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2023

Asia-Pacific and LATAM Transformer Market

Asia-Pacific and LATAM Transformer Market By Type (Distribution Transformer, Power Transformer, Others), By Power Rating (Small, Medium, Large), By Cooling Type (Air Cooled, Oil Cooled), By Insulation (Dry-type Transformer, Liquid Immersed Transformer), By Application (Commercial & Residential, Utility, Industrial) : Global Opportunity Analysis and Industry Forecast, 2022-2031

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Author's: Mohd Arbaz| Radhika Gupta | Eswara Prasad
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Asia-Pacific and LATAM Transformer Market Research Report -2031

The Asia-Pacific and LATAM Transformers market size was valued at $24.7 billion in 2021, and is projected to reach $49.3 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031.

Transformer is a device that is used to convert electrical energy from one alternating current to another circuit by using the principle of electromagnetic induction. Transformers are essentially voltage control devices because they are typically used in the transmission and distribution of alternating current electricity. Since transformer uses the electromagnetic induction principle to increase or decrease voltage, it can either decreases AC voltage (Step-down transformer) or increases AC voltage (Step-up transformer). Transformers consist of wide range of application such as boosting electric generator voltage to permit long-distance electricity transmission and lowering the voltage of traditional power circuits to operate low-voltage equipment such as doorbells and toy electric trains.

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Rise in demand for transformers, especially for smart transformers from power grid (electrical grid) is expected to drive the growth of the Asia-Pacific and LATAM transformers market during the forecast period as transformers are used in power grid to transfer the energy from producers to the consumers. Moreover, rise in demand for smart transformers for various purposes such as better power services, improved air quality, enhancement in energy security, and other application is projected to propel the growth of the market in the coming years.

There is an increase in demand for renewable at a higher rate and it is the fastest-growing energy source in the China in Asia-Pacific region. Several factors are associated with for the increase in demand for renewable in the market as shift towards the clean and green energy and offering the benefit of lower emissions of carbon and other types of pollution. Increase in development for the renewable energy integration incorporating with distributed generation, renewable energy, electric distribution, transmission system, storage of the power, and thermally activated technologies, is expected to create the opportunities for transformers in the Asia-Pacific and LATAM transformers market.

However, risk associated with high DC voltages are expected to restrain the growth of the market in the coming years. On the contrary, growing electric vehicles charging stations in the North America and European regions are projected to create opportunities for key players operating in the market from 2022 to 2031. The major industrialized and developed nations have set a variety of goals to achieve zero emissions by 2050, which is expected to boost the growth of the renewable energy and electric car sectors.

The Asia-Pacific and LATAM transformers market is segmented on the basis of type, power rating, cooling type, insulation, application, and region. On the basis of type, it is categorized into distribution transformer, power transformer, and others. On the basis of power rating, it is categorized into small (500 to 7500kVA), medium (7500kVA to 100MVA), and large (above 100MVA) power rating. On the basis of cooling type, it is bifurcated into Oil cooled, and Air cooled. On the basis of insulation, it is bifurcated into dry and liquid immersed insulation. On the basis of application, it is classified into commercial, and residential sector, utility, and industrial sector. On the basis of region, it is analyzed across Asia-Pacific, and LATAM.

The key players operating in the Asia-Pacific and LATAM transformers market are Eaton Corporation Plc., Schneider Electric, Siemens AG, ABB Ltd., Toshiba Corporation, Mitsubishi Electric Corporation, Cg Power and Industrial Solutions Ltd, General Electric, VTC/GT, and SGB-SMIT Group which hold significant share of the market.  These players have been adopting various strategies to gain higher share and to retain leading positions in the market. They adopt numerous strategies, including acquisition, and agreement to stay competitive in the transformers market across the Asia-Pacific and LATAM region. The Asia-Pacific and LATAM transformers market is analyzed in accordance with the impact of the drivers, restraints, and opportunities.

The period studied in this report is 2022–2031. The report includes the study of the transformers market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the transformers industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth. On the basis of type, the distribution transformers segment dominated the market in 2021, owing to rise in demand for distribution transformers from industrial, commercial, and utility sectors.

In addition, rise in demand for continuous flow of electricity and power with any load to carry out continuous manufacturing process in large industries is anticipated to fuel the growth of the Asia-Pacific and LATAM transformers market in the future. On the basis of cooling type, the air-cooled segment dominated the regional market in 2021, in terms of share, owing to increase in use of air-cooled system in the power transformer market. In addition, advantages associated with transformer such as better power services, improved air quality, enhancement in energy security, and other advantages are expected to fuel the growth of the market during the forecast period.

