Current Transformer Market Dynamics, Segments, Size and Demand 2018 2026

Posted on 2021-02-18 by Future Market Insights, Inc in Internet & Online // 0 Comments

Current transformers are used along with both, metering and protection devices. They are designed in way that when installed in a circuit, they produce an alternating current in the secondary winding, which is proportional to the current in its primary. Demand for the product has gained momentum, influenced by increased application across industries, power plants, power grids, control rooms, and switch gears for metering and protection purposes. Further, current transformers serve the function of reducing high voltage current to a much lower value, which make it safe and easier to measure the current in the transmission line using a standard ammeter. Indoor application holds a high market share, at around three-fourth.

In a recently published report by Fact.MR, insights regarding key factors fueling market growth have been offered for the period of 2020 to 2030. The market has been tracked in 20+ high-growth countries, where North American tops the charts. The report also details what impact the COVID-19 pandemic is having on the market across the world.

Historical Trends Vs Future Market Projections

During the historic period of 2015 to 2019, the current transformer market witnessed an impressive growth rate of 3%. Growth in demand for current transformers during this period was influenced by intensifying demand from South Asia.

Demand for current transformers declined for 2 consecutive quarters in the year 2020. This slump was a result of the COVID-19 pandemic, which impacted all industries around the globe at large. Lockdowns and travel restrictions imposed by governments disrupted the global supply chain, which ultimately impacted the production of current transformers.

The market is poised to witness a surge in demand during the forecast period, as growing electricity consumption is expected to act as impetus to market growth.

Global electricity infrastructure is a complex patch work system, consisting of power plants, transmission stations, and distribution stations that widely vary in terms of age and capacity. Most of the existing electricity infrastructure needs inevitable up-gradations and renovations in order to meet ever-increasing electricity demand, which will drive demand for current transformers over the coming years.

How will increasing electricity consumption impact current transformer demand?

Demand and consumption of electricity is on rise, mainly influenced by factors such as increasing household income, growing demand for connected digital devices, and air conditioning and electrification of both, private and public transportation systems.

Furthermore, to match increasing load in power systems, we require more stable and consistent transmission with proper distribution systems in place. Managing the escalating load on power systems is a challenge that most countries are facing, which can only be tackled by upgrading existing infrastructure.

These aforementioned factors are poised to facilitate numerous growth opportunities current transformer manufacturers during the forecast period. With increasing electricity consumption and load demand, the energy sector is expected to experience growth at a robust CAGR of 3.4% over the coming years.

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What is the potential demand for low voltage current transformers?

Companies have come up with compact low voltage current transformers that can be used to control demand and monitor power consumption in buildings. These current transformers can be used along with transducers to diagnose the performance of electrical equipment.

Further, growing number of infrastructure projects and residential application of compact current transformers are expected to drive demand for low voltage current transformers.

How will aging power infrastructure drive demand for current transformers?

More than 50% of the total energy production in the U.S. is carried out in plants that are 30 years old. Majority of the power infrastructure we rely on today is built on technology that existed in the 1950s, which raises concerns about their reliability and ability to meet growing demand.

Moreover, power infrastructure around the world is vulnerable to hacking, and we have seen a number of attacks on substations and power plants in the past. This vulnerability of power infrastructure puts governments under pressure, as these are critical infrastructure of a country that need to be modernized and upgraded to prevent all potential threats.

All these stated problem need to be addressed, and that would bring more investment into the electricity sector, which will ultimately boost demand for current transformers and other related products.

Country-wise Analysis

How will China impact the current transformer landscape?

As China account for the more than 28% of global manufacturing output, the country tends to influence the pricing of most products sold throughout the world. The Chinese market remains highly fragmented, as there are small manufacturers in the market. Some players are aiming big and foraying into global markets – this trend is gaining traction.

Moreover, China will further consolidate its position as a dominant force for current transformers. Availability of raw material in abundance and lower labor wages make it easier for small players in China to sustain and compete in the market.

However, mounting tensions between China and other developed economies such as the U.S. would result in imposition of additional charges and anti-dumping duties. Further, these would encourage regional manufacturers to compete with low-cost China-based products.

Why is demand for current transformers high in the U.S.?

There are a number of factors that are contributing to higher demand for current transformers in the U.S. Growth in disposable income of the population has increased the adoption rate for consumer electronics in the country. In other words, increased adoption of smartphones, televisions, wearable devices, and penetration of IoT has resulted in increased consumption of electricity. Managing this increasing load demands efficient power distribution and management tools, such as current transformers, which are required to manage the current flowing through systems.

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The number of power plants, and transmission and distribution systems, in the U.S., is much more when compared with other countries. This makes the U.S. one of the most promising markets for high voltage current transformers. The market is expected to gain a BPS of 107 at the end of the forecast period.

Category-Wise Insights

Which type of current transformer witnesses highest demand?

Of the types of current transformers considered, the low voltage segment holds maximum market share in terms of volume. Continuous advancing commercial and residential sector markets for low voltage current transformer is poised to expand at CAGR of close to 5% during the forecast period.

Moreover, integration of digital meters for monitoring consumption and demand for electricity is gaining traction globally due to a wide range of application in both, commercial and residential applications. Furthermore, medium voltage current transformers are expected to account for more than one-fourth of global demand. This segment is poised to expand at a CAGR of 4.5% from 2020-2030.

How huge is the opportunity in the energy sector for current transformers?

Economic development and technological advancements have impacted the whole reserve ratio of electric systems, and we need more power plants and substations to match the load density. The fact that we need more power grids to manage the load is true for most developing and developed countries around the world. Key players are focusing on getting government contracts and tenders, as the electricity sectors in most countries are government-controlled. Furthermore, manufacturers are trying to differentiate their products based on properties such as lower thermal heat, higher accuracy, explosion-proof design, and insulation type.

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