The global market for Power Transmission and Distribution Equipment is estimated at USD 256.5 Billion in the year 2020 and is estimated to reach a size of USD 312.8 Billion by 2026.
Transformers can be free-standing or integrated into small substations; pad, platform, ground, or pole-mounted, and should have high thermal, magnetic, and electrical performance. The market for power transmission and distribution equipment in the United States is expected to reach USD 65.8 billion by 2021. The country now holds a market share of 26.99 percent of the global market. China is expected to reach a market size of USD 63.7 billion in 2026, representing a CAGR of 7.7 percent over the study period. Japan and Canada are two other important geographic markets, with forecasted growth rates of 2.7 percent and 3.8 percent, respectively, over the analysis period.
Electrification of transportation and heating for long-term carbon reduction, decentralization through distributed generation, storage, and demand response; and digitization through the integration of smart sensors, smart meters, connected devices, Internet of Things (IoT), and other digital network technology systems and solutions are major developments in power transmission and distribution systems around the world. Future electricity grids and T&D networks will become smarter, and more decentralized, providing a slew of benefits in terms of increased reliability, security, environmental sustainability, and asset utilization, as well as more control, real-time consumption and production optimization, fewer carbon emissions, greater choice, seamless interaction with customers, always-on connection, higher transparency, better reliability, and scalability.
The United States, Canada, Japan, China, and Europe are expected to fuel the global Transformers segment's 5.4 percent CAGR. By the end of the analysis period, these regional markets, which had a combined market value of USD 33 billion in 2020, will have grown to USD 47.6 billion. In this group of regional markets, China will continue to be one of the fastest expanding. The Asia-Pacific market is expected to reach USD 7.7 billion by 2026, led by countries like Australia, India, and South Korea, while Latin America will grow at a 6.2 percent CAGR during the same period.