WELLESLEY, MA--(Marketwired - October 17, 2016) - The global market for transformers continues to expand, keeping pace with the growth rate of the electricity transmission and distribution industry. BCC Research reveals in its new report that the Asia-Pacific region, in particular, should see impressive growth as a growing hub for producers from western markets to outsource the manufacture of transformers.
Transformers transmit electricity, increase, or decrease the voltage supply to the desired level at the receiver (end-user) end, and reduce power losses during transmission to the end point. Transformers also electrically separate end-users from contact with the voltage supply.
The global market for electrical transformers should grow from 515,788 units in 2016 to 738,373 units by 2021, demonstrating a five-year compound annual growth rate (CAGR) of 7.4%. The distribution sector, the largest segment, should reach 496,496 units and 707,652 units in 2016 and 2021, respectively, reflecting a five-year CAGR of 7.3%. The power segment, the fastest-growing sector with a five-year CAGR of 9.2%, should reach 19,476 by 2021, up from 12,532 units in 2016.
Growing demand for electricity, continuing replacement of existing transformers, increasing applications for transformers in end-user industries, and the recovering global economic are fostering solid market growth. Favorable legislation and regulations focused on the reduction of CO2 emissions and energy efficiency are keying movement, as well. In the long term, the integrated electric equipment market, which includes smart meters, is expected to drive the market as demand for renewable energy production and infrastructure development grows in developing regions.
In addition, upgrades to existing networks and replacement of existing transformers in western regions offer growth opportunities in the transformer market, especially for power and traction transformers with high-performance properties that increase energy efficiency and reduce electricity loss. However, in the long term, developing regions, including China, Brazil and India, should create huge market opportunities.
The North American and Asia-Pacific regions are primarily driving global growth. In North America, the construction industry, which was stagnant during the global economic recession, has started to thrive again; this has boosted demand for commercial and industrial set-ups. Also, increasing construction is expected to increase demand for electricity, which should, in turn, spur the market.
"In the Asia-Pacific regions, the market is expected to grow at a five-year CAGR of 7.7%, to reach 316,592 units in 2021,"says BCC Research analyst Aneesh Kumar. "In terms of value, the market is expected to grow at a five-year CAGR of 8.7% to reach $21.2 billion in 2021."
Global Markets for Transformers (EGY132B) analyzes the different types and technologies employed, as well as information on the manufacturing process for transformers. The report also assesses the regulatory standards in the U.S. and European Union while considering the continuous pressures of increasing energy costs. Global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.