High Power Transformers Market Size was valued at USD 20.2 Billion in 2022. The High Power Transformers market industry is projected to grow from USD 21.81 Billion in 2023 to USD 40.37 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.00% during the forecast period (2023 - 2032). Increasing demand for modular and compact transformers and rising investments in power infrastructure are the key market drivers enhancing market growth.
In May 2023, the Japanese company Sumitomo Electric and a scientific institution called NICT manufactured the world's first round optical fiber that has 19 cores. As reported, they also broke the world record for transmission capacity. The new fiber can provide transmission of 1.6 Terabits (Tbsp) over a distance of 10,000 kilometers, which is double the previous record holder. The development of this new fiber is a breakthrough in the development of Long-range optical communication and will be used in 5G and even beyond 5G networks in the future.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Grid operators can more effectively monitor and control power flow due to smart transformers. Electricity distribution is optimized using real-time data and analytics, which lowers transmission losses and raises total grid reliability. Smart transformers with built-in digital sensors enable ongoing performance and health monitoring. This data can be analyzed by artificial intelligence algorithms and predictive analytics to identify possible faults, allowing for preventive maintenance and reducing downtime. Transformers may now be remotely monitored and controlled thanks to digitalization. Without physically inspecting the transformers, operators may access vital data and make modifications, increasing operating effectiveness and lowering maintenance costs.
Variable power generation based on meteorological conditions is a characteristic of renewable energy sources, especially wind and solar. High-power transformers ensure a steady and uninterrupted flow of electricity into the grid, which helps control the intermittent nature of various sources. Renewable energy projects are frequently found in remote locations with plenty of sunlight or wind. Long-distance electricity transmission is made possible by high-power transformers, which link distant renewable energy production locations to urban centers where the power is required.
In addition, the world's electricity generation increased to 26823.2 TWh in 2020 from 24270.5 TWh in 2015, a more than 9.52% growth. Additionally, the growing population and increasing rate of urbanization have increased the need for electricity. The need for electricity has increased in developing nations like China and India, which could propel the market for high-power transformers throughout the forecast period.
A high-power transformer with a 120 megavolt-ampere (MVA) rating is responsible for power storage and transmission in renewable-based electricity generation, from 33 kilovolts (kV) to 275 kV. Energy losses during the transmission and distribution of power are reduced with high-power transformers built for enhanced energy efficiency. This decrease in losses adds to the sustainability and overall efficiency of the grid. High-power transformers that meet or surpass these requirements are adopted due to strict rules and standards about energy efficiency. Industry standards force manufacturers to innovate and produce transformers with improved efficiency ratings. Thus driving the High Power Transformers market revenue.
Based on cooling, the global high-power transformers market segmentation includes dry type and oil immersion. The dry-type segment dominated the market. Dust and moisture are two common external pollutants that dry-type transformers are often more resistant to. Because of this, they can be installed in places with harsh weather or hostile environments. Comparing dry-type transformers to oil-immersed transformers, the former usually requires less maintenance. It is easier to do maintenance and requires fewer routine checks when liquid coolant is not present.
The oil-immersed segment is expected to be the fastest-growing segment of the high-power transformers market during the forecast period. High-power applications with significant heat dissipation requirements fit oil-immersed cooling well. High power rating transformers can benefit from oil's efficient heat-absorbing and heat-transfer capabilities.
Figure 1: High Power Transformers Market, by Cooling, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The High Power Transformers Market segmentation, based on voltage rating, includes SPT (≤ 60 MVA) and LPT (> 60 MVA). The LPT (> 60 MVA) category is the largest market share. Transformers intended for high-voltage applications are probably those with a voltage rating of more than 60 MVA. The voltage rating indicates the maximum voltage that the transformer can safely withstand. High-voltage transmission networks depend heavily on these transformers.
Throughout the forecast period, the high power transformers market’s SPT (≤ 60 MVA) segment is anticipated to grow at the quickest rate. Industrial environments requiring moderate power and voltage levels to support manufacturing operations may find use for high-power transformers with SPT and a voltage rating of 60 MVA or less.
Based on application, the High Power Transformers Market segmentation includes commercial, industrial, and utility. The utility category leads the market. High-power transformers can be added to or used in place of older transformers to help utilities better handle the growing demand for electricity while expanding the grid's overall capacity. By maintaining a constant power supply and controlling voltage levels, high-power transformers help stabilize the grid. Their dependability is essential to preserving the utility grid's integrity.
The high-power transformers market's industrial segment is anticipated to grow fastest during the projection period. High-power transformers make reliable and effective power supply possible for sizable manufacturing and industrial facilities. High power levels are often necessary in industries with heavy gear and equipment. Transformers can adjust the voltage to a higher or lower level to satisfy the demands of industrial equipment.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American high-power transformers market area will dominate this market. Energy infrastructure has been upgraded and expanded with significant expenditures made in North America, especially in the United States and Canada. High-power transformer installation handles growing energy demands and modernizes power systems.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: High Power Transformers Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's high-power transformers market accounts for the second-largest market share because Europe has been at the forefront of the transition to renewable energy sources. When more wind, solar, and other renewable energy is included in the power grid, high-power transformers are needed to manage the fluctuations in energy production. Further, the German high-power transformers market held the largest market share, and the UK high-power transformers market was the fastest-growing market in the European region.
