The power transformers market is set to experience substantial growth, with a projected increase of USD 11,575.07 million between 2022 and 2027, according to a recent market research report by Technavio.

This growth will be driven by the modernization of existing transformers, which includes the installation of new transformers and the replacement of old ones. The Asia-Pacific (APAC) region is expected to account for 37% of the global market during this period. The demand for electricity in APAC remains high due to increasing consumption, particularly in countries like China and India where rapid urbanization and improved living standards are driving electricity needs. Additionally, the improved economic conditions in the region have made a continuous electricity supply crucial, further contributing to the market's growth.

China, in particular, plans to expand its transmission and distribution (T&D) network by nearly half a million circuit kilometers, facilitating the connection between demand and supply centers across the nation. The country's power generation capacity is also expected to grow significantly, which will drive the demand for power transformers and related accessories. Furthermore, the increasing adoption of hydropower and wind power in China will further fuel the market for power transformers in the future. In India, rapid developments in commercial and industrial infrastructure are also supporting the growth of the power transformers market in the APAC region. These factors, combined with others mentioned in the Technavio report, are expected to drive market growth in APAC during the forecast period.

The modernization of existing transformers is a key factor contributing to the growth of the power transformers market. The installation of new transformers and the replacement of outdated ones are driving this growth globally. Many transmission and distribution infrastructures worldwide require renovation due to the inability of existing networks to meet the growing demand for power. For example, in Russia, Chelyabenergo completed the reconstruction of the 110/10 kV Miass substation in the Urals in 2015. Additionally, the adoption of smart grid networks, which intelligently integrate the actions of electricity users, has led to increased installations of power transformers for effective power transmission. This, in turn, has driven the demand for transformer oil. Overall, these factors are expected to contribute significantly to the global market's growth in the forecast period.

In conclusion, the power transformers market is poised for substantial growth, driven by the modernization of existing transformers. The APAC region, particularly China and India, will play a significant role in this growth due to increasing electricity consumption, rapid urbanization, and improved living standards. The expansion of T&D networks, the growth in power generation capacity, and the adoption of renewable energy sources will further fuel the demand for power transformers and related accessories. The market's growth will also be supported by the installation of new transformers and the replacement of outdated ones, as well as the adoption of smart grid systems.

Source: finance.yahoo.com