Smart transformers and switchgear market will grow steadily
A new report from Navigant Research analyzes the global market for smart transformers and switchgear for high-voltage (HV) and medium-voltage (MV) substations, with regional forecasts through 2025.
Utilities around the world are working to expand and upgrade their substation infrastructure, aiming to ensure system reliability and security, and to accommodate distributed energy resources (DER). However, the logistics, budgeting, and planning involved in replacing existing transformers or switchgear mean only a small percentage of existing equipment is typically exchanged each year. Click to tweet: According to a new report from @NavigantRSRCH, revenue for smart transformers and switchgear is expected to grow from $20.3 billion in 2016 to $24.1 billion in 2025.
“Replacement of legacy transformers and switchgear—also known as big iron—represents a massive investment for utilities over the next decade,” says Richelle Elberg, principal research analyst with Navigant Research. “But smart, automated transformers and switchgear have become the norm in new and upgraded substations, as operators shore up the resiliency and reliability of the grid in response to growing distributed generation, government mandates, and an increasingly competitive operating environment.”
Despite increasing capabilities, new transformer and switchgear equipment remains massive and is very expensive, with some types of equipment taking several years to procure, according to the report. Because of this, the resulting market is expected is grow steadily during the next decade, but not rapidly.
This report, Market Data: Smart Transformers and Switchgear, summarizes the global outlook for smart transformers and switchgear for high-voltage (HV) and medium-voltage (MV) substations. The study describes the market drivers and barriers associated with growth in both the smart transformer and switchgear markets. Global market forecasts, segmented by T&D-level equipment (category) and region, extend through 2025. The report also outlines Navigant Research’s assumptions supporting these regional market forecasts for smart transformers and switchgear. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Lorenz
* The information contained in this press release concerning the report, Market Data: Smart Transformers and Switchgear, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.