On the basis of application, the commercial and residential segment dominated the regional market in 2021, in terms of share, owing to rise in demand for transformers systems from homes, commercial building, malls, and others across LATAM and the BRAZIL Asia-Pacific garnered the highest transformers market share in 2021, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This is attributed to expansion of smart grid projects in the BRAZIL, Japan, Brazil, and other countries. Moreover, the electric vehicles market across Brazil, which results in a rise in number of fueling stations is anticipated to boost the growth of the Asia-Pacific and LATAM transformers market in the region during the forecast period.

Moreover, surge in power transformer and presence of large number of players in Asia-Pacific region, resulted in rise in demand for transformer demand. This in turn fuels the growth of Asia-Pacific and LATAM transformers market. Significant investments in energy sector, power generation sector, government support for several operations, and growth in electric vehicle industry across the Asia-Pacific and LATAM are anticipated to create lucrative opportunities for players in the Asia-Pacific and LATAM transformers market. 

Asia-Pacific and LATAM Transformer market, by Type

On the basis of type, the distribution transformers segment dominated the market in 2021, owing to rise in demand for distribution transformers from industrial, commercial, and utility sectors. Moreover, surge in demand for distribution transformers from the industries which requires less electrical energy with voltage of 33kV, and 440V-220V for domestic areas in residential areas are expected to fuel the demand for distribution transformers market in Asia-Pacific and LATAM during the forecast period.     

Asia-Pacific and LATAM Transformer Market
By Type
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Distribution Transformer is projected as one of the most lucrative segments.

                                                      

Asia-Pacific and LATAM Transformer market, by Power rating

On the basis of power rating, small is the dominating segment during the forecast period. Increase in utilization of electric appliances in the residential sector has led to increase in the demand for power. Moreover, the gradual increase in usage of electricity in each country of the LATAM and Asia-Pacific region has led to an increase in the utilization of smart grid, power grid, electric grid along with off-grid renewable power generation such as solar power has led to an increase in the demand for the transformers market. These factors are expected to boost the growth of the market during the forecast period. 

Asia-Pacific and LATAM Transformer market, by cooling type

By cooling type, the air-cooled segment dominated the regional market in 2021, in terms of share, air-cooled cooling types are majorly used in small power rating transformer to convert medium level voltage to low level voltage. Thus, growth in commercial and residential sector, where a small transformer finds its numerous applications, creates an optimistic opportunity for the Asia-Pacific and LATAM transformers market to grow during the forecast period. 

Asia-Pacific and LATAM Transformer Market
By Cooling Type
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Air Cooled segment held a dominant position in 2021 and would continue to maintain the lead over the forecast period.

Asia-Pacific and LATAM Transformer market, by insulation

By Insulation, Dry is the fastest growing segment during the forecast period. Increase in application of dry type transformers in various application such as residential, commercial, utilities, and industrial sector for residential building, complexes, and manufacturing units, offers a positive growth. All these factors are expected to propel the growth of the market during the forecast period                                                              

Asia-Pacific and LATAM Transformer market, by Application

By application, the commercial and residential segment dominated the regional market in 2021, in terms of share, owing to rise in demand for power and electricity to energize home appliances such as lights, TVs, and other appliances through power and distribution transformers, is expected to drive the growth of the Asia-Pacific and LATAM transformers market. 

Asia-Pacific and LATAM Transformer Market
By Application
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Commercial and Residentail segemnt witnessed highest market share during the forecast period

Asia-Pacific and LATAM Transformer market, by Region

Asia-Pacific transformer market share will be prominently driven by increase demand for electricity from utility in small quantity and adoption of renewable energy solutions. Ongoing R&D activities toward collection and transportation technologies for transfer of electricity from grids to consumer place is projected to boost the demand for transformers in the region. Accelerated investment across the energy sector along with renewable energy power plants is anticipated to foster the growth of the Asia-Pacific transformer market. Robust growth in utility sector for wind, solar energy solution demand is projected to escalate the growth of the Asia-Pacific market.

Asia-Pacific and LATAM Transformer Market
By Geography
2031
Asia-pacific 
LATAM

Asia-Pacific region would exhibit the highest CAGR of 7.5% during 2021-2031.

Impact of COVID-19

The novel coronavirus is an incomparable global pandemic that has small to over 180 countries and caused huge losses of lives and the economy including Asia-Pacific and LATAM region. The Transformers market has a negative impact due to disruption in supply chain of the transformer market, which caused production delays in manufacturing.

