Transformer Monitoring System Market

Key Points Covered in Transformer monitoring system Market Study

• Market estimates and forecast 2021 – 2031
• Key drivers and restrains impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competitive Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact On Transformer Monitoring System Market
• Recommendation on Key Winning Strategies

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2016 – 2020 Transformer monitoring system Market Outlooks in Comparison to 2021 – 2031 Forecasts

Rapid urbanization and rise in industrial activities has increased the electricity consumption in past few years. With the world is looking towards establishing smart grids for effective distribution of power, the demand for transformer monitoring systems will rise over the forecast period. According to FMI, transformer monitoring system sales revenue will rise at 10.1% CAGR between 2021 and 2031.

The transformer monitoring system is a process oriented system that measures quantities like voltage and current, estimates measurement data through algorithm, creates trends, and performs model monitoring. Introduction of internet of things (IoT) based smart transformer technologies will augment the market growth during the assessment period.

Transformer monitoring system sales is expected to rise due to adoption of bulk manufacturing practices by manufacturers and heightened consumer awareness towards environmental issues.

Developed countries are investing in refurbishing existing grid infrastructure to cater to growing power needs and reduce carbon emission. Advancement in grid technology and upgrade in configurations to comply with green transformers will further complement the industry outlook. 

Rising electricity consumption in emerging economies due to rising population, installation of high power transmission units and modernization of electricity transmission system will propel the global transformer monitoring system market growth during the forecast period.

How Is The Demand For Smart Grid Influencing Transformer Monitoring System Growth?

Adoption of smart grids and green transformers along with its control and monitoring modules is forecast to play a significant role in revolutionizing the global electrical networks. Smart grid equipped with proper feedback system restores electricity fairly quickly and with minimal loss after power disturbances.

It also reduces the maintenance and operating cost and thus reduces power cost for consumers. These factors are expected to drive the transformer monitoring system market growth.

The U.S. electrical system announced “Grid 2030” initiative in collaboration with electric utility industry, original equipment manufacturers and suppliers, government organizations, and research laboratories to address the fundamental power sector related issues related to grid modernization and develop advance electrical distribution infrastructure. Such initiatives taken by the energy sector will positively influence the market growth.

Power transformer is an integral part of smart grid infrastructure as it distributes power into the primary grid. Transformer monitoring system attached to power transformer offers two way communication to monitor network characteristics and control desired parameters in real time.

Rising adoption of smart grid initiatives across the globe to avoid power outage and implementation of modern communication system in smart grids are anticipated to emerge as key drivers for the growth of the transformer monitoring system market.

What Will Be Impact Of Big Data Analytics On Transformer Monitoring System Market Growth?

Introduction of automation and IoT in industrial working environment has fueled the demand for big data analytics. Physical monitoring of various different transformer parameters and planning of downtime is getting replaced by advanced transformer monitoring system as it allows remote monitoring from the office.

Transformer monitoring system generates significant amount of data and big data analytics assists in acquisition, storage, analysis, and visualization of such data. It also helps in monitoring the state of transmission equipments and alerts the control room in case any abnormality is detected.

Power transformers are incompetent in detecting abnormalities and diagnosing faulty areas, since the functional relationship between different parameters and trend of defects are complex and cannot be defined explicitly.

Transformer monitoring system equipped with big data analytics ensure that every critical equipment component from generation to delivery is operating at optimum level. Big data analytics allows transformer monitoring system to efficiently change transmission voltage as per the requirement. Thus, introduction of big data analytics in transformer monitoring system is expected to boost the market growth during the forecast period.      

Country-wise Analysis

Why is Demand for Transformer Monitoring System Increasing in the U.S.?

Transformer monitoring system helps in preventing transformer failure induced power outage and improve the transformer performance. Growing government initiatives to replace conventional grid infrastructure with power transformer and smart grids to reduce transmission losses will boost the growth of transformer monitoring system in the country.

For instance, in 2019, National Grid of U.S. commenced the construction of West Ashville?substation project in New York to decrease excess load on existing grid infrastructure and solve the low voltage problems in the city.

