Growing Adoption of Energy Efficient Standards Drives the Global Market for Distribution Transformers, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Distribution Transformers markets. Global market for Distribution Transformers is projected to reach US$19 billion by the year 2018, primarily driven by surging demand for electricity in emerging economies and growing replacement demand in developed economies.

Distribution Transformers: A Global Strategic Business Report

Follow us on LinkedIn – Distribution Transformers provide the final voltage transformation in the electric power distribution system. They play an important role in decreasing the voltage level in the distribution lines to the level required by the consumer. As is the case with most of the transmission and distribution equipment, distribution transformers are also susceptible to changes in the regulatory environment, and economic cycles. Periods of downturn in key end-markets tend to influence demand patterns. Given its high levels of dependence on economic health, the global electric power transmission and power distribution equipment market suffered a severe setback in the year 2009, primarily due to the global economic recession, which was at its peak during the year. The complete meltdown of the construction industry, especially the housing sector, crippled the distribution transformers market, largely because new housing construction creates new demand for these transformers by opening up newer and additional subdivisions for distributing power.

Despite managing to bounce back from the setbacks witnessed during recessionary period, numerous factors still continue to influence distribution transformers market globally. Firstly, most of developed global economies continue to be in a state of turmoil. This factor holds true particularly for Europe, which is running into fresh set of challenges created by the region’s ongoing sovereign debt crisis. Additionally, emerging economies such as China and India also reported restrained growth in 2011 and 2012. Slow down in the global economy has left power transmission and distribution customers cash strapped, which in turn has translated into delayed acceptance of orders placed earlier. Additionally, competition has intensified in the transformers space, with Korean and Chinese players posing stiff competition to some of the leading players in the global market. Further, raw material prices continue to remain volatile, thereby affecting profit margins of manufacturers.

Manufacturers of distribution transformers are expected to witness significant increase in business activity in the ensuing years despite the present tough economic conditions. Demand for electricity continues to rise in emerging economies, while the need to replace old electricity generation, transmission and distribution equipment in developed countries is on the high. Together, these factors are expected to generate substantial demand for transformers in the foreseeable future. Increasing funding for infrastructure projects, such as the establishment of power grids, and the projects for developing infrastructure in electricity transmission and distribution from various governments worldwide, are also expected to work in favor of the distribution transformers market in the years ahead.

Energy-efficient, environment-friendly transformers such as Amorphous Metal Transformers (AMT) are fast gaining ground in the distribution transformer space. AMTs, which are capable of holding a maximum of 1000kVA (kilovolt-ampere), can be used on electric grids and are capable of decreasing the energy losses by about 70%. Though highly priced than their conventional counterparts, energy savings generated through the unit effectively offsets the high initial capital outlay. Subsequently, AMTs are beginning to gain wide acceptance in India, China, and other developing countries, where reduction in CO2 emission and energy conservation are key focus areas. However, high cost still remains a major obstacle impeding widespread market acceptance.

As stated by the new market research report on Distribution Transformers, Asia-Pacific represents the largest and the fastest growing regional market for Distribution Transformers. Countries such as India and China are expected to lead growth in the Asia-Pacific region. Meanwhile, growth is also expected to be strong in the Middle East as increasing demand for water and power that drive demand for power, desalination equipment as well as related products would have a beneficial impact on the distribution transformers market.

Market for distribution transformers is highly fragmented, characterized by the presence of a number of small players. Several small players that sprouted up as a result of governmental initiatives to promote the development of local manufacturers are now facing tough competition from major players. Competitive pressures, including the need to achieve economies of scale, are triggering consolidations as smaller players seek to team up with larger players to ensure continued survival in the marketplace. Major players in the global marketplace include Asea Brown Boveri (ABB), Crompton Greaves Ltd., Eaton Corporation, EGS Electrical Group, EFACEC Group, General Electric Company, Hammond Power Solutions Inc., Howard Industries, IMP Power Limited, Kirloskar Electric Company Limited, Powertech Transformers (Pty) Ltd., Schneider Electric SA, Siemens AG, and Shihlin Electric & Engineering Corporation, among others.

The research report titled "Distribution Transformers: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (US$) across geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, and Rest of Asia-Pacific), Latin America, and Rest of World.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
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