Instrument transformers market in North America
Two trends in the instrument transformers market in North America are increased investments in renewable energy driving growth for the instrument transformer market as well as increased investment in smart transformers and grids driving growth in the instrument transformer market.
Renewable Energy Investments
- Investments in renewable energy transmissions are driving growth in the instrument transformers market in North America.
- For example, projects such as the Atlantic Wind Connection in North America, which is one of the most prominent renewable energy projects in the world with investments of $5 billion and capacity to power two million homes, are "expected to grow the instrument transformer market in the coming years."
- This is being driven by increased investment in renewable power transmission within the US. Experts predict that 33,000 megawatts of renewables may be added to the grid in 2020 in the US. They also state that "transmission is one of the largest sources of planned capital investment for many power generators through 2035."
- According to Jeff St. John, analyst for Wood Mackenzie Power & Renewables, the market research arm of Greentech Media: "The case for new multistate transmission lines has never been clearer. A growing number of states and utilities have set 100-percent-clean-energy goals, albeit with no obvious path to generating all that power close to home. The gap is growing between the transmission network’s capacity and the need to link wind farms in the Great Plains and Intermountain West, solar farms in the Southwest and hydropower resources in eastern Canada to other regions hungry for carbon-free energy."
- According to market research firm Global Market Insights, Inc: "The U.S. instrument transformer market is anticipated to observe growth on account of rising demand for the refurbishment of conventional grid infrastructure coupled with ongoing expansion of efficient transmission and distribution grid networks. The transformer industry has observed substantial growth owing to positive regulatory measures in association to grid stability and energy efficiency. Furthermore, ongoing trends pertaining to the establishment of renewable energy technologies in line with rapidly enhancing control and monitoring technologies will complement the industry landscape."
Smart Grids and Smart Transformers
- The growth of the instrument transformer market is also being driven by "huge investments in smart grids and energy systems."
- This is being driven by the growth of smart transformers, which include certain instrument transformers, in North America since 2018.
- This is also being driven by the ongoing updating of the North American electric grid.
- According to Mordor Intelligence, the North American smart transformer market, which includes some instrument transformers, is projected to grow at a CAGR of 11.2% till 2021, driven by "the increasing rate of industrialization, constantly growing demand for power, and changing power consumption patterns by households and corporations."
Trends were determined based on their inclusion in market reports, the availability of data or examples illustrating the trend, and the availability of expert statements supporting the trend.