Global instrument transformer: Key market research findings
- The Americas to dominate the market geographically
- Switchgears to account for a majority share of the market’s revenue
- Key vendors –ABB, Crompton Greaves, GE, ITL, and Schneider Electric
Technavio’s market research analysts predict the global instrument transformer market to grow at a CAGR of almost 8% between 2016 and 2020. The demand for instrument transformers is spurred by the smart grid effect, which is resulting in the modernization of existing transformers. Many transmission and distribution (T&D) infrastructures globally are in need of renovation due to their inability to meet the demand for power. In 2015, the global instrument transformer market was dominated by the Americas with a market share of around 39%. The ongoing renovation of existing T&D infrastructures, especially in the US, Canada, and Mexico, is expected to boost growth in the instrument transformer market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the instrument transformer segments based on the application.
“The market is currently witnessing an increase in the adoption of 3D simulation and epoxy casting procedures in the manufacturing process. The use of such advanced simulation software enables engineers to develop new products without the need to invest in significant prototyping expenses. Top quality electrical equipment, such as the next generation of ABB instrument transformers, are the result of such highly refined manufacturing processes,” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.
By 2020, the switchgears segment will account for more than 66% of the overall market revenue to continue its dominance in the global instrument transformer market. The market demand for switchgears is fueled primarily by urbanization and industrialization in the modern world. This market can be further classified into low voltage, medium voltage, and high voltage switchgears. The installation of switchgears by various industrial and commercial end-users apart from power utilities will contribute to growth in the switchgear segment in the coming years.
The key vendors in the global instrument transformer market include ABB, Crompton Greaves, GE, ITL, and Schneider Electric. The market is characterized by the presence of a diverse group of international and regional instrument transformer manufacturers and is moderately fragmented. There is very minimal product differentiation, which induces vendors to retain their market shares by pricing their products and services competitively. Additionally, established international vendors also face intense competition from the regional vendors who provide customers with comparatively low-priced and customized products. The market is also capital intensive, and this will keep new vendors from entering the market. The new vendors will also find it difficult to compete with international vendors in terms of quality, design, product features, turnaround time, services, and in sustaining customer relationships.
A more detailed analysis is available in the Technavio report, Global Instrument Transformer Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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