Europe Distribution Transformer Market– Huge Growth Opportunity by Trend, Key Players

Information may not be reliable

Growing Deployment of Smart Grids and Introduction of Innovative Technologies to Boost Market Growth

The power generation sector across the European Union has evolved at a gradual pace over the past couple of decades, due to considerable advancements in technology and growing emphasis on improving efficiency. In addition, mounting environmental concerns pertaining to the efficient use of various resources have compelled the power & energy sector to invest in research & development activities to discover innovative concepts and technologies. The proliferation of cutting-edge power electronics and information & communication technologies is set to play an essential role in the development of the Europe distribution transformer market during the forecast period.  Growing deployment of ‘smart grids’ and emergence of such innovative concepts are likely to set the tone for the growth of the Europe distribution transformer market in the upcoming years.

The current evolution of the power sector across the European region introduces a new set of challenges related to the regulation of the various electricity distribution utilities. At present, the European Union has expressed a strong desire to save energy and promote the use of renewable energy resources by curating several programs, including the Intelligent Energy Europe Programme. The residential, commercial, and industrial sectors across Europe are largely focusing on optimizing the use of energy by purchasing distribution transformers at least lifecycle costs. As regulatory norms across the continent continue to tighten the screws regarding energy security and minimizing greenhouse gas emission, the demand for highly efficient and environment-friendly distribution transformers has witnessed considerable growth in the past few years– a trend that is set to continue during the forecast period.

At the back of these factors, the Europe distribution transformer market is set to attain a market value of ~US$ 7 Bn by the end of 2030.

Request A Sample-https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=77541

Cost-effective Solutions to Assist European Countries Attain Objectives

The Intelligent Energy Europe Programme has garnered considerable popularity in the European region. The program encompasses an array of strategies that are aimed toward the development of smart grids and energy distribution– a factor that is expected to provide an impetus to the manufacturing of efficient distribution transformers in the region. Strategies for development and diffusion of Energy-efficient Distribution Transformers (SEEDT) is among the multiple projects that promote and encourage the deployment of distribution transformers that are energy-efficient.

REQUEST FOR COVID19 IMPACT ANALYSIS –https://www.transparencymarketresearch.com/sample/sample.php?flag=covid19&rep_id=77541

Energy-efficient distribution transformers are high in demand across the European region, as they have proved to be highly profitable for investors. In addition, energy-efficient transformers also play a key role in attaining energy-saving targets set by the European regulatory bodies. The European energy policy has placed energy efficiency as high priority due to which, the Europe distribution transformer market is expected to witness considerable movement in the forthcoming years. The SEEDT includes several proposals that aim to change the regulatory framework for electricity distribution companies, mandatory standards, and labelling.

Governments across the European region are investing resources in the promotion of energy-efficient distribution transformers– another top factor that is projected to increase the demand.

Market Participants to Introduce New Solutions to Strengthen Foothold

Amid ongoing changes in the European energy and power sector, several participants operating in the current market landscape are launching innovative energy-efficient solutions to strengthen their foothold in the market. Several fairs are organized across the continent wherein market participants showcase their latest solutions. Leading participants operating in the Europe distribution transformer market are increasingly focusing on leveraging advanced technologies to develop next-generation distribution transformers.

For instance, in 2018, ABB launched the world’s first digitally integrated power transformer, which is likely to be one of the most groundbreaking innovations in the Europe distribution transformer market. ABB, at the Hanover Fair in 2018, revealed the ABB Ability ™, a power transformer that is equipped with remote monitoring and data analytics technologies. Such innovations are anticipated to improve the reliability and at the same time, enable optimum utilization of various grid assets and power networks.

While some participants are focusing on integrating digital technologies into their products, several companies are solely focusing on introducing new distribution transformers to the market. For instance, in September 2019, Murata announced the launch of the highly innovative distribution transformer particularly designed for high frequency and high power applications.

Energy Consumption Dinks in 2020 amid COVID-19 Pandemic

The onset of the COVID-19 pandemic is expected to have a short-term impact on the Europe distribution transformer market. The novel COVID-19 coronavirus, which was first detected in China’s Hubei province in December 2019 has emerged as a lethal health threat, which has impacted more than 140 countries. Among various industries that are affected by the pandemic, the power industry is also treading through a sluggish period. The evaluation of the COVID-19 pandemic on power generation and supply across the European region unveils that the demand from the industrial sector has remained lower than that in 2019 due to the lockdown imposed by several countries.

However, nuclear power availability in major European countries such as Germany is expected to remain steady as safety measures were put in place to ensure continuity of operations. Industrial production in several European nations has declined in the first half of 2020. Logistical delays and slowdown in the production are on the cards due to the COVID-19 pandemic as a result of which, the European distribution transformer market is likely to witness sluggish growth in 2020.

