Phase Shifting Transformer Market

ID: MRFR/E&P/29070-HCR

128 Pages

Chitranshi Jaiswal

September 2025

Phase Shifting Transformer Market Research Report By Phase Shifting (Voltage Regulation, Reactive Power Compensation, Harmonic Mitigation, Load Balancing), By Cooling System (Oil-immersed, Dry-type, Cast-resin encapsulated), By Voltage Rating (Low Voltage (1 kV), Medium Voltage (1-33 kV), High Voltage (>33 kV)), By Application (Utilities, Industrial, Commercial, Renewable Energy) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2034

Phase Shifting Transformer Market Research Report - forecast till 2034 Infographic

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Summary Table of Contents Segmentation Infographic

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Phase Shifting Transformer Market Summary

The Global Phase Shifting Transformer Market is projected to grow significantly from 4.43 USD Billion in 2024 to 17.4 USD Billion by 2035.

Key Market Trends & Highlights

Phase Shifting Transformer Key Trends and Highlights

The market is expected to achieve a compound annual growth rate (CAGR) of 13.27% from 2025 to 2035.
By 2035, the market valuation is anticipated to reach 17.4 USD Billion, indicating robust growth potential.
In 2024, the market is valued at 4.43 USD Billion, laying a strong foundation for future expansion.
Growing adoption of advanced grid technologies due to increasing demand for efficient power management is a major market driver.

Phase Shifting Transformer Market

CAGR

13.27%

Market Size & Forecast

2024 Market Size	4.43 (USD Billion)
2035 Market Size	17.4 (USD Billion)
CAGR (2025-2035)	13.27%

Major Players

Siemens, Mitsubishi Electric, Alstom, Bharat Heavy Electricals Limited, Schneider Electric, Hitachi, General Electric, Eaton, ABB, Hyundai Heavy Industries, Crompton Greaves, Toshiba, Hyosung Heavy Industries

Phase Shifting Transformer Market Trends

Rapid electrification, grid modernization, and increased renewable energy integration are driving demand for phase-shifting transformers. Utilities and industries seek to improve power flow control, reduce transmission losses, and enhance grid stability. Growing investments in smart grids, particularly in developing regions, present opportunities. Technological advancements, such as high-voltage direct current (HVDC) transmission systems, are creating new applications for phase-shifting transformers.

The ongoing evolution in energy management systems indicates a growing reliance on phase shifting transformers to enhance grid stability and efficiency, reflecting the increasing complexity of modern electrical networks.

U.S. Department of Energy

Phase Shifting Transformer Market Drivers

Rising Demand for Efficient Power Management

The Global Phase Shifting Transformer Market Industry is experiencing a surge in demand for efficient power management solutions. As energy consumption continues to rise, utilities and industries are seeking advanced technologies to optimize power flow and reduce losses. Phase shifting transformers play a crucial role in this context by enabling better control of power distribution. This trend is particularly evident in regions with aging infrastructure, where upgrading to more efficient systems is essential. The market is projected to reach 4.43 USD Billion in 2024, reflecting the growing recognition of these transformers as vital components in modern electrical grids.

Market Segment Insights

Phase Shifting Transformer Market Segment Insights:

Phase Shifting Transformer Market Phase Shifting Insights

The Phase Shifting segment of the Phase Shifting Transformer Market is poised for significant growth in the coming years. The increasing demand for efficient power transmission and distribution networks is driving the adoption of phase shifting transformers. These transformers offer precise control over the phase angle of the voltage, enabling utilities to optimize power flow and improve grid stability.

In 2024, the Phase Shifting Transformer Market for Voltage Regulation is expected to reach $2.4 billion, exhibiting a CAGR of 12.5%.The growing need to maintain stable voltage levels in power systems to prevent equipment damage and ensure reliable power supply is fueling the growth of this segment. Reactive Power Compensation is another key application of phase shifting transformers, with the market projected to reach $1.8 billion by 2024, growing at a CAGR of 11.8%. Phase shifting transformers help utilities compensate for reactive power imbalances, reducing power losses and improving overall grid efficiency.

Harmonic Mitigation is another important segment, where phase shifting transformers are used to suppress harmonic distortions caused by nonlinear loads.The Phase Shifting Transformer Market for Harmonic Mitigation is estimated to reach $1.2 billion by 2024, growing at a CAGR of 10.6%. Finally, the Load Balancing segment is expected to reach $0.9 billion by 2024, growing at a CAGR of 9.5%. Phase shifting transformers play a crucial role in balancing the load across different phases of a power system, ensuring equal distribution of power and preventing overloading.

Overall, the Phase Shifting segment of the Phase Shifting Transformer Market is expected to witness robust growth in the coming years, driven by the increasing adoption of smart grids, renewable energy integration, and the need for efficient power transmission and distribution.

