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North America Transformer Market: Top Trends Augmenting the Industry Size up to 2027

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North America Transformer Market: Top Trends Augmenting the Industry Size up to 2027

According to a recent study from market research firm Graphical Research, the North America transformer market size is set to register a significant growth during the forecast timeframe, as the federal investments in the development and implementation of renewable sources of energy are increasing. The regional governments are encouraging companies to come up with methods that help create better and more efficient electricity infrastructure.

Industrialization is happening at a robust rate in North America. As a result, the regional authorities have placed strict rules with respect to the renovation of the existing electric grid structure to support the increasing power consumption. The production of electric vehicles is seeing an upward trend in the region, thereby increasing the installation of transformers to power the electric vehicle charging stations.

The following trends will foster North America transformer market outlook over 2021-2027:

Power transformers to cater to rising electricity demand:

Power transformers are projected to gain a lot of traction in North America as the installation of power generation units is growing in the region. These units will play a vital role in catering to the rising electricity demand from industries and residential areas.

Many companies in the region are now switching to electric systems with extra-high voltage supplies. These systems will be used in areas where power is consumed on a large scale. Power transformers will be extensively used to not only provide high-voltage electricity but also to stabilize its supply during fluctuations and peak hours.

Outdoor transformer installations gain momentum:

Governments in North America are spending a lot of money on building advanced electric infrastructure that caters to the rising electricity demands of the regional population. This is one of the important features contributing to the increased installation of transformers in outdoor locations. They have a wide range of applications across heavy-duty and high-voltage activities in various industries. They are quite reliable and take up lesser space when installed.

High use of air-insulated transformers:

North America industry share from air-insulated transformers will grow at a notable rate as the adoption of renewable sources of energy for power generation is picking up pace in the region. The authorities are introducing strict norms with regards to the permissible emission levels from factories. The need for refurbishing the aging grid networks is growing steadily. All these factors will foster the use of air-insulated transformers.

North America is witnessing the expansion of microgrid networks as they help in regulating the voltage and flow of electricity and offer powerful electric backup in case of power cuts. Some of the useful features of air-insulated transformers are that they are easy to install and offer efficient cooling systems during extreme heat conditions. In case of any spillage, these transformers are easy to clean as well.

Three-phase transformers have high application:

There are many factories in North America that have large-scale production lines and it is important to keep these processes running for a long period. This is where three-phase transformers will be highly adopted by the factory owners as they have the capacity to withstand increasing load and can provide adequate electricity during peak hours.

These transformers will be widely used during the refurbishment of the existing grid infrastructure in North America. The product has a longer shelf life as compared to its counterparts and will be useful in keeping up with the rising electricity demand from regional consumers.

Well-known organizations across North America, such as Hitachi ABB Power Grids, Northern Transformer, SPX Transformer Solutions, DOS Canada, Schneider Electric, Siemens, and several others are developing smart transformers that are highly efficient as they use lesser electric sources to generate maximum power for factories in the region. They are increasing their investments in various research and development activities to make use of naturally available energy sources. This will help generate power that doesn’t have any negative side effects on the environment.

North America transformer market trends have shown great progress as there is a wide product variety to choose from such as distribution, power, and instrument transformers. Different types of insulations are being used which include solid materials, gas, oil, and air. Industrial, utility, residential, and commercial end-users will install both three-phase and single-phase transformers on a notable scale to fulfill the varying electricity demands.

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Dry-Type Power Transformer Market to Register Commendable Proceeds in the Coming Years

Rapid urbanization has increased the demand for electricity which has fueled the proliferation of the power transformer market. Many countries need an effective integration of large-scale power grids to satisfy these demands. Such a significant shift of preference to develop an efficient electric infrastructure will boost the usage of power transformers.

As per a Global Market Insight Inc. report, the power transformer market is anticipated to register a CAGR of around 5% by the end of 2027.

Technological advancements with the implementation of grid networks based on cloud systems have bolstered the consumption of power transformers. In addition, increased financial assistance for setting a grid infrastructure providing power at longer distances will propel the demand for power transformers.

In terms of cooling methods, the dry-type power transformers have high dielectric strength, low maintenance costs and offer zero carbon emissions. Many key players are heavily investing in research and development activities which will probably bolster the product demand. Citing the aforesaid with an instance, ABB, in 2018, announced the Ability TXper digital dry-type transformer which consists of processing units for data analytics, hardware for data storage, temperature sensors, integrated cloud systems. Driven by such initiative and benefits, dry-type power transformer market revenue surpassed USD 5 billion in 2020.

When it comes to the type of insulation, oil insulation is primarily used for commercial and industrial applications. This is one of the reasons that the segment dominated the power transformer market in 2020 with a major share of 58.9%. Increased construction of distribution and transmission infrastructure for inter-state and cross-border projects will significantly contribute to the industry growth. In addition, oil insulation offers fast dissipation of heat, uniform transformer conduction and recoverable insulation performance.

Industrial expansion in developing economies along with increased integration of sustainable sources of power generation have propelled the >800 MVA rating segment. There has been a sizeable rise in the consumption of electricity across large- and medium-level industries such as food processing plants, oil & gas refineries which has boosted the segment growth. With renewable grid structures adopting novel power transmission units, the >800 MVA segment will probably flourish over the projected timeframe.

Regionally, the power transformer market in the Middle East & Africa is projected to showcase sizeable growth owing to increased investments for the infrastructural development of the electric network. This, along with strict regulatory policies for reducing the usage of equipment emitting carbon has bolstered the market growth in the region. With the establishment of micro-grid networks along with revamping & reconstruction of existing power grids, the market for power transformers will promote substantial growth over the coming years.

However, the ongoing COVID-19 pandemic has reduced the investment from private and public sector organizations. But developed countries have taken some radical steps in reestablishing transmission & distribution networks across developing and underdeveloped economies. Such initiatives have stabilized the growth of the market.