Rapid technological advancement to reduce the installation time and maintenance cost of the system along with growing urbanization will trigger the market growth in U.S. Adoption of IT solutions in monitoring system to maintain electrical flow and boost efficiency of power transmission will create opportunities for market growth in the region.

Presence of leading market players, increasing consumption of electricity and growing awareness regarding clean energy generation are expected to drive the market growth in the country.

How big is the Transformer Monitoring System Market Growth Opportunity in Germany?

Germany is forecast to offer lucrative opportunities for market players as the country is focusing towards modernizing and expanding its current grid infrastructure. Owing to growing population and booming manufacturing sector, the demand for energy has escalated in the country. Adoption of green transformers to cater rising energy demand will boost the demand of transformer monitoring system in Germany.

Germany is looking to share the generated power with other countries to fill the energy supply and demand gaps. Market players are looking to ride this bandwagon by entering overseas territories for business development. This will positively influence the market growth in upcoming years.

As world is adopting green and smart transformers for transmitting electricity with minimal loss, the demand, the demand for monitoring system to comply with such transformers is expected to rise in upcoming years in Germany.

Establishment of modern charging stations as government is looking to promote the use of electric vehicles will fuel the demand for power transformer which will consequently drive the transformer monitoring system market in the region.

Till 2050, Germany is planning to generate majority of its electricity from renewable energy source. This will lead to modernization of conventional grid infrastructure, which will augment the transformer monitoring system sales in the country.

What is Driving Transformer Monitoring System Market in China?

Thriving manufacturing industries and rapid industrialization have escalated the demand for electricity in China. Government is investing to optimize and modernize its existing transmission and distribution system to cater the growing demand.  Surge in new transmission line installation will drive the transformer monitoring system market in China.

In an attempt to reduce the carbon footprint, China is striving towards increasing its renewable energy generation capacity. For instance, in March 2021, Siemens Energy is providing 22 units of “FITformer WIND” transformers for installation at China’s first commercial 66kV offshore wind farm. Rise in such installation projects especially in renewable energy sector will increase in demand of transformer monitoring system to transfer electricity from generation site to consumers.

In April 2021, Hitachi ABB Power Grids with an initial investment of US $230 million began the construction of global transformer design and manufacturing centre in Chongqing, China.  Rising technological innovation will further boost the transformer monitoring system market growth in the country.

How are Government Initiatives Boosting Transformer monitoring system Demand in India?

India is investing towards electrifying its rural areas by establishing smart grids and expanding its transmission and distribution system. Increasing efforts towards reducing the power outage in urban areas along with growing industrialization will drive the transformer monitoring system market growth in upcoming years.

India is among the leading consumer of electricity in the world. According to Ministry of Power the total installed electricity capacity of the country is more than 384 GW as of March 2021. Rising necessity to address the energy supply and demand gaps and rapid urbanization will drive the demand for power transformers, thus fueling the market growth in the country.

Government of India started multiple schemes like “Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)” and “Integrated Power Development Scheme (IPDS)” for improving sub-transmission and distribution infrastructure in rural areas and to cater the increasing demand of electricity in urban regions. This includes installation of transformer monitoring system in power grids in selected areas. Such initiatives will increase the demand for transformer monitoring system in the country.

Category-wise Insights

Which Product Type Is Experiencing High Demand?

Based on product type, the transformer monitoring system market is segmented into hardware and software monitoring system. FMI predicts that digital winding transformer monitors will exhibit highest growth; however hardware type will generate maximum revenue over the forecast period.

Hardware type monitoring systems are cabinets installed near transformers which collects and processes data and reacts in emergency. Embedded system attached in the system is designed to acquire data from sensing system. Increasing demand for custom and optimal transformer monitoring solution that meets the requirements will drive the market growth.

Electronic system integrated with big data analytics are made of sensor, circuits for signal conditioning, modern embedded module for middle-level computing, and networking system for data transmission. Rising digitization in monitoring technology will boost the demand in this segment.

Why Are Bushing Monitoring System Gaining Popularity?

Based on application, the transformer monitoring system market is segmented into dissolved gas analysis, partial discharge, bushing monitoring, cooling control, and voltage regulation system. The bushing monitoring segment is expected to provide huge opportunities to players in the coming years.

