Latin America Transformer Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.95 Billion |
| Market Size (2029) | USD 3.52 Billion |
| CAGR (2024 - 2029) | 3.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Transformer Market Analysis
The Latin America Transformer Market size is estimated at USD 2.95 billion in 2024, and is expected to reach USD 3.52 billion by 2029, growing at a CAGR of 3.60% during the forecast period (2024-2029).
- Over the medium term, factors such as rising electricity demand and grid upgradation and increasing penetration of renewable energy sources in the energy mix are expected to drive the Latin American transformer market during the forecast period.
- However, factors such as rising emphasis on off-grid distributed energy generation may restrain the growth of the Latin American transformer market.
- Nevertheless, the development of smart transformers is likely to create a healthy opportunity for the market during the forecast period.
- Mexico is expected to dominate the market during the forecast period due to rapid industrialization and increasing urbanization.
Latin America Transformer Market Trends
Air-cooled Segment is Expected to Witness Significant Growth during the Forecast Period
- An air-cooled transformer or dry-type transformer is a type of transformer that uses air as a coolant, while oil-filled transformers use oil for cooling purposes. A dry-type transformer has no moving parts inside it and is a static device that uses eco-friendly temperature insulation systems. It is used in a wide variety of applications and can be installed indoors or outdoors.
- Dry-type transformers are used in various applications and can be installed indoors or outdoors. There are several variations of dry-type transformers currently used in the industry.
- The dry-type transformer is more eco-friendly compared to the oil-filled type transformer. It is less flammable and poses a lesser fire risk. It is employed in various applications, including high-rise buildings, airports, stadiums, hotels, shopping malls, chemical and refinery plants, substations for interior cities, rural areas, and residential complexes.
- Over the past years, the demand for dry-type transformers has been driven by the increasing demand for electricity due to urbanization and industrialization, coupled with the low daily maintenance cost of dry-type transformers, especially in countries like Brazil, Mexico, Colombia, Ecuador, and Peru.
- In August 2023, GE Vernova announced that its subsidiary Grid Solutions had signed a contract with Casa dos Ventos for the construction of two 500 kV air-insulated substations (AIS) for the Serra do Tigre Wind Complex located in the municipalities of Sao Tome and Currais Novos in the state of Rio Grande do Norte.
- According to the Energy Institute Statistical Review of World Energy 2023 data, the electricity demand in 2022 from Latin American countries reported an increase of 2.3% compared to 2021, thus depicting healthy growth for the Latin American transformer market.
- Based on the above points, the air-cooled segment is anticipated to witness significant growth in the Latin American transformer market during the forecast period.
Mexico is Expected to Dominate the Market during the Forecast Period
- Mexico is the second-largest energy consumer in Latin America after Brazil. The country primarily relies on thermal power plants for energy. As of 2022, nearly 88.75% of the total energy generated was from conventional fuels like coal, oil, and natural gas.
- The country’s aging electrical infrastructure is also a significant driver for the transformer market. The demand for electricity is on the rise, placing a massive strain on existing power infrastructure and necessitating an upgrade of infrastructure to efficiently manage the generation and distribution of electricity.
- As per the National Renewable Energy Lab, Mexico's technical renewable energy potential is significantly larger than the country’s peak electricity demand. The potential includes 24,918 GW of solar energy and 3,669 wind energy potential due to the country’s extensive coastline. The country also possesses 2.5 GW of geothermal energy and 1.2 GW of additional hydropower capacities from the existing hydropower infrastructure.
- The nation’s proximity to the United States, which is one of the largest energy markets globally, positions it as a critical player in the Latin American energy landscape, resulting in attractive investment opportunities and driving innovation in transformer technologies.
- For instance, in October 2023, Prolec, one of the world’s leading companies in manufacturing energy equipment, announced that it had collaborated with Ubicquia, one of the significant transformer manufacturing companies in North and Latin America, to develop a fully integrated smart transformer. The companies partnered to produce UbiGrid, one of the most efficient distribution transformers equipped with Ubicquia’s transformers monitoring systems.
- In October 2023, Eaglerise Electric & Electronic Ltd, a Chinese Power equipment maker, announced its plan to invest USD 86 million to build a new energy transformers factory in Mexico, thus boosting its transformers business in Latin America.
- According to the Energy Institute Statistical Review of World Energy 2023 data, the electricity demand in 2022 from Mexico countries reported an increase of 2.3% compared to 2021, thus depicting a healthy growth for the transformer market in Mexico.
