Zakir Hussain
The Indian transformers market has witnessed steady growth in the recent years, mostly catapulted by the rapid urbanization, growing demands, industrialization, infrastructure development and the rising concerns over ensuring the country’s energy security. Additionally, the Indian government’s focus on renewable energy and the push towards smart grids and smart cities is expected to further fuel the growth of the transformers market. Amidst the steadfast transformation in India’s energy landscape, the transformers market in the country is expected to continue its growth trajectory in the years to come.
According to a report by ResearchAndMarkets.com, the Indian power and distribution transformers market is expected to grow at a compound annual growth rate (CAGR) of around 5% during the period 2021 – 2026. Market research reports further predict that the global transformers market size was valued at USD 2.45 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2021 to 2028.
This growth is attributed to the increasing demand for transformers in the energy and power sector, as well as their growing use in industries such as healthcare, automotive, and telecommunications. Moreover, the emergence of new technologies such as 5G, Internet of Things (IoT), and Artificial Intelligence (AI) is expected to further boost the demand for transformers in the coming years. The increasing need for efficient power management, coupled with the rise in renewable energy sources, is also expected to drive the growth of the transformers market.
India has set ambitious targets for renewable energy, and the country is rapidly expanding its renewable energy capacity. This requires significant investments in the transmission and distribution infrastructure, including transformers. Also, India is investing heavily in infrastructure development, such as the construction of new airports, metro rail projects, and smart cities. This requires significant investments in power transmission and distribution infrastructure, including transformers. Industrial sector is a significant consumer of electricity, and the growth of the sector is driving the demand for transformers.
To further encourage the players in the power transformers sector, the Indian government has launched several initiatives to increase access to electricity and improve the quality of power supply. The government is investing in upgrading the power transmission and distribution infrastructure, which is boosting the demand for transformers. The government has also introduced the National Electricity Plan (NEP) – a comprehensive plan developed to provide reliable and affordable electricity to all citizens. The plan includes measures to improve the efficiency of the power sector, including the use of high-efficiency transformers.
To promote energy efficiency and conservation in the country, the government has also initiated the Energy Efficiency Program which includes measures to promote the use of energy-efficient transformers and other electrical equipment. Other schemes like the Ujwal DISCOM Assurance Yojana (UDAY) and state-owned enterprises like the Power Grid Corporation of India Limited (PGCIL) has been a major boost towards the development of new and efficient transformers to improve the efficiency and reliability of the power transmission system.
However, for a steady growth of the power transformer industry there should be a renewed focus on increasing the domestic manufacturing capacity. A significant number of power transformers in the country are imported from countries like China, Korea and Germany. There should be more investments in the sector to ensure that the power utilities in India face no financial losses. To address this issue, the government has launched various schemes and incentives to encourage private sector participation in the power sector, including the production of power transformers.
