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The global Special Transformer Market is estimated to be valued at US$ 2.61 Mn or in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Special transformers are custom-designed transformers that are developed as per specific customer requirements. They feature unique technical specifications and designs compared to standard transformers. Special transformers find application in industries such as mining, steel, transportation, and utilities. They help provide efficient power transmission and distribution. Their salient features include high leakage reactance, specialty bushings and tap-changing abilities. They are used to handle high voltage and ensure stable power transmission in electricity grids.
Market key trends:
One of the key trends in the special transformer market is the growing focus on renewable energy integration. Renewable energy installations are increasing rapidly worldwide due to supportive government policies and climate change initiatives. However, integrating large-scale renewable energy into existing electricity grids requires special transformers with lower harmonics and fault tolerance. This is propelling the demand for specialized distribution and grid transformers in the renewable energy sector. Additionally, the retirement of aging power infrastructure in developed economies is fueling replacement demand for special transformers designed for rehabilitation projects.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the special transformer market is relatively low as specialized knowledge and capital investments are required for manufacturing special transformers.
Bargaining power of buyers: The bargaining power of buyers is moderate as special transformers have specialized applications and specifications. Switching costs for buyers are high.
Bargaining power of suppliers: The bargaining power of suppliers is high due to the specialized materials and manufacturing process required for special transformers.
Threat of new substitutes: The threat of new substitutes is low as special transformers have unique properties and applications that regular transformers cannot replace.
Competitive rivalry: High due to presence of numerous global and regional players competing on the basis of product innovation, quality, and pricing.
Key Takeaways
The global special transformer market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing investments in power generation, transmission and distribution industries. Special transformers find widespread usage in manufacturing industries, nuclear power plants, renewable energy installations and other critical applications requiring voltage transformations.
Regional analysis: Asia Pacific is expected to dominate the special transformer market during the forecast period. This is attributed to large-scale investments planned for T&D network upgrade and expansion in China and India. Significant power generation additions using renewable sources will further propel the regional market.
Key players operating in the special transformer market are Mitsubishi Electric Corporation, Sunten Electric Equipment Co., Ltd., Siemens Ltd., Alstom, Schneider Electric, ABB, Wolong Electric Group Co.,Ltd., Toshiba India Pvt. Ltd., TBEA India, Baoding Tianwei Group, Wuzhou Transformer Co., Ltd., and Jinan XD Special Transformer Co.,Ltd. Mitsubishi Electric Corporation and ABB together accounted for over 30% of the global market share in 2023.
