Energy & Power
Transmission & Distribution
Global transformers market value to reach $14 billion by 2020, says GlobalData
By Renée Francoeur
September 29, 2015 – The value of the global power transformers market will increase from $11.3 billion in 2015 to $14 billion by 2020, driven by the nine major markets of the US, China, India, Saudi Arabia, Brazil, Japan, Germany, Canada and the UK, according to research and consulting firm GlobalData.
The company’s latest report states that growth will primarily be driven by extensive power plant capacity additions, economic growth, and the need to improve access to electricity in emerging economies, such as Asia-Pacific and the Middle East.
Siddhartha Raina, GlobalData’s senior analyst covering Power, says that the while there have been comparatively few new power transformer installations in North America and Europe, aging equipment and grids provide major opportunities for companies in the power transformer replacement segment.
GlobalData’s report also states that the market faces increasing fragmentation, as even major companies possess single-digit shares of the global market.
“A number of regional companies, such as Bharat Heavy Electricals in India and Mitsubishi Electrical Corp. in Japan, are involved in the domestic manufacture of medium and large power transformers”, Raina continues. “While these companies have a high understanding of their local market conditions and extensive experience, global GDP growth slowing as a result of the financial crisis will continually affect the power transformer market as investment in infrastructure development projects declines”.