Transformer Tap Changers and Voltage Control Relay Market

Transformer Tap Changers and Voltage Control Relay Market Outlook (2023 to 2033)

The global transformer tap changers and voltage control relay market size is set to be valued at around USD 1,464.2 million in 2023. It is likely to register a Y-o-Y growth of 4.4%.

Transformer tap changers and voltage control relay sales are projected to increase at a considerable CAGR of 4.9% during the forecast period. The market is estimated to top a valuation of USD 2357.1 million in 2033.

Growth of the housing sector is likely to fuel expansion of small-scale enterprises. It is further expected to augment the demand for transformer components and auxiliaries. Rising need for complex power networks and their protection is anticipated to bolster the market.

Transformer tap changers are classified into two types, namely, off-circuit and on-circuit. These are devices used to regulate the voltage output of power transformers, which are critical components of the power grid.

A voltage control relay can detect overvoltage, low voltage, phase loss, and phase order issues. When conditions are favorable, the relay remains active and deactivated when the current is transferred outside of certain limits. These are used in equipment that operates at high voltage levels.

Voltage control relays can continuously check the device's voltage and respond when the input values deviate from the predetermined range. The system only receives a proper voltage level, thereby preventing voltage surge damage.

According to the study, the market is projected to create an absolute dollar opportunity of USD 892.90 million during the assessment period from 2023 to 2033.

Governments of various countries have plans to replace old transformers with new ones to ensure an uninterrupted power supply. To initiate these plans, replacement of old equipment amid the installation of modern equipment has become a common trend.

Various regional governments have different plans related to electrification such as hydropower plants and rural electrification among others. These are estimated to increase the demand for transformers. Retrofit options for lowering maintenance costs can further surge reliability of a transformer, which would push the market.

Frame structures have become increasingly popular as a way to replace original steel plate supports for on-load tap changers in transformers. These offer enhanced support for transformers, further providing superior strength that is not possible with traditional steel plates.

Frame structures are extremely durable and can easily withstand high temperature variations. Such variations can often occur during operation of on-load tap changers. Due to their high strength and durability, frame structures have proven to be an ideal option for supporting the transformer.

Attributes	Key Insights
Transformer Tap Changers and Voltage Control Relay Market Estimated Size (2023E)	USD 1464.2 million
Projected Market Valuation (2033F)	USD 2357.1 million
Value-based CAGR (2023 to 2033)	4.9%
Collective Value Share: Top 3 Countries (2023E)	35% to 40%

2018 to 2022 Transformer Tap Changers and Voltage Control Relay Sales Outlook Compared to Demand Forecast from 2023 to 2033

The global transformer tap changers and voltage control relay industry exhibited moderate growth at a CAGR of about 4.0% between 2018 and 2022. The market was pushed by urgent need for efficient power transmission and distribution systems.

It is likely to be driven by increasing demand for electricity and aging power infrastructure across the globe through 2033. During the historical period, the market witnessed a rising adoption of smart grid technologies.

These technologies require advanced transformer tap changers and voltage control relays to operate. According to Future Market Insights (FMI), the market is expected to flourish at a CAGR of 4.9% during the evaluation period.

Top Transformer Tap Changers and Voltage Control Relay Market Trends Listed by Future Market Insights (FMI)

• The market for high-power transformers is growing rapidly as a result of rising electricity demand and expansion of high-capacity power plant projects.
• Power transmitted through interconnected systems over long distances is mainly supported by transformer devices which require tap changers.
• Tap changers are a critical component of transformer systems as these are increasingly being used to maintain a constant voltage within the limits of transformers.
• Rising renewable energy sources globally has led to an increased demand for reliable electricity supply, thereby driving the transition toward more sustainable urbanization.
• Robust and efficient transmission & distribution infrastructure is essential to meet the rising demand, which necessitates installation of tap changers and voltage control relays.
• Smart cities are leading the charge toward adopting new technologies that can help optimize resource usage, including electricity.
• Tap changers and relays play an important role in meeting sustainability goals as they provide improved control over power output levels.
• Tools like tap changers reduce system losses on electrical networks, protect equipment from overloads, improve energy efficiency, and reduce operating costs.
• Reliable power supply needs in the emerging housing sector worldwide is likely to accelerate demand for transformer components and auxiliaries such as tap changers, voltage relays, and other related products.

Country-wise Insights

Why is Transformer Tap Changers and Voltage Control Relay Demand Surging in the United States?

Transformer Tap Changer Controller Demand to Surge in the United States with Ability to Prevent Power Outages

There has been a significant increase in terms of integration of renewable energy sources such as wind and solar in the United States. It is attributed to the country’s rapid shift toward a more sustainable energy mix.

Intermittent nature of these sources requires advanced voltage control technologies to maintain grid stability. Transformer tap changers and voltage control relays are critical components in achieving this particular goal.

The United States power grid is aging, and several transformers are nearing the end of their useful life. Upgrading these transformers with advanced tap changers and voltage control relays can improve their performance and extend their lifespan.

With the increasing frequency of extreme weather events, grid resiliency has become a vital concern in the country. Advanced tap changers and voltage control relays can help prevent power outages and reduce the impact of these events on the power grid.

What is the Outlook for Transformer Tap Changers and Voltage Control Relays in Germany?

Ambitious Energy Goals in Germany to Fuel Sales of Voltage Controlled Relays by 2033

Germany transformer tap changers and voltage control relay market is anticipated to expand at a CAGR of 4.4% over the assessment period. Germany is one of the leading economies in Europe, and has a highly developed energy sector. It includes vast power generation, transmission, and distribution networks.

