Power Transformer Market Size

The growing investment in distribution & transmission infrastructure is driving the market growth

Smart grids can quickly adapt to variations in electricity consumption and can be monitored and analyzed remotely to ensure efficient electricity and cooling delivery, which reduces carbon emissions. Its growth will be supported throughout the forecast period by the advancement of green transformers, high-voltage transmission, and stringent government restrictions targeted at reducing emissions of greenhouse gases.

Electricity usage in the automobile sector is rising due to the emergence of modern electric vehicles (EVs)  and subsidies to use them. Most power plants are located in rural locations; the electricity they produce is sent across high voltage direct current (HDVC) transmission lines to the substations, which are subsequently supplied to the final consumers after being stepped down. As a result, the need for energy globally is now driving the worldwide demand for power transformers.

For instance, a report from the International Energy Agency predicts that by 2030, there may be a 60% rise in the world's energy demand. Furthermore, as the population has grown, so needs power, driving the development of more power-producing projects. As a result, it is anticipated that demand for Power transformers will increase throughout the projection period due to the rising investment in distribution & transmission infrastructure. Thus, driving the power transformer market revenue.

The Global Power Transformer Market Industry is characterized by robust growth projections, with the market anticipated to expand significantly in the coming years. The market is expected to reach 20.2 USD Billion in 2024 and is projected to grow to 44.4 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 7.4% from 2025 to 2035. Such projections indicate a strong demand for power transformers driven by factors such as urbanization, renewable energy investments, and technological advancements. The market's expansion underscores the critical role of power transformers in supporting global energy infrastructure.

Technological advancements play a crucial role in shaping the Global Power Transformer Market Industry. Innovations in materials, design, and manufacturing processes enhance the efficiency and reliability of power transformers. For instance, the development of amorphous steel transformers reduces energy losses, thereby improving overall performance. Moreover, smart grid technologies integrate advanced monitoring and control systems, optimizing transformer operations. These advancements not only extend the lifespan of transformers but also reduce maintenance costs. As the industry evolves, the adoption of these technologies is expected to drive market growth, aligning with the increasing demand for efficient energy solutions.

The Global Power Transformer Market Industry experiences a notable surge in demand for electricity, driven by urbanization and industrialization. As populations grow and economies expand, the need for reliable power supply becomes paramount. This trend is particularly evident in developing nations, where infrastructure development is underway. The market is projected to reach 20.2 USD Billion in 2024, reflecting the increasing investments in power generation and distribution. The shift towards renewable energy sources further amplifies this demand, necessitating advanced power transformers to manage fluctuating energy outputs. Consequently, the Global Power Transformer Market Industry is poised for substantial growth.

The Global Power Transformer Market Industry is significantly influenced by the increasing investment in renewable energy sources. Governments and private sectors are channeling funds into solar, wind, and hydroelectric projects, aiming to reduce carbon footprints and enhance energy security. This transition necessitates the deployment of advanced power transformers capable of handling variable energy inputs. As a result, the market is expected to witness a compound annual growth rate of 7.4% from 2025 to 2035. This growth trajectory indicates a robust shift towards sustainable energy solutions, further solidifying the importance of power transformers in modern energy systems.

Government regulations and policies significantly impact the Global Power Transformer Market Industry. Many countries are implementing stringent standards to enhance energy efficiency and reduce environmental impacts. These regulations often mandate the use of high-efficiency transformers, which in turn drives demand for advanced power transformer technologies. Additionally, incentives for renewable energy projects further stimulate market growth. As countries strive to meet international climate commitments, the focus on sustainable energy solutions becomes more pronounced. This regulatory landscape is likely to shape the future of the power transformer market, fostering innovation and investment in cleaner technologies.

The Global Power Transformer Market Industry is witnessing substantial growth due to the increasing electrification in emerging economies. As these nations strive to improve living standards and economic development, the demand for electricity rises sharply. Investments in power infrastructure are essential to support this electrification drive, leading to an increased need for power transformers. By 2035, the market is projected to reach 44.4 USD Billion, indicating a robust expansion driven by infrastructure projects and energy access initiatives. This trend not only enhances the quality of life in these regions but also solidifies the role of power transformers in facilitating economic growth.

By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American power transformer market area will dominate this market, owing to an increase in expenditure on laying transmission lines to cover long distances. In addition, the rising renewable energy and grid reliability collaboration to diminish costs across the networks will boost the market growth in the North American region.

Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Power Transformer Market Share by Region 2022 (USD Billion)

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

Europe region’s Power Transformer market is anticipated to grow significantly during the projected timeframe due to the advancement of grid technology and the emergence of power grids. Further, the German Power Transformer market dominates the market share, and the UK Power Transformer market is expected to grow steadily in the European region.

The Asia-Pacific Power Transformer Market accounts for the second-highest market share. This is due to economic growth, the need for improved access to electricity, and improvement in the existing distribution and transmission infrastructure that will boost market growth. Moreover, China’s Power Transformer market dominates the market share, and the Indian Power Transformer market is expected to grow rapidly in the Asia-Pacific region.

Leading market players are invested heavily in research and development (R&D) to boost production capacity while extending product life, which will help the Power Transformer market grow further. Market participants are also undertaking a strategic approach to provide effective solutions for existing technology to strengthen their footprint, with important market developments including new product innovations, partnerships, mergers & acquisitions, higher investments, and strategic alliances with other organizations. The Power Transformer industry must offer cost-effective solutions to survive in fragmented market conditions.

Manufacturing locally to minimize expenses is one of the key business strategies organizations use in the Power Transformer industry to benefit customers and capture untapped market revenue. The Power Transformer industry has offered significant advantages to transmission and distribution networks. 

Major players in the Power Transformer market, including SGB-SMIT Group (Germany), Crompton Greaves Ltd. (India), Siemens AG (Germany), SPX Transformer Solutions Inc. (U.S.), Schneider Electric (France), Hyundai Electric & Energy Systems Co. Ltd. (South Korea), Bharat Heavy Electricals Limited (India), Hyosung Power & Industrial Solutions (South Korea), ABB Ltd. (Switzerland), Toshiba Corporation (Japan), Mitsubishi Electric Corporation (Japan), are attempting to capture market sector by investing in research and development to provide advance solutions.

Siemens AG, German energy-related technology and manufacturing business. It was founded in 1966, and Munich serves as its corporate home. Siemens & Halske AG, Siemens-Schuckertwerke, and Siemens-Reiniger-Werke AG are combined to form this company. It conducts business throughout more than 200 nations and regions and offers a wide range of products and services in industries like power production, telecommunications, and medical engineering. 

The business is one of the largest holders of patents worldwide and makes significant investments in research and development. In August 2022, Siemens Mobility announced Siemens Xcelerator, a newly created digital company platform, at InnoTrans. It created the open-source digital business ecosystem Siemens Xcelerator to build a strong ecosystem of collaborators that can work together to accelerate technological advancement in digitalization and environmental sustainability in transportation at scale.

POWERGRID primarily conducts business in the power transmission industry. It was incorporated on 23 October 1989. With its Indian transmission system and the installation of optical ground wire (OPGW), the company has expanded into the telecom sector. It is in charge of running national and local load dispatch centers and developing, implementing, operating, and maintaining interstate transmission infrastructure. 

A joint venture deal was signed in January 2022 by Power Grid Corporation (India) and Africa50 to develop the Kenya Transmission Project through a public-private partnership (PPP). The project entails creating, funding, building, and operating the 220kV Kisumu-Musaga and 400kV Lessos-Loosuk lines of transmission, with PowerGrid India serving as the venture's technical and operational advisor.