Instrument Transformers Market by Type (Current, Potential, Combined), Installation (Liquid, SF6 Gas, Solid), Enclosure (Indoor, Outdoor), Voltage, Application, End-User, & Region (North America, Europe, APAC, Latin America, MEA) - Global Forecast to 2030
[318 Pages Report] The market for instrument transformers is anticipated to witness substantial growth, projected to increase from an estimated USD 7.1 billion in 2023 to reach USD 10.6 billion by 2030. The growing demand for precise electrical measurements is a major driving force behind the global expansion of instrument transformers. These transformers are critical for accurately measuring and monitoring electrical properties in power systems. The instrument transformers market is expanding rapidly due to rising customer demand. This expansion is driven by the need for dependable and efficient transformers in a variety of applications. Another key reason driving the instrument transformers market ahead is an increase in peak end-user energy consumption. Meeting the rising power demand requires the deployment of dependable and efficient transformers.
The market for instrument transformers is estimated at USD 7.1 billion in 2023, with a projected growth to USD 10.6 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 5.8%. The rise of companies in the region adds to an increase in energy consumption, necessitating the use of modern instrument transformers for efficient power usage. Rapid urbanization and infrastructure developments increase energy demand, boosting the need for instrument transformers in the Asia Pacific market. Government measures to update power networks in the Asia Pacific area are driving demand for instrument transformers, which ensure efficient and dependable energy distribution.
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Instrument Transformers Market Dynamics
Driver: Modernization of power distribution infrastructure
Global power consumption is expected to rise dramatically by 2030, with an increase of 5,900 terawatt-hours (TWh) in the Stated Policies Scenario (STEPS) and more than 7,000 TWh in the Announced Pledges Scenario (APS). This spike is similar to combining the current demand levels of the United States with the European Union. In developed nations, the rising popularity of electric vehicles is the key source of increased energy consumption, contributing to a significant increase from around 8% market share in 2021 to 32% in the STEPS and over 50% in the APS by 2030.
Restraints: High Initial Costs of Instrument Transformers
The "High Initial Costs" feature of the instrument transformers market refers to the significant upfront expenditure necessary for the acquisition and installation of instrument transformers. Advanced technologies, such as digital instrument transformers and those with smart grid functionality, are frequently more expensive than their older equivalents. The inclusion of new features and advancements might push up the total price of instrument transformers. Instrument transformer materials, such as specific alloys and insulating materials, can be rather costly. Transformers require high-quality materials to ensure their longevity, efficiency, and dependability.
Opportunities:Digitalization and smart sensors
Digitalization and smart sensors are altering the instrument transformer industry, providing considerable benefits in terms of accuracy, efficiency, and data-driven insights. Traditional instrument transformers use analog signals, which limits their accuracy and data accessibility. Digitalization entails replacing analog components with digital technology such as microprocessors and communication interfaces, resulting in improved accuracy, real-time data collection, and expanded functionality. Digital processing lowers mistakes and enhances measurement precision, leading to more accurate data. Digital transformers generate continuous data streams, enabling for real-time monitoring and study of grid operation.
Challenges: Environmental Concerns
Traditional instrument transformers, particularly ones with oil-based insulation, might cause environmental problems owing to the materials employed and the potential for environmental damage. Many traditional instrument transformers employ oil as an insulating medium to improve dielectric strength and cooling. The usage of oil, particularly mineral oil, causes environmental issues owing to the possibility of spills and pollution. Unintentional leaks or spills can impact ecosystems and soil quality. Certain metals and insulating materials used in instrument transformers may be considered toxic or represent an environmental danger. The production and disposal of these components must be carefully regulated to reduce their environmental effect.
Instrument Transformers Market Ecosystem
The instrument transformers market is marked by the participation of key companies that are firmly established, financially robust, and possess substantial expertise in the production of instrument transformers. These companies hold a significant market presence and provide a wide array of product offerings. They harness advanced technologies and maintain extensive global sales and marketing networks. Among the notable players in this market are ABB (Switzerland), General Electric (US), Siemens (Germany), Mitsubishi Electric (Japan), and Schneider Electric (France).
Ultra High voltage segment, by voltage, to grow at highest CAGR from 2023 to 2030.
