Phase Shifting Transformer Market Size - By Rating, By Application Analysis, Share, Growth Forecast 2025 – 2034

Phase Shifting Transformer Market Size

The global phase shifting transformer market was valued at USD 172.4 million in 2024 and is poised to witness more than 6.6% CAGR from 2025 to 2034. As renewable energy sources like wind and solar become more prevalent, their intermittent nature places new demands on grid stability. PSTs are increasingly adopted to control power flow between grid sections, reduce bottlenecks, and stabilize voltage, making them crucial for modern grid infrastructure. Many countries are investing in upgrading aging grid infrastructure, which includes the integration of advanced PSTs to manage power distribution more efficiently. This demand is particularly high in regions undergoing rapid industrialization or where aging infrastructure requires modernization.
 

Innovations in transformer technology, such as digital monitoring systems and IoT integration, are enhancing PST functionality. Advanced sensors and data analytics allow real-time monitoring and predictive maintenance, improving transformer lifespan and efficiency. PSTs help reduce energy loss by efficiently managing power flow, which is aligned with global efforts toward energy conservation. Their role in optimizing energy efficiency appeals to utilities and governments aiming to reduce carbon emissions and improve power delivery.
 

Phase Shifting Transformer Market Trends

Emerging economies, particularly in Asia-Pacific, Latin America, and parts of Africa, are expected to see increased demand for PSTs. This growth is driven by urbanization, industrial expansion, and investments in grid infrastructure to accommodate rising electricity demand. Major companies in the transformer industry, such as ABB, Siemens, and General Electric, are making strategic investments and acquisitions to strengthen their market position. These investments focus on expanding production capabilities, developing new technologies, and enhancing customer support for utility and industrial applications.
 

As global renewable capacity expands, PSTs play an essential role in balancing the load and facilitating the integration of green energy. They are particularly valuable for minimizing energy loss and managing variable renewable sources, making them an essential component for utilities focused on sustainability.
 

Phase Shifting Transformer Market Analysis

The below 400 MVA segment is anticipated to exceed USD 65.7 million by 2034. Smaller, sub-400 MVA PSTs are ideal for enhancing the stability and flexibility of distribution grids, especially in urban areas with dense electricity demand. As utilities work to prevent power imbalances and maintain steady voltage, these lower-rated PSTs are increasingly deployed to support local grids.
 

The utility segment is projected to grow at a CAGR of about 5.7% through 2034. Utility-scale PSTs are critical for controlling large power flows across transmission networks, managing congestion, and preventing overloads. With the complexity of modern grids, PSTs enable utilities to balance power effectively, providing flexibility to adapt to fluctuations in supply and demand. As utilities incorporate more renewable energy sources like solar and wind, the need for phase-shifting transformers to manage intermittent power flows has increased. Utility-scale PSTs support the stable integration of these renewable sources, ensuring efficient distribution and reducing energy losses across the grid.
 

The U.S. phase-shifting transformer market is expected to surpass USD 32.5 million by 2034. Many parts of the U.S. electrical grid are outdated, leading utilities to invest in upgrading their infrastructure. Phase-shifting transformers are crucial in this modernization, allowing utilities to control power flows, reduce bottlenecks, and enhance grid reliability in line with national goals for a more resilient and adaptable grid.
 

The Asia Pacific region is undergoing rapid urbanization and industrial growth, leading to an increased demand for reliable and efficient power distribution systems. Phase-shifting transformers are being deployed to address the growing need for grid stability and efficient power flow in densely populated and industrialized areas.
 

Phase Shifting Transformer Market Share

ABB, a major player in the phase-shifting transformer industry, offers a diverse range of electrical equipment, including both standard and customized designs. With a strong foothold in the electrical industry, ABB consistently provides tailored bushing solutions to meet various application needs.
 

Phase Shifting Transformer Market Companies

Some of the major key players operating across the phase shifting transformer industry are:

• ABB
• Eaton
• GE Grid Solutions
• Hitachi Energy
• Hyosung Heavy Industries
• Schneider Electric
• SGB-SMIT Group
• Siemens Energy
• Tamini Transformers
• Toshiba International Corporation
• Wilson Transformers
   

Phase Shifting Transformer Industry News:

• In July 2024, Siemens Energy showcased eco-friendly transformer solutions at a major industry event. These innovations included sustainability certifications and enhanced power flow control, reflecting the growing demand for environmentally conscious energy equipment.
   
• In March 2023, General Electric announced an investment exceeding USD 450 million to upgrade its existing manufacturing facilities in the U.S. This investment will bring in advanced equipment and facility improvements, reinforcing the company and its American workforce. The initiative supports GE's strategy to establish two independent, industry-leading entities in energy and aerospace while expanding its energy portfolio, which includes transformers, turbines, and generators.
   

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

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Market, By Rating

• < 400 MVA
• 400 MVA - 800 MVA
• > 800 MVA

Market, By Application

• Industrial
• Utility
• Others

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

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