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Key Drivers of Europe Distribution Transformer Market

12-07-2021 03:20 PM CET | Energy & Environment

Press release from: Transparency Market Research - Energy & Mining

Albany, NY - Europe Distribution Transformer Market­­­: Introduction

The distribution transformer market in Europe was valued at US$ 3.5 Bn in 2019 and is anticipated to expand at a CAGR of 6.5% during the forecast period. Based on insulation, the liquid segment held dominant share of the distribution transformer market in Europe in 2019. In terms of insulation type, the replacement segment accounted for a larger share of the distribution transformer market in Europe in 2019. Power failures have been rising due to the aging power grids. This calls for replacement of distribution transformers. Based on type, the three phase segment constituted significant share of the distribution transformer market in Europe in 2019, as three phase transformers are efficient, cost effective, more stable & reliable, and easier to conduct parallel operations vis-à-vis the single phase transformers.

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In terms of power rating, the 0-200 kVA segment occupied large share of the distribution transformer market in Europe in 2019. These transformers are primarily used outdoors. Based on winding material, the copper segment accounted for major share of the distribution transformer market in Europe in 2019, as copper is harder, stronger, and more ductile than aluminum. Thus, its periodic inspection is not required. Based on application, the utility segment dominated the distribution transformer market in Europe in 2019. Utilities are owned by governments. They are the major producers and distributors of electricity in Europe.

Based on the mounting, the pad segment accounted for key share of the distribution transformer market in Europe in 2019. Pad mounting transformers are safe and reliable, as they have enclosed cabinets. The distribution transformer market in the U.K. is likely to expand at a substantial pace during the forecast period, owing to high investments in power industry in the country.

Key Drivers of Europe Distribution Transformer Market

Aging energy generation and distribution infrastructure is one of the major challenges in developed countries. It creates significant pressure on energy generation and distribution infrastructure. Many countries in Europe are incurring high costs associated with disruptions and Customer Minutes Lost (CML). The level of investment needed to maintain and upgrade the network is also high. Romania is also facing issues, such as run-down infrastructure, that cannot withstand the demand placed on the energy infrastructure. The power generation technology is evolving constantly; therefore, energy distribution and generating facilities need to come up with planned upgrades. Energy distribution and generating facilities need to work in tandem with ‘future proof’ networks, as more coal plants are decommissioned. Renewables and nuclear power are expected to continue to play a bigger role in power generation. New technologies and fuel choices need to be integrated into the grid (such as smart grids) in the future.

Three key factors that grid technology could improve are demand risk from the utility’s standpoint, difference between wholesale and retail price, and the difficulty of integrating intermittent renewable sources of electricity into the existing grid. Smart grids refer to the modernization of the electricity-delivery system to allow for greater automation in grid operation at virtually every node, including facilitating data communication and operations between all agents in the system, which include generators, system operators, and final demanders. Thus, the adoption of smart grid technologies to improve existing electricity transmission and distribution is creating lucrative opportunities for the distribution transformer market.

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Rest of Europe to Lead Europe Distribution Transformer Market

The Rest of Europe includes Germany, France, Italy, and Russia & CIS. The demand for electricity is high in these countries. These are leading countries in terms of production of electricity in the region. The demand for distribution transformers is anticipated to rise in Rest of Europe. Furthermore, Germany, France, Italy, and Russia & CIS are engaged in production of renewable energy; hence, demand for distribution transformers is high in the renewables industry in these countries.

The U.K. is another key country for distribution transformers. The U.K. is a leading country in Europe in terms of consumption of electricity. Electricity consumption in the U.K. stood at 29.1 TW in 2019. The U.K. has been experiencing an increase in power generation in the last couple of years. This is estimated to propel the demand for distribution transformers in the country during the forecast period.

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Major Developments in Europe Distribution Transformer Market

In February 2019, Schneider Electric SE was named among 100 of the World’s Most Ethical Companies by the Ethisphere Institute for the ninth consecutive year. In October 2018, Schneider Electric SE was declared one of the best-performing companies in the eCAC40 ranking for digital progress, achieving the highest-ever score. The result reflected the company’s successful digital strategy, which was launched more than 10 years ago.

Competition Landscape

The distribution transformer market in Europe is led by multinational players operating across the region. Prominent players functioning in the distribution transformer market in Europe are Siemens AG, General Electric, Schneider Electric, ABB Ltd, Kirloskar Electric Ltd., Toshiba International Corporation, Crompton Greaves Ltd, and Eaton Corporation.

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Transparency Market Research is a global market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. Our experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

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