Converter Transformer Market

Converter Transformer Market Analysis – 2030

The global converter transformer market size was valued at $1.9 billion in 2020, and is projected to reach $7.2 billion by 2030, growing at a CAGR of 14.1% from 2021 to 2030. Converter transformer is a special transformer designed to offer high current low voltage solutions for its wide range of applications. A voltage converter is an electric converter that changes the voltage of electronic devices, whereas transformers are used for transmitting power from one voltage to another. The converter transformer can operate with 12 pulses for each cycle in the AC supply, which eliminates numerous harmonic current components by using a star-to-delta (wye-delta) connection of transformer winding. Insulation of transformer winding must be specially designed for withstanding large DC potential to earth. One unit of converter transformers can be made as large as 300 Megavolt-amperes (MW). The converter transformers withstand dc voltage stresses and increased eddy current losses due to harmonic currents. One problem that can arise is due to the dc magnetization of the core due to the unsymmetrical firing of valves.

The decrease in demand for many non-essential products and shut down of electrical, automotive, and other manufacturing related industries has created a negative impact on the development of converter transformer market. The increasing demand for environment friendly manufacturing products and increase in awareness among the people towards the environment will hamper the growth of converter transformer market.

Converter transformer is used for converting power from AC to DC at one end and DC to AC at the other end. Converter transformers are mainly used in excitation systems for turbo and hydro-generators, electric drives of drilling equipment, as semiconductor converters of the traction substation for the city electrified public transport (tram, trolley bus, and subway), and DC & AC electric drives. Excitation transformers are used to excite the field of generators through a rectifier. Transformers up to 5.2 MVA rating are used for static excitation systems for generators of power plants. Cast resin dry type transformers are mainly used as converting transformers. Leading manufacturers of dry type transformers provide specialized configurations for individual applications. 

The high demand for efficient power transmission solutions, need for integration of smart grid technologies, and increasing government infrastructure are the key factors that drive the converter transformer market growth. However, capital-intensive nature of manufacturing processes and the lack of product standardization mechanism are the major factors that hamper the growth of the market. Rapidly increasing power generation by offshore wind farms and rise in environmental concerns towards high power transmission features are the factors that are expected to offer ample growth opportunities to the global converter transformer market. The converter transformer market is segmented on the basis of type, application, and region. 

On the basis of type, the global converter transformer market is segmented into 201-400 Kv, 401-600 Kv, and 601-800 Kv. On the basis of application, the global converter transformer market is segmented into wind farms, oil & gas, and grid connections. 

Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by North America and Europe. 
The major companies profiled in this converter transformer  industry report include, ABB Power Systems, General Electric, Siemens AG, Crompton Greaves, Bharat Heavy Electricals Limited, Toshiba Corporation, Kirloskar Electric Company Limited, Shadong Power Equipment Company Limited, Mitsubishi Electric, and XIAN XD Transformer Co. Ltd. Rapid urbanization, and industrialization across the globe have led to increase in the demand for energy from green resources, which led to the demand for converter transformer. Additional growth strategies such as expansion of production capacities, acquisition, and partnership in the development of the innovative products from manufacturers have helped to attain key developments in the global converter transformer market trends. 

Global Converter Transformer Market, By Region

Asia-Pacific occupies the largest part of the global converter transformer market and consists of countries, such as China, India, Japan, South Korea, Australia, and rest of Asia-Pacific. China is emerging as an electric power giant in the Asian region due to the number of undergoing electricity projects. In the renewable energy generation sector, China has taken a leading position in the form of numerous solar projects. This has put China as a significant region for the growth of the converter transformer market. The ongoing COVID-19 pandemic has not affected new railway projects in China. The list of new railway lines includes the 156 km Kazuo-Chifeng line, connecting the Chifeng area of Inner Mongolia with the Beijing – Shenzhen line, Anshun–Liupanshui line, and the Qinghai section of the Geku Railway. 

