Global Data Center Transformer Market Overview
The key driver impacting the data center transformer market is the rising number of data centers across several industries, such as BFSI, retail, IT and telecom, and government and defense. Also, the growing workload on the data centers has, in turn, increased the demand for better quality power supply; this creates a presence of transformers in a data center. For instance, The International Energy Agency(IEA) reports estimations, data center workload shows a constant rise as it was a 3.2 index in 2015 and increased to 7.5 indexes in 2019. Moreover, the growing need to ensure adequate power distribution across data centers is estimated to be a significant factor that positively impacts market growth.
According to Value Market Research, the global data center transformer market size was valued at around USD 5250 million in 2020 and is projected to grow at a CAGR of about 6.5% during the forecast period of 2021 to 2027.
The rapidly growing data traffic is driving data storage leads to the constant expansion of the global data center market, thus estimated to augment data center transformer demand in the forecast period. For instance, As per IEA, the need for digital services and data is likely to continue its exponential rise in the coming years, with global internet traffic anticipated to get double by the end of 2022 and reached 4.2 zettabytes per year (4.2 trillion gigabytes). Mobile internet users number is predictable to augment from 3.8 billion in 2019 to 5 billion by 2025, whereas the number of Internet of Things (IoT) connections is anticipated to double from 12 billion to 25 billion. However, the high initial investment is needed for data center transformers may hamper the global data center transformer market in the long run. The current industry trends, such as the rise in the adoption of mobile phones and cloud computing services with growth in the construction of hyper-scale data centers, are expected to provide market players with several market opportunities.
The data center transformer market is vast, with many local and global players. The key leaders follow different strategies to improve their market position, such as contracts, mergers, contracts, extending product portfolio, acquisitions, expansions, and product innovations to improve their market share globally. For instance, in 2018, a Switzerland-based company named ETH Zurich has launched smart transformers that are enormously efficient and compact. The known players included in the report are ABB Ltd., General Electric, ETH Zurich, LeGrand, Siemens, Vatransformer, Tripp Lite, Eaton, HYOSUNG HEAVY INDUSTRIES, Schneider Electric, Tripp Lite, and Vertiv Co.
In this research report, the data center transformer market is segmented by insulation and region.
Analysis by Insulation:
By insulation, the report is categorized into liquid and dry. Raw product type dominates the type segment with over 75% share in 2020. It is due to the numerous benefits associated with liquid insulation, ensures low noise levels, resulting in quieter operation and effective heat removal, thus minimizing the electrical losses and optimizing the system's performance. Moreover, the growing usage of liquid type transformer to work at higher loads as it offers better efficiency and service life, thus contributing to the high demand for liquid type transformer in the forecast period.
Analysis by Region:
In the regional outlook of the global data center transformer market, the North America region dominates with a 35% market share during the forecast period. The rising technological development and technical awareness amongst the users in countries like U.S. and Canada are driving regional growth. Moreover, the presence of significant players such as Eaton and General Electric and the presence of several data centers in the region contributes to the development of the data center transformer market in North America.
Market Segmentation covered in the Report:
- North America
- The Asia Pacific
- Latin America
- The Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.