APAC to drive global distribution transformers market over next four years, says GlobalData
January 17, 2019 (Investorideas.com Newswire) Asia-Pacific (APAC) will continue to lead the distribution transformers market of the global power sector with a share of 48% and reach $6.94bn in 2022, says GlobalData, a leading data and analytics company.
The company's latest report, 'Distribution Transformers Market, Update 2018, reveals that the global market value is likely to reach $14.32bn in 2022, growing at a modest CAGR of 1.6% between 2018 and 2022.
Nirushan Rajasekaram, Power Analyst at GlobalData, says: "Systemic transformation of the global power sector is contributing to the requirement for power technologies, which support low carbon power generation. Markets in the US and Europe are primarily replacement markets, with initiatives undertaken to enhance the adaptability of the grid to changing market conditions. Other countries in APAC and Middle East are constructing new grid networks to support and sustain the growing power generation segment and demand requirement."
The need for grid expansion and upgrades within APAC is greatly influencing the distribution transformers market. China and India, with their large populations and industrial bases, are driving the regional market.
Rajasekaram adds: "China and India have laid out plans for grid expansion to improve rural electrification, accommodate growing renewable asset portfolios, and support their economic growth. In addition, favorable economic conditions and market reforms among smaller markets such as Indonesia and Vietnam will result in strong growth, where new infrastructure is expected to be developed."
However, despite APAC being the largest market for distribution transformers, EMEA is forecast to experience the highest market growth over the forecast period, with the market estimated to reach $3.7bn in 2022.
The push for sustainability and clean power generation, increasing electricity and peak demand, and economic diversification are likely to increase the need for distribution transformers within the Middle East and Africa. However, the established networks in Europe will require the replacements of transformers more suited to enhance the integration of smart technologies into the grid, according to the report.
Rajasekaram concludes: "Rapid changes in the power generation segment, rising electricity consumption and the existing lack of suitable facilities for power transfer would propel the installations of distribution transformers globally. Growing integration of distributed technologies at low voltage networks is leading to complex power flows within the network. Augmenting the distribution grid is needed to ensure reliable operations and thereby driving the transformers market."
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- Quotes provided by Nirushan Rajasekaram, Power Analyst at GlobalData
- Information based on GlobalData's report: Distribution Transformers Market, Update 2018 - Global Market Size, Competitive Landscape and Key Country Analysis to 2022
- This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData's team of industry experts
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