Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Renewable Energy Transformer Market size was valued at USD 25.28 billion in 2024 and is set to exceed USD 47.08 billion by 2037, expanding at over 4.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of renewable energy transformer is evaluated at USD 27.3 billion.
The growth of the market can be attributed to the demand for electric grids due to increased industrialization and urbanization. Renewable energy transformers are crucial elements of power grids as they aid in power transfer between networks with minimal variations in frequency and degradation. In the next years, the requirement for renewable energy transformers is expected to be fueled by higher expenditures in the development of power grid infrastructure along with transmission routes to provide electricity availability in rural places. In the time frame of the evaluation, the transformer market is estimated to be driven by increased transmission network studies and the growing utilization of unconventional and renewable energy sources for producing power in remote places. Renewable energy increased from 20% to 28% of worldwide electricity supply between 2011 and 2021. There are 3,146 gigawatts of installed renewable energy capacity in 135 nations, with 156 countries having legislation governing the renewable energy sector.
Renewable Energy Transformer Sector: Growth Drivers and Challenges
Growth Drivers
- Rising consumption of energy in developing countries-- Increasing energy consumption in emerging and developed countries, together with increased infrastructure investment, is predicted to be the key driver for market expansion over the duration of the forecast. Energy consumption in emerging countries is expected to expand at a 3% annual rate, while energy demand in developed countries is expected to grow at a 0.9% annual rate.
- Rapid Industrialization and Urbanization- Energy consumption in emerging countries is expected to expand at a 3% annual rate, while energy demand in developed nations is expected to increase at a 0.9% annual rate.
- Infrastructure and construction operations advancement- The development in infrastructure and construction operations has resulted in a surge in demand for power transformers. Between April 2000 and September 2022, FDI in construction advancement (townships, housing, built-up infrastructure, and construction advancement initiatives), as well as construction (infrastructure) operation sectors, totaled US$ 26.23 billion and US$ 28.95 billion, respectively.
- Rising demand for Smart grid and transformer deployment- In 2019, National Grid began work on the West Ashville substation assignment in New York to tackle low voltage concerns on the current transmission grid. National Grid has authorized the construction of a new substation in the Town of Harmony in order to reduce the burden on the current system. These investments in new power grid initiatives are projected to drive up demand for renewable energy transformers even more.
- High Consumption of Electricity - The consumption of electricity has soared in recent years as a result of increased computerization and population growth. The rise in average energy usage is projected to be responsible for the renewable energy transformers market's consistent growth. The world's population is predicted to grow by about 2 billion people during the next 30 years, from 8 billion today to 9.7 billion in 2050, with a peak of nearly 10.4 billion in the mid-2080s.
Challenges
- Standardization Issues Related to Renewable Energy Products
- Lack of Competence - Employees must be instructed to set up, utilize, and upkeep cutting-edge technology. Some require operational expertise in specific climatic conditions before optimizing performance. During the projected period, this aspect is likely to hinder the expansion of the renewable energy market.
- Huge initial investments to create infrastructure
Renewable Energy Transformer Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
4.9% |
|
Base Year Market Size (2024) |
USD 25.28 billion |
|
Forecast Year Market Size (2037) |
USD 47.08 billion |
|
Regional Scope |
|
Renewable Energy Transformer Segmentation
The market is segmented and analyzed for demand and supply by end users into distribution transformer, power transformer, and others. Out of these, the distribution transformer segment is estimated to gain the largest market share of about 50% in the year 2037. The demand for distribution transformers is rising owing to rapid urbanization. The rising number of electricity production plants and transmission facilities has resulted in higher distribution transformer revenues. Out of all regions, the African continent is anticipated to have the greatest potential. The expected fuel need for distribution transformers in the coming decades is the electrification of the African continent in the years ahead. The incorporation of renewable energy into the electrical grid in advanced as well as emerging nations has raised investment in the electrical power system and boosted the expansion of the distribution transformer segment. At the 24th World Energy Congress in Abu Dhabi, the United Arab Emirates' capital, in September 2019, Chinese telecom giant Huawei unveiled a variety of power solutions, involving aspirations for a smart distribution transformer.
Application (Solar PV, Wind Farm, Hydro-Energy)
The global renewable energy transformer industry is also segmented and analyzed for demand and supply by application into solar PV, wind farm, hydro-energy, and others. Amongst these three segments, the heat hydro-energy segment is expected to garner a significant share of around 35% in the year 2037. During the projected period, the segment is expected to be driven by factors including a growing number of novel hydropower initiatives backed by government backing and an increased need for reliable electricity. In the coming years, emerging technological advancements aiming at expanding hydropower generation are likely to present considerable potential for the hydropower market. In 2019, hydropower capacity (80.25 GW) was worth 6.7% of installed electricity production capacity in the United States.
Companies Dominating the Global Renewable Energy Transformer Landscape
- Eaton Corporation Plc
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Hitachi ABB Power Grids
- CG Power and Industrial Solutions Ltd.
- DAIHEN Corp.
- Schneider Electric SE
- Siemens AG
- STC Inc.
- Bharat Heavy Electricals Ltd.
- ENERCON GmbH
- General Electric Company
In the News
- Hitachi ABB Power Grids have launched a transformer for floating offshore wind energy, which operates by enabling the new generation of floating and turbines and substations. The aim of this product is to overcome large volume of wind to support the energy transition for a sustainable future.
- Siemens Energy was awarded a contract to set up 22 distribution transformers at China's first industrial 66 kV offshore wind farm, Yuhuan Offshore Wind Power Project Phase 1, near Taizhou, Zhejiang Province.
Author Credits: Dhruv Bhatia
- Report ID: 3255
- Published Date: Dec 20, 2024
- Report Format: PDF, PPT
