Rising Electricity Demand to Boost Grid and Power T&D Infrastructure Investments: Report

Increasing electricity demand alongside sustained increases in the utilization of renewable energy will boost investments in power transmission and distribution (T&D) infrastructure and grid assets, including transformers.

Frost & Sullivan's recent analysis, Global Transformer Market, finds that a surge in electrification rate and economic growth of countries across regions will expedite the demand for both power and distribution transformers globally.

The market for global transformers will likely reach $64.24 billion by 2030 from $42.46 billion in 2021, an uptick at a compound annual growth rate (CAGR) of 4.7%.

"Grid equipment digitalization and sustainability are the top technological trends to drive the transformer market globally," said Neha Tatikota, Energy & Environment Industry Analyst at Frost & Sullivan. "The former will inflate the demand for digital power and distribution transformers. On the other hand, the latter will boost demand for green transformers offering a wide range of benefits, such as smaller carbon footprints and higher safety."

Tatikota added: "From technology type, distribution transformers will continue to dominate the overall transformer market, mainly due to rising urbanization and global industrialization. However, the growth of power transformer is attributed to economies' strong transmission investments related to ambitious government targets for renewables."