- Therefore, as per the above points, Mexico is expected to dominate the Latin American transformer market during the forecast period.
Latin America Transformer Industry Overview
The Latin American transformer market is semi-fragmented. Some of the major players in the market (in no particular order) include WEG Industries, Siemens AG, Schneider Electric SE, Eaton Corporation PLC, General Electric Company, Hitachi Energy Ltd, and Toshiba Corporation.
Latin America Transformer Market Leaders
WEG Industries
Siemens AG
Schneider Electric SE
Eaton Corporation PLC
General Electric Company
*Disclaimer: Major Players sorted in no particular order
Latin America Transformer Market News
- November 2023: Hitachi Energy Ltd, the Japanese electrical product manufacturer and grid automation expert, in the context of its growing business in Latin America, announced its decision to expand its distribution and other types of transformer manufacturing facility situated in Risaralda Calle La Popa Industrial Zone, Dosquebradas, Colombia, for which the company held an opening ceremony.
- October 2023: Prolec, a global energy infrastructure leader, partnered with Ubicquia, an innovator in intelligent utility infrastructure, aiming to develop the industry's first fully integrated smart transformer with real-time monitoring and grid analytics. In 2022, Ubicquia delivered more than 30,000 units to monitor single-phase and three-phase transformers to major utilities across the United States and Latin America.
Latin America Transformer Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition and
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, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Rising Electricity Demand and Grid Upgradation
4.5.1.2 Increasing Penetration of Renewable Energy Sources in the Energy Mix
4.5.2 Restraints
4.5.2.1 Rising Emphasis on Off-grid Distributed Energy Generation
4.6 Supply Chain Analysis
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
5.1 Power Rating Type
5.1.1 Large
5.1.2 Medium
5.1.3 Small
5.2 By Cooling Type
5.2.1 Air-cooled
5.2.2 Oil-cooled
5.2.3 Other Cooling Types
5.3 By Phase
5.3.1 Single Phase
5.3.2 Three Phase
5.4 Transformer Type
5.4.1 Power Transformer
5.4.2 Distribution Transformer
5.5 Geography
5.5.1 Argentina
5.5.2 Brazil
5.5.3 Chile
5.5.4 Mexico
5.5.5 Colombia
5.5.6 Rest of Latin America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Market Players
6.3.1.1 WEG Industries
6.3.1.2 Siemens AG
6.3.1.3 Schneider Electric SE
6.3.1.4 Eaton Corporation PLC
6.3.1.5 General Electric Company
6.3.1.6 Hitachi Energy Ltd
6.3.1.7 GBE SPA
6.3.1.8 Hyosung Corporation
6.3.1.9 Toshiba Corporation
7. Market Ranking Analysis
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
8.1 Developing Smart Transformer Infrastructure
Latin America Transformer Industry Segmentation
A transformer is a device that transfers electric energy from one alternating-current circuit to one or more other circuits, either increasing (stepping up) or reducing (stepping down) the voltage.
The Latin American transformer market is segmented by power rating, transformer type, cooling type, phase, and geography. By power rating, the market is segmented into large, medium, and small. By transformer type, the market is segmented into power transformer and distribution transformer. By cooling type, the market is segmented into air-cooled and oil-cooled. By phase type, the market is segmented into single phase and three phase. The report also covers market size and forecasts for the market across major countries in the region. The report offers the market size and forecasts for the market in revenue (USD) for all the above segments.
Latin America Transformer Market Research FAQs
How big is the Latin America Transformer Market?
The Latin America Transformer Market size is expected to reach USD 2.95 billion in 2024 and grow at a CAGR of 3.60% to reach USD 3.52 billion by 2029.
What is the current Latin America Transformer Market size?
In 2024, the Latin America Transformer Market size is expected to reach USD 2.95 billion.
Who are the key players in Latin America Transformer Market?
WEG Industries, Siemens AG, Schneider Electric SE, Eaton Corporation PLC and General Electric Company are the major companies operating in the Latin America Transformer Market.
What years does this Latin America Transformer Market cover, and what was the market size in 2023?
In 2023, the Latin America Transformer Market size was estimated at USD 2.84 billion. The report covers the Latin America Transformer Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Transformer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Transformer Industry Report
Statistics for the 2024 Latin America Transformer market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Transformer analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
