Future of power transformers: Demand for smart transformers unlocks new opportunities
Power transformers are the heart and soul of electricity grids as they are responsible for maintaining the flow of electricity in power plants and in distribution lines that are connected to residential places.
Over the last few years, the demand for solar power generation has skyrocketed, enabling the need for efficient power transformers that work best for solar farms.
While the conventional design of power transformers works best for catering to the needs of residential and commercial places, wind and solar power generation need flexibility in impedance from power transformers. Moreover, renewable energy sources need significant changes in the infrastructure of energy generation and transmission, which has created new opportunities in the power transformer industry.
As per the report published by Allied Market Research, the global power transformer market is expected to garner $50.8 B by 2027, registering a CAGR of 7.9 % from 2020 to 2027. The rise in the need for electricity across the globe, increase in adoption of smart grids and surge in replacement of existing transmission networks fuel the growth of the market.
Several market players have invested in developing new power transformer designs that minimize electricity losses during transmission. What’s more, companies have focused on reinventing power transformers altogether by replacing metal in core with a novel composition of metals.
On the other hand, the world is in dire need of smart power transformers. The upcoming electric devices need a reliable and constant source of power. The life expectancy of power transformers should match their maintenance costs. Thus, several companies have invested in developing smart transformers that come with smart-grid enable software systems.
Smart transformers along with the latest software system that allows performance monitoring of power transformers and enables to maximization of the productivity of electronics are the next big thing in the market. Moreover, smart transformers can reroute power during hazardous climates or in case of an emergency. These transformers have already gained popularity over the last couple of years due to their additional safety and variety of applications.
This is an exciting period for the power transformer market. The popularity and demand for smart cities are expected to boost the demand for power transformers on an unprecedented level. Moreover, the gradual replacement of old power transformers with new and rise in popularity of smart power transformers are bound to increase the bottom lines of the power transformer manufacturers.
Source: Allied Market Research