The replacement market in Europe is expected to drive a 600 billion euros investment by 2020, finds Frost & Sullivan. The massive deployment of distributed energy resources (DER) and two-way power flow is intensifying the need for strong distribution transformer infrastructure. One of the biggest upshots of distributed generation is the demand for smart or solid-state transformers for voltage management in smart grids. The accelerated sales of smart or solid-state transformers in North America, Germany, China, and India and the rising interest from the UAE, Saudi Arabia, and Brazil are expected to propel the global transformers market toward USD 35.45 billion by 2022.
“Grid modernisation, smart grids, and new rapid transit rail networks with high-speed trains and electric vehicle (EV) charging stations are expected to fuel demand for smart or solid-state transformers,” said Farah Saeed, Digital Grids Research Director at Frost & Sullivan. “To make the most of this burgeoning demand, original equipment manufacturers (OEMs) should invest heavily in setting up manufacturing plants in the frontier nations. Partnering with local resellers and OEMs will give them a huge advantage when trying to penetrate the Asia-Pacific market, especially Southeast Asia.”
Frost & Sullivan’s recent analysis, Global Transformers Market, Forecast to 2022, focuses on the important trends in the distribution, power, isolation, and smart transformers markets. It also analyses the drivers and restraints of the overall global transformers market and presents the top growth opportunities through 2022.
While expanding their footprint, it is important for OEMs to make sure that the design of their transformer meets the stipulations set by the regulatory bodies in a particular country or region. They should also have a clear understanding of the service requirements of the end user before launching their product. This could require them to adjust their distribution transformer design to offer modularity as well as smaller ratings and footprint. The quality of value-added services also will be a key differentiator in a tough competitive environment.
