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3. Oil Immersed Power Transformer Market Size & Share - Future Growth Expectations

The global oil immersed power transformer market size is expected to reach USD 28.3 billion by 2028 from an estimated USD 21.2 billion in 2023, at a CAGR of 6.0% during the forecast period. The major factors driving the growth of this market include the rising electricity demand, ongoing infrastructure development, and industrialization worldwide.

The oil immersed power transformer market has been witnessing steady growth, driven by several factors.

• Extension of Energy Infrastructure
• Renewable Energy Integration
• Rebuilding and Modernizing aged Infrastructure/li>
• Grid Modernization programs
• Growing Transmission and Distribution Network Investments
• Infrastructure Development and Emerging Economies
• Technological Developments

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Extension of Energy Infrastructure:

• Major global investments in electricity infrastructure have resulted from the growing demand for power brought on by urbanization, industry, and population increase. An essential component of effectively transporting and distributing electricity from power plants to end customers is oil-immersed power transformers. The need for oil-immersed power transformers rises in tandem with national energy system upgrades and expansions, propelling market expansion.

Renewable Energy Integration:

• Power transformers must be installed in order to link renewable energy producing facilities to the grid as we move toward renewable energy sources like solar and wind energy. Since oil-immersed power transformers are dependable, efficient, and able to manage a range of loads, they are frequently utilized in renewable energy projects. For grid integration reasons, there will likely be a greater need for oil-immersed power transformers as the proportion of renewable energy in the electrical mix rises.

Rebuilding and Modernizing aged Infrastructure:

• An aged electrical grid, particularly obsolete power transformers, is posing problems for many nations. Utilities and grid operators are investing in the replacement and upgrading of outdated infrastructure as these transformers approach the end of their operating life or become obsolete. The market is expanding as a result of the deployment of oil-immersed power transformers with cutting-edge features including improved dependability, reduced losses, and increased efficiency to update the grid infrastructure.

Grid Modernization programs:

• The adoption of innovative power grid technology, such as oil-immersed power transformers, is being driven by grid modernization programs that aim to improve system resilience, efficiency, and reliability. Utilities can identify faults, improve maintenance schedules, and remotely monitor transformer health thanks to the monitoring and control systems installed in these transformers. The need for intelligent and digitally connected oil-immersed power transformers is predicted to rise as utilities invest in grid modernization initiatives.

Growing Transmission and Distribution Network Investments:

• To improve grid capacity, dependability, and stability, governments and utilities around the world are investing a large amount in transmission and distribution networks. These networks wouldn't function without oil-immersed power transformers, which make it possible to distribute power to end consumers and transfer electricity over great distances with efficiency. The need for oil-immersed power transformers is driven by rising investments in transmission and distribution infrastructure, which propels the market's expansion.

Infrastructure Development and Emerging Economies:

• The need for power infrastructure development is being driven by the fast industrialization and urbanization of emerging economies, especially those in Asia-Pacific, Latin America, and Africa. In order to foster economic growth and fulfill the increasing demand for electricity in these locations, oil-immersed power transformers are essential. The demand for oil-immersed power transformers is anticipated to rise in emerging nations as governments allocate more funds to infrastructure development projects, hence fueling the market's expansion.

Technological Developments:

• Innovation in the oil-immersed power transformer market is being propelled by ongoing developments in transformer design, materials, and production techniques. To fulfill changing customer and regulatory criteria, manufacturers are creating transformers with decreased environmental impact, fewer losses, and improved efficiency. The performance and dependability of oil-immersed power transformers are improved by technological innovations including digital monitoring systems, small designs, and environmentally friendly insulating oils, which propel market expansion.

The expansion of electricity infrastructure, integration of renewable energy, grid modernization initiatives, replacement of aging infrastructure, rising investments in transmission and distribution networks, infrastructure development in emerging economies, and technological advancements in transformer design and manufacturing are expected to propel the oil-immersed power transformer marke growth trajectory in the upcoming years.

