Transformer Monitoring Market by Component (Hardware Solutions, Software Solutions), Type (Oil-Immersed, Cast-Resin), Services (Oil Monitoring, Bushing Monitoring, Partial Discharge Monitoring, OLTC Monitoring), Voltage & Region - Global Forecast to 2028
[233 Pages Report] The Transformer Monitoring market is expected to grow from an estimated USD 2.4 billion in 2023 to USD 3.7 billion by 2028, at a CAGR of 9.1% during the forecast period. The transformer monitoring market is expanding as a result of rising need for dependable power supply, increased adoption of smart grid technologies, increased awareness of transformer aging, and developments in sensor technology. Transformer monitoring systems are critical for assuring power grid stability and dependability. They can aid in the detection and prevention of transformer failures, which can result in costly outages. As the need for power grows, so will the demand for transformer monitoring systems.
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Transformer Monitoring market Dynamics
Driver: Digitalization of utilities are promoting use of power transformers
Power utilities are investing in process automation along with digitalizing the monitoring and controlling of the processes. Power utilities require a huge number of sensors and data handling solutions to manage and use the acquired data intelligently. As power companies extend their electrical grids to satisfy the expanding energy demands of residential, commercial, and industrial users, they require more transformers to efficiently distribute electricity. Power utilities are also investing in grid modernization activities to improve reliability and resilience. This includes replacing obsolete transformers and improving aging infrastructure.
According to IEA’s article, several countries and regions have had recently put forward strategies and action plans to facilitate the digital transformation of their energy systems, while others are beginning to mandate the use of digital technologies to support clean energy transitions.
Transformer monitoring systems/solutions play a key role in network monitoring for transmission and distribution utilities while at the generation end. Monitoring generation transformers becomes critical before feeding the electricity to the grid. Collaborations with third-party vendors and service providers are common in the digitalization of the power sector. Thus, digitalization of the utilities is likely to boost the demand for transformer monitoring systems.
Restraints: Cost barrier is hindering the growth of power transformers
The cost barrier is a multidimensional impediment to broad adoption of power transformer monitoring devices. The significant upfront expenditure necessary for hardware, software, and installation can initially deter utilities and organizations particularly those with limited budgets. The continuing maintenance and calibration costs associated with complicated monitoring systems compound this budgetary limitation, raising the total cost of ownership. Retrofitting older transformers with monitoring equipment adds another financial barrier, frequently needing costly upgrades or replacements that organizations may find difficult to pay. The cumulative cost of establishing monitoring systems across all units can become a considerable hurdle for large-scale utilities or enterprises controlling several transformers.
Further, raw material costs, such as copper and steel, have a direct impact on transformer prices. Price fluctuations in these important components can cause cost uncertainty for both manufacturers and purchasers. Furthermore, the development of environmentally friendly and energy-efficient transformers, driven by severe laws, frequently necessitates the use of new technologies and materials, which can raise production costs even further. To overcome these cost barriers, innovative financing solutions, government incentives, and industry collaboration are required to drive down costs and make power transformers more accessible, especially considering rising electricity demand and the need for a resilient and sustainable power grid.
Opportunity: Growth of big data analytic
Big data analytics is driving demand for power transformers, and its influence on the energy sector is significant. Foremost, big data analytics enable utilities to optimize their power systems by gathering and analysing massive amounts of real-time data on electricity demand and supply. This data-driven strategy enables more efficient grid operations and increases overall system efficiency. To fulfil the demands of this data-driven era, utilities frequently require contemporary power transformers that can adjust to varying loads and interact easily with data analytics systems.
Big data analytics can provide predictive maintenance for power transformers. Analytics can detect possible difficulties and failures in transformers before they become significant by scrutinizing previous data and performance trends. This preventive maintenance strategy not only minimizes downtime but also increases transformer lifespan, making them more cost-effective for utilities in the long term. For instance, in June 2020, HPE launched HPE Ezmeral, which is a new software portfolio and brand that will accelerate data-driven transformation across organizations. HPE Ezmeral provides a complete portfolio, including container orchestration and management, AI/ML and data analytics, cost control, IT automation and AI-driven operations, and security. Similarly in 2020 ABB’s fully functional Ability Power Transformer was launched that provides with integrated solution for digitally enabled power transformers, fundamentally changing the transformer paradigm.
In addition, the energy efficiency landscape is evolving with the help of data analytics. These tools can pinpoint opportunities for energy savings by optimizing transformer operations. This increased focus on energy efficiency is spurring the adoption of more advanced and efficient transformers that align with sustainability goals, ensuring that power distribution systems are both reliable and environmentally responsible. As renewable energy sources like wind and solar power continue to grow, utilities are challenged with managing variable and intermittent power generation. Big data analytics come to the rescue by forecasting renewable energy output and facilitating the necessary adjustments to grid infrastructure. This often requires the integration of new and innovative transformers capable of handling the dynamics of renewable energy integration. Moreover, the rise of big data analytics is altering the energy sector in a variety of ways, having a direct impact on demand for power transformers. These transformers are critical for assuring power grid adaptability, efficiency, and reliability as they change to meet the challenges and opportunities posed by data analytics-driven energy systems.