As worldwide energy consumption rises, particularly in rising countries and highly populated cities, there is an increasing demand for efficient and dependable power transmission. Ultra-high voltage transmission allows for the efficient transfer of enormous amounts of power over long distances while minimizing energy losses. The necessity for grid expansion to satisfy rising power demand is a major driving force behind the rise of UHV systems. The integration of renewable energy sources, such as wind and solar, frequently necessitates the transfer of power from remote sites with plentiful renewable resources to urban areas. Ultra-high voltage transmission lines can effectively transfer enormous amounts of electricity across long distances, allowing the integration of renewable energy into the grid.
Transformer and circuit breaker bushing, by application, to emerge as largest segment of instrument transformer market.
Demand for instrument transformers is driven by investments in transmission and distribution (T&D) infrastructure projects, which include both extending existing networks and constructing new ones. Transformers and circuit breaker bushings are crucial parts of T&D systems. Energy-efficient transformers and circuit breaker bushings are in high demand due to their ability to decrease transmission losses and increase overall energy efficiency. As energy conservation becomes a top issue, utilities are investing in contemporary, high-performance components.
Indoor segment, by enclosure type, to grow at the fastest CAGR from 2023 to 2030.
The move towards urban life, along with limited outside space in densely populated places, pushes the choice for indoor instrument transformers, which require less physical space to install. Growing worries about environmental effects and safety laws are driving the development of indoor transformers, which reduce the possibility of oil leaks and are more compatible with severe standards. Indoor transformers are recognized for their increased dependability and lower maintenance requirements, making them a popular choice among utilities looking for cost-effective and efficient solutions.
The Asia Pacific instrument transformers market is poised to achieve the highest CAGR throughout the forecast period.
During the forecast period, the Asia Pacific region is anticipated to experience the highest Compound Annual Growth Rate (CAGR). The region encompasses key economies like China, India, Japan, Australia, and the rest of Asia Pacific, including South Korea. Rapid development, particularly in major economies, propels growth in various sectors, including power transmission, distribution, industries, commercial and residential applications, and transportation.
The Asia-Pacific area is rapidly urbanizing and industrializing, resulting in increased demand for power. Instrument transformers are essential for effective power distribution in cities and industrial complexes, propelling the industry forward. In addition, ongoing infrastructure development projects, particularly in growing economies in Asia-Pacific, need strong electrical systems. Instrument transformers play an important part in guaranteeing the efficiency and stability of the electrical infrastructure, which helps drive market growth. Similarly, the increase in industrial and commercial activity throughout Asia-Pacific demands a reliable and consistent power supply. Instrument transformers allow for precise monitoring and control of electrical parameters, guaranteeing continuous power for industrial and commercial applications.
Key Market Players
ABB (Switzerland), General Electric (US), Siemens (Germany), Schneider Electric (France), Mitsubishi Electric (Japan), ABB (Switzerland), General Electric (US), Mitsubishi Electric (Japan), Siemens Energy (Germany), Schneider Electric (France), Arteche (Spain), Bharat Heavy Electricals Limited (BHEL) (India), CG Power (India), Nissin Electric Co., Ltd. (Japan) including others.
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Scope of the Report
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Report Metric |
Details |
Market Size available for years |
2019–2030 |
Base year considered |
2022 |
Forecast period |
2023–2030 |
Forecast units |
Value (USD Billion) |
Segments Covered |
By Type, By Installation, By Voltage, By Enclosure, By End-User, and By Application |
Geographies covered |
Asia Pacific, North America, Europe, Middle East and Africa, and South America |
Companies covered |
ABB (Switzerland), General Electric (US), Mitsubishi Electric (Japan), Siemens Energy (Germany), Schneider Electric (France), Arteche (Spain), Bharat Heavy Electricals Limited (BHEL) (India), CG Power (India), Nissin Electric Co., Ltd. (Japan), EMEK (Turkey), Indian Transformers and Electricals Pvt. Ltd (India), Mehru (India), Koncar-Instrument Transformers Inc. (Croatia), Pfiffner Group (Switzerland), RITZ Instrument Transformers GmbH (Germany), CHINT Group (China), WEG (Brazil), Amran, Inc (USA), Straton Electricals Private Limited (India), and Dalian Huayi Electric Power Electric Appliances Co., Ltd. (China). |
The instrument transformers market is classified in this research report based on type, installation, enclosure, voltage, end-user, application, and region.
