Industry Insights
The North America toroidal power transformer market size stood at USD 836.95 million in 2017. It is estimated to expand at a CAGR of 7.6% over the projected period. Increasing demand for energy along with electrification rate is anticipated to drive the regional power generation industry.
North America toroidal power transformer market revenue, by type, 2015 - 2025 (USD Million)
High transmission and distribution losses highlight the need to increase the number of substations. Rising need for reliable and uninterrupted power supply in U.S. and Canada is anticipated boost the power demand at a healthy CAGR over the forecast period. The primary energy consumption in U.S. has reached 97.54 quadrillion BTU in 2017, 19.3% more than 2016.
With the increasing consumption of renewable energy, the companies are focusing on providing energy efficient products. Toroidal transformers are the high efficiency solution that convert DC to AC power. They offer low loss power output to renewable energy companies and other sectors by meeting the performance, size, and cost requirements.
Toroidal transformers play an important role in maintaining a healthy environment with its low noise feature that causes less audible hum. They also offer advantages such as ideal magnetic circuit, lower stray magnetic field, and less weight and volume. These advantages are expected to propel the demand in the forthcoming years.
Segmentation by Product
• Autotransformer
• Isolated transformer
By type, the North America toroidal power transformer market is segmented based on the windings and performance in various applications, such as electronic instruments, medical devices, and audio electronics among others. For instance, autotransformers; also known as laminated transformers, are single winding transformers. On the other hand, the isolated ones have dual winding that provides isolation between primary and secondary winding, making them suitable for audio and video equipment.
In 2017, the isolated segment dominated with a market share of more than 70% in terms of revenue. This is the largest as well as the fastest growing product segment and is projected to maintain its dominance over the forecast period. However, high cost associated with isolated transformers due to slower and complex winding equipment is projected to be the vital factor restraining the growth.
Segmentation by Application
• Medical Equipment
• Distribution
• Smart Grid
• Other
Complex manufacturing process coupled with stringent government regulations associated with medical grade toroidal transformers is projected to drive the overall regional market growth. However, commercial grade or transformers other than medical grade are estimated to capture major market share in terms of revenue.
Medical equipment is anticipated to register the fastest CAGR of about 7.91% over the forecast period. High awareness among medical professionals about the range of equipment employed in their vicinity is anticipated to bode well for this expansion. Equipment such as oxygen pumps, transportable medicine drip regulators, CAT scan machines, MRI scanners, and other medical health monitoring equipment and tools require transformers.
Toroidal transformers work as inductors that improve the frequency by storing energy in the form of magnetic fields. They are projected to be more effective than solenoids. Furthermore, the applications of toroidal transformers are not limited to medical, smart grid or power distribution. These products are also used in music instruments, such as audio and video equipment. They also find application in ballasts, where efficient power is required for water treatment.
Segmentation by Country
• U.S.
• Canada
• Mexico
U.S. dominated the North America toroidal power transformers market. Positive regulatory reforms supporting energy efficiency are expected to support growth of the industry in U.S. For instance, the North American Free Trade Agreement (NAFTA) released new opportunities for business groups in U.S., Canada, and Mexico. NAFTA worked as a driving factor and provided ample of opportunities for services and investment associated with the petrochemical and energy industry operations.
Increasing investment in power generation infrastructure coupled with growing restructuring activities are predicted to escalate the integration of effective grid systems in near future. Furthermore, constant technological enhancements and installation of consistent grid support instruments are anticipated to further drive the growth over the forecast period.
High penetration of wireless network with more than 110 active lines makes Mexico a potential market for telecom industry. This factor is anticipated to benefit the demand for toroidal transformers in the country. According to the Mexican Federal Institute of Telecommunications (IFT), by the end of 2016, the country had approximately 72 million internet users, more than 79.0 million smartphones, and more than 50 mobile broadband subscriptions per 100 people.
Competitive Landscape
The North America toroidal power transformer market is highly fragmented in nature with a large number of small and medium businesses and large enterprises. Key market players are Powertronix, Meramec, Bicron, Talema, Plitron, Pacific Transformers, Miracle, Toroid Technology, Eaton, Wurth Elektronik, Analog Devices, Amgis, Triad Magnetics, Hammond Manufacturing, Abracon, Schneider Electric, and Precision.
Prominent companies such as Powertronix, Plitron, Toroid Technology, Toroid, Triad Magnetics, and Hammond Manufacturing are estimated to account for 25% to 30% of North America market share in terms of revenue. Plitron holds a major market revenue share.
