Middle East Distribution Transformer Market Analysis By Product, By Technology And Segment Forecasts From 2012 To 2022

Industry Insights

The Middle East distribution transformer market size was worth USD 2.68 billion in the year 2014 and is predicted to account for USD 3.60 billion by the end of 2022 due to the rising use of superior grid components. Moreover, the growing sustainable energy requirement across the globe is anticipated to accelerate the demand throughout the projected period. Infrastructural development in various nations across the Middle East is likely to contribute to market growth.

The rapid increase in the population has substantially fueled the electricity demand, thus boosting the market. Smart grid installations require two-way, timely components and communication that utilize similar features to track a range of system parameters together. This can also boost demand for interactive information transfer equipped with advanced products. However, the replacement of long-living conventional components may hinder industry growth in the next seven years.

The necessity to track power consumption may surge the adoption of alternative energy. Integration of backup traditional power and alternative sources needs the adoption of smart grids, which, in turn, is anticipated to spur industry growth in the near future. High transportation and installation costs along with the scarcity of skilled professionals for installation can pose a challenge for product demand.

Product Insights

Small distribution transformers’ power rating is in the range of 0-313Kva. These are mainly used in scarcely populated areas. Rising replacement of conventional overhead components with smart grid-equipped pole boarded, small parts are anticipated to fuel the demand in the upcoming years. Furthermore, the product is suitable for many different power applications coupled with light commercial or industrial applications.

Medium distribution Transformer, predominantly between the ranges of 316 kVA to 2,499 kVA is projected to observe increasing popularity due to the rising population across cities like Dubai, Abu Dhabi, and Riyadh. The increasing migration rate among the population of these countries is further poised to augment regional demand. Innovations in the sustainable development area have led to the use of innovative products with silver-copper allow winding for protecting them against self-annealing.

Growing industrialization is anticipated to be a major factor that boosts the demand for larger transformers in the region. However, the lack of transportation mechanisms to under-developed areas might be a challenge due to the heavy design of these transformers. The unit substation is further expected to observe substantial growth due to low maintenance and installation costs.

Technology Insights

The liquid-filled transformer segment is likely to observe significant growth during the projected period. The growth can be attributed to efficient design and advanced functional capabilities. Pad-mounted have a number of utility applications among the commercial, residential, and industrial sectors, and is further predicted to spur the demand in the upcoming years. Dry-type technology is primarily used in a harsh environment with fire safety needs like marine, oil & gas, and mining sites industries.

Regional Insights

The privatization of the electricity sector in various Middle East countries like UAE, Qatar, and Saudi Arabia is predicted to be a major industry growth over the forecast period. Constant growth in the industrial sector, especially oil & gas and petrochemicals is expected to surge demand in Saudi Arabia. Furthermore, the market is expected to grow due to the increasing concentration of residential and industrial sectors in Qatar.

UAE distribution Transformer market has further observed substantial growth due to pre-technology use. Moreover, high coastal areas in Qatar, UAE, and Saudi Arabia might result in the easy procurement of raw materials, which is likely to augment the demand in the near future.

Middle East Distribution Transformer Market Share Insights

Major distribution transformer companies focus on mergers & acquisitions to strengthen their position in this region. For example, the acquisition of Alstom in GE was done to enhance its product variants and enter the regional energy sector. Small manufacturers emphasize offering high-quality products among the key country. Major organizations dominating the industry include GE, ABB, Alfanar Electrical Systems, Saudi Federal, Siemens, and Bawan.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2012 to 2022. For the purpose of this study, Million Insights has segmented the Middle East distribution Transformer market based on product, technology, and regions:

• Product Outlook (Revenue, USD Million; 2012 - 2022)
    • Small Transformer (0 to 315 kVA)
    • Medium Transformer (316 kVA to 2,499 kVA)
    • Large Transformer (2,500 kVA to 10,000 kVA)
    • Unit substations

• Technology Outlook (Revenue, USD Million; 2012 - 2022)
    • Liquid filled
        • Pad-mounted
        • Pole mounted
    • Dry type

• Regional Outlook (Revenue, USD Million; 2012 - 2022)
    • Saudi Arabia
    • Qatar
    • UAE
    • Egypt