Posted On: 2020-05-18
Distribution transformer are expected to hold the largest market share in revenue terms during the forecast period – 6W research.
The massive infrastructure development and growing population in the country is leading to a rise in power requirement. With initiatives to promote clean energy, the government is focusing on renewable energy resources to meet the power demand. In 2019, the government of Saudi Arabia revised its target of renewable power generation upwards to 70%, displaying the country’s ambitious plans for increasing the penetration of renewable power sources in the overall energy mix would increase the scope of power and distribution transformer market in Saudi Arabia during the forecast period.
According to 6Wresearch, Saudi Arabia Power and distribution transformer market size is projected to decline at a CAGR of 0.1% during 2020-26. The market witnessed a fall due to the oil crises faced by the Kingdom of Saudi Arabia. The power and distribution transformer market started recovering in mid-2018, with increasing government expenditure as a result of the rise in crude oil prices along with government decision to pump considerable investments in non-oil sectors. However, due to slowdown in the global economy due to COVID-19, the market is expected to showcase decline during 2020 and register sluggish growth during the later part of the forecast period
According to Prithu Chawla, Senior Research Analyst, 6Wresearch, “The distribution transformer dominated the power and distribution transformer market in 2019 and is anticipated to continue dominating the market during the forecast period on account of increasing infrastructural development projects. Saudi Arabia is poised to invest $140 billion over the next 10 years for expanding and upgrading its transportation sector projects such as $22 billion upcoming Riyadh Metro project would also boost the demand for transformers during the forecast period.
“Saudi Arabia’s Ministry of Housing has launched several projects to increase the number of residential units across the country, with the aim to increase the national homeownership rate by 60% in 2020 and 70% in 2030. These projects include the major housing project that aims to add 500,000 housing units to the country and the Al Wajiha project that includes the construction of 574 villas this would increase the requirement of the distribution transformer even further in the Saudi Arabian Market.” Prithu further added.
According to Siddharth Saxena, Research Associate, 6Wresearch, “Liquid type transformer accounted for a major share in terms of revenues in 2019 and is anticipated to hold the major share throughout the forecast period 2026. Liquid type transformer is mostly preferred over dry type as it has a longer life expectancy and has better overload capability.”
“Saudi Arabia Power and Distribution Transformer Market (2020-2026)" provides an in-depth analysis with 35 figures, covered in 70 pages. The report estimates and forecasts the overall Saudi Arabia power and distribution transformer market by types, by power and by the cooling system. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.