Step-Down Transformers Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Voltage Type (Low Voltage, High Voltage), By Application (Power Plants, Consumer Electronics, Substations, Others), And By Geography – Forecasts From 2023 To 2028

Step down a transformer that lowers an AC electrical current's voltage is known as a transformer. They are frequently found in power plants and substations and are used to reduce high voltages to usable levels. The need for step-down transformers has increased as a result of the global adoption of smart grid technologies and the implementation of such grids. Step-down transformers, a key component of electrification systems have a new use in the widely used grid network, which is driving up demand and providing new opportunities for the industry to expand.

Step-down transformers are utilized in many applications for various functions. To generate the extremely high voltages required for the transmission of energy over the national grid's power lines, step-down transformers are employed in power plants. Due to increased digitalization and population growth during the past few years, electricity consumption has risen. It is projected that rising average energy usage would drive the power transformer market's continuous expansion.

The increase in smart grids globally has given a boost to step-down transformer market growth

A driving factor propelling the market development for step-down transformers is the widespread implementation of smart grids, which need these transformers for the distribution process as well as the addition and replacement of renewable electricity.

Also, according to the Statistical Review of World Energy, 2022 report by BP the renewable power generation at the global level in 2021 has been 3657.2 TWT which has increased from the previous year by 14.9%, thus this ensures that due to the increase in the power generation, the power grid lines will increase at a rapid pace and thus the market for the step-down transformers will grow.

According to the Ministry of Power of India on Feb 2023 it revealed that from 2014 to 2022 thus around 175 GW of power generation capacity has been added and with the addition of 173459 ckt km of transmission lines to its grid, the entire nation is now connected and can move 112 GW of power from one region to another. This will tend to increase the installation of step-down transformers and will grow this market.

The increase in demand for electricity will boost the global market for step-down transformers.

Accelerated industrialization and rising domestic energy consumption are the driving forces behind the rise of the world market for step-down transformers. The electricity demand is rising steadily over the world, which has increased the use of energy resources. There are currently more power plants and extensive transmission networks everywhere. The industry is using more power as a result of the advancement of modern electric vehicles and incentives to use them. Given that the majority of power plants are situated in remote areas, the electricity produced is then sent to the substations through HVDC power transmission lines, where it is then delivered to the final customers after step-down.

According to the Statistical Review of World Energy, 2022 report by BP renewable energy consumption globally has increased by 12.6 % from 2011 to 2022 and from 2020 34.80 TWH has raised to 31 TWH of consumption. Thus, we can predict that due to the increase in the electricity demand worldwide in increasing year-on-year the demand for step-down transformers will also grow and thus the step-down transformer market.

During the forecast period, Asia-Pacific tends to grow in the step-down transformer market

The need for electricity infrastructure is predicted to rise throughout the projection period, as is the rate of industrialization and urbanization, particularly in China, India, Japan, South Korea, Taiwan Province of China (TPTC), Indonesia, and Malaysia. Consumer electronics items have risen in emerging nations like Thailand and Vietnam due to improving living standards and a growing population, which is expected to fuel regional expansion throughout the projection period.

The most recent United Nations projections place Asia's population at 4,743,946,002 as of Monday, February 6, 2023. The population of Asia is equal to 59.76% of the population of the entire planet this showcases that the demand for consumption is increasing and thus will the step-down transformer market will tend to grow in this region.

Additionally, favorable government rules intended to encourage FDI are anticipated to create new doors for manufacturers in a variety of industries, including the energy industry, which will increase product demand. According to the Ministry of Power 2014, The "Integrated Power Development Scheme" (IPDS) was announced by the Ministry of Power, Government of India, on December 3rd in to prove the power sub-transmission and distribution networks in metropolitan areas. Projects worth Rs. 30,904 crore havcroresn approved under the IPDS as of November 2021. States and Discoms have received GoI Grants totaling 78 crores so far under IPDS. The strengthening of the distribution system has been successfully finished in 524 circles. The goals established and accomplishments realized through the IPDS System include strengthening this shows the growth will propel the step-down transformer market in this region

Market Key Developments.

• In June 2022 Hitachi Energy said that it will supply China Machinery Engineering Corporation (CMEC), the project's EPC (engineering, procurement, and construction) contractor, with a 24-MVA subsea transformer. Hitachi worked with ABB on this project, and ABB is providing its INSUBSEA Long Step-out solution. The transformers are a part of a sizable deal, according to the supplier, for the provision of two subsea OceaniQ transformers, two input transformers, two step-up transformers, and a common step-down distribution transformer.
• In June 2019 ABB Ltd. and the Chongqing Municipal People's Government agreed to construct a smart transformer production facility in Liangjiang New Area in Chongqing. The agreement states that ABB Chongqing Transformer Co., Ltd. would relocate from Jiulongpo District to Liangjiang New Area and set up a top-tier production facility for transformers there. By the end of 2022, the production facility is anticipated to be complete.

Step-Down Transformers Market Scope:

Segmentation

• By Voltage Type
  • Low Voltage
  • High Voltage
• By Application
  • Power Plants
  • Consumer Electronics
  • Substations
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    •  Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Suadi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others