Power Transformer Market Trends

Growth Drivers

• Demand for Eco-friendly Transformers - In accordance with environmental concerns, eco-friendly transformers employ non-toxic and biodegradable insulating lubricants, which lessens their ecological imprint. In this regard, Enel Spa unveiled a brand-new electric transformer in July 2022 for use in solar parks. This transformer uses biodegradable fluids, emits less CO2, and requires less resources to build. In addition to requiring over 14 less tons of different materials to construct the transformers, this will save more than 45 metric tons of CO2 equivalent emissions. It was first used in Spain and was being launched globally.

• Penetration of Phase Shifting Transformer - The power flow on the transmission grid is controlled by these transformers. They are designed to protect power lines and equipment with higher voltage from heat overloads while controlling the flow of electricity across both networks. PSTs can improve the real power handling of transmission lines, allowing for flexibility in the actual energy transfer, and have little impact on VAR. In general, PSTs increase the stability of transmission systems, decrease network losses, and improve their efficiency.

Challenges

• Fluctuating Raw Material Prices - Copper, steel, and aluminum are the primary materials used to produce electricity transformers. Due to the increased overall prices for these raw materials, sales of power transformers will be reduced in middle and lower-income countries. During the production process, copper transformer windings allow for an easy weld. However, high material costs can be incurred due to excessive copper consumption.

• Environmental Concerns associated are anticipated to hinder the power transformer market growth in the forecast period.

• Significant capital investment need is another significant factor posing limitations on the power transformer market growth in the forecast period.