Owners of the Brazil utilities and nuclear facilities are cancelling events, stopping travel, encouraging remote work, and testing sick employees to curb the new coronavirus.  As per the statement of Grid operators in Brazil, there has not been a significant impact on the demand for electricity, but there has been a change in demand. The electric grid (electricity generator house) was never shut down during the pandemic since electrical grid plays a very crucial role in generation of electricity. The electric grid has worked with good resilience during the pandemic; hence, the demand for transformer has seen a stagnant growth in Asia-Pacific and LATAM market during the COVID-19 pandemic.

​​​​​​​Key benefits for stakeholders

  • Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  • It outlines the current market trends and future estimations from 2021 to 2031 to understand the prevailing opportunities and potential investment pockets.
  • The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
  • The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
  • The profiles of key players and their key strategic developments are enlisted in the report.

Asia-Pacific and LATAM Transformer Market Report Highlights

Aspects Details
Asia-Pacific and LATAM Transformer Market By Type
By Type
  • Distribution Transformer
  • Power Transformer
  • Others
Asia-Pacific and LATAM Transformer Market By Power Rating
By Power Rating
  • Small
  • Medium
  • Large
Asia-Pacific and LATAM Transformer Market By Cooling Type
By Cooling Type
  • Air-Cooled
  • Oil-Cooled
Asia-Pacific and LATAM Transformer Market By Insulation
By Insulation
  • Dry
  • Liquid Immersed
Asia-Pacific and LATAM Transformer Market By Application
By Application
  • Commercial and Residential
  • Utility
  • Industrial 
Asia-Pacific and LATAM Transformer Market By Region
By Region
  • Asia-Pacific   (China, Japan, India, South Korea, Rest of APAC)
  • LATAM   (Brazil, Argentina, Colombia, Rest of LATAM)
Asia-Pacific and LATAM Transformer Market By Key players in the North America and Europe Transformer are:
By Key players in the North America and Europe Transformer are:
  • Eaton Corporation Plc.
  • Schneider Electric.
  • Siemens AG.
  • ABB Ltd.
  • Toshiba Corporation.
  • Mitsubishi Electric Corporation.
  • CG Power and Industrial Solutions Ltd.
  • General Electric
  • Kirloskar Electric Co. Ltd.
  • SGB-SMIT

Analyst Review

According to the insights of CXOs of leading companies, urbanization, and growth of the commercial and residential sectors are the key factors attributed to the leading position in Asia-Pacific in the transformers market. Moreover, the transformer market is expected to witness increased demand during the forecast period, the surge in the demand for renewable power resources and the increase in the investment to develop the power generation infrastructure has a positive impact on the market.

The transformers market holds a substantial scope for growth regionally. High risk associated with high DC voltages is a major limitation for the market growth. However, increase in electric vehicles sales is expected to drive the transformer market growth in LATAM and Asia-Pacific. In addition, this market received a tremendous boost on account of the increase in application of data centers to save data loss during the transmission of power in various sectors.

The LATAM and Asia-Pacific transformers market is studied across Asia-Pacific, and LATAM. Among the analyzed regions, Asia-Pacific is expected to account for the fastest-growing market throughout the forecast period, followed by LATAM. The presence of a huge population and rapid industrialization in these countries has increased the demand for electricity from renewable resources. The presence of demand for renewable energy in this region and government initiatives and investment to develop the smart grids plants in this region have led to the presence of significant importance of the transformers market.

 

 

 

 

Author Name(s) : Mohd Arbaz| Radhika Gupta | Eswara Prasad
Frequently Asked Questions?

Rise in demand for smart transformers for various purposes such as better power services, improved air quality, enhancement in energy security, and other application is projected to propel the growth of the market in the coming years.

Rising demand for transformer in commercial and utility-sector is the upcoming trends of the transformer market.

The Asia-Pacific and LATAM Transformers market size was valued at $24.7 billion in 2021, and is projected to reach $ 49.3 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031.

The key players operating in the Asia-Pacific and LATAM transformers market are Eaton Corporation Plc., Schneider Electric, Siemens AG, ABB Ltd., Toshiba Corporation, Mitsubishi Electric Corporation, Cg Power and Industrial Solutions Ltd, General Electric, VTC/GT, and SGB-SMIT Group which hold significant share of the market.

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Asia-Pacific and LATAM Transformer Market

Global Opportunity Analysis and Industry Forecast, 2022-2031