Saudi Arabia power and distribution transformer market revenues are projected to decline at a compound annual growth rate (CAGR) of 0.3 percent during 2019-25, said 6Wrsearch in a new report.
The transformer market declined in terms of revenue as well as volume in the past few years due to the economic slump in the Kingdom. However, upcoming projects such as $500 billion NEOM City, $100 billion King Abdullah Economic City, $27 billion Jazan Economic City, $22.5 billion Riyadh Metro project and $1.4 billion GCC Power Grid Interconnection project would surge the demand for transformers across the country, said the report.
Kanika Arora, the research analyst, 6Wresearch, said: "315.1 KVA- 5000 KVA and above 50 MVA power ratings transformer held majority of the revenue shares in 2018 for distribution transformers and power transformers respectively and are anticipated to maintain its dominance during the forecast period as these are extensively utilized in the power transmission and distribution networks.”
"Amongst all the applications, the power utility segment held major of the revenue share in 2018 and is expected to maintain its dominance during the forecast period on account of government initiatives to strengthen and restructure the power sector of the kingdom," Arora added.
Ravi Bhandari, manager, 6Wresearch, said: "Saudi Arabia distribution transformer acquired majority of the revenue share in the overall transformer market of Saudi Arabia and the same trend is expected to continue during the forecast period as well."
Some of the key players in Saudi Arabia's power and distribution transformer market include ABB Ltd., Siemens Ltd., Schneider, Alfanar, Wahah Electric Supply Company, United Transformers Electric Company, The Saudi Transformers Company Ltd. and Hyundai Electric and Energy Systems, the report said.
Titled "Saudi Arabia Power and Distribution Transformer Market (2019-25)", the report estimates and forecast the overall Saudi Arabia transformer market by revenues, service & repair, volume, types, power ratings, cooling system, types of services offered, applications and regions.
Government plans to boost the installed power capacity of the Kingdom on account of yearly increase in electricity consumption due to growing population, replacement and reinforcement of existing distribution network infrastructure, as well as the implementation of smart grid technology, are some of the key factors which are expected to revive the demand of transformers in Saudi Arabia, the report said.
Further, growing focus towards the renewable energy sector to meet future energy demand would also fuel the growth of the transformer market in Saudi Arabia over the coming years, it added. –TradeArabia News Service
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Media Courtesy : GDN Online