Demand for transformer tap changers and voltage control relays in the country is set to be driven by its ambitious energy transition goals. These goals aim to increase the share of renewable energy in electricity consumption and reduce greenhouse gas emissions.

In Germany, transformer tap changers are used in a wide range of applications, including power generation, transmission, and distribution. The market for transformer tap changers in the country is highly competitive, with several local and international manufacturers competing for market share.

Why are Transformer Tap Changer and Voltage Control Relay Sales Expanding in India?

Transformer Tap Changer and Voltage Control Relay Manufacturers in India to Launch New Equipment

India has a large and well-established manufacturing sector. It is likely to create new opportunities for local manufacturers to supply products to the domestic market and export to other countries.

India-based manufacturers can also leverage their expertise in the manufacturing of electrical equipment and components. They can aim to develop innovative and cost-effective transformer tap changers and voltage control relays that meet specific needs of the market. Manufacturers that can offer high-quality, reliable, and cost-effective products are likely to succeed in the growing market.

Category-wise Insights

Which is the Most Preferred Phase of Transformer Tap Changers and Voltage Control Relays?

Three-phase Transformer Tap Changer Functions to Generate High Demand through 2033

Three-phase transformers are widely used in power transmission and distribution systems for efficient and reliable power delivery. Three-phase transformers are likely to exhibit surging demand due to increasing need for electricity, renewable energy sources, and industrial automation.

Adoption of electric vehicles (EVs) is also increasing worldwide, and it is set to augment the demand for three-phase transformers. These transformers are extensively used in charging stations, as well as other EV infrastructure.

Which is the Leading Application of Transformer Tap Changers and Voltage Control Relays?

Rising Automation in Industries to Boost Demand for Transformer Tap-changers and Switches

Globally, by application, the industrial category is one of the key growing segments in the transformer tap changers and voltage control relay market. It is estimated to hold around one fourth percent of the market share by 2033. Transformer tap changers and voltage control relay sales are expected to increase during the forecast period owing to rising demand in various industries.

Numerous industries are nowadays adopting automation technologies to increase productivity and efficiency. Advanced transformer tap changers and voltage control relays can be integrated into these systems to provide precise and reliable control of electrical systems.

Competitive Landscape

The market for transformer tap changers and voltage control relays houses leading manufacturers that are concentrating on expanding their regional shares. They are aiming to establish a direct presence in local markets through mergers and acquisitions with local players. They are also introducing new technologies that would provide an effective protection of the transformer to allow the voltage to be kept under control.

With changing demand, mergers across the value chain are set to develop interregional solutions for customers. It is a key strategy of several players to expand their customer base and market share. Adoption of latest technologies in product development, which are effective and advanced in terms of features is another crucial strategy of renowned players.

For instance

• In August 2022, shares in Advanced Testing Systems Inc. were purchased by Maschinenfabrik Reinhausen GmbH (MR). The latter is located in Bethel, Connecticut, in the United States. The business provides electrical testing services and maintenance for medium and high voltage test equipment.
• In June 2022, a new tap changer was created by Hitachi Energy, a pioneer in transformer and tap changer technologies. Compared to the standard product on the market, it is smaller in size.
• In October 2021, the SEL-851 Feeder Protection Relay was made available by Schweitzer Engineering Laboratories. It offers arc-flash, overcurrent, and voltage protection for industrial and utility applications.

Scope of the Report

Attribute	Details
Estimated Market Size (2023)	USD 1464.2 million
Projected Market Valuation (2033)	USD 2357.1 million
Value-based CAGR (2023 to 2033)	4.9%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Value (USD million)
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; East Asia; Central Asia; Russia and Belarus; Balkan and Baltic Countries; South Asia and Pacific; and Middle East and Africa
Key Countries Covered	United States, Canada, Mexico, Brazil, Argentina, Germany, Italy, France, United Kingdom, Spain, BENELUX, NORDICS, Poland, Hungary, Romania, Czech Republic, China, Japan, South Korea, India, Association of Southeast Asian Nations, Australia and New Zealand, Türkiye, South Africa, Gulf Cooperation Council Countries, Northern Africa
Key Segments Covered	By Phase, Application, Product Type, and Region
Key Companies Profiled	Siemens AG; ABB Ltd; Hitachi Energy Ltd; Brush (FKI Group); Maschinenfabrik Reinhausen GmbH; Schneider Electric; Rockwell Automation; Schweitzer; Toshiba Corporation; Mitsubishi Electric Corporation; Eaton
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives

Transformer Tap Changers and Voltage Control Relay Market Outlook by Category

By Phase:

• Single Phase
• Three Phase

By Application:

• Industrial
• Utility and Grid
• Commercial
• Others

By Product Type:

• Transformer Tap Changers
  • Off-circuit Tap Changer
  • On-circuit Tap Changer
• Voltage Control Relays
  • DIN Rail
  • Panel Mounted

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• Central Asia
• Russia and Belarus
• Balkan and Baltic Countries
• South Asia and Pacific
• Middle East and Africa

Frequently Asked Questions

What was the Historical Size of the Market?

The market witnessed a CAGR of 4% from 2018 to 2022.

What is the Current Market Size?

The market is valued at USD 1464.2 million in 2023.

Which is the Leading Transformer Tap Changers and Voltage Control Relay Application?

With a 35% share, industrial application is leading.

What is the Market Growth Forecast for China?

A CAGR of 6% is expected between 2023 and 2033 in China.

What is the Estimated Value of the Market in 2033?

The market is expected to reach USD 2,357.1 million in 2033.