Global Electricity Transformers Market to Reach US$53.6 Billion, and 9.7 Million Units by 2017, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Transformers (Electricity) markets. The global market for Transformers (Electricity) is forecast to reach US$53.6 billion, and 9.7 million units by the year 2017. Major factors driving growth in the market include rising demand for electricity in the developing countries, increasing capital expenditure in power sector from governments worldwide, replacement demand from developed markets, and increasing demand for voltage transformers. Additionally, factors such as increasing urbanization worldwide are expected to create increasing demand for relatively expensive gas-insulated transformers, fueling further growth in the global transformers market.

Transformers (Electricity): A Global Strategic Business Report

Follow us on LinkedIn - The global Transformers market witnessed sizable growth until 2008, in both value and volume terms, per annum. However, the economic downturn that hit the world in late 2008 derailed this momentum, putting immense downward pressure on the global sales of transformers. Demand for transformers from end-use sectors such as commercial and industrial markets declined rapidly during 2009, which resulted in a decline in the sales of transformers for the year, in value terms. Prices of raw materials used in the manufacture of transformers became increasingly volatile, affecting profit margins of manufacturers, bruising global as well as regional players alike. However, manufacturers of transformers are expected to witness significant increase in business activity in the ensuing years. 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. Manufacturers are also expected to capitalize on the growing demand in developing countries. Leading players of the global transformer market have already ventured into emerging markets, and others are expected to follow suit in a bid to sustain in the market.

Increasing funding for infrastructure projects such as the establishment of power grids, and projects for developing infrastructure in electricity transmission and distribution from various governments worldwide are also expected to work in favor of the global transformers industry in the years ahead. Yet another aspect that is expected to provide increasing business for transformer manufacturers is the espousal of energy-efficiency standards in developed markets such as Europe and the US, and in emerging markets such as South Korea and China, which would create demand for new, more efficient electricity equipment, including transformers. The new standards make it mandatory for customers across all end-use sectors to use only energy-efficient products. Various incentive schemes and tax credits offered by certain governments for various industries to drive them towards capital purchases in the form of energy-efficient equipment are expected to give a boost to demand for transformers in the following years.

Asia-Pacific represents the largest regional market for Transformers (electricity) worldwide, as stated by the new market research report on Transformers (Electricity). The US trails behind the Asia-Pacific market. Growth in the market would be led by emerging markets such as Asia-Pacific, Latin America, and the Middle East. Asia-Pacific market is projected to post a compounded annual growth rate of close to 9.0% in value terms during the analysis period. Segment wise, Distribution Transformers represents the largest segment in terms of value, while Power Transformers is projected to emerge as the fastest growing market segment during the analysis period. Power transformers are projected to spearhead growth in the global electricity transformers market, posting a CAGR of more than 9.0% through the analysis period.

China represents the single largest market for electricity transformers worldwide. Serious power shortage across the country during the period 2000-2005 led the Chinese government to lay more emphasis on expanding the domestic power industry. This resulted in a remarkable increase in investments in the country’s power sector that in turn drove demand for various equipment used in electricity generation, transmission, and distribution. Transformer industry too picked up and began growing at a significant pace in the following years. Going ahead, continued increase in the consumption of electricity in China is expected to drive investments in the construction of electric grids and installation of new capacity. This in turn is expected to support demand for equipment used in transmission and distribution of electricity, including transformers. Demand for transformers is expected to be driven by increased efforts in the provision of reliable as well as stable transmission and distribution of electricity. On the other side, Chinese transformers are gaining immense popularity in the international markets, a trend that gained rapid momentum during the recent economic downturn. Increasing technological aspects as well as lower prices of electrical equipment are the key aspects driving this trend.

Although European companies, such as ABB, Siemens and Alstom, have been dominating the global market for transformers, companies from Japan, Korea, and India have entered the fray during the past few years and have been establishing a formidable presence in the global trade. The entry of electrical giants, including Kirloskar and BHEL from India and Hyundai from Korea into the international arena is expected to influence international trade in the near future. Further, competition is slated to intensify in future with the entry of companies from Eastern Europe, China, Mexico, and Brazil. Major players profiled in the report include Alstom, Asea Brown Boveri (ABB), Bharat Heavy Electricals Limited, Crompton Greaves Ltd., EFACEC Group, Hammond Power Solutions Inc., Nissin Electric Co. Ltd., Powertech Transformers (Pty) Ltd., Schneider Electric SA, Siemens AG, Shihlin Electric & Engineering Corporation, Smit Transformatoren BV, Waukesha Electric Systems Inc., among others.

The research report titled “Transformers (Electricity): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the Transformers (Electricity) market, current market trends, key growth drivers, recent product approvals, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections, in value and volume terms, for Transformers (Electricity) market for the years 2009 through 2017 for the following geographic markets - US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Value analytics in the report are provided for Power Transformers and Distribution Transformers, while Unit sales are provided for the following transformer types - 500-10000 kVA; 10001-30000 kVA; 30001-100000 kVA; and >100001 kVA. Also, a six-year (2003-2008) historic analysis is provided for additional perspective.

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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