The Step-Up Transformers Market is expected to grow from USD 12.516 billion in 2025 to USD 17.264 billion in 2030, at a CAGR of 6.64%.
An electrical device known as a step-up power transformer raises the voltage of an alternating current (AC) electrical power supply. It is a kind of transformer that raises an AC power supply's voltage to a greater level, usually for industrial and commercial uses. A step-up power transformer is used to raise the voltage of the AC power supply when powering a bigger motor, which requires a higher voltage level. It is a transformer that has more secondary winding turns than primary winding turns and raises the voltage from primary to secondary. Due to losses, providing energy to every region would be highly challenging and complex without step-up transformers, which play a crucial role in the electrification process. Due to increased digitalization and population growth during the past few years, electricity consumption has risen. It is projected that rising average energy usage would drive the power transformer market's continuous expansion.
The need for step-up transformers has increased as a result of the global adoption of smart grid technologies and the implementation of such grids, a driving factor propelling the market development for step-up transformers is the widespread implementation of smart grids, which needs these transformers for the distribution process as well as the addition and replacement of renewable electricity.
Also, according to the Statistical Review of World Energy, 2022 report by BP the renewable power generation at the global level in 2021 has been 3657.2 TWT which has increased from the previous year by 14.9%, thus this ensures that due to the increase in the power generation, the power grid lines will increase at a rapid pace and thus the market for the step-up transformers will grow.
According to the Ministry of Power of India on Feb 2023 it revealed that from 2014 to 2022 thus around 175 GW of power generation capacity has been added and with the addition of 173459 ckt km of transmission lines to its grid, the entire nation is now connected and can move 112 GW of power from one region to another. This will tend to increase the installation of step-up transformers and will grow this market.
Accelerated industrialization and rising domestic energy consumption are the driving forces behind the rise of the world market for step-up transformers. The electricity demand is rising steadily over the world, which has increased the use of energy resources. There are currently more power plants and extensive transmission networks everywhere. The industry is using more power as a result of the advancement of modern electric vehicles and incentives to use them. Given that most power plants are situated in remote areas, the electricity produced is then sent to the substations through HVDC power transmission lines, which are then delivered to the final customers after step up.
According to the Statistical Review of World Energy, 2022 report by BP renewable energy consumption globally has increased by 12.6 % from 2011 to 2022 and from 2020 34.80 TWH has raised to 31 TWH of consumption. Thus, we can predict that due to the increase in the electricity demand worldwide in increasing year-on-year the demand for step-up transformers will also grow and thus the step-up transformer market.
The need for electricity infrastructure is predicted to rise throughout the projection period, as is the rate of industrialization and urbanization, particularly in China, India, Japan, South Korea, Taiwan Province of China (TPTC), Indonesia, and Malaysia. Consumer electronics items have risen in emerging nations like Thailand and Vietnam due to improving living standards and a growing population, which is expected to fuel regional expansion throughout the projection period.
The most recent United Nations projections place Asia's population at 4,743,946,002 as of Monday, February 6, 2023. The population of Asia is equal to 59.76% of the population of the entire planet this showcases that the demand for consumption is increasing and thus will the step-up transformer market will tend to grow in this region. Over the projection period, the regional market is anticipated to be driven by these nations' expanding manufacturing industries as well as rising commercial building activity.
In November 2021 java - Bali 500kwt power generating and transmission projects are scheduled to begin in 2025, and through this project, Indonesia is viewed as an emerging market in the step-up transformers sector. The goal of this project was to increase the Java-Bali grid's long-term power supply security and efficiency.
Additionally, favorable government rules intended to encourage FDI are anticipated to create new doors for manufacturers in a variety of industries, including the energy industry, which will increase product demand. According to the Ministry of Power 2014, The "Integrated Power Development Scheme" (IPDS) was announced by the Ministry of Power, Government of India, on December 3rd in to prove the power sub-transmission and distribution networks in metropolitan areas. Projects worth Rs. 30,904 crore havcroresn approved under the IPDS as of November 2021. States and Discoms have received GoI Grants totaling 78 crores so far under IPDS. The strengthening of the distribution system has been successfully finished in 524 circles. The goals established and accomplishments realized through the IPDS System include strengthening this shows the growth will propel the step-up transformer market in this region
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