Transformers Market for Renewable Energy Size to grow by USD 3.44 billion between 2024-2028
According to a research report “ Transformers Market for Renewable Energy” by Application (Solar PV, Wind farm) Indication (Dry insulation, Liquid immersed insulation) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 3.44 billion, at a CAGR of about 4.65% during the forecast period. In the energy sector, there is a significant shift towards renewable sources such as solar and wind power, which use natural resources to generate electric energy. Renewable energy's advantages, including environmental sustainability and abundant availability, have driven governments to prioritize this energy source over traditional fossil fuels. The solar Investment Tax Credit (ITC) is a key incentive, allowing residential and commercial users to deduct 30% of the cost of installing solar energy systems from their federal taxes. This initiative, among others, is propelling the renewable energy market for transformers, as the sector strives to increase the renewable energy share in the total energy mix.
Browse market data tables, figures, and in-depth TOC on “Transformers Market for Renewable Energy” by Application (Solar PV, Wind farm) Indication (Dry insulation, Liquid immersed insulation) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Application, the Solar PV segment is projected to dominate the market size in 2024
In the renewable energy sector, dry insulation transformers dominate the global market due to their numerous advantages over traditional oil-filled transformers. These transformers, which utilize solid insulation materials instead of liquid dielectric fluids, offer enhanced safety, lower maintenance costs, and increased sustainability. The absence of oil in dry insulation transformers significantly reduces the risk of leaks or spills, making them a preferred choice for integrating renewable energy sources, particularly in sensitive or environmentally protected areas. Dry insulation transformers' design innovation has revolutionized the global transformers market for renewable energy, providing substantial benefits for the integration of solar and wind power.
By Indication, Dry insulation segment is expected to hold the largest market size for the year 2024
The Transformers Market for Renewable Energy is projected to expand at an impressive rate over the forecast period. This growth can be attributed to several factors, including escalating environmental concerns and the depletion of traditional energy resources. Governments worldwide are responding by implementing renewable energy-friendly policies, which is driving the demand for transformers in the renewable sector. In the solar energy segment, the Solar PV Systems Market has experienced substantial growth due to the rising installation of PV systems in utility, commercial, and residential sectors. This expansion is primarily driven by the escalating electricity demand, the increasing focus on renewable energy to lessen reliance on fossil fuels, declining solar energy costs, and favorable government incentives such as the Investment Tax Credit (ITC) and Feed-in Tariffs (FiTs).
APAC is forecasted to hold the largest market size by region in 2024
The APAC region's Transformers Market for Renewable Energy is poised for significant expansion due to the surging demand for renewable energy sources over the forecast period. Notably, the last 2-3 years have witnessed a substantial penetration of renewable energy in both developed and developing countries. India, for instance, has set a commendable goal of increasing renewable power generation. This ambitious target, coupled with the region's persistently high electricity demand, is fueling the growth of renewable power-related markets. Moreover, the ongoing urbanization and the pursuit of improved living standards in major economies, such as China and India, are driving up electricity consumption, thereby further bolstering market demand.
The Transformers Market for Renewable Energy growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The transformers market for renewable energy is witnessing significant growth as the world shifts towards sustainable energy systems. Hydro energy, biomass, geothermal, solar, and wind are some of the unconventional energy sources that are increasingly being used to meet the electricity demands in housing and townships, especially in remote places where traditional power grid infrastructure is lacking. Distribution transformers and dry-type transformers are essential components of renewable energy systems. They help in integrating renewable energy into the electrical infrastructure and ensuring a stable power supply. The built-up infrastructure for renewable energy, including transmission routes and power grid infrastructure, requires advanced electrical components like transformers to ensure efficient and reliable power distribution. The carbon impact of traditional power sources is a major concern, and the use of renewable energy sources is seen as a way to reduce carbon emissions. Renewable energy transformers play a crucial role in this transition by facilitating the integration of renewable energy into the power grid. As construction advancement continues in rural places, the need for electricity availability is becoming increasingly important. Renewable energy systems, such as solar and wind, are proving to be effective solutions for meeting the electricity demands in these areas. The use of renewable energy transformers is essential for ensuring the efficient and reliable distribution of power from these systems. In summary, the transformers market for renewable energy is a growing sector that is essential for the integration and distribution of renewable energy sources, including hydro, biomass, geothermal, solar, and wind, into the electrical infrastructure. These transformers play a crucial role in ensuring the efficient and reliable distribution of power from renewable energy systems, reducing carbon emissions, and meeting the electricity demands in remote and rural places.
Market Research Overview
The Transformers Market for Renewable Energy is experiencing significant expansion as the world shifts towards sustainable energy sources. The Hydropower market, a major contributor to renewable energy, is expected to increase with the growth in Hydropower capacity. Dry-type transformers and Distribution transformers are crucial components in Hydropower generation, ensuring the efficient transfer of electrical power from Hydro-energy sources to the electrical power system. The Renewable Energy sector is not limited to Hydro-energy. Wind farms and Solar PV are also driving the market's growth. The construction and operation of these facilities require specialized transformers and transmission facilities to ensure grid integration and stability. The challenges of climatic conditions, standardization issues, and population growth necessitate the use of advanced technology, competence, and computerization in transformer design and production. Unconventional energy sources like biomass, geothermal, and solar are also gaining popularity, requiring specialized equipment and transformers. The availability of electricity in remote places and rural areas is a significant concern, and renewable energy projects are addressing this issue by providing green energy solutions. The development of renewable energy systems requires initial investment and grid infrastructure expansion, but the long-term benefits of sustainability goals and reduced carbon footprint outweigh the expenditures. The integration of renewable energy sources into the power grid infrastructure is crucial for grid stability and bidirectional power transmission. The use of renewable energy transformers optimizes performance and reduces the carbon impact on the environment. Public awareness of environmental issues and the need for clean energy sources is driving the growth of the renewable energy market. The transition to a sustainable energy system requires the collaboration of end-users, commercial and residential properties, and energy installations to reduce their carbon footprint and contribute to the fight against climate change.
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