Transformer Monitoring System Market Report | 2021 to 2031
The transformer monitoring system market size is projected to reach US$ 3.54 billion by 2031 from US$ 2.21 billion in 2023. The market is expected to register a CAGR of 6.1% in 2023–2031. The growing investment in eco-friendly and energy-efficient power tools is likely to remain a key transformer monitoring system market trend.
Transformer Monitoring System Market Analysis
The transformer monitoring system market is growing at a rapid pace due to the growing digitalization in utilities encouraging the use of power transformers, and increasing global demand for clean and renewable energy generation. The market is expanding steadily, driven by the increasing concern related to asset management and operational effectiveness. Moreover, the growing demand and adoption of big data analytics technology and increasing investment in offshore wind farms are providing lucrative opportunities for market growth.
Transformer Monitoring System Market Overview
A transformer monitoring system is a set of tools and technologies that are collectively used for collecting and analyzing data related to the working conditions and performance of transformers. The system is used for determining the status, quality, and performance of transformers and predicting their failure, providing early warnings and allowing users to implement proactive maintenance and replacement strategies. The transformer monitoring system collects data on numerous parameters, including load tap changer, cooling system, dissolved gas, partial discharge, bushing power factor, temperatures, pressure, and oil levels in the transformer. The market is driven by growing energy consumption, digitalization of factories, and increasing demand for transforming monitoring systems among energy and power generation industries.
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Transformer Monitoring System Market: Strategic Insights
Market Size Value in US$ 1,842.54 Million in 2019 Market Size Value by US$ 2,806.19 Million by 2027 Growth rate CAGR of 5.5% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Transformer Monitoring System Market: Strategic Insights
Market Size Value in | US$ 1,842.54 Million in 2019 |
Market Size Value by | US$ 2,806.19 Million by 2027 |
Growth rate | CAGR of 5.5% from 2020-2027 |
Forecast Period | 2020-2027 |
Base Year | 2020 |
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Speak to AnalystTransformer Monitoring System Market Drivers and Opportunities
Growing Digitalization in Utilities Encourages Use of Power Transformers is Driving the Market
Power utilities are heavily investing in process automation and digital monitoring and management of processes. Power utilities require a large number of sensors and data-handling tools to intelligently handle and use collected data. The expansion of electrical grids to meet the growing energy demands of commercial, industrial, and residential customers increases the demand for transformers among power utilities for the proper distribution of electricity. Power utilities are also investing in upgrading grids to increase dependability and resilience. This increases the demand for transformer monitoring systems for replacing antiquated transformers and upgrading the aged infrastructure. Transformer monitoring systems play a significant role in monitoring networks for transmission and distribution utilities at the generation level. Monitoring generation transformers is crucial before delivering electricity to the grid. This mandates power utilities to digitalize their monitoring system for efficient distribution of electricity. Thus, the digitization of utilities is expected to increase demand for transformer monitoring systems.
Growing Adoption of Big Data Analytics Technology – An Opportunity in the Transformer Monitoring System Market
Big data analytics increases the demand for power transformers in the energy industry. Big data analytics allows utilities to optimize their power systems by collecting and analyzing huge volumes of real-time data related to the demand and supply of electricity. This data-driven method allows more efficient grid operations and improves overall system efficiency. Growing demand for energy among consumers encourages the energy industry to adopt modern power transformers that can adapt to changing loads and easily communicate with data analytics systems. Moreover, significant benefits provided by big data analytics technology to transformer monitoring systems, including predictive maintenance, detection of difficulties & failures, and inspecting data, among others, are creating opportunities in the market.
Transformer Monitoring System Market Report Segmentation Analysis
Key segments that contributed to the derivation of the transformer monitoring system market analysis are component, service, and application.
- Based on component, the transformer monitoring system market is divided into hardware and IT solutions. The hardware segment held a larger market share in 2023.
- In terms of service, the transformer monitoring system market is divided into bushing monitoring, oil/gas monitoring, and others. The bushing monitoring segment held a larger market share in 2023.
- On the basis of application, the market is segmented into distribution transformers, power transformers, and others. The power transformers segment held the largest share of the market in 2023.
Transformer Monitoring System Market Share Analysis by Geography
The geographic scope of the transformer monitoring system market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
The market in Asia Pacific is expected to grow at a significant pace during the forecast period, due to growing industrialization and rapid urbanization. Technological advancement and the growing number of renewable energy projects are creating opportunities for the market in the region. Transformer monitoring systems are highly beneficial in renewable energy projects for detecting and avoiding problems that could lead to costly outages.
Transformer Monitoring System Market Report Scope
Transformer Monitoring System Market News and Recent Developments
The transformer monitoring system market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for transformer monitoring system and strategies:
- In October 2023, Eaton Corporation plc invested US$ 85 million to increase North American manufacturing of essential utility solutions, advancing the energy transition and electrification. The investments in regional manufacturing increase supplies of transformers, regulators, switchgear, and other utility equipment. (Source: Eaton Corporation plc, Press Release, 2023)
Transformer Monitoring System Market Report Coverage and Deliverables
The “Transformer Monitoring System Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component ; Service ; Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The incremental growth expected to be recorded for the global transformer monitoring system market during the forecast period is US$ 1.33 billion.
The global transformer monitoring system market is expected to reach US$ 3.54 billion by 2031.
The key players holding majority shares in the global transformer monitoring system market are ABB Ltd., Eaton Corporation plc, Honeywell International Inc., Schneider Electric SE, and Siemens AG.
The growing investment in eco-friendly and energy-efficient power tools is anticipated to play a significant role in the global transformer monitoring system market in the coming years.
The growing digitalization in utilities encourages the use of power transformers and increasing global demand for clean and renewable energy generation are the major factors that propel the global transformer monitoring system market.
The global transformer monitoring system market was estimated to be US$ 2.21 billion in 2023 and is expected to grow at a CAGR of 6.1% during the forecast period 2023 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.