The Transformer Market size is projected to grow from USD 26.16 Billion in 2024 to USD 45.23 Billion by 2032, at a CAGR of 6.27% during the forecast period from 2024 to 2032. A rapid expansion is expected in the Transformer Market in the coming years owing to circumstances such as a substantial global investment push to enhance current electricity transmission facilities and rising demand from the public and the government for cleaner, greener energy sources. Because of their role as high-efficiency electricity distribution equipment, converters are drawing a lot of attention from investors worldwide.
Power initiatives targeted at lowering transmission and distribution losses and increasing demand for transformers are expected to boost the transformer sales volume significantly. A meaningful paradigm change in global power consumption has occurred, with a gradual radical departure of carbon-based energy sources into renewable energy sources. These changes in the renewable sector are expected to impact transformer market dynamics throughout the world during the forecast period.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Distribution transformers (DTs) are responsible for the ultimate voltage shift in the electrical power distribution system. Distribution transformers (DTs) are utilized to reduce the voltage of distribution lines, which can reach up to 36 kV, to the voltage level required by the client. Across numerous countries, the implementation of electrical transmission and distribution initiatives has resulted in a consistent increase in transformer capacity in recent times.
In 2021, the transformer capacity distribution network in Mexico reached 1,14,807 MVA. The proliferation of transmission networks in numerous countries led to the widespread utilization of distribution transformers. Utility companies are constructing distribution voltage regulators not just to fulfill the demand for electricity during periods of high usage but also to optimize power consumption during periods of low usage.
In June 2022, Diotec Semiconductor, a distributor of discrete semiconductor components, and Mouser Electronics Inc. entered into a distribution agreement. Mouser will offer customers a range of voltage regulators, rectifiers, FETs, and diodes manufactured by Diotec Semiconductor. These electronic components are specifically designed for use in commercial and industrial applications.
Apart from this, in April 2021, Enel, a power corporation headquartered in Italy, declared its intention to venture into the power distribution sector in the United States. The corporation intends to allocate around USD 19.52 billion towards enhancing distribution networks within the next two years and USD 72.23 billion by the year 2030. These innovations greatly support the high market growth of distribution transformers during the forecast period.
The Transformer Market is primarily segmented based on insulation, phase and application.
Based on insulation, the transformer market is further divided into gas, oil, air and solid. Out of which, oil insulation segmentation dominates the market segment. Oil is frequently employed as an insulation medium in several industries due to its capacity to sustain stability in elevated temperatures. The electrical insulating properties of the material, such as its dielectric strength, minimize the risk of damage caused by high voltage. The advantages of oil insulators make them the favored choice for manufacturers.
In addition, oil serves the purpose of safeguarding other elements, such as copper coils, from potential harm, such as combustion. Oil serves as an insulator in various electrical devices, such as fluorescent lamp ballasts, high-voltage capacitors, oil-filled transformers, high-voltage switches, and circuit breakers. Typically, transformers utilize mineral oil, predominantly naphthenic, silicone, and bio-based oils for insulating purposes. Transformer manufacturers worldwide are increasingly using eco-friendly alternatives, such as ester oil, in response to growing environmental concerns.
Based on phase, the Transformer Market is further classified into single phase and three phase. Out of which, the three-phase segment owes the major market share and is predicted to witness the highest growth rate over the forecast period. Three-phase transformers are commonly employed in precision machine tools, the manufacturing industry, the mining industry, the petrochemical industry, automation equipment, and the telecommunication sector, among others, for power generation and distribution.
Three-phase transformers are the optimal selection for industrial equipment because of their superior cost-effectiveness, reduced weight, and smaller size at higher power ratings. For three-phase applications, using multiple single-phase toroid or ferroresonant devices can also be beneficial. Three-phase transformers are suitable for low-voltage distribution systems that experience high fluctuations and low voltage.
They offer a high level of isolation and powerful suppression of common-mode interference, and they can be customized by end-users according to specific characteristics. Therefore, three-phase transformers are utilized in a diverse array of applications. The advantages and extensive utilization of this technology are expected to increase significantly within the projected timeframe.