Bushing monitoring system inspects the condition of transformer and checks the level of deterioration in bushings. It also identifies the abnormalities in insulation and sends alert to control tower.

According to FMI, bushing monitoring system is anticipated to surpass the market value of US$ 1 billion by 2031 end. As incidences of bushing failure are rising, the demand for bushing monitoring system to avoid such problems will increase over the forecast period.

The dissolved gas analysis segment will follow bushing monitoring application in terms of growth and will register a value CAGR of more than 8.7% during the assessment period.

Will Retrofit Segment Continue Dominating Transformer Monitoring System Market?

High energy consumption from residential and commercial sectors in Asia Pacific region due to rapid industrialization is expected to emerge as a key growth driver in retrofit segment.

Initiatives to amplify the transformer’s ability to handle ever increasing electricity loads and increasing installation of smart grids and green transformers in urban areas will drive the sales of retrofit transformer monitoring system in the future.

Why Power Transformer Monitoring System Accounts for Higher Sales?

Rising consumption of electricity around the world and increasing adoption of power transformer for distribution of electricity are the key growth drivers for transformer monitoring system market.

High government investment towards revolutionizing electricity transmission and distribution will fuel the demand for power transformers, consequently driving the growth of power transformer monitoring system market.

Competitive Landscape

Future Market Insights identifies ABB, Siemens AG, General Electric, Maschinenfabrik Reinhausen GmbH, and Groupe Cahors S.A. as the top five market players operating in transformer monitoring system market. They collectively account for more than 49% of global market share in 2021.

In order to expand their product manufacturing and cater to rising electricity demands, market players are focusing on new product launches and establishing strategic partnerships with other solution providers.

For instance, in February 2020, Eaton acquired Power Distribution Inc. (PDI) to improve life quality and the environment using its power management technologies and services. Eaton is one of the leading power management companies in the world and is aiming towards providing suitable solutions to effectively manage electrical power using power transformer monitoring systems.

In July 2019, Nepal Electricity Authority (NEA) launched new smart transformer monitoring system to inspect and provide online surveillance to its substations and transformers across the country.

Transformer monitoring system Market – Report Scope

Key Questions Answered in the Report

• Who are the key exporters operating in transformer monitoring system market?

  Germany and U.S. are the leading exporters of transformer monitoring system in the world.

• What is the North America transformer monitoring system market outlook?

  Demand registered in North America will continue rising, backed by rapid modernization of existing grid infrastructure and increasing consumption of electricity in U.S. and Canada, the North America market is anticipated to expand at 10.6% CAGR during the forecast period.

• Who are the leading companies in transformer monitoring system market?

  ABB, Siemens AG, General Electric, Maschinenfabrik Reinhausen GmbH, and Groupe Cahors S.A. are the top companies operating in the market.

• What is the share of top companies in transformer monitoring system market?

  As of 2021, ABB hold around 14% of global market share, General Electric hold 10% of global market share, Siemens AG hold 12%, Maschinenfabrik Reinhausen GmbH hold 8%, and Groupe Cahors S.A hold 5% of global market share.

• At what rate will transformer monitoring system sales increase in Europe?

  Transformer monitoring system sales will increase at 7.6% CAGR in Europe, backed by adoption of green transformers in the U.K., Germany and other countries.

• Which are the top countries driving transformer monitoring system market demand?

  Leading countries driving demand in the transformer monitoring system market are Germany and U.S.

• What are the key statistics for transformer monitoring system market in Japan and South Korea?

  Currently in 2021, Japan and South Korea collectively hold around 3% of global transformer monitoring system market share.

Key Segments Covered In Transformer monitoring system Market Study:

By Product:

• Hardware
  • Direct Winding Transformer Monitors
  • Intelligent Transformer Monitors
• Software

By Installation Type:

• Newly Installed Units
• Retrofit Units

By Application:

• Dissolved Gas Analysis (DGA)
• Partial Discharge (PD)
• Bushing Monitoring
• Cooling Control
• Voltage Regulation

By End Use:

• Power Transformers
• Distribution Transformers
• Other Transformers

By Region:

• North America
• Western Europe
• Latin America
• Eastern Europe
• Asia Pacific excluding Japan (APEJ)
• Japan
• Middle East and Africa (MEA)