Purchase A Report-https://www.transparencymarketresearch.com/checkout.php?rep_id=77541&ltype=S

Distribution Transformer Market: Overview

• Distribution transformer provides the final voltage transformation in an electric distribution system. Distribution transformer reduces the voltage used in distribution lines. Distribution transformer also distributes power to remote areas. Distribution transformer is available in various sizes and efficiencies depending on the installation site and needs.

Expansion of Renewable Power Generation Capacity across Europe to Drive Europe Distribution Transformer Market

• The European Union has been dominating the global renewable energy sector since more than two decades. The adoption of long-term targets and supportive government policies & measures have boosted renewable energy consumption across the region. Renewable energy consumption in the European Union stood at 9% in 2005. It is expected to reach 20% by the end of 2020.
• Renewable energy generation capacity in Europe stood at 1,029 TW in 2019. Hydropower accounted for major share with installed capacity of 425.8 TW in 2019. Wind and solar energy held the remaining share, with installed capacities of 272.7 TW and 113.5 GW, respectively. Renewable energy from bioenergy constituted 92.6 TW, while other renewable sources stood at 124.4 TW in 2019.
• Growth in power generation from renewable energy is creating opportunities for the distribution transformer market in Europe. Renewable projects are off-grid; therefore, they need transformers for transmission and distribution of electricity. Distribution transformer is vital part of power distribution. Distribution transformer supplies electricity from the substation to consumers.

Stringent Manufacturing Standards to Hamper Europe Distribution Transformer Market

• The European Union has implemented stringent rules and regulations related to environmental safety and carbon emission. Governments of countries in the European Union have formulated highly stringent regulations regarding manufacturing standards. As per the European Union Directive 2009/2B/Ec of the European Parliament and of the council of April 23, 2009, all European countries agreed on lowering greenhouse gases and carbon emission by 2030.
• The European Environment Agency has introduced new measures for the power industry in Europe. These new measures set a range of emission limits that member states must use for emission permits issued to power plant operators by 2021. According to the European Environment Agency, implementing the upper emission limits of the new requirements would result in emission cuts of 66% for sulfur dioxide (SO2), 56% for particulate matter, and 51% for nitrogen oxide (NOx) by 2030 compared to the 2016 emissions. The agency also provided norms for 2050 gas emission targets, which would result in more substantial emission reductions of 91% for SO2, 82% for particulate matter, and 79% for NOx.
• Governments have introduced stringent standardization norms to encourage quality manufacturing in the sector, particular in the distribution transformer segment. Germany and the U.K. have enacted stringent quality norms in the power sector. This is anticipated to restrain the number of new manufacturers entering the market. Thus, implementation of stringent manufacturing standards is estimated to hamper the distribution transformer market in Europe in the near future.

Digitization of Substations to Offer Growth Opportunities for Europe Distribution Transformer Market

• Countries in Europe implemented the IEC 61850 standards to modernize its substations. IEC 61850 is acknowledged as the global communications standard that enables increased control, monitoring, and automation within electrical power systems. Substations act as hubs in the electric transmission network. Within these substations, protection and control systems control the flow of power. Reliable protection and control systems are essential to ensure a dependable and secure power system, while minimizing equipment damage and loss of energy supply as well as maintaining public safety. IEC 61850 enables automated substation operations, which creates an efficient transmission network that can respond during real time variations. IEC 61850 and digital substations are likely to benefit customers with long-term cost savings, future system flexibility, and increased safety.
• Digitization of substations has gained momentum in Europe over the last few years. This can be ascribed to the implementation of artificial intelligence and Internet of Things-based systems in the power sector in the region. Countries in Europe are planning to spend more than US$ 20 Bn on digitization of substations in the next five to 10 years.
• Along with digitization of substations, countries are upgrading their smart metering networks. They are also planning to upgrade the electricity cable network. This is projected to provide better connectivity and safety to consumers.
• Usage of electric vehicles in the region is also expected to rise in the near future. This, in turn, would lead to growth in the number of charging stations, thereby augmenting the demand for distribution transformers. This is estimated to boost the distribution transformer market in Europe in the next few years.

Europe Distribution Transformer Market: Key Developments

• In May 2018, Toshiba International Corporation announced the addition of HECO, Inc. to its nationwide network of distributors. HECO offers the full range of Toshiba electric motors.
• In March 2018, Toshiba International Corporation announced that it won the Manufacturing Leadership Award for its outstanding achievement in Advanced Enterprise Software Deployment

Rest of Europe to Dominate Europe Distribution Transformer Market

• Rest of Europe held a significant share of the distribution transformer market in Europe in 2019. The region is anticipated to maintain its dominance during the forecast period. This can be ascribed to increase in electricity consumption due to industrialization and urbanization. Rest of Europe includes countries such as Germany, France, Italy, and Russia & CIS. These are leading countries in terms of production of electricity in the region. The demand for distribution transformers is expected to rise in these countries in the near future.
• The U.K. and Spain are also key countries of the distribution transformer market in Europe, led by rise in investments in conventional as well as renewable energy sources in these countries. Aging grid system is one of the key drivers of the distribution transformer market in the U.K. and Spain.