Based on application, the said market segment is further divided into residential & commercial, utilities and industrial. Out of which, the industrial segmentation owes the major market share. It is further expected to have the highest growth rate of 7.5% throughout the forecast period. Power transformers in industrial sectors provide industries with secure, hazard-free, and precise utilization of electricity. The increase in the industrial utilization of transformers is linked to the emergence of smart transformers, which give market players a competitive advantage. Furthermore, the significant global investment in energy generation, industrialization, and urbanization is compelling market participants to allocate resources to research and development efforts aimed at creating environmentally friendly transformers.
The Transformer Market is primarily studied across four major regions, namely North America, Europe, Asia-Pacific and the Rest of the World. Out of which, the Asia-Pacific region dominates the global market.
In 2023, the Asia Pacific power transformer industry held more than 41% of the global market share and is projected to grow at a compound annual growth rate (CAGR) of 7.9% by 2030. The regional expansion, driven by swift economic progress and a heightened demand for consistent and dependable electricity provision, is a result of the population rise in the region. China is making investments to expand its existing electrical transmission and distribution system to fulfil the increasing demand for power driven by rapid industrialization and urbanization.
The growth of the power transformer sector in China will be propelled by the installation of new transmission lines and substations, which aim to address the disparity between energy demand and supply. Due to increasing worries about the rates of greenhouse gas emissions and their potential harm to the environment, it is expected that the Asia-Pacific region will offer promising opportunities for growth in the power transformer business. The nation has experienced a surge in demand for power transformers due to the growth in industrialization, infrastructure development, and construction activities. Moreover, the Asia-Pacific region remains a prominent global energy producer, rendering it a highly profitable market for power transformer manufacturers.
The market expansion is ascribed to the incorporation of renewable energy in the North American region, which is seeing a notable transition towards renewable energy sources, such as wind, solar, and hydroelectric electricity. This transformation requires the incorporation of these sources into the grid through the use of transformers to convert and distribute power.
Major key competitors in the said market segment employ crucial strategies, including partnerships, joint ventures, mergers and acquisitions, product launches, and business expansion deals to expand their business operations across the globe and have a strong command over a certain region in the market.
September 2022 -
In September 2022, Hitachi Energy launched its innovative oil-free traction transformer RESIBLOC Rail, with an integrated cooling system and voltages up to 25-kilovolt (kV), at InnoTrans, the international trade fair for rail transportation at the Berlin Messe in Germany.
October 2021 -
In October 2021, Prolec Transformers Inc. signed an acquisition deal with SPX Transformers to expand its business operations in the United States.
May 2022 -
In May 2022, Hyundai Heavy Industries Group subsidiary Hyundai Electric was awarded a USD 122 million contract to supply transformers to NextEra Energy Inc., a worldwide leader in renewable generation.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 24.43 Billion |
| Market Size 2024 | USD 26.16 Billion |
| Market Size 2032 | USD 45.23 Billion |
| CAGR | 6.27% CAGR (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019 & 2022 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Core, Product, Winding, Installation, Cooling, Insulation, Phase, Rating, Mounting, Application |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | ABB Ltd. (Switzerland), Eaton Corporation plc (Ireland), Schneider Electric (France), Siemens AG (Germany), Crompton Greaves Ltd. (India), Mitsubishi Electric Corporation (Japan), Toshiba Corporation (Japan), Bharat Heavy Electricals Limited (India), Hyosung Power & Industrial Solutions (South Korea), SPX Transformer Solutions Inc. (U.S.) |
| Key Market Opportunities | Rising demand for energy in the developing economies |
| Key Market Drivers | Increasing electrification Favorable government policies for large scale integration Attention towards renewable energy sources Demand for smart monitoring units and sustainable electricity networks |
Transformer Market Highlights:
Frequently Asked Questions (FAQ) :
The global market of transformer can surge at ~6.27% CAGR by 2032.
Eaton Corporation plc (Ireland), Siemens AG (Germany), Schneider Electric (France), and Crompton Greaves Ltd. (India) are some reputed names in the transformer market.
Increase in investment in electricity distribution infrastructure can impel the transformer market growth.
electromagnetic, capacitor, and optical
The main use of a transformer is to transfer energy between different voltage levels thereby reducing or stopping losses during transmission.
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Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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