Based on type:
- Current
- Potential
- Combined
Based on installation types:
- Liquid
- SF6 Gas
- Solid
Based on enclosure:
- Indoor
- Outdoor
Based on Voltage:
- Distribution Voltage
- Sub-Transmission Voltage
- High Voltage Transmission
- Extra High Voltage Transmission
- Ultra-High Voltage Transmission
Based on end-users:
- Power Utilities
- Power Generation
- Railway & Metros
- Industries & OEM
Based on Application:
- Transformer & Circuit Breaker Bushing
- Switchgear Assemblies
- Relaying, Metering & Protection
- Primary Metering Units
Based on regions:
- North America
- Asia Pacific
- South America
- Europe
- Middle East and Africa
Recent Developments
- In November 2022, The General Electric has introduced the Superbute combination. It enables faster installation of primary metering assemblies than typical standalone CTs and VTs while maintaining a high degree of quality and dependability. GE's Superbute Combo CT/VT design includes RevenueSense CT technology, which results in 0.15% accuracy from 1% of rated current to the rating factor.
- In May 2020, The Metsä Fibre, a renowned subsidiary of Metsä www Group, and ABB Finland had announced a deal under which the firm ABB Finland would offer the electricity and drive technology solutions for Metsä Fibre's projected bioproduct mill in Kemi, Finland.
- In February 2020, Arteche had launched a Power Voltage Transformer, As long as the plant is linked to a high-voltage line, it will provide a consistent supply even while not in operation. There is no maintenance, eliminating the logistical complexity of an activity that requires transportation to the facility. Simple to implement and put in action.
Frequently Asked Questions (FAQ):
What is the current size of the global instrument transformers market?
The global instrument transformers market is estimated to be USD 10.6 billion in 2030.
Who are the major players operating in the Instrument Transformers Market?
Major players in the Instrument Transformers Market include ABB (Switzerland), Siemens (Germany), Schneider Electric (France), and GE (US).
What are the challenges affecting the growth of the instrument transformer market?
Growing competition from unorganized transformer producers poses a significant challenge to the instrument transformer market's trajectory. Unorganized producers often do not adhere to defined industry standards, quality control procedures, or regulatory compliance, resulting in a wide range of goods of different quality. This variety puts uncertainties and hazards into the market, since consumers may have difficulty analyzing the dependability and performance of transformers from unorganized producers.
Which is the second fastest-growing region during the forecast period in the Instrument transformers market?
During the forecast period, North America region is expected to be the second fastest-growing region in the instrument transformers market. The CAGR for the North America is 5.5%. This is due to the rapid urbanization and surge seen in the demand for electricity that is fostering the growth of the region.
What advantages do modern instrument transformers offer over traditional counterparts?
Modern instrument transformers constitute a significant advancement in the field of power systems, providing several advantages over their conventional counterparts. Enhanced accuracy is a significant characteristic, with newer equipment utilizing sophisticated technology to deliver more exact voltage and current readings. This increased precision is critical for preserving the integrity and stability of power systems, as it ensures that monitoring and control mechanisms respond properly to the dynamic needs of energy grids. .
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This study involved substantial efforts to determine the current size of the instrument transformers market. It began with a rigorous secondary research procedure to acquire information on the market, analogous markets, and the overall industry. These results, assumptions, and market size projections were then carefully evaluated by contacting industry experts from throughout the whole value chain using primary research methods. The entire market size was determined by completing a country-specific analysis. Following that, the market was dissected further, with data cross-referenced to estimate the size of various market segments and sub-segments.
Secondary Research
Several secondary sources were used during the secondary research process to discover and collect material for this study. Secondary sources include company annual reports, press announcements, investor presentations, white papers, certified publications, articles by recognized writers, manufacturers' organizations, directories, and databases.
Secondary research was primarily conducted to obtain key information about the industry's supply chain, the total pool of key players, market classification and segmentation based on industry trends to the lowest level, regional markets, and key developments from both market and technology perspectives.
