In a whitepaper authored by Eyman Ikhlaq, Analyst at PTR Inc., in collaboration with Middle East Energy, it is highlighted that the GCC distribution transformer market is forecasted to grow steadily, with a projected CAGR of 3% from 2023 to 2028. Saudi Arabia is the market leader, representing 50% of the region’s demand and expected to grow further with a 5% CAGR. This growth is primarily driven by infrastructure development and decarbonization initiatives, with oil-type transformers dominating 90% of the revenue due to their robustness and cost-effectiveness. Globally, the distribution transformer market is anticipated to grow at a 7% CAGR from 2023 to 2030, fueled by increased EV deployment and renewable energy integration. While the GCC’s focus on decarbonization and investments in clean energy and EV infrastructure aligns with these global trends, the region faces challenges such as trade barriers, localization policies, and import dependencies.

Significant infrastructure projects in the GCC, including investments in Saudi Arabia’s Neom City and the UAE’s renewable energy initiatives, are expected to drive demand. However, rising import costs, reliance on EV imports, and the impact of climate change on GDP pose potential obstacles. To mitigate these challenges and support market growth, PTR recommends reallocating energy subsidies towards green projects, which could help GCC countries achieve their climate targets and improve their global competitiveness.

Follow this link to learn more: Decarbonization in the GCC Region: A Catalyst for Distribution Transformer Demand 

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