A distribution transformer is a static device embedded with a core and two or more coils. It transfers electrical energy (through electromagnetic induction) from one circuit to another. The transformer mostly uses a laminated core to reduce core losses. Coils are responsible for power load losses, while cores account for no load losses. Such a transformer reduces the voltage in distribution lines to consumer-used level.
The Middle East distribution transformer market is projected to attain USD 3.6 billion by 2022. It had a size of USD 2.7 billion in 2014. The need for sustainable energy influences the market. Infrastructural projects in the region will drive the market. Installation and transport costs of these devices and lack of skilled personnel are the market challenges.
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Unit substations, small, medium, and large transformers are the products of the Middle East distribution transformer market. Small transformers have a range of 0-315 kilovolt-ampere (kVA). Medium ones operate within a range of 316 to 2, 499 kVA. They accounted for more than 40% shares in 2014.
Unit substations will witness significant growth on account of low installation costs. Large transformers would experience moderate growth from 2015 to 2022 (forecast period). This can be attributed to their operating at low frequencies with high efficiency.
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On the basis of technologies, the Middle East distribution transformer market is divided into liquid filled and dry type. Liquid filled transformers are segmented into pad mounted and pole mounted. Liquid filled was the leading technology in 2014, accounting for over 70% revenues. Dry type transformers are suited for mining sites, and marine and oil & gas industries.
Regional privatization of electricity is estimated to play a huge role in market expansion. Saudi Arabia dominated the market in 2014, capturing more than 35% shares. Qatar would grow owing to demand from its industries and residential areas.
Key companies of the Middle East distribution transformer market comprise Alfanar Electrical Systems, Siemens, United Transformer Electric Company (UTEC), ABB Group, and General Electric (GE). Some of them rely on mergers & acquisitions and other strategies to grow. For instance, GE acquired Alstom to achieve the same.
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