Phase Shifting Transformer Market Cooling System Insights

The Cooling System segment of the Phase Shifting Transformer Market is categorized into Oil-immersed, Dry-type, and Cast-resin encapsulated. Among these, the Oil-immersed segment held the largest market share in 2023, accounting for nearly 42.5% of the Phase Shifting Transformer Market revenue. The growth of this segment can be attributed to the high efficiency and reliability of oil-immersed transformers.

Moreover, the segment is expected to continue its dominance over the forecast period, with a projected market share of around 40.1% by 2032.On the other hand, the Dry-type segment is anticipated to exhibit a significant CAGR of 14.8% from 2023 to 2032, owing to the increasing demand for fire-resistant and environmentally friendly transformers. Dry-type transformers are gaining popularity in applications where safety and space constraints are critical, such as in industrial and commercial buildings. The Cast-resin encapsulated segment is also expected to witness considerable growth over the forecast period.

These transformers offer advantages such as compact size, low maintenance requirements, and improved insulation properties, making them suitable for various applications, including renewable energy systems and distribution networks.

Phase Shifting Transformer Market Voltage Rating Insights

The Phase Shifting Transformer Market segmentation by Voltage Rating includes Low Voltage (1 kV), Medium Voltage (1-33 kV), and High Voltage (>33 kV). The High Voltage segment held the largest market share in 2023, accounting for over 60%. This is due to the increasing demand for high-voltage transformers in power transmission and distribution systems. The Medium Voltage segment is expected to witness significant growth during the forecast period, owing to the rising demand for transformers in industrial and commercial applications.

The Low Voltage segment is expected to grow at a steady pace, driven by the growing adoption of smart grids and renewable energy systems.The Phase Shifting Transformer Market revenue for the High Voltage segment is projected to reach USD 6.5 billion by 2032, growing at a CAGR of 13.4%.

Phase Shifting Transformer Market Application Insights

The Phase Shifting Transformer Market is segmented into Utilities, Industrial, Commercial, and Renewable Energy. Among these segments, Utilities is expected to hold the largest market share in 2023, accounting for over 40% of the Phase Shifting Transformer Market revenue. The growth of this segment can be attributed to the increasing demand for electricity and the need for efficient power transmission and distribution systems.

The Industrial segment is expected to be the second largest market, with a significant share of over 30% in 2023.The growth of this segment can be attributed to the increasing demand for phase shifting transformers in various industrial applications, such as electric arc furnaces, rolling mills, and mining operations. The Commercial segment is expected to account for over 20% of the Phase Shifting Transformer Market revenue in 2023. The growth of this segment can be attributed to the increasing demand for phase shifting transformers in commercial buildings, such as offices, shopping malls, and hotels.

The Renewable Energy segment is expected to be the fastest-growing segment, with a CAGR of over 15% during the forecast period.The growth of this segment can be attributed to the increasing adoption of renewable energy sources, such as solar and wind power, which require phase shifting transformers to synchronize their output with the grid.

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Regional Insights

The Phase Shifting Transformer Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold the largest market share over the next ten years, followed by Europe and North America. The growth in APAC is attributed to the increasing demand for electricity in developing countries such as China and India. The demand for phase shifting transformers is also increasing in Europe and North America due to the growing need for grid stability and power quality.

South America and MEA are expected to witness moderate growth over the forecast period.The Phase Shifting Transformer Market is expected to reach a value of USD 4.5 Billion by 2030, growing at a CAGR of 9.5% over the forecast period.

Phase Shifting Transformer Market by Region

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Key Players and Competitive Insights

Major players in the Phase Shifting Transformer Market industry are constantly striving to gain a competitive edge by investing in research and development, expanding their product portfolios, and strengthening their distribution networks. Leading Phase Shifting Transformer Market players are focusing on developing innovative products that meet the evolving needs of customers and comply with industry standards. The Phase Shifting Transformer Market development process involves collaboration between manufacturers, suppliers, and end-users to ensure that the final product aligns with market demands.

The Phase Shifting Transformer Market Competitive Landscape is characterized by intense competition, with established players and emerging entrants vying for market share. Strategic partnerships, mergers, and acquisitions are common strategies employed by companies to strengthen their position in the market and expand their geographic reach.ABB, a global leader in power and automation technologies, is a prominent player in the Phase Shifting Transformer Market. The company offers a wide range of phase shifting transformers designed to meet the specific requirements of various industries, including power generation, transmission, and distribution.

ABB's phase shifting transformers are known for their reliability, efficiency, and ability to handle high power loads. The company has a strong global presence, with manufacturing facilities and sales offices in over 100 countries. ABB's commitment to innovation and customer satisfaction has made it a trusted partner for utilities and industrial customers worldwide.Siemens, another leading player in the Phase Shifting Transformer Market, is known for its advanced engineering and manufacturing capabilities. The company's phase shifting transformers are designed to provide precise voltage control and power flow management in complex power systems.

