Market Trends of North America Smart Transformers Industry
This section covers the major market trends shaping the North America Smart Transformers Market according to our research experts:
Distribution Transformers to Have Significant Growth
- The growing emphasis on electricity generation across the region, coupled with increasing electrical infrastructure projects, is expected to drive the demand for smart distribution transformers.
- In the electric distribution grid, smart transformers work independently to monitor and regulate the voltage while maintaining contact with the smart grid. This enables the information about the transformer and the power supply to be provided even by remote administration. Hence, this enables proper load management, resulting in better power quality and lesser power outages.
- Electricity generation in the North American region has seen significant growth in recent years due to rapid urbanization and the growing industrial sector. This has led to an increased usage of smart distribution transformers.
- In 2020, the total renewable energy electricity generation in the region accounted for around 22%. According to the Energy Information Administration (EIA), the country is expected to increase its renewable energy mix from 22% in 2020 to 38% in 2050, which may drive the growth of smart distribution transformers across the region.
- Developed countries such as the United States, Canada, Mexico, and Cuba contribute to the significant demand for smart distribution transformers, owing to the increasing replacement of aging power distribution equipment and the increase in the integration of renewables into the grid.
- Moreover, in October 2021, GE Research and Prolec GE introduced the world's first large and flexible smart transformer to enhance the resiliency of the US grid. The smart transformer is rated at 165kV, 60/80/100 MVA, and it was developed as part of an ongoing project funded through the US Department of Energy's (DOE) Office of Electricity.
- Therefore, the smart distribution transformer segment is expected to have significant growth in the market during the forecast period.
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The United States to Dominate the Market
- The United States, due to the constant increase in energy demand, requires a large number of power and smart transformers to transfer electricity from the generation site to the consumers.
- The increasing investment in the United States, especially related to the smart grid application and renewable energy sector, is expected to provide the required funding for the innovations and transition from old transformers to better and smart transformers.
- The country has several projects of offshore wind energy that have a status of under-construction, proposed, or got clearance from the government. All these projects require transmission lines and distribution systems to transmit electricity from the offshore facility to the onshore. These offshore wind installations are likely to install offshore substations with smart power transformers to step-up the voltage.
- As of 2020, the United States has 19200 MW of solar energy installed capacity. California and Texas have massive installations of solar in their counties. These solar farms, which are either built or proposed, are expected to connect to the state grid via transmission lines. Some of the solar farms in the states have also installed their substations, having smart transformers on-site to plug into the state grid directly.
- Moreover, in October 2021, Siemens Energy announced the successful delivery and installation of three single-phase GSU smart transformers that were deployed to provide a solution in response to a failed conventional transformer at a combined cycle power plant in Florida.
- Owing to the above points, the United States is expected to dominate the smart transformers market during the forecast period.
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