Asia Pacific Power Transformer Market Size - By Core (Closed, Shell, Berry), Cooling (Dry Type, Oil Immersed), By Insulation (Gas, Oil, Solid, Air), Mounting (Pad, Pole), Application (Residential, Commercial & Industrial, Utility), Winding, Rating & Forecast, 2024 – 2032

Asia Pacific Power Transformer Market Size

Asia Pacific Power Transformer Market was valued at USD 9.5 billion in 2023 and is projected to grow at a CAGR of over 7.5% during 2024 and 2032. fueled by the continually growing global demand for electricity. Developing economies, especially in the Asia Pacific region, have encountered issues related to power shortages and frequent electrical outages. For instance, in September 2023, State Grid Corporation of China announced that its investments in the power sector could surpass USD 13.7 trillion between 2020 and 2060.
 

A power transformer is an electrical device that is designed to convert electrical energy at one voltage level to another. It is a vital component of electrical grids and industrial facilities, enabling efficient transmission and distribution of electrical power over long distances and between different voltage levels. In the last decade, the expansion of Purchasing Power Parity (PPP) has played a constructive role in driving electricity demand. Consumers are progressively inclined toward embracing a sustainable energy mix, bolstered by continuous electrification initiatives in suburban regions. This combination of factors is expected to contribute to a promising outlook for the business.
 

For instance, in September 2023, Hitachi Energy, a global technology leader committed to advancing a sustainable energy future, has officially opened its advanced transformer manufacturing facility in Liangjiang New Area, located in the southwest region of China's Chongqing Municipality.
 

The power transformer sector could encounter obstacles stemming from the initial high costs and rising replacement expenses. Stringent technological regulations and labeling standards have led to elevated product expenditures. Transformers serve as pivotal components within the transmission and distribution (T&D) network, responsible for voltage regulation and current conduction capabilities. Given their critical role, substantial investments are essential for quality assurance and the implementation of automated manufacturing procedures. The utilization of advanced electrical components and the growing focus on energy efficiency have additionally played a part in driving up transformer costs.
 

COVID-19 Impact

During the COVID-19 pandemic, the development, construction, and maintenance of power infrastructure proceeded without government-imposed restrictions on new energy projects. Government efforts to restart operations in key industries, manufacturing facilities, and infrastructure projects have provided additional support for the energy sector's growth, driven by increased demand from these sectors.
 

Asia Pacific Power Transformer Market Trends

India, Indonesia, and China have notably attracted substantial investments from major manufacturers in recent years. The increasing demand for manufactured goods, accompanied by the expansion of manufacturing facilities to meet this demand, is anticipated to provide a further impetus to the power transformer market in these countries. The rising energy requirements and ongoing expansion of grid networks, particularly in emerging economies, offer abundant opportunities for the power transformer industry to address the evolving needs of various sectors. The persistent emphasis on industrial growth and the need for dependable power supply will remain key drivers of the power transformer market's growth in these regions.
 

Asia Pacific Power Transformer Market Analysis

The closed core segment held a market value of more than USD 3 billion in 2022. Closed core power transformers have gained extensive adoption in the industry due to their adaptability in managing various voltage conditions. Their ability to facilitate renewable energy conversions while ensuring operational longevity has played a pivotal role in the expansion of this sector. Nevertheless, advancements in coil technologies and increasing emphasis on energy efficiency have given rise to a range of alternative core technologies. These alternatives offer substantial enhancements in efficiency and performance when compared to conventional closed core units.
 

The auto transformer market is poised for growth on account of its superior transformation capabilities and operational flexibility compared to its competitors. The adoption of the product is being propelled by several key factors, including its compact design, cost-efficiency, and elevated efficiency levels. Furthermore, the incorporation of smart monitoring technologies has enhanced product reliability and cost-effectiveness, thereby making significant contributions to the Asia Pacific power transformer market expansion.
 

The increasing demand for oil-immersed power transformers can be attributed to their effective compatibility with high-tension applications and superior cooling capabilities when compared to dry power transformers. This technology has gradually established a strong presence in the market, primarily due to its efficient cooling characteristics and ease of installation. Nevertheless, it's worth acknowledging that issues concerning product leakage, health, and fire hazards might pose limitations on the demand for these power transformers in the foreseeable future.
 

