A power transformer is just what the name indicates; it takes an alternating current and by means of induction converts it into another form of current. From National Grids to businesses, transformers are used in a wide variety of places. With the industry expected to grow upwards of about $37 billion by 2023, the opportunities and scope is lucrative and tempting.
We take a dive into the market for power transformers and fish out some of the major highlights from recent times.
Healthy market growth expected
The market is currently valued at $22.3 billion and is expected to grow by 7.7% in the next seven years. Major factors contributing to the growth are cross country electric trade, demand for smart grids and installation of new transmission and distribution networks. With the amount of natural resources receding globally, countries are looking for greener options and those that are not yet qualified or strong enough to implement these systems are looking to import their power needs.
Market leaders are altering their products by making them more effective and environment friendly in compliance with new regulations. Small transformers and oil-cooled ones are expected to hold the largest market shares in the forecasted period.
Iraq and GE sign $400 billion power deal
The war torn country has started it journey to get up on its feet and in this regard has signed a multi-billion dollar deal with US based, General Electric. The deal has been signed to develop power infrastructure in Iraq. GE will provide the country with 14 electric substations and other equipment including circuit breakers and outdoor power generation and distribution tools.
China’s Silk Road Economic Corridor
China has started developing the ‘one belt- one road’ project also known as the Silk Road Economic Corridor. It is a $1 trillion dollar project to prove their trade might over the world. As of 2016, the Asia-Pacific region is the leader in terms of global power transformer market share and is expected to stay so due to these impressive developmental and infrastructural ventures by China and regional powerhouse India.
The power transformers market is on an upwards spiral globally. With the expected CAGR to increase substantially owing to countries trading electricity and developing huge infrastructural capabilities, to generate power through different sources, the prospects are very bright. Even major companies are jumping on to the bandwagon and signing lucrative deals with developing countries. All we can say is, let there be light!