Closed Core Transformer Market Size - By Product (Distribution Transformer, Power Transformer), By Winding (Two Winding, Auto Transformer), By Cooling (Dry Type, Oil Immersed), By Insulation (Gas, Oil, Solid, Air), Mounting, Application & Forecast, 2024 – 2032

Closed Core Transformer Market Size

Closed Core Transformer Market size was valued at USD 20.8 billion in 2023 and is projected to grow at a CAGR of 6.3% between 2024 and 2032. Closed-core transformers are known for their high energy efficiency and reduced energy losses compared to traditional open-core transformers. With a growing emphasis on energy efficiency and environmental sustainability, there has been an increasing demand for closed-core transformers as a more efficient alternative. The integration of renewable energy sources, such as solar and wind power, into the electricity grid has driven the demand for closed-core transformers. These transformers play a vital role in stepping up or stepping down the voltage levels in renewable energy systems, ensuring efficient power transmission and distribution.
 

In a closed-core transformer, the primary and secondary windings are wound on separate limbs of the iron core. The core itself forms a complete magnetic circuit, with the windings tightly wound around it. This design helps to efficiently transfer electrical energy between the primary and secondary windings. Many countries and regions have initiated grid modernization programs to improve the efficiency and reliability of their power grids. Closed-core transformers are a key component of these initiatives, enabling utilities to upgrade their infrastructure and enhance grid performance.

The development of smart grids, which utilize advanced communication and monitoring technologies, has increased the closed core transformer market demand. These transformers are often equipped with sensors and communication capabilities, allowing for real-time monitoring and control of power distribution. Closed-core transformers are typically more compact and have a smaller footprint compared to traditional open-core transformers. This makes them suitable for applications where space is limited, such as urban areas or industrial facilities with space constraints.
 

Closed-core transformers can be more expensive compared to some other transformer designs, particularly open-core transformers. The cost of materials, manufacturing processes, and the complex construction of closed-core transformers can contribute to their higher upfront cost. This cost factor may pose a challenge for customers and limit widespread adoption.
 

While closed-core transformers are known for their compact design compared to some other transformer types, they can still be relatively larger and heavier compared to certain alternatives. This can pose challenges in installations where space is limited or weight restrictions need to be considered. However, Ongoing research and development efforts have led to technological advancements in closed-core transformers. These include improvements in core materials, insulation, and cooling systems, resulting in higher efficiency, lower losses, and improved performance.
 

COVID-19 Impact

The pandemic has caused disruptions in global supply chains, affecting the production, transportation, and delivery of transformer components. Restrictions on manufacturing, international trade, and logistics have led to delays in the supply of closed-core transformers and related equipment. The implementation of new projects, including power infrastructure upgrades and renewable energy installations, has faced delays and postponements due to the pandemic. Uncertainty, financial constraints, and logistical challenges have affected project timelines, impacting the closed core transformer market size.
 

The economic downturn caused by the pandemic has impacted investment decisions in various sectors, including power infrastructure. Utilities and project developers may face financial challenges, leading to a slowdown in new projects and reduced demand for closed-core transformers. However, the transition to renewable energy sources has continued despite the pandemic. Closed-core transformers play a vital role in integrating renewable energy into the grid by stepping up or stepping down voltage levels. The increased adoption of renewable energy projects has driven the demand for closed-core transformers.
 

Closed Core Transformer Market Trends

Closed-core transformers find extensive applications in various industrial and commercial sectors. They are used in manufacturing facilities, data centers, hospitals, and commercial buildings to step up or step down voltage levels and ensure efficient power distribution. The growing need for electricity infrastructure, driven by urbanization, industrialization, and population growth, is fueling the demand for closed-core transformers.
 

These transformers are essential for transmitting and distributing electrical power efficiently and reliably. The global shift towards renewable energy sources, such as solar and wind power, is driving the demand for closed-core transformers. These transformers play a crucial role in integrating renewable energy into the grid by stepping up or stepping down voltage levels to match transmission and distribution requirements. Governments and utilities are investing in grid modernization initiatives to enhance grid reliability, efficiency, and flexibility. Closed-core transformers are an integral part of grid modernization efforts as they help optimize power transmission and distribution, improve power quality, and enable advanced monitoring and control capabilities.
 

Closed Core Transformer Market Analysis

The closed core transformer market from power transformer segment is set to record 3.5% CAGR through 2032, due to rising infrastructural spending and favorable regulations promoting the refurbishment and expansion of existing grid networks. This trend is further amplified by rapid urbanization and ongoing industrial expansion in developing economies, contributing to the growth of the power transformer industry. Additionally, the North America and Europe regions are experiencing a surge in demand for upgrading and replacing aging electric networks, creating a favorable environment for industrial development.
 

