Transformer Market in India 2023-2028

The Indian power transformer market is influenced by factors such as rising energy demand due to population growth and industrialization. Initiatives promoting renewable energy integration and smart grid development contribute to market expansion. Government schemes like"Make in India" support domestic manufacturing, fostering growth. However, challenges persist, including aging infrastructure, high initial costs, and the need for continuous technological adaptation. The market faces pressures related to regulatory compliance and evolving environmental standards. The scope for the power transformer market lies in capacity expansion to meet growing energy needs, technological innovation for improved efficiency, and capitalizing on opportunities in renewable energy integration. Export potential is also significant as India aims to become a manufacturing hub. Continuous advancements in smart grid technologies and sustainable practices present avenues for transformative growth in the power transformer sector. The Indian transformer market that includes distribution transformers and power transformers was valued at INR 48.35 Bn in 2022 and is expected to reach INR 58.57 Bn by the end of 2028 expanding at a CAGR of 3.50% during the 2023-2028 forecast period.

Market Influencers:

Drivers:

• Widely used in power transmission and distribution, transformers find applications in lowering voltage for low-voltage devices and elevating voltage for efficient power transmission over long distances.
• The growth of industries and urbanization led to increased demand for transformers, especially in electric power distribution systems, where they play a crucial role in adjusting voltage levels for consumers.
• The transformer market in India is thriving, driven by government initiatives like DDUGJY, IPDS, and NEF, aimed at improving grid infrastructure and meeting the rising electricity demand in rural and urban areas.

Challenges:

• Challenges arise from fluctuations in raw material prices (copper, aluminum, steel, insulating materials) influenced by global market dynamics
• Price variations impact manufacturing costs, influencing pricing strategies. Insufficient supply of high-quality Cold Rolled Grain Oriented (CRGO) steel poses a significant challenge
• Dependence on imports makes it challenging to evaluate the true quality of the material used by transformer manufacturers in India. Inadequate facilities at primary agencies like the Central Power Research Institute (CPRI) result in manufacturers sending equipment overseas for testing, incurring additional expenses

Competitive insights:

To meet demands, transformer manufacturer companies such as ABB India Limited, CG Power and Industrial Solutions Limited, Kirloskar Electric Company Limited, Transformers & Rectifiers India Limited and others are addressing the increasing requirements.