The North America Power & Distribution Transformer Market is
anticipated to grow robustly in the forecast period
2024-2028. The North American Power & Distribution
Transformer Market is projected to be driven by elements like rising industrial
energy consumption and modernizing ageing transmission and distribution
networks.
A distribution transformer, often referred to
as a service transformer, lowers the voltage used in distribution lines to the
level utilized by the customer as the last voltage transformation in an
electrical power distribution system. The location where cables exit an
underground power line or utility pole and enter a customer's property is known
as a service drop, and it is here that distribution transformers are often
found. They are typically used to supply electricity to facilities outside of
communities at voltages lower than 30 kV, such as isolated residences,
farmyards, or pumping stations.
Government Regulations Towards Renewable
Energy and Increasing Demand of Electricity Is Propelling The Market
The growing number of residential and
commercial uses for transformers as well as their low cost are driving up
demand for wet insulated power transformers. Two research and development
projects that might create attractive market expansion potential include the
integration of wet insulating power transformers with smart grids and the
installation of renewable energy grids with eco-friendly coolants.
Due to company’s excellent efficiency, these transformers are used in situations where
high voltage and low losses are essential factors. They offer
higher insulation and cooling capabilities when compared to dry power
transformers, which advances the sector.
Smart grids can quickly adapt to variations
in electricity consumption and can be accessed and monitored remotely. They
deliver power and cooling efficiently, which reduces carbon emissions. The
growth of the North American power and transformer market would be aided by the
development of green transformers, high voltage transmission technologies, and
stringent government restrictions targeted at reducing greenhouse gas emissions
throughout the projected period.
Distribution Transformer Expected to Dominate
the Market
The ultimate voltage transformation in the
electric power distribution system is provided by a distribution transformer,
also known as a service transformer. The voltage applied in distribution lines
will then be stepped down to the level used by different clients in the
residential, commercial, and industrial sectors.
The existing transmission and distribution
system is being upgraded and expanded in North American nations including the
United States and Canada. Due to the country's fast urbanization and
industrialization, countries like Mexico are intending to expand their energy
transmission and distribution systems.
North America produced around 5447.3
Terawatt-Hours (TWh) of power in 2018, which was more than the 5294.4 TWh it
produced in 2017. The increase in energy production indicates a
rise in the number of power plants, and these new distribution transformers are
being used to transmit electricity to consumers.
High Maintenance and Fluctuating Raw
Material Cost
Steel, aluminum, and copper are the main
components used to make power transformers. Due to an increase in the overall
cost of these raw materials, the sale of power transformers will be restricted
in low- and middle-income countries. Due to changes in the raw material supply
and disruptions caused by pandemics in the distribution and supply networks,
power transformers are more expensive than conventional power distribution
systems. High-power transformer installation and maintenance expenses in
comparison to present power distribution systems are anticipated to limit the market's
growth. Raw material prices are predicted to fluctuate.