.
- Hence, owing to the above points, the distribution transformer segment is likely to dominate the Europe transformer market during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Germany Expected to be the Fastest-Growing Market
- Germany, due to the constant increase in energy demand and an increasing number of commercial and industrial operations, the country is likely to be the fastest-growing market for the transformer in Europe.
- The country is also witnessing a large installation of renewable energy capacity, which requires a large amount of power and distribution transformers to transfer electricity from the generation site to the consumers. In 2019, Germany's total renewable energy installation was 125.38 gigawatts (GW), which was higher than the installed capacity in 2018, 119.29 gigawatts (GW).
- Moreover, the country is witnessing substantial growth in the sales of electric vehicles. To reduce greenhouse gas emissions, the government is encouraging the use of electric vehicles in the country by providing discounts on the purchases of vehicles. With growing electric cars, the demand for the electric car charging infrastructure in the country is expected to increase, which in turn, is expected to drive the distribution transformer market.
- Germany has set a target to generate 80% to 95% of the total electricity from renewable energy sources by the end of 2050. Moreover, the country is focusing more on upgrading the outdated transmission and distribution system of the country, which is expected to drive the transformer market in the country.
- Hence, owing to the above points, Germany is expected to the fastest-growing market for transformer in Europe during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
