India is one of the leading transformer manufacturing countries in the world. The easy availability of raw materials, cheap labor compared to developed nations, and qualified technical manpower has led India to emerge as one of the global leaders in transformer manufacturing. Transformer manufacturing industry in India is a mature industry and is more than five decades old. The industry has the capability to develop transformers of all kinds – instrument transformers, distribution transformers and power transformers. Transformers manufactured in India are considered to be of high quality and is therefore preferred by buyers from across the globe. In addition to quality, the prices of transformers manufactured in India are lower which provides it a competitive edge in the global marketplace and has led to a considerable growth of the industry in the past few years. Today, transformers manufactured in India are not just used in the domestic market, but are exported to several countries in Africa, Asia, the Gulf region and the European Union.
The transformer manufacturing industry in India is highly fragmented. There are more than 500 transformer manufacturers in India that includes large global players, national players and small regional and local brands. The focus of large global players is concentrated in the power transformers segment that includes transformers of 400 KV and above. National players are focused on distribution transformers while the small independent manufacturers focus their energies primarily in instrument transformers.
According to a report in Electrical India, a leading power magazine in India, the size of the Indian transformer manufacturing industry is estimated to be approximately USD 2 billion. Of this, distribution transformers are estimated to contribute around 50 percent, followed by power transformers that constitute 40 percent of the market. Instrument transformers comprise around 10 percent of the market. The industry has shown steady growth of around 4 percent, year-on-year and is expected to cross USD 5 billion by 2040.
Industry experts feel that the growth of the transformer manufacturing industry in India will primarily be driven by the domestic market. Several recent government of India initiatives that envisage providing electricity to every household in the country will necessitate the need for transformers. In addition to domestic consumers, the growth of the industry due to government initiatives like ‘Make in India’ will result in robust growth of the industrial sector which will drive power demand. It is no secret that for the success of every industry, uninterrupted power supply is a key ingredient. Therefore to meet the growing needs of the industry, significant thrust will be put on power generation, transmission and distribution. In all these key areas, transformers play an important role. So, automatically, there will be a huge spurt in the demand for transformers in the coming years in India.
Globally, too the market for electrical transformers is expected to grow. Countries in Africa are witnessing massive infrastructure spends and power is a core component of infrastructure development. Without power, no infrastructure can be developed. It is critical for economic growth. The domestic industry in most of these countries in Africa is at a very nascent stage. They do not have the technology and infrastructure to manufacture transformers locally. Most of these countries rely on imports from other countries to meet their transformer demands.