Saudi Arabia Distribution Transformer Market

Saudi Arabia Distribution Transformer Market Overview

The distribution transformer is defined as a transformer that offers the final voltage transformation in the electric power distribution system, thus stepping down the voltage that is used in the distribution lines to the level used by an individual. One of the major functions of the distribution transformer is to alter the high voltage to the normal voltage like 240/120 V to use in electric power transmission. There are basically various types of distribution transformer available in the market: single-phase, 3-phrase, underground, pad-mounted, pole-mounted transformer.

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Major Saudi Arabia Distribution Transformer Market Drivers

The Saudi Arabia distribution transformer market is projected to witness strong demand in the next six years. The ongoing inclinations toward enhancing the existing grid infrastructure in order to improve the country’s electrification index is one of the major factors that is surging the demand for distribution transformers. The positive outlook toward renewable integration, along with the regulatory inclination towards building a sustainable energy mix, will further surge the demand of the market. The distribution transformers play an important role in the transmission of power from the distribution subsystem to households by stepping down the distribution voltage to the service level placed in the near vicinity in order to connect to ten or fewer consumers.

The advent of new sources of energy, particularly in renewables and the new demand loads due to the emergence of data centers and electric vehicles, is another major factor that is responsible for the market growth. The Saudi Arabia government has launched Vision 2030, which aims to increase the role of the electricity sector in the country’s GDP. The enormous investments for the development of infrastructure of the electricity sector are effectively improving the living standards of people in Saudi Arabia. Furthermore, the government is also planning to develop 30 solar and wind projects over the next nine years, which is a part of the $50 billion program aiming to improve power generation and reduce oil consumption. The combination of various plans and programs introduced by the government is likely to have a positive impact on the market’s demand. On the other hand, the operational inefficiencies which result in delays and suspensions is a major factor that will hamper the growth of the market.

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On the basis of the insulation type, the oil-filled segment is expected to dominate the market over the forecast period. The growing requirement for oil-filled distribution transformers as it offers numerous exceptional advantages such as high suitability for an outdoor location, highly efficient cooling mechanism, and other advantages, is a major factor that is driving the growth of the segment in the market. The oil-filled distribution transformer is experiencing strong demand owing to its simple structure, reliable operation, and uniform conduction.

Based on the mounting, the pad-mounted segment is projected to grow at a higher CAGR during the forecast period. The growing usage of pad-mounted transformer with the underground electric power distribution lines, especially for stepping down the primary voltage on the line to the lower secondary voltage supplied to utility customers, is a significant factor that is responsible for the growth of the segment.

Based on the phase, the three-phase segment is anticipated to lead the distribution transform market over the forecast period. This is attributed to the accelerating adoption of three-phase transformer owing to its ability to offer higher efficiency and minimum losses as compared to the single-phase transformers. Moreover, a three-phase transformer uses less of copper and aluminum to conduct the same amount of electricity as compared to the single-phase transformer. These factors are directly surging the demand of the segment in the coming years.

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The Saudi Arabia Distribution Transformer market has been segmented on the basis of Insulation Type, Mounting, Phase, Power Rating. Based on Insulation Type, the market is segmented into Dry and Oil Filled. Based on Mounting, the market is segmented into Pole, Pad, and Underground. Based on Phase, the market is segmented into Single and Three. Based on Power Rating the market is segmented into Up to 500 KVA, 501 KVA–2500 KVA, 2500 KVA–10000 KVA and Above 10000 KVA.

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Market Segmentation

Saudi Arabia Distribution Transformer Market by Insulation Type

• • Dry
  • Oil-Filled

Saudi Arabia Distribution Transformer Market by Mounting

• • Pad
  • Pole
  • Underground vault

Saudi Arabia Distribution Transformer Market by Phase

• • Single
  • Three

Saudi Arabia Distribution Transformer Market by Power Rating

• • Up to 500 kVA
  • 501 kVA–2,500 kVA
  • 2,501 kVA–10,000 kVA
  • Above 10,000 kVA