Oil Immersed Power Transformer Market Share - Global Industry Landscape

The oil immersed power transformer market is characterized by the presence of several key players competing for market share. Some of the leading companies in the oil immersed power transformer industry include:

• Siemens (Germany)
• Schneider Electric (France)
• General Electric (US)
• ABB (Switzerland)
• Eaton (Ireland)

These companies are fostering innovation and expansion in the VPP market by providing platforms and solutions that make it possible to aggregate, optimize, and monetize distributed energy resources. They are also working in tandem with other up-and-coming firms and technology suppliers. The VPP market share might fluctuate depending on various factors, including geographical reach, technological prowess, regulatory framework, and collaborations with utilities and energy market participants.

Siemens (Germany)

• Siemens is a multinational corporation that provides a broad portfolio of products and services, including oil-immersed power transformers. The company manufactures power transformers for transmission, distribution, and industrial applications, catering to customers worldwide.

Schneider Electric (France)

• Schneider Electric, a multinational powerhouse in energy management and automation solutions, operates across 100 countries with a workforce exceeding 180,000 employees, solidifying its status as a key player in the global electrical industry. With a diverse range of operating segments, including Digital Home, Energy & Sustainability, Industries, and Infrastructure, Schneider Electric boasts strengths such as widespread brand recognition, global reach, a broad and innovative product portfolio, and expertise in digitalization and software solutions. In the realm of oil-immersed power transformers, Schneider Electric is a leading manufacturer, offering solutions such as distribution transformers for industrial and commercial buildings and power transformers for high-voltage applications. Renowned for their reliability, efficiency, and environmental sustainability, these transformers feature advanced technologies and innovations, showcasing Schneider Electric's commitment to research and development. While challenges include competition from dry-type transformers and fluctuating raw material prices, Schneider Electric sees opportunities in the growing demand for electricity, the emphasis on smart grids, and the development of renewable energy sources. Overall, Schneider Electric stands as a global leader, well-poised to meet the evolving needs of the oil-immersed power transformer market in a dynamic energy landscape.

General Electric (US)

• General Electric, commonly known as GE, is a globally operating high-tech industrial corporation that operates globally through four main segments: Aerospace, Renewable Energy, Healthcare, and Power. GE is a leading provider of power generation, transmission, and distribution equipment, including oil-immersed power transformers. The company offers a comprehensive range of transformers for utilities, industrial plants, and renewable energy projects.

ABB (Switzerland)

• ABB, headquartered in Switzerland, stands as a multinational corporation recognized globally for its extensive operations in robotics, power, heavy electrical equipment, and automation technology. As a significant player in the worldwide power and transformer industry, ABB specializes in designing, manufacturing, and supplying a diverse range of transformers, prominently including oil-immersed transformers. These transformers play a pivotal role in the efficient and reliable transmission and distribution of electricity across various industries and applications. ABB is renowned for its commitment to innovation in the power and automation sector, with a strategic focus on technologies that enhance energy efficiency, improve grid reliability, and promote sustainable energy practices. Tailored to meet the varied needs of utilities, industries, and global infrastructure projects, ABB's power transformers find applications ranging from large power plants to distribution substations. Employing growth strategies such as product innovation, strategic partnerships, acquisitions, and global expansions, ABB aims to fortify its position in the oil-immersed power transformer market. Additionally, as a technology leader, ABB is actively engaged in environmental sustainability initiatives within the transformer realm, contributing to the development of eco-friendly technologies and adherence to stringent environmental standards.

Eaton (Ireland)

• Eaton is a global leader in power management solutions, including the design and manufacturing of various types of power transformers. Oil-immersed power transformers are a common type of transformer used in electrical distribution and transmission systems. Eaton's oil-immersed power transformers are critical components of electrical distribution and transmission systems, providing efficient and reliable voltage transformation for various applications. With a focus on quality, efficiency, and environmental responsibility, Eaton continues to be a trusted provider of power management solutions worldwide.

Related Reports:

Oil Immersed Power Transformer Market by Installation (Pad-Mounted, Pole-Mounted, Substation Installation), Voltage (Low, Medium, High), Phase, End User (Industrial, Residential & Commercial, Utilities) and Region - Global Forecast to 2028