Challenges: Acceptance level among end users
Acceptance of power transformer monitoring systems faces several obstacles when it comes to end users. Traditional and well-established industries may exhibit resistance to change, as they are accustomed to their existing practices and may be hesitant to adopt new technologies. The perceived complexity of monitoring systems can be a deterrent, with concerns over specialized knowledge requirements and potential disruptions to current operations. Moreover, data privacy and security issues can cast a shadow of doubt, as end users worry about the risk of data breaches and unauthorized access to sensitive information. Additionally, the initial costs of hardware, software, and installation pose a financial barrier, especially for organizations operating with limited budgets. The necessity for additional training and education to effectively operate monitoring technology can contribute to hesitancy among end users, who may fear the resource investment required for workforce proficiency. Furthermore, a lack of awareness about the benefits of power transformer monitoring can hinder acceptance, as some end users may not fully grasp how these systems can enhance their operations.
Additionally, incentivizing the adoption of monitoring systems through subsidies or financial mechanisms can make it more attractive, particularly for those concerned about the initial costs. Overall, raising awareness and education about the benefits of power transformer monitoring is pivotal in encouraging acceptance among end users and driving the adoption of this transformative technology.
Transformer Monitoring Market Ecosystem
Notable players in this industry comprise long-standing, financially robust manufacturers of Transformer Monitoring Market and related components. These companies have a significant track record in the market, offering a wide range of products, employing cutting-edge technologies, and maintaining robust global sales and marketing networks. Prominent companies in this market include GE (US), ABB (Switzerland), Siemens Energy AG (Germany), Schneider Electric (France), and Eaton (Ireland).
Cast-resin, is expected to be the second-largest market, based on type.
Cast resin transformers are the second largest section of the transformer monitoring market for numerous reasons. For instance, cast resin transformers are more fire-resistant than liquid-filled transformers, making them a safer choice for usage in high-risk areas. Second, because they do not contain any harmful substances, cast resin transformers are more environmentally friendly. Third, compared to liquid-filled transformers, cast resin transformers are more compact and lighter, making them easier to install and carry. Finally, because cast resin transformers do not need to be replenished with oil on a regular basis, they require less maintenance than liquid-filled transformers.
Software solutions, by component, to hold the fastest market share during the forecast period.
The software solutions segment is the fastest growing segment of the transformer monitoring market because it offers various advantages over hardware solutions. Software solutions are more adaptable and scalable, and they can be tailored to each utility's unique requirements. Furthermore, software solutions are less expensive to deploy and maintain than hardware ones. Furthermore, software solutions offer more functionality than hardware solutions, such as real-time data visualization, analytics, and reporting. These characteristics assist utilities better understand the health and performance of their transformers, allowing them to identify and rectify problems before they create outages.
Asia Pacific is expected to be the fastest market during the forecast period.
The region's rapid urbanization and industrialization, coupled with massive technological advancements is making Asia Pacific the fastest growing region for transformer monitoring. China is Asia Pacific’s largest and fastest growing market, owing to the country’s massive renewable energy projects and vast manufacturing potential. Transformers become increasingly prone to failure as they age. Transformer monitoring systems can aid in the detection and prevention of these problems, which can result in costly outages. In Asia Pacific, the growing reliance on renewable energy sources is also pushing the market for transformer monitoring systems, as renewable energy sources, are erratic and might cause price volatility.
Key Market Players
The Transformer Monitoring market is dominated by a few major players that have a wide regional presence. The major players in the Transformer Monitoring market are GE (US), ABB (Switzerland), Siemens Energy AG (Germany), Schneider Electric (France), and Eaton (Ireland). Between 2019 and 2023, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the Transformer Monitoring market.
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Report Metric |
Details |
|
Market size available for years |
2021–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) |
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Segments covered |
Component, Type, Services, Voltage, Application, and Region |
|
Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies covered |
GE (US), ABB (Switzerland), Siemens Energy AG (Germany), Schneider Electric (France), Eaton (Ireland), Mistras Group (US), Mitsubishi Electrical Corporation (Japan), Vaisala (Finland), Hitachi Energy Ltd (Switzerland), KJ Dynatech Inc (Japan), Maschinenfabrik Reinhausen GmbH (Germany), Qualitrol (US), Gasera (Finland), Doble Engineering Company (US), and Wilson Transformers (US). |
This research report categorizes the Transformer Monitoring market by component, type, services, voltage, application, and region
On the basis of component, the Transformer Monitoring market has been segmented as follows:
- Hardware Solutions
- Software Solutions
On the basis of type, the Transformer Monitoring market has been segmented as follows:
- Oil-immersed
- Cast-resin
- Others
On the basis of by services, the Transformer Monitoring market has been segmented as follows:
- Oil monitoring
- Bushing monitoring
- Partial discharge monitoring
- OLTC monitoring
- Others
On the basis of by voltage, the Transformer Monitoring market has been segmented as follows:
- Low voltage
- Medium voltage
- High & Extra High voltage
On the basis of by application, the Transformer Monitoring market has been segmented as follows:
- Distribution transformers
- Power transformers
- Others
On the basis of region, the Transformer Monitoring market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In October 2023, Eaton invested USD 85 million to increase the manufacturing of utility solutions to advance energy transitions and electrifications. These investments in regional manufacturing increases the supplies for transformers, regulators, switchgears, and their utility equipment. These investments would help the manufacturers to integrate condition monitoring in their transformers.
