Renewable Energy Transformer Market Trends

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