Governments worldwide, due to the rapid increase in electricity demand, are not only focusing on raising generation capacities but also emphasizing on improving T&D infrastructure. The global electricity demand is projected to grow at an annual rate of 2.4% from 2009 to 2035. Investments have been high in power transmission & distribution sector in developed as well as developing countries.
Currently, small power transformer is the largest segment of the power transformer market, primarily due to its use in various applications. However, large power transformer is the fastest growing segment. With countries emphasizing on reducing transmission losses, the use of high voltage transmission technologies such as EHV, UHV, and HVDC has also gone up.
The demand for power transformers is increasing globally because of numerous T&D expansion projects and grid interconnection projects between countries. Siemens AG (Germany) is constructing a USD 450m high-voltage direct current transmission link between Ethiopia and Kenya. The Ethiopia-Kenya Power Systems Interconnection Project will be roughly 1,000 kilometers long and will transmit hydroelectricity.
Grid stability and reliability have driven new investments and overall spending in the transmission and distribution markets, with fewer major outages occurring in recent years. Despite a strong focus on grid infrastructure renewal, especially in Europe, there has also been significant expansion of the grid network.
Asia-Pacific is the largest market for power transformers, and its demand in the region is mainly driven by extensive T&D network expansion projects in developing countries such as India and China.