Siemens offers a comprehensive range of phase shifting transformers, from small distribution transformers to large power transformers for high-voltage applications. The company has a strong focus on research and development, and it invests heavily in developing new technologies to improve the efficiency and reliability of its products. Siemens' global presence and reputation for quality make it a preferred supplier for utilities and industrial customers around the world.

Key Companies in the Phase Shifting Transformer Market market include

Future Outlook

Phase Shifting Transformer Market Future Outlook

The Phase Shifting Transformer Market is projected to grow at a 13.27% CAGR from 2024 to 2035, driven by increasing demand for grid stability and renewable energy integration.

New opportunities lie in:

Invest in R&D for advanced materials to enhance transformer efficiency.
Develop smart grid solutions integrating phase shifting transformers for real-time monitoring.
Expand into emerging markets with tailored solutions for local energy challenges.

By 2035, the market is expected to achieve substantial growth, reflecting robust demand and technological advancements.

Market Segmentation

Phase Shifting Transformer Market Regional Outlook

North America
Europe
South America
Asia Pacific
Middle East and Africa

Phase Shifting Transformer Market Application Outlook

Utilities
Industrial
Commercial
Renewable Energy

Phase Shifting Transformer Market Cooling System Outlook

Oil-immersed
Dry-type
Cast-resin encapsulated

Phase Shifting Transformer Market Phase Shifting Outlook

Voltage Regulation
Reactive Power Compensation
Harmonic Mitigation
Load Balancing

Phase Shifting Transformer Market Voltage Rating Outlook

Low Voltage (1 kV)
Medium Voltage (1-33 kV)
High Voltage (>33 kV)

Report Scope

Report Attribute/Metric	Details
Market Size 2024	4.43 (USD Billion)
Market Size 2025	5.02 (USD Billion)
Market Size 2034	15.40 (USD Billion)
Compound Annual Growth Rate (CAGR)	13.26% (2025 - 2034)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2034
Historical Data	2019 - 2023
Market Forecast Units	USD Billion
Key Companies Profiled	Siemens, Mitsubishi Electric, Alstom, Bharat Heavy Electricals Limited, Schneider Electric, Hitachi, General Electric, Eaton, ABB, Hyundai Heavy Industries, Crompton Greaves, Toshiba, Hyosung Heavy Industries
Segments Covered	Phase Shifting, Cooling System, Voltage Rating, Application, Regional
Key Market Opportunities	Increased power grid flexibility integration with renewable energy sources growing demand for smart grid technologies expansion in transmission and distribution networksGovernment initiatives for energy efficiency
Key Market Dynamics	Grid modernization Enhanced grid stability Increasing renewable energy penetration Growing smart grid infrastructure Digitalization and automation
Countries Covered	North America, Europe, APAC, South America, MEA

FAQs

What is the size of the Global Phase Shifting Transformer Market?

The Phase Shifting Transformer Market was valued at USD 4.43 billion in 2024 and is projected to reach USD 15.40 billion by 2034, exhibiting a CAGR of 13.26% during the forecast period.

Which region is expected to hold the largest market share in the Global Phase Shifting Transformer Market?

Asia Pacific is expected to hold the largest market share during the forecast period due to increasing demand for electricity and growing investments in renewable energy projects.

Which application segment is anticipated to propel the growth of the Global Phase Shifting Transformer Market?

The transmission and distribution segment is anticipated to propel the growth of the market, owing to the rising demand for efficient and reliable power transmission systems.

Who are the key competitors operating in the Global Phase Shifting Transformer Market?

Key industry players include ABB, Siemens, General Electric, Schneider Electric, and Toshiba.

What is the growth rate of the Phase Shifting Transformer Market expected to be?

The market is projected to grow at a CAGR of 13.26% from 2024 to 2032.

What are the major factors driving the demand for Phase Shifting Transformers?

The rising need for efficient power transmission, increasing integration of renewable energy sources, and growing investments in smart grid infrastructure are the primary growth drivers.

What are the key challenges faced by the Global Phase Shifting Transformer Market?

Technological complexities, high manufacturing costs, and stringent regulatory requirements pose challenges to market growth.

What are the latest trends emerging in the Global Phase Shifting Transformer Market?

Advanced control systems, digitalization, and the integration of renewable energy sources are emerging trends in the market.

Is there a high demand for Phase Shifting Transformers in the renewable energy sector?

Yes, there is a growing demand for phase shifting transformers in the renewable energy sector, particularly for integrating intermittent renewable sources like solar and wind power.

How is the Asia Pacific region contributing to the growth of the Global Phase Shifting Transformer Market?

The Asia Pacific region is a significant contributor to the global market due to rapid industrialization, population growth, and increasing electricity demand.

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