Primary Research
During the main research process, several primary sources were interviewed to gather qualitative and quantitative data for this study. Primary supply-side sources include industry professionals such as CEOs, vice presidents, marketing directors, technology and innovation directors, and other important executives from various top firms and organizations in the worldwide instrument transformers market.
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Market Size Estimation
The size of the market and its related submarkets was estimated and validated using both top-down and bottom-up techniques. The research method used to estimate market size includes secondary research to identify key firms, as well as primary and secondary research to assess their market shares in relevant areas. This procedure comprises analyzing the annual and financial reports of key market businesses, as well as conducting in-depth interviews with industry specialists such as CEOs, VPs, directors, and marketing executives to gain valuable insights. All percentage shares, splits, and breakdowns were derived using secondary sources and confirmed with original sources. To get at the final quantitative and qualitative data, all conceivable parameters affecting the markets included in this research study were accounted for, examined in great depth, validated by primary research, and assessed.
Global Instrument Transformers Market Size: Bottom-Up Approach
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Data Triangulation
After calculating the overall market size using the process indicated above, the whole market was divided into several categories and sub-segments. Data triangulation including market breakdown procedures were used, when appropriate, to complete the whole market engineering process and provide correct statistics for all segments and sub-segments. The data has been triangulated by examining numerous aspects and trends on both the demand and supply sides. In addition, the market has been verified using top-down and bottom-up approaches.
Market Definition
The electricity used by residential, commercial, and industrial users comes from centralized power facilities located far from the consumption locations. These power plants are linked to end customers via a complicated transmission and distribution infrastructure. This network extends beyond individual electric companies and, in some cases, across entire countries, such as Europe. To manage energy flow, numerous measurements are taken across the grid to determine its electrical status. Real-time voltage and current measurements at several sites offer information about the system's state. Measurements are taken at power plant outputs, as well as at the input and output of lines that meet at transmission or distribution substations. These metrics are used for invoicing reasons, allowing firms to track their power output and consumer use. Vigilant monitoring avoids overloading, diagnoses defects, and optimizes generation and distribution for efficient grid management.
Instrument transformers are specialized electrical devices that safely and precisely monitor high voltage and current in power networks. They serve as an important connection between high-voltage power lines and low-voltage measuring devices, allowing for safe and reliable monitoring of vital electrical parameters. Instrument transformers essentially convert high voltage or current values into safer and more controllable levels that may be measured by equipment like as meters, relays, and safety devices.
This transformation is accomplished by electromagnetic induction, which occurs when a change in current or voltage in the transformer's main winding causes a proportionate change in the secondary winding.
The scope of this study covers, but is not limited to, all accuracy classes for instrument transformers described by IEEE, CSA, IEC, and ANSI standards..
Key Stakeholders
- Banks, venture capitalists, financial institutions, and other investors
- Companies related to electric power generation, transmission, and distribution
- Energy associations
- Environment associations
- Energy efficiency consultants
- Government and industry associations
- Government and research organizations
- Manufacturing industry
- Public & private power generation, transmission & distribution companies (utilities)
- Smart grid project developers
- State and national regulatory authorities
- Sub-station equipment manufacturing companies
- Venture capital firms
Objectives of the Study
- The instruments transformers market will be defined, described, segmented, and forecasted based on installation, insulation, voltage, current, and end-user.
- To forecast market size for five key regions: North America, South America, Europe, Asia Pacific, and the Middle East and Africa, as well as the key countries within each region.
- To provide comprehensive information about market growth drivers, restraints, opportunities, and industry-specific challenges.
- To strategically analyze the subsegments in terms of individual growth trends, prospects, and contributions to overall market size.
- To examine market opportunities for stakeholders and the competitive landscape for market leaders.
- To profile the key players strategically and thoroughly analyze their market shares and core competencies.
- To monitor and analyze competitive developments in the instruments transformers market, such as agreements, sales contracts, partnerships, new product launches, acquisitions, joint ventures, contracts, expansions, and investments.
- This report examines the value of the instruments transformers market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to your specific needs. The following customization options are available for a report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Growth opportunities and latent adjacency in Instrument Transformers Market