Renewable Energy Transformer Market size is anticipated to cross USD 42.4 Billion by the end of 2035 , growing at a CAGR of 4.8% during the forecast period, i.e., 2023-2035. In the year 2022, industry size of renewable energy transformer was over USD 23 Billion. The growth of the market can be attributed to the demand for electric grids due to increased industrialization and urbanization.
Renewable energy transformers are crucial elements of power grids as they aid in power transfer between networks with minimal variations in frequency and degradation. In the next years, the requirement for renewable energy transformers is expected to be fueled by higher expenditures in the development of power grid infrastructure along with transmission routes to provide electricity availability in rural places. In the time frame of the evaluation, the transformer market is estimated to be driven by increased transmission network studies and the growing utilization of unconventional and renewable energy sources for producing power in remote places. Renewable energy increased from 20% to 28% of worldwide electricity supply between 2011 and 2021. There are 3,146 gigawatts of installed renewable energy capacity in 135 nations, with 156 countries having legislation governing the renewable energy sector.
Growth Drivers
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~4.8% |
|
Base Year Market Size (2022) |
~ USD 23 Billion |
|
Forecast Year Market Size (2035) |
~ USD 42.4 Billion |
|
Regional Scope |
|
The market is segmented and analyzed for demand and supply by end users into distribution transformer, power transformer, and others. Out of these, the distribution transformer segment is estimated to gain the largest market share of about ~50% in the year 2035. The demand for distribution transformers is rising owing to rapid urbanization. The rising number of electricity production plants and transmission facilities has resulted in higher distribution transformer revenues. Out of all regions, the African continent is anticipated to have the greatest potential. The expected fuel need for distribution transformers in the coming decades is the electrification of the African continent in the years ahead. The incorporation of renewable energy into the electrical grid in advanced as well as emerging nations has raised investment in the electrical power system and boosted the expansion of the distribution transformer segment. At the 24th World Energy Congress in Abu Dhabi, the United Arab Emirates' capital, in September 2019, Chinese telecom giant Huawei unveiled a variety of power solutions, involving aspirations for a smart distribution transformer.
Application (Solar PV, Wind Farm, Hydro-Energy)
The global renewable energy transformer industry is also segmented and analyzed for demand and supply by application into solar PV, wind farm, hydro-energy, and others. Amongst these three segments, the heat hydro-energy segment is expected to garner a significant share of around ~35% in the year 2035. During the projected period, the segment is expected to be driven by factors including a growing number of novel hydropower initiatives backed by government backing and an increased need for reliable electricity. In the coming years, emerging technological advancements aiming at expanding hydropower generation are likely to present considerable potential for the hydropower market. In 2019, hydropower capacity (80.25 GW) was worth 6.7% of installed electricity production capacity in the United States.
Author Credits: Payel Roy, Dhruv Bhatia
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