Based on insulation, the oil-insulated units have been a longstanding insulation technology since the inception of power transformers in electrical infrastructure. Their effective insulation capabilities, high-temperature resilience, and sustainable applicability have driven demand for the product. However, the rapid advancement of technology has introduced more sophisticated insulation technologies, potentially posing challenges to Asia Pacific power transformer market growth.
 

The market for power transformers rated at ≤ 100 MVA is expected to experience significant growth due to its extensive applications in various sectors, including process industries, power generation, and infrastructure. The swift adoption of renewable energy sources in residential settings, combined with the rapid expansion of microgrid networks, will have a positive impact on the industry.
 

Pad-mounted distribution power transformer units have gained substantial market acceptance, primarily because the installation of larger units requires efficient base foundations and grounding arrangements. These units have found widespread use across various industries and utility environments, driven by the necessity of having power transformers located in close proximity to their intended usage locations.
 

The residential application is set to grow at a 7.3% CAGR through 2032. The business environment is poised to be influenced by fast-paced urbanization and supportive government initiatives that encourage the integration of renewable energy sources in residential areas. The growing adoption of on-site electricity generation technologies and ongoing efforts to establish smart control networks will additionally contribute to the increased demand for these products.
 

The China power transformer market held approximately 44.2% of the revenue share in 2022. China's rapid industrialization and urbanization have been significant drivers of increased electricity demand. Consequently, there is a growing requirement for power transformers to support power distribution and transmission in the country. To facilitate long-distance power transmission and connect remote renewable energy sources, China has made substantial investments in high-voltage direct current (HVDC) technology. This has generated demand for specialized power transformers capable of handling high-voltage direct current.
 

Asia Pacific Power Transformer Market Share

Siemens Energy commands a substantial share in the Asia Pacific power transformer business, distinguished for its extensive experience in engineering and producing diverse transformer types, encompassing power transformer, dry type transformer, among others. With a rich history deeply rooted in the transmission and distribution sector, the company has delivered transformer solutions across a broad spectrum of applications, spanning commercial, industrial, and utility sectors.
 

Some of the key market players operating across the Asia Pacific power transformer industry are:

• General Electric
• Siemens Energy
• Mitsubishi Electric Corporation
• ABB
• Schneider Electric
• Bharat Heavy Electricals Limited
• Toshiba International Corporation
• Elsewedy Electric
• Eaton
• CG Power & Industrial Solutions Ltd.
• Voltamp
• Ormazabal
• ARTECHE
• MEHRU
• Kirloskar Electric Company
• DAIHEN Corporation
• Hyosung Heavy Industries
   

Asia Pacific Power Transformer Market News:

• In February 2020, Eaton Corporation completed the acquisition of Power Distribution, Inc. (PDI), a prominent provider of power monitoring, static switching, and power distribution equipment and services tailored for industrial and commercial data centers. This strategic acquisition has significantly expanded the company's portfolio of data center power monitoring and distribution solutions.
   
• In April 2022, Bharat Heavy Electricals Ltd. (BHEL) has designed a bus potential power transformer module specifically tailored for Gas Insulator Systems (GIS). This innovative model is expected to slash the cost of power transformers by 90%, thanks to the utilization of domestically manufactured power transformers. Currently, this advanced model has been successfully installed and commissioned at a substation located in Haryana.
   

This Asia Pacific power transformer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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By Core

• Closed
• Shell
• Berry

By Winding

• Two Winding
• Auto Power Transformer

By Cooling

• Dry Type
• Self Air
• Air Blast

• Oil Immersed
• Self Cooled
• Water Cooled
• Forced Oil
• Others

By Insulation

• Gas
• Oil
• Solid
• Air
• Others

By Rating

• ≤ 100 MVA
• > 100 MVA to ≤ 500 MVA
• > 500 MVA to ≤ 800 MVA
• > 800 MVA

By Mounting

• Pad
• Pole
• Others

By Application

• Residential
• Commercial & Industrial
• Utility

The above information is provided for the following countries:

• China
• Japan
• South Korea
• India
• Australia