Transformer Core Market

Transformer Core Market Outlook - 2030

The global transformer core market size was valued at $8.9 billion in 2020, and is projected to reach $13.5 billion by 2030, growing at a CAGR of 4.3% from 2020 to 2030. Transformer core comprises primary, secondary, or tertiary windings utilized in different grades, and are installed in transformers according to the transformer type and capacity. A low reluctance magnetic path known as the core of the transformer, common to all the windings, increases the overall efficiency of transformers. The efficiency of a transformer depends on the flux linkages between the core windings. The global transformer core market has witnessed considerable growth in the recent past, owing to rise in government investment in renewable power projects and rapid industrialization & urbanization. The World Bank reported that the power consumption in Latin America is anticipated to increase by twofold from 2010 to 2030, and is expected to obtain an investment of approximately $430 billion to cater to the growing electricity demand. Thus, increase in the number of power transformers, in turn, boosts the growth of the market.

The COVID-19 pandemic has negatively impacted the global transformer core market. The manufacturing of the transformer core was halted for a specific period due to the high peak of the COVID-19 situation, which highly impacted the sales of the transformer core. Furthermore, import & export activities were significantly impacted, which, in turn, adversely affected the industries using transformer core, thereby affecting the global transformer core market.

Increase in demand for electricity production across the globe and rise in integration of renewable sources of energy to produce electricity drive the transformer core market growth. However, transformer cores are highly expensive due to the high consumption of copper wires present in the core which may act as the restraining factor for the market. In addition, Asia-Pacific is projected to register significant growth as compared to the saturated markets of North America and Europe. The amount of transformer cores used in distribution transformers is expected to reduce, owing to increase in expansion of power grids and power generation projects, thus fueling the total number of power transformers. 

The global transformer core industry is segmented on the basis of core, product, winding, cooling, insulation, application, and region. Depending on core the market is categorized into closed, shell, and berry. On the basis of product, it is segmented into distribution transformer, power transformer, and instrument transformer. As per winding, it is divided into two winding and auto-transformer. By cooling, it is bifurcated into dry type and self-cooled. According to insulation, it is classified into gas, oil, solid, and air. Depending on application, it is fragmented into residential & commercial, utility, and industrial. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global transformer core market analysis covers in-depth information about the major industry participants. The key players operating and profiled in the report include Arteche, Corefficient S.R.L., Eilor Magnetic Cores, Foshan Juli Electromechanical Co., Ltd., KRYFS, Megger, Metglas, Inc., Nicore Magnetic Cores, Power Core Industries, and VilasTranscore Ltd.

Global Transformer Core Market, by Core

By core, the shell segment dominated the global transformer core market in 2020, and is projected to remain the fastest growing segment during the forecast period. As they are more compact and a great mechanical strength, it is attributed to rise in demand for core in shell core transformer. 

Global Transformer Core Market, by Product

On the basis of product, the power transformer segment dominated the global transformer core market in 2020, and is projected to remain the fastest growing segment during the forecast period. This is attributed to rise in demand for high rated power transformers across wind generation power plants, which, in turn, increases the demand for the market.

Global Transformer Core Market, by Winding

Depending on winding, the auto transformer segment dominated the global transformer core market in 2020, and is projected to remain the fastest growing segment during the forecast period. This is attributed to rise in demand for auto transformer as they are more efficient, smaller in size, and require less copper, hence are cost-effective, compared to double wound transformers.

Global Transformer Core Market, by Cooling

As per cooling, the dry type segment dominated the global transformer core market in 2020, and is projected to remain the fastest-growing segment during the forecast period. This is attributed to their advantages since, they do not require cooling oil and used to increase or decrease voltages and currents in an electrical circuit.

Global Transformer Core Market, by Insulation

On the basis of insulation, the gas segment dominated the global transformer core market in 2020, and is projected to remain the fastest-growing segment during the forecast period. This is attributed to implementation of regulatory norms toward efficient grid infrastructure that lead to increase in the demand for the market.

Global Transformer Core Market, by Application

By application, the industrial segment dominated the global transformer core market in 2020, and is projected to remain the fastest growing segment during the forecast period. This is attributed to rise in industrialization in developing countries.

Global Transformer Core Market, by Region

Region wise, Asia-Pacific dominated the global market in 2020, and is projected to remain the fastest growing segment during the forecast period. This is attributed due to high demand of electricity by large population and shifting trends toward use of energy-efficient technologies, which, in turn, propel the demand for transformer core.

Key Benefits For Stakeholders

• The report provides an in-depth analysis of the global transformer core market trends along with the current and future market forecast.
• This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
• The Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the global market for strategy building.
• A comprehensive global market analysis covers factors that drive and restrain the market growth.
• The qualitative data in this report aims on market dynamics, trends, and developments.

Impact Of Covid-19 On The Global Market 

• COVID-19 has impacted various industries due to shut down of different industrial operations and disrupted supply chain. Maximum companies halted their operation due to less workforce. However, there is a gradual decline in the hardware industry which has high negative impact on transformer core due to COVID-19. 
• The electric industry accounted for significant share in terms of consumption of transformer core globally. The demand for electricity has increased due to the significant reductions in services and industry only partially offset by higher residential use, which, in turn, increases the demand for transformer core market. 
• According to the Organization for Economic Co-operation and Development (OECD), a surge in the price of crude oil began during the lockdown, due to extensive supply and less demand of crude oil, which increased the production of electricity. However, the demand for transformer is increased, which, in turn, increased the demand for transformer core market. 
• According to the UNIDO, 30.0–70.0% of the pre-COVID-19 workforce in various industries migrated to hometowns due to uncertainties and loss of income during the lockdown. This unavailability of workforce is expected to directly affect the production and manufacturing activities, thereby resulting in a decline in demand for raw materials used in the transformer core market. This is expected to decline the growth of the market during the forecast period. 
• The COVID-19 pandemic has curtailed the movement of people, goods, and services across the globe, including in most of the regions in which production of transformers is on large scale. As part of intensifying efforts to limit the spread of COVID-19, a number of local, state, and national governments have imposed various restrictions on the conduct of business and travel, such as stay-at-home orders and quarantines that have led to a significant number of business slowdowns and closures. The COVID-19 pandemic has resulted in, and is expected to continue to result in a substantial curtailment of business activities (including the decrease in demand for a broad variety of goods and services), weakened economic conditions, supply chain disruptions, significant economic uncertainty, and volatility in the financial and commodity markets, including the reduction in global demand for oil & gas combined with excessive supply due to disagreements between Organization of the Petroleum Exporting Countries (OPEC), both in the U.S., and abroad. However, due to the disruption in such all-mentioned activities led to decrease the demand for transformer core and negatively impacted the whole market. 
• The manufacturing of transformer core was halted for a specific period due to high peak of COVID-19 situation, which highly impacted the sales of transformer core.
• Sales of transformer core is directly proportional to the demand of transformer. Transformer is the basic equipment used to transfer electricity to houses. However, continuous demand for electricity has not impacted the demand for transformer core.
• Furthermore, import & export activities were significantly impacted, which, in turn, adversely affected the industries using transformer core, thereby affecting the global market. 

 Transformer Core Market Report Highlights