Brazil's annual growth rate of transformers 5.6% in 2019

Recently, the "research and market" of a world-renowned market research company released a supplementary version of "2019 Brazil Distribution Transformer Market Forecast and Opportunity Report".

The report pointed out that until 2019, the Brazilian distribution transformer market is expected to grow at a compound annual growth rate of 5.6%.

Brazil is very dependent on hydropower projects for generating electricity. At present, Brazil has various large-scale hydropower projects such as the Itaipu Hydropower Project and the Belomont Power Project, which is expected to promote the sale of transformers. Brazil is also focusing on increasing the use of renewable energy, using wind power and solar power, which will further stimulate the demand for distribution transformers.

Transmission expansion continues to be a priority for the Brazilian government due to increased electricity demand and the relaxation of access requirements for power. In addition, the acceleration of construction activities in the field of power generation makes transmission expansion necessary to carry additional power and make the deployment of distribution transformers more important. In the near future, the Brazilian electricity grid is expected to be heavily congested and will require expansion of the grid, opening up potential opportunities for participants in the Brazilian distribution transformer market.

According to the Brazilian government’s plan, by 2015, Brazil needs about 58.6 billion U.S. dollars (approximately 364 billion yuan) to expand its installed capacity and transmit electricity grids. Huge investments will bring benefits to transmission companies, general contracting companies and equipment suppliers. Equipment suppliers also include distribution transformer manufacturers.