PUBLISHER: Grand View Research | PRODUCT CODE: 1404911
PUBLISHER: Grand View Research | PRODUCT CODE: 1404911
The global data center transformer market size is expected to reach USD 11.21 billion by 2030, registering a CAGR of 6.2% from 2023 to 2030, according to a new report by Grand View Research, Inc. Rising number of data centers owing to increasing shift in technology and growing adoption of the cloud computing platform are fueling the market growth. There are various benefits associated with moving to the cloud, such as reduced capital expenditure, improving scalability and elasticity, and overall decreased operational costs.
An organization today needs large storage capacities and facilities to manage enormous data volumes, which is anticipated to be a primary factor driving the adoption of such centers globally. Moreover, large amount of data traffic and emergence of big data have increased the importance of secure data centers, thus driving the demand for transformers.
Transformers are essential components that are necessary to transform and distribute the electric power by increasing or decreasing the voltages based on the application and requirement. Data centers are equipped with electricity consuming equipment, such as chiller and generators. Integration of such components needs a balanced electricity supply. Presence of such components is expected to boost the growth of market.
Constant and maintained electric supply has to be ensured for the uninterrupted and proper functioning of the data centers. With offerings of power distribution unit (PDU) with copper and aluminum transformers, companies are directing customers toward using transformers with lower K-factor to reduce the price of the PDUs. Additionally, some manufacturers are offering PDUs with multi-output transformers, i.e. the output voltage can be changed as per the customers' requirement. This flexibility offered is projected to have a positive impact on the market growth.
The liquid insulation type used in the transformers removes heat and ensures the efficient working of the data center. The liquid used ensures the dielectric strength of the insulator and provides better temperature control systems and highly reliable insulation. However, liquid insulation requires additional maintenance costs and has a threat of leakage. Thus, usage of liquid insulation might generate a risk of fire hazard, thus causing hindrance in the market growth. However, the usage of dry insulation does not pose any fire hazard and facilitates a safe working environment, which is expected to contribute to the growth of this market.