- In September 2023, Schneider Electric has invested USD 300 million to establish an electrical equipment manufacturing plant in El Paso, Texas, US. This expansion will help Schneider Electric to manufacture monitoring devices for transformers and other electrical appliances.
- In October 2022, Schneider Electric had offered a solution that extends transformer lifetime. By incorporating digital transformation through the implementation of IoT sensors and expert analysis, Schneider Electric monitor’s transformer insulation health. The EcoStruxture Transformer Expert is an affordable and accurate transformer monitoring, also has the ability to offer automated insights.
Frequently Asked Questions (FAQ):
What is the current size of the Transformer Monitoring market?
The current market size of global Transformer Monitoring market is USD 2.4 billion in 2023.
What are the major drivers for Transformer Monitoring market?
The global Transformer Monitoring market is driven by increased investments in renewable energy and clean energy.
Which is the fastest-growing region during the forecasted period in Transformer Monitoring market?
Asia Pacific is a fastest market the Asia Pacific region emerged as a notably expanding market for transformer monitoring market.
Which is the largest segment, by services during the forecasted period in Transformer Monitoring market?
Oil monitoring services dominate the transformers monitoring market services segment due to their critical role in assessing transformer health. By analyzing oil parameters, such as temperature and chemical composition, these services enable early detection of issues, supporting initiative-taking maintenance and optimizing transformer performance for enhanced reliability and longevity.
Which is the largest segment, by application during the forecasted period in Transformer Monitoring market?
Power transformers are the most important section of the transformer monitoring market since they are the most crucial components of power networks. They are in charge of increasing or decreasing the voltage of electricity, which is required for effective power transmission and distribution. .
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The study involved major activities in estimating the current size of the transformer monitoring market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the Transformer Monitoring market involved the use of extensive secondary sources, directories, and databases, such as The Transformer Association, American Public Power Association, Transformer Manufacturing Association of America, National Electrical Manufacturers Association, US Department of Energy, Electro-Federation Canada (EFC), The European Power Supplies Manufacturers' Association, China Electronic Production Equipment Industry Association, and Bureau of Energy Efficiency, to identify and collect information useful for a technical, market-oriented, and commercial study of the global Transformer Monitoring market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The transformer monitoring market comprises several stakeholders such as transformer monitoring manufacturers, manufacturers of subcomponents of transformer monitoring, manufacturing technology providers, and technology support providers in the supply chain. The demand side of this market is characterized by the rising demand for utilities and microgrid companies that utilize transformer monitoring systems to meet their sustainability requirements are categorized as end users. Moreover, the increasing requirement for reliable power supply, aging infrastructure, and the growing adoption of smart grid technologies are driving increased demand for transformer monitoring. Transformer monitoring ensures preventative maintenance, reduces downtime, and improves the operation of power distribution systems.
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Transformer Monitoring market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Transformer Monitoring Market Size: Top-down Approach
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Global Transformer Monitoring Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
Transformer monitoring actively analyses numerous operating variables to ensure optimal operation. Transformer monitors collect data and transmit alarms to alert the user if something appears to be wrong. Transformer monitors detects the signs of transformer failure by monitoring the cooling system, load tap changer, dissolved gas, bushing power factor and capacitance, partial discharge, oil levels, pressure, temperatures and other parameters.
Key Stakeholders
- Transformer Manufacturing Companies
- Builders and Contractors
- Government and Industry Associations
- Investment and Consulting Firms
- Power Distribution Utilities
- Power transformer component manufacturers, dealers, and suppliers
- Substation equipment manufacturing companies
- Power grid project developers
- Process and Manufacturing Plants
- State and National Regulatory Authorities
- State- or Government-Owned Corporations
Objectives of the Study
- To define, describe, segment, and forecast the Transformer Monitoring market, in terms of value and volume, component, type, services, voltage, application, and region
- To forecast the market size for five key regions: North America, South America, Europe, Asia Pacific, and Middle East & Africa, along with their key countries
- To provide detailed information about the key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze the subsegments with respect to individual growth trends, prospects, and contributions of each segment to the overall market size
- To analyze market opportunities for stakeholders and the competitive landscape of the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze competitive developments, such as deals and agreements in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Geographic Analysis
- Further breakdown of region or country-specific analysis
Company Information
- Detailed analyses and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Transformer Monitoring Market