Europe Transformer Market Size - By Core, By Product, By Winding, By Cooling, By Insulation, By Rating, By Mounting, By Application Analysis, Share, Growth Forecast 2025 – 2034

Europe Transformer Market Size

Europe Transformer Market was valued at USD 11.3 billion in 2024 and is projected to witness more than 8.5% CAGR from 2025 to 2034. The EU’s commitment to decarbonization is accelerating the adoption of renewable energy sources like wind and solar. This shift requires transformers compatible with fluctuating, decentralized energy inputs, such as those with robust grid interconnection capabilities. Countries like Germany, the UK, and the Netherlands are increasing their offshore wind capacity, creating demand for specialized transformers that can withstand harsh marine environments and efficiently transmit power over long distances.
 

Much of Europe’s power grid infrastructure is outdated, with many transformers nearing the end of their lifespan. Modernization efforts are underway to replace aging transformers with advanced, energy-efficient models that reduce energy loss and enhance reliability. The push for smarter grids is encouraging investment in digitalized transformers with real-time monitoring, fault detection, and remote operation features. These upgrades support grid stability and optimize energy flow.
 

Europe Transformer Market Trends

The EU’s strict energy efficiency regulations, such as the Eco-Design Directive, require transformers with reduced energy losses and lower environmental impact. This has led to a rise in demand for high-efficiency transformers, particularly in the utility sector. Manufacturers are increasingly adopting eco-friendly materials, such as biodegradable oils, to comply with regulations and enhance environmental sustainability. Integration of IoT technology in transformers enables real-time monitoring of parameters like temperature, voltage, and load, facilitating predictive maintenance. This reduces downtime, lowers maintenance costs, and extends equipment life. Digital solutions are enhancing predictive maintenance strategies, which help utilities and industrial users anticipate failures before they occur, leading to more reliable power systems.
 

Europe Transformer Market Analysis

The closed core segment is expected to exceed USD 8.2 billion by 2034. The EU's Eco-Design Directive and similar energy efficiency standards are driving the adoption of closed core transformers due to their lower energy losses. Closed core designs are efficient in reducing no-load losses, which is especially valuable for utilities and industrial applications. As part of Europe's push toward sustainability, industries and utilities are focusing on transformers that optimize energy use, and closed core transformers are becoming a preferred option due to their efficiency.
 

The utility segment is anticipated to grow at a CAGR of over 7.3% through 2034. Europe's strong commitment to renewable energy, especially wind and solar power, is driving demand for utility-scale transformers that can integrate with renewable sources. Transformers in this segment need to handle fluctuating power loads, ensuring consistent energy flow from renewable inputs to the grid. There is growing demand for eco-friendly transformers, using sustainable insulating materials like natural esters instead of mineral oils. These transformers are also designed for reduced energy loss, aligning with Europe’s sustainability goals.
 

Germany transformer market is projected to surpass USD 3.1 billion by 2034. Germany's Decentralized energy systems, such as rooftop solar, energy storage, and community wind projects, require transformers that support bi-directional flow and integration of localized power sources. Distribution transformers that facilitate efficient energy flow within microgrids and other decentralized systems are in high demand.
 

As energy storage becomes a core component of Germany’s renewable infrastructure, transformers designed to interface seamlessly with battery storage systems are needed to balance supply and demand effectively. Germany’s robust industrial sector, including automotive, manufacturing, and chemicals, requires reliable transformers that can handle high energy loads. Utility and industrial transformers play a critical role in ensuring uninterrupted power supply, meeting high-demand requirements in these energy-intensive industries.
 

Europe Transformer Market Share

ABB is a major player in the Europe transformer industry, providing an extensive selection of electrical equipment, from standard to custom designs. With a robust position in the electrical sector, ABB consistently supplies tailored bushing solutions to meet diverse application needs.
 

Europe Transformer Market Companies

Major key players operating across the Europe transformer industry are:

• ABB
• Arteche
• Celme
• CG Power and Industrial Solutions
• Daihen
• Eaton
• Elsewedy Electric
• General Electric
• Hyosung Heavy Industries
• Kirloskar Electric Company
• Imefy Group
• Mitsubishi Electric
• Ormazabal
• Pfiffner Group
• Schneider Electric
• Siemens Energy
• Toshiba International
• Trench Group
   

Europe Transformer Industry News

• In February 2024, ABB recently acquired SEAM Group, a prominent provider of asset management and advisory services. This acquisition is intended to enhance ABB's electrification portfolio by integrating advanced asset management capabilities. Additionally, ABB aims to invest in digital technologies, such as IoT sensors for predictive maintenance, to increase transformer longevity and meet the evolving needs of a modern, electrified world.
   

This Europe transformer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in ‘000 Units & USD Million from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Core

• Closed
• Shell
• Berry

Market, By Product

• Distribution Transformer
• Power Transformer
• Instrument 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 Rating

• ≤ 10 MVA
• > 10 MVA to ≤ 100 MVA
• > 100 MVA to ≤ 600 MVA
• > 600 MVA

Market, By Mounting

• Pad
• Pole
• Others

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following countries:

• Germany
• France
• Russia
• UK
• Italy
• Spain
• Netherlands