Shaping the future: TMC’s drive for global innovation and sustainability

The transformer market outlook in Thailand is experiencing very positive and steady growth, mostly driven by nationwide industrialization and by the development of the construction sector, which will drive the electricity demand. There’s a wide consensus among market intelligence agencies that the transformers business in Thailand will register a CAGR of at least 4.5% during 2024-2030 (with most forecasts ranging from 5-7%, almost doubling the market size!).

The key driver is the electricity demand, which is fueled by an increasing population, a robust post-covid tourism rebound, and an expanding energy-intensive industrial base. As a result, the Thai government has ambitious targets to enlarge the installed power generation capacity, bringing renewable energy to 50% of it by 2037 to achieve carbon neutrality by 2050. Transformers are an essential component of the required infrastructure, playing a critical role in distributing energy to and within metropolitan and remote areas of the country.

One of the toughest hurdles is the current limited capabilities of domestic manufacturers. Most of the transformers in service across Thailand are sourced from abroad, whether entirely or partially, impacting on price and availability, de-incentivizing local competition, and slowing down research and innovation.

Over the years, TMC has positioned itself as a strong contributor to the growth of the electricity market in Thailand, as both a direct supplier and also providing its products and key components to leading local manufacturers. Currently, TMC has in place a strategic partnership with a top-tier Thai transformer manufacturer, supplying high-quality components and/or complete sets designed and manufactured within European facilities, including technical support and aftermarket services. TMC market reach keeps widening with orders and sales, nearly doubling each year from 2021, and forecasting similar performances to 2026 and beyond.

The transformer market in Thailand is highly fragmented and it is evolving quickly. Local developers and OEMs, generally small to medium-sized, are striving for stronger technical and production capabilities, often seeking direct partnerships or establishing relations with larger European and Asian counterparts. Unlike neighboring markets, China cannot fully leverage its industrial output and low cost-basis, due to laws surrounding indigenous production. Likewise, without its manufacturing facilities in the country, TMC faces obstacles and tough competition, especially when it comes to the lowest price band or when quick delivery is a deciding KPI. However, existing business relationships and market intel obtained from its partners allow TMC to stay competitive and successful in key applications such as power generation, distribution for building and infrastructure, and data centers, especially when quality and bespoke solutions make the difference. For the future, TMC expects to broaden and deepen the current relationship matrix, to gain an even wider market penetration, and actively consider organic growth and localization.

Similar to other regions, APAC records double-digit growth in the data-center industry and as a consequence of high electricity demand, also in power generation. For example, data centers in the sole ASEAN association, Singapore, Malaysia, and Indonesia are the leading nations with 87, 93, and 47 locations respectively, with the Philippines and Thailand quickly joining the pack. TMC has a track record of producing more than 1,500 special units, already supplied to data centers across the globe, and has, therefore, gained the rank of a world-class solution provider, constantly adding new projects both with hyper scaler and localentities.

TMC is a market and technology leader in dry type transformers. This relatively new product, created in Europe roughly 30 years ago, differentiates itself from the more traditional oil-immersed type, because of many constructive, operative, and maintenance key features. Dry type transformers generally do not require external cooling systems and have inherently superior features when it comes to fire, electrical failure, and general safety concerns. Dry type transformers do not use expensive, potentially harmful, and polluting coolants, will not need regular inspecting, cleaning, or replacing of operating, and will require very limited maintenance throughout their entire operating life, which already significantly exceeds 30 years. Finally, DT transformers are almost entirely residual-free when their end-of-life comes, meaning they are already in line with the strictest sustainability goals and zero-impact policies that are widely adopted by corporations, private companies, and public institutions.

Due to its demographics and current trajectory for development, the APAC region is set to be the flywheel for the global economy, from now to 2040-2050, if not beyond. Already encompassing 40% of the global economy and nearly 60% of the population, it will sustain and boost global growth with its blend of mature, high-tech economies (Japan, S. Korea), emerging ones (India, Indonesia, Thailand), and the 3 major homogeneous markets by population: India, China, and S.E. Asia. In 2023 alone TMC has established fully incorporated entities, both in the US and Singapore. The former already possesses sizeable production capacity, and the latter oversees the whole APAC market. TMC will grow its presence in APAC, expanding its commercial reach and manufacturing capabilities, opening new markets, establishing or strengthening alliances and partnerships, willing to be a key contributor in an always wider “World of Transformers”.