The global smart transformer market to grow at a CAGR of 15.25% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global smart transformer market for 2017-2021. To calculate the market size, the report considers the new installations/shipments/sales/volume/value and exclude retrofit/replacement/spares/aftermarket/services market. The report also includes a discussion of the key vendors operating in this market.
According to the report, one of the major drivers for this market is Renewable power generation capacity expansion. In 2014, China and the US each comprised about one-fifth of the global power generation capacity. China's capacity is expected to grow by single digits year-over-year till 2035. Most of the major expansion activities are taking place in renewable energy.
The latest trend gaining momentum in the market is Evolution of smart grids. The rising investment in smart grids in APAC and GCC is currently on the rise because of the increasing demand for electricity in these regions. Though all smart grids do not need be equipped with smart transformers, it is expected that the upcoming smart grids may be equipped with smart transformers to enhance the efficiency.
Further, the report states that one of the major factors hindering the growth of this market is High investment needed from a financially weak distribution sector for upgrading networks. The cost of upgrading smart grid systems comprises additional costs, such as the cost of replacement of transmission lines, power delivering systems, substation digitization, distribution systems, and digital controls. Consequently, power utilities and independent power producers (IPPs) are undergoing huge initial capital investments. It is anticipated that the smart grid technology's deployment cost in the US may increase exponentially over the next 20 years. This escalation is expected to stem from aging power infrastructure and the increased need for renewable power grid integration.