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Europe Distribution Transformer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 90 Pages
  • October 2021
  • Region: Europe
  • Mordor Intelligence
  • ID: 5459031

The Europe distribution transformer market is expected to rise at a CAGR of around 2.5% during the forecast period. With the COVID-19 pandemic, the sector witnessed a major negative impact with delays in various power distribution projects. Further, manufacturers experience challenges for procurement of raw material, for which production was significantly impacted in 2020. Factors such as increasing energy demands from the industries and upgrading old transmission and distribution systems are likely to drive the Europe transformer market. However, fluctuations in the price of raw material needed for the manufacturing of distribution transformers are expected to restrain the Europe transformer market.

Key Highlights

  • The oil-filled segment is expected to be the largest market for distribution transformers, as it is more efficient, having longer service life, and features more reliable overload capabilities.
  • A smart grid is seen as a highly efficient and economical technology that can reduce carbon emissions. Such up-gradation for exiting networks in the region can create several opportunities for the Europe distribution transformer market in the future. For instance,
  • Due to its increasing demand for electricity and the rising renewable energy installation and connecting them in the country's grid, Germany is expected to be the fastest-growing market for Europe distribution transformers market.

Key Market Trends

Oil-filled Distribution Transformer Expected to Dominate the Market

  • Oil-filled transformers use flammable liquids for cooling, making them highly suitable for outdoor applications. It is considered to be more efficient, having more extended service life and features more reliable overload capabilities.
  • A liquid is a more through medium for cooling application, and regardless of the type of liquid used for cooling, a liquid-based transformer is a better option than dry type. The biggest advantage of an oil-filled transformer is that it can handle higher ratings.
  • In 2020, the electricity generation for Europe was about 3871.3 Terawatt-Hour (TWh), decreased by around -3.3% as compared to 2019. The decreased in electricity generation was due to lower electricity demand on account of COVID-19 restrictions.
  • The EuroAfrica Interconnector comprises the electricity interconnection between the grids of Egypt-Cyprus-Greece through a subsea direct current cable and with high voltage direct current (HVDC) onshore converter stations at each connection point, with a total capacity of 2000 megawatts (MW). The project is an energy highway connecting Africa and Europe, with a full length of 1396 kilometers. It creates an alternative route for the transfer of electric energy to and from Europe. The project is expected to use several transformers to transfer electricity into countries grids and is expected to be complete by 2023.
  • In January 2020, General Electric Company was awarded a multi-million dollar project for the design, supply, construction, and commissioning of onshore and offshore wind substations for the Neart na Gaoithe (NnG) offshore wind farm, in Scotland. The project is jointly owned by EDF Renewables and ESB. GE is responsible for the delivery of all infrastructures within the perimeter, including groundworks and civil construction. The substations in the project are likely to use several distribution transformers to step down the electric voltage. NnG is scheduled to be fully operational by the end of 2023.
  • Hence, owing to the above points, the oil-filled transformer segment is likely to dominate the Europe distribution transformer market during the forecast period.

Germany Expected to be the Fastest-Growing Market

  • Germany, due to the constant increase in energy demand and an increasing number of commercial and industrial operations, the country is likely to be the fastest-growing market for the distribution transformer in Europe.
  • The country is also witnessing a large installation of renewable energy capacity, which requires a large amount of power and distribution transformers to transfer electricity from the generation site to the consumers. In 2020, Germany’s total renewable energy installation was 131.73 gigawatts (GW), which was higher than the installed capacity in 2018, 125.17 GW.
  • Moreover, the country is witnessing substantial growth in the sales of electric vehicles. To reduce greenhouse gas emissions, the government is encouraging the use of electric vehicles in the country by providing discounts on the purchases of vehicles. With growing electric cars, the demand for the electric car charging infrastructure in the country is expected to increase, which in turn, is expected to drive the distribution transformer market.
  • Germany has set a target to generate 80% to 95% of the total electricity from renewable energy sources by the end of 2050. Moreover, the country is focusing more on upgrading the outdated transmission and distribution system of the country, which is expected to drive the transformer market in the country.
  • Hence, owing to the above points, Germany is expected to the fastest-growing market for Europe distribution transformer market during the forecast period.

Competitive Landscape

The Europe distribution transformer market is fragmented. Some of the major players in the market include Hitachi ABB Power Grids, Siemens Energy AG, Eaton Corporation PLC, Schneider Electric SE, and General Electric Company among others.

Additional Benefits:

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2026
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 on the Market
5.1 Type
5.1.1 Oil-filled
5.1.2 Dry Type
5.2 Capacity
5.2.1 Below 500 kVA
5.2.2 500 kVA - 2500 kVA
5.2.3 Above 2500 kVA
5.3 Phase
5.3.1 Single Phase
5.3.2 Three Phase
5.4 Geography
5.4.1 Germany
5.4.2 United Kingdom
5.4.3 France
5.4.4 Italy
5.4.5 Rest of Europe
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Hitachi ABB Power Grids
6.3.2 Siemens Energy AG
6.3.3 Eaton Corporation PLC
6.3.4 Schneider Electric SE
6.3.5 General Electric Company
6.3.6 Westrafo SRL
6.3.7 Societa Elettromeccanica Arzignanese S.p.A
6.3.8 GBE S.p.A

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Hitachi ABB Power Grids
  • Siemens Energy AG
  • Eaton Corporation PLC
  • Schneider Electric SE
  • General Electric Company
  • Westrafo SRL
  • Societa Elettromeccanica Arzignanese S.p.A
  • GBE S.p.A