The Asia-Pacific High Power Transformers Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because the Asia Pacific area is seeing a significant increase in investment in its power-generating capacity. High-power transformers are essential for maintaining effective power transmission and connecting new power plants to the grid. Moreover, China’s high-power transformers market held the largest market share, and the Indian high-power transformers market was the fastest-growing market in the Asia-Pacific region.
The High Power Transformers market continues to grow due to major players investing heavily in R&D to expand their product offerings. Market participants are also taking part in several strategic initiatives to strengthen their global footprint. The industry has seen significant developments with the launch of new products, agreements, mergers and acquisitions, higher investment, and collaboration with other companies. For the High Power Transformers industry to expand and prosper in a market that is becoming more competitive and dynamic, it must offer reasonably priced products.
Manufacturing locally to save operational costs is one of the main business tactics manufacturers adopt in the worldwide High Power Transformers industry to support clients and expand the market sector. The High Power Transformers industry has greatly benefited medicine in the last few years. Major players in the High Power Transformers market, including Hitachi Energy Ltd., ABB, General Electric, WEG, CG Power & Industrial Solutions Ltd., DAIHEN Corporation, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, Hyosung Heavy Industries, Kirloskar Electric Company, HD HYUNDAI, ELECTRIC CO., LTD., Bharat Bijlee Limited, JSHP Transformer, LS ELECTRIC Co., Ltd, Bharat Heavy Electricals Limited, and others, are attempting to increase market demand by investing in research and development operations.
An industrial conglomerate is called General Electric Co. (GE). It offers a variety of financial, industrial, and infrastructure services and products. The corporation provides a broad range of goods and services, including industrial items, financing, medical imaging, power generation, oil and gas production equipment, healthcare systems, pharmaceutical diagnostics, and aircraft engines and systems. Additionally, it provides a wide range of financial services to its clientele. The business provides services to the water, gas and oil, electricity, energy management, digital, transportation, aviation, healthcare, appliances, and lighting industries, among other sectors. The acquisition of SPX Transformer Solutions, which includes high-power transformers, has been completed for a contract purchase price of USD 645 million, according to GE-Prolec Transformers Inc., a subsidiary of a 50/50 joint venture between General Electric and Xignux, a private company based in Mexico in October 2021.
Hitachi Energy Ltd. (Hitachi) creates digital, electricity, and sophisticated automation solutions. Products from the company include digitalization, energy portfolio management, cooling systems, communication networks, cable accessories, capacitors and filters, cybersecurity, disconnectors, and energy storage devices. In addition, it offers transformers, semiconductors, instrument transformers, SCADA and control systems, grid edge solutions, generator circuit breakers, and more. Asset management, installation, maintenance, optimization, training, troubleshooting, upgrading, and recycling services are among the services provided by Hitachi. The business services the infrastructure, industry, energy, and mobility sectors.
March 2023: General Electric announced that it would be investing more than USD 450 million in its existing US manufacturing sites. In addition to strengthening the company and its American personnel, the investment will entail acquiring cutting-edge machinery and implementing modifications. This will support the company's goals to create two distinct, market-leading companies in the energy and aerospace sectors. Additionally, it will broaden the company's energy offering, which already consists of generators, turbines, and transformers.
October 2022: Hitachi Energy has obtained a contract from NTPC REL to supply power transformers for their forthcoming 4.75 GW renewable energy project situated in Gujarat, India. This massive 72,600-hectare solar park in Kutch, India, is a part of the nation's largest solar park effort and would greatly increase its potential for renewable energy while supporting its goal of becoming carbon neutral by 2020. India's goal of using renewable energy sources by 2030 will be largely met because of the partnership between Hitachi Energy and NTPC REL.
In May 2023, Sumitomo Electric Wiring Systems expects to allocate approximately USD 10 million for the manufacturing of harnesses operating in the state of Tabasco, Mexico, which has become the first Tier 1 automotive company. The state of Tabasco has observed an impressive 24.3% increase in economic activity in its region, thereby making the automotive investment attractive. The company will be situated close to major transport corridors in the TBC Tabasco Business Center industrial park.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 20.2 Billion |
| Market Size 2023 | USD 21.81 Billion |
| Market Size 2032 | USD 40.37 Billion |
| Compound Annual Growth Rate (CAGR) | 8.00% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Cooling, Voltage Rating, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Hitachi Energy Ltd., ABB, General Electric, WEG, CG Power & Industrial Solutions Ltd., DAIHEN Corporation, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, Hyosung Heavy Industries, Kirloskar Electric Company, HD HYUNDAI, ELECTRIC CO., LTD., Bharat Bijlee Limited, JSHP Transformer, LS ELECTRIC Co., Ltd, Bharat Heavy Electricals Limited, and Others |
| Key Market Opportunities | Rising demand for electric vehicles (EVs) and HVDC transmission projects |
| Key Market Dynamics | Increasing demand for modular and compact transformers and rising investments in power infrastructure |
Frequently Asked Questions (FAQ) :
The global high-power transformer market size was valued at USD 20.2 billion in 2022.
The global market is projected to grow at a CAGR of 8.00% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Hitachi Energy Ltd., ABB, General Electric, WEG, CG Power & Industrial Solutions Ltd., DAIHEN Corporation, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, Hyosung Heavy Industries, Kirloskar Electric Company, HD HYUNDAI, ELECTRIC CO., LTD., Bharat Bijlee Limited, JSHP Transformer, LS ELECTRIC Co., Ltd, Bharat Heavy Electricals Limited, and Others.
The dry type category dominated the market in 2022.
The utility had the largest share in the global market.
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