The highly competitive instrument transformers market witness’s fresh growth prospects this decade.
As per a recent report added by Big Market Research, the global instrument transformer market is expected to grow at a CAGR of 7.81% from 2016 to 2020. The device offerings of the industry are used to measure electrical quantities across the input and output nodes of devices with great accuracy. This is an industry where product longevity and efficiency is the core earning point. Thus, it is easy to apprehend that the growth comes from wither further segmentation of demand channels or the augmentation of the same. Here, analysts take a deeper look into the key impacting factors for the industry.
Renewable integration and grid modernization:
Back in 2012, the ABB group proposed a high voltage direct current (HVDC) grid to efficiently integrate low-scale renewable energy from distributed sources. Inclusion of the fluctuating power sourced from wind, solar, and geothermal systems into main lines necessitates the implementation of instrument transformers. This is critical to the energy needs and consequent progress of the rural parts in developing and under-developed nations. Remarkable attention from welfare organizations has initiated the establishment of micro-grids and large scale power projects in these locations. This further builds fostering grounds for manufacturers and business stakeholders.
The modernization of existing grids as well as the proposed utilities across the globe add to the established demand channels. Smart cities with smart power supply is the new listing on the development agenda of growing economies. Huge investments and funds from governmental organizations provide additional financial boost to the industry. The products too, are becoming smarter, greener, and safer for instruments, on-site professionals, and pedestrians in vicinity.
Claiming an edge over competitors:
The discrete needs of large and medium-scale projects are catered to by the vendors in the industry. Cut-throat competition exists between the distributed local and global manufacturers. While the former offers low-cost companions for native and small-scale enterprises, the latter finds procurement requests from large-scale industries. The smartly customized solutions added to market placement of significant brands helps them retain the big fishes in their account.
Quality and durability comes first for the end users. For those who have avoided it in their operational history have to pay heavy prices for the same. Apart from the losses borne, they have to deal with the replacement costs of these instruments. This is what explains the dominance of leading companies such as Schneider, General Electric, ABB, and ITL. It is essential to employ best-suited instruments in a facility considering the operating environment and electrical specifications such as voltage, current, and power. One will be easily surprised by how slight variations in client requirements calls for immediate interference by technical experts. When they step in, each detail is taken into account and a tailored solution is delivered at the end of it.
The growth-bound global instrument transformer market is accountable to the expanding electrical utilities in commercial and public space. There is immense scope for investors and business owners to tap profits, only if they pick their spot well.