Closed Core Power Transformer Market Trends

Growth Drivers

• Digital technologies recasting power transformers: The integration of the Internet of Things and artificial intelligence (AI) into power systems is significantly enhancing the characteristics of power transformers such as reliability and performance. To maximize their Return on Investment (ROI) and operational efficiency, many users are widely seeking digitally enabled power transformers, generating high-profit opportunities for key market players. Advanced real-time monitoring, predictive maintenance and outage prevention, automated energy optimization, and enhanced cybersecurity are some of the key pointers fuelling the sales of digital closed core power transformers.
  
  For instance, several studies reveal that predictive maintenance capabilities help in reducing downtime by up to 45% and breakdowns by up to 75%. This feature further aids in cutting maintenance costs leading to high ROI.
• Infrastructure development & industrialization growth: The rising infrastructure development initiatives are augmenting the demand for advanced closed core power transformers, globally. The investments in new power plants and transformers to improve electricity access are fuelling the revenue shares of closed core power transformer market players. For instance, the Australia-Asia PowerLink is one of the largest solar plant projects across the world estimated to be completed by 2027. Growth in urbanization and industrial activities highly drives demand for extensive power distribution networks to ensure reliable and consistent electricity supply, which is leading to increasing adoption of modern power transformers.

Challenges

• High production and installation costs: Closed core power transformers need high capital costs due to the use of advanced materials and complex design. They require high-quality magnetic materials, which can be more expensive compared to conventional materials. Also, the construction of closed core transformers is more intricate which increases the complexity and labor costs associated with installation.
• Supply chain disruptions: Supply chain issues associated with raw materials often pose a challenge for closed core power transformers. Any disruptions due to geopolitical tensions such as the Russia-Ukraine war and the Isarel-Palestine war, natural disasters, or trade restrictions lead to shortages of raw materials, increasing the power transformer costs.