The closed core transformer market from auto transformer segment will expand at a CAGR of over 6.5% till 2032, owing to its effective transformation capabilities and operational flexibility, which outperform its competitors. The compact unit structure, sustainable costs, and higher efficiency of auto transformers make them highly desirable and encourage their adoption in various industries. Moreover, the integration of smart monitoring technologies has further improved the reliability and cost-effectiveness of auto transformers, contributing to the overall growth of the market.
 

The closed core transformer market from oil immersed segment dominated more than USD 13 billion revenue in 2022, attributed to their effective compatibility with high-tension applications and superior cooling capabilities compared to dry transformers. Over the years, this technology has gained significant market penetration due to its optimal cooling strength and ease of installation. However, it is important to note that leakage, health concerns, and fire hazards associated with oil-immersed power transformers may pose constraints on the demand for these products in the foreseeable future.
 

The oil insulated closed core transformer market accounted for 50% revenue share in 2022. Oil-insulated units have been used as insulation technology for transformers since their inception in electrical infrastructure. The demand for these units has been driven by their effective insulation capabilities, high temperature resistance, and wide applicability. However, the industry may face challenges due to the introduction of advanced insulation technologies resulting from rapid technological advancements. Air and gas-insulated power transformers have gained significant market penetration due to their safe and reliable operations, as well as their flexibility in various applications. Despite their ongoing technological advancements, the higher cost and compliance requirements have hindered the widespread adoption of these products.
 

The closed core transformer market size from pad mounted segment held over USD 6 billion in 2022, on account of requirement for effective base foundation and earthing arrangements for large-unit installations. These units have found widespread applicability across various industries and utility establishments, primarily driven by the need for short-distance transformers. The market of pad mounted transformer is predicted to cross USD 38 billion by 2032.
 

The closed core transformer market from residential segment witnessed a growth rate of over 7.8% during the forecast period. With the growing emphasis on energy efficiency in residential buildings, there is a rising demand for closed core transformers that offer higher energy efficiency and reduced power losses. These transformers help in optimizing energy consumption and contribute to sustainable residential infrastructure. The adoption of smart home technologies is on the rise, and closed core transformers play a vital role in powering and distributing electricity to these connected devices. The ability of closed core transformers to provide stable and reliable power supply aligns well with the requirements of smart homes.
 

North America closed core transformer market size is slated to observe 6.5% CAGR between 2023 and 2032, owing to the growing focus toward replacement of the existing electrical equipment with advanced high-quality systems. Regulators have placed significant emphasis on providing affordable and uninterrupted electricity, driving reforms and policies in the power sector. Governments worldwide are making efforts to enhance energy efficiency and increase power generation capacity, which in turn, will fuel the growth of the industry.
 

In the United States, the government has implemented policies and incentive schemes to integrate sustainable resources and improve conventional electrical networks in rural areas. An example of such an initiative is the USD 35 million REAP (Renewable Energy Systems and Energy Efficiency Improvements) funding program introduced in December 2020. This program falls under the rural development sector and aims to integrate sustainable energy sources into the power grid.
 

Closed Core Transformer Market Share

Some of the key companies operating across the closed core transformer market are:

• General Electric
•  Siemens Energy
•  Mitsubishi Electric Corporation
•  ABB
•  Schneider Electric
•  Toshiba International Corporation
•  Elsewedy Electric
•  Eaton
•  CG Power & Industrial Solutions Ltd
•  Voltamp
•  Ormazabal
•  ARTECHE
•  Kirloskar Electric Company
•  Hyosung Heavy Industries
•  Celme S.r.l

Major manufacturers across Asia Pacific the U.S., and the Middle East & Africa are inclined toward mergers & acquisitions, strategic collaborations, partnerships, and joint ventures to further gain a competitive advantage in the market.
 

Closed Core Transformer Industry News:

• In April 2022, Siemens launched CAREPOLE, its dry-type single phase transformer for pole applications. This transformer is a reliable alternative to oil-filled transformers. These transformers are maintenance free, environment friendly, and are designed to handle high overloads that satisfy the real-time demand. CAREPOLE has a life span of over 25 years with a power rating of 10-100 kVA, and a voltage capacity of 15-36 kV.
   

This closed core transformer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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Market, By Product

• Distribution Transformer
• Power Transformer
• Others

Market, By Winding

• Two Winding
• Auto-Transformer

Market, By Cooling

• Dry Type
• Oil Immersed

Market, By Insulation

• Gas
• Oil
• Solid
• Air
• Others

Market, By Mounting

• Pad
• Pole
• Others

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Russia
  • UK
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia 
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Egypt
  • South Africa
  • Nigeria
• Latin America
  • Brazil
  • Peru
  • Argentina