A Summary of the Green Transformer Market Developments (2023 to 2033)
As per Future Market Insights, the green transformer market is anticipated to attain a value pool of US$ 17 billion by 2023-end. Global demand for green transformers is expected to rise at a CAGR of 7.5% to US$ 35 billion in 2033.
Data Points
Key Statistics
Expected Market Value in 2023
US$ 17 billion
Projected Market Value in 2033
US$ 35 billion
Growth Rate (2023 to 2033)
7.5% CAGR
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Sustainability as a Business Strategy: Driving Adoption of Eco-Friendly Transformers
Rising demand for electricity: With the growing demand for electricity worldwide, the need for energy-efficient transformers is increasing. Green transformers are designed to reduce energy losses, leading to lower electricity bills and reduced carbon emissions.
Technological advancements: Advancements in transformer technology are enabling the development of more efficient and sustainable transformer designs. For example, the use of materials such as amorphous metal and superconducting materials can improve transformer efficiency.
Corporate sustainability initiatives: Many companies are adopting sustainability initiatives to reduce their carbon footprint and improve their brand image. The use of green transformers is one way for companies to demonstrate their commitment to sustainability.
Retrofitting for Energy Efficiency: Upgrading Existing Transformers
Retrofitting existing transformers: Many existing transformers are outdated and inefficient, leading to significant energy losses. Retrofitting these transformers with energy-efficient transformers presents an opportunity for businesses to reduce energy losses, save on energy costs, and contribute to reducing carbon emissions.
Growth in smart grid technology: The integration of smart grid technology into the power grid is creating opportunities for the deployment of green transformers. Smart grid technology provides real-time data and control, enabling the use of energy-efficient transformers to reduce energy losses and optimize power distribution.
International expansion: The Green Transformer Market is a global market, with significant opportunities in emerging markets, such as India and China. As these markets continue to grow, the demand for energy-efficient transformers is expected to increase, creating opportunities for businesses to expand internationally.
Growth in the construction industry: The growth of the construction industry is creating opportunities for the deployment of green transformers in new buildings and infrastructure projects.
Development of offshore wind farms: The development of offshore wind farms presents significant opportunities for the deployment of green transformers that can efficiently transmit and distribute power from these wind farms.
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Green Transformer Market Overview
Green Transformer market is anticipated to foresee sound growth in next few years, however, the market is thereafter anticipated to expand between 6 to 8% CAGR till 2031. The market is primarily driven by increasing use of renewable energy in developed economies. Additionally stringent rules and regulations enacted by governments to reduce global warming is further boosting the growth of the market.
What is Driving Demand for Green Transformer?
Green transformers being eco-friendly, efficient, and cost-effective in long term, are being preferred by the end users as a viable alternative to conventional transformers. The oil medium is vegetable oil instead of mineral oil thereby eradicating generation of hazardous waste. These transformers offer Quieter Operation, Longer Equipment Lifecycle, Cleaner Manufacturing and Lifecycle and others.
One of the prominent driving factors of the market growth has been increasing use of renewable energy. Wind and Solar are among the leading renewable energy resources. Although the "fuel" utilized in solar and wind-powered electricity generation is free, accessible, renewable, and sustainable, the manufacturing procedures that go into the equipment might be troublesome.
Therefore, distribution of renewable energy throughout the electric grid requires more sustainable and efficient devices and green transformers does the work here.
The rise in industrialization and urbanization coupled with increased demand for more sustainable technologies in power and distribution sector is expected to be a key driver of the green power transformers market. In the recent few years, there has been a considerable growth in demand for green transformers all over the world, which is anticipated to drive the green power transformers market in the forecast period.
With the abovementioned reasons, the green power transformers are being deemed as an optimal substitute for mineral oil and SF6-based power transformers. Mineral oil becomes unstable when exposed to high voltage and heat, causing premature oil degradation and, as a result, a reduction in transformer life. SF6 is has very high GWP, 22,800 times more than CO2. Since, this transformers have a low environmental impact; thus, these transformers are used as an alternative to this transformer technologies.
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Which Is The Most Lucrative Opportunity for the Green Transformer Market?
Making solar and wind energy more economical to maintain over time has the desirable side effect of lowering renewable energy technology costs in general. As the world struggles with climate change, the energy sector will be in transition for some time. This is seen as a key opportunity for the market.
The USA Green Transformer Market Outlook
The North America market was critically impacted by Covid-19 pandemic, all kinds of development project were halted including the power and distribution sector. However as the vaccination pace is increasing in the country, market is anticipated to return on pre pandemic levels and development projects are set to regain its momentum in next few quarters.
The increased energy standards set by The USA Department of energy and other organization in the region will optimistically impact the growth of the green transformer market in the region. Furthermore, industrial development and increased renewable energy investment will also benefit the market.
According to Deloitte, renewable energy growth in The USa may accelerate in 2021 as the new administration starts to execute on a platform that includes rejoining the Paris Climate Accord, investing $2 trillion in clean energy, and fully decarbonizing the power sector by 2035 in order to achieve a larger goal of net-zero carbon emissions by 2050. This puts further promising opportunity for the market in the region.
Asia Pacific Demand Outlook for Green Transformer
Asia Pacific is projected to account for prominent share in the global green transformer market. The market in the region is set foresee significant growth opportunities in the forecast period, owing to rise in infrastructure spending to develop new and refurbishment of existing grid infrastructure in the region.
Furthermore, government initiatives to increase connectivity and electricity distribution in countries like India, China and others will also benefit the market.
Who are the Key Manufacturers and Suppliers of Green Transformer?
Some of the leading manufacturers of Green Transformer include
Many leading manufacturers and suppliers have established longstanding contracts with end-users to supply transformers. Market Participants are also focusing of providing energy efficient and high performance products in the Green Transformer market to gain competitive advantage.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