Japan has a very large manufacturing base. Automotive manufacturers, such as Toyota, Honda, and Mitsubishi are among the largest manufacturers globally. Moreover, Japanese manufacturers known for their innovative product design have extensive global links in Southeast Asia. The 2030 energy mix sets forth a policy to reduce Japan’s fossil fuel dependence through energy conservation and aims to increase the share of renewables in Japan’s power generation mix to around 22%–24% by 2030.

Electricity demand in India is growing rapidly due to its growing economy and population. Electricity security has improved by the creation of one national power system and major investments in clean energy. India is now working on integrating higher shares of variable renewable energy into the energy mix. Further, government initiatives, such as Make in India are expected to attract new investments in these sectors. The Indian government’s 100% FDI policy is likely to attract foreign investment in the manufacturing sectors. These factors are likely to drive the growth of the converter transformer market in the region. 

Global Converter Transformer Market, By Type

The 401-600 KV segment dominates the global converter transformer market. Increase in demand for crude oil in the petroleum and chemical industries boosts the demand for converter transformers. Surge in population and industrialization across the globe led to increase in demand for power, which led to the development of renewable power generation, such as large-scale offshore wind farms. The offshore wind farms power generation is growing at a rapid pace, which has a positive impact on the demand for the converter transformers. Rise in the development of industries and renewable energy infrastructure in the developed and developing countries across the globe is expected to provide ample opportunities for the growth of the converter transformer market during the forecast period.

Global Converter Transformer Market, By Application

The grid connections segment dominates the global converter transformer market. The presence of aging infrastructure of power grid, escalating cost of electricity generation, and increase in demand for power are some of the national challenges, which boost the need of smart grids. Smart power grids equipped with converter transformers including smart meters and appliances, ensure uninterrupted and efficient distribution of energy. However, the traditional transformer is not efficient or ready for the upcoming smart grids. Thus, the efficient working of smart grid is dependent on smart transformers and it is expected to be a vital part of smart grids. The components of power grid mainly include, station- to produce electric power, high voltage transmission lines- to carry power from source to users, and distribution lines- to connect with consumers individually. The transformers used in power grid are the key components in energy collection and distribution. The advantages of converter transformers include, reduction of greenhouse gas emission and energy consumption, by providing stable and optimal power supply.

COVID-19 Analysis:

The COVID-19 pandemic had a big effect on the global financial system and on the lives of human beings. With the outbreak of the COVID-19 pandemic, numerous enterprise companies have reduced their planned operations as a result of lockdowns introduced by the governments of several countries throughout the globe. The lockdown has primarily affected important businesses organizations. The initiative of the authorities in regards to lockdown caused the transient shutdown of the tourism industry, aviation sector, and others. Consumer demand for non-essential goods subsequently reduced the demand for converter transformer as most individuals’ general economic status have been severely affected due to pandemic outbreak. COVID-19 lockdown measures have resulted in weekly electricity demand, decreasing by 10-35% across the pandemic affected regions. Furthermore, increase in the input from variable renewable energy to the distribution grid has increased the demand for converter transformers. The above-mentioned elements are expected to have impact on the revenue trajectory of the global converter transformer market during the forecast period.

Key benefits for stakeholders

• This report provides a detailed quantitative analysis of the current global converter transformer market trends and estimations from 2020 to 2030, which assists to identify the prevailing opportunities. 
• An in-depth analysis of the global converter transformer market across the globe is anticipated to provide a detailed understanding of the current trends to enable stakeholders formulate specific plans.
• A comprehensive analysis of factors that drive and restrain the growth of the market is provided.
• Region-wise and country-wise market conditions are comprehensively analyzed in this report.
• The projections in this report are made by analyzing the current trends and future market potential from 2020 to 2030 in terms of value.
• An extensive analysis of various regions provides insights that are expected to allow companies to strategically plan their business moves.
• Key market players within the market are profiled in this report and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the global converter transformer market.

 Converter Transformer Market Report Highlights