Market Size of Smart Transformers Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 2.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Smart Transformers Market Analysis
The smart transformers market is expected to record a CAGR of more than 2.5% over the forecast period, 2022-2027. The COVID-19 pandemic has caused significant disruptions in the essential smart transformer supply chain, such as microchips. Further, the pandemic in 2020 had caused a decrease in electricity consumption, impacting the revenue of electricity distribution companies and project finance. Factors such as the increasing focus of governments across the developed and emerging economies on adopting smart technology in power grid infrastructure and rising challenges, such as aging transmission and distribution (T&D) infrastructure, electric vehicle charging, and distributed generation, are expected to benefit the growth of smart transformers across the globe. Moreover, the increasing demand for smart grid technologies and energy storage initiatives is likely to further drive the smart transformers market during the forecast period. The challenge, however, is the problem of low accessibility to electricity in underdeveloped nations across the world and poor government regulations and initiatives to expand and modernize the grid infrastructure, which is expected to limit the growth of the market studied.
- Distribution transformers, which are used to communicate with consumers and for continuous load monitoring, are expected to be a significant segment of the smart transformers market.
- A number of governments of both emerging and underdeveloped nations worldwide are increasingly viewing smart grid technology as a strategic infrastructural investment that will sustain their long-term economic prosperity and help them achieve their carbon emission reduction targets. This, in turn, is expected to provide an ample amount of opportunity to the companies involved in the smart transformers market in the near future.
- Asia-Pacific is the largest and is expected to be the fastest-growing region, primarily driven by the transmission and distribution developments and industrial growth in Southeast Asia, China, and India.
