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

Shell Core Transformer Market Size

Shell Core Transformer Market size was valued at USD 22.2 billion in 2023 and is projected to grow at a CAGR of 6.5% through 2032. As the world shifts towards cleaner and sustainable energy sources, there is a growing demand for shell core transformers to facilitate the integration of renewable energy into the power grid. These transformers play a crucial role in converting and transmitting power generated from renewable sources such as wind and solar to the electrical grid. Energy efficiency is a major concern in the power sector, and shell core transformers are designed to provide higher efficiency and reduce power losses. With increasing regulatory requirements and consumer demand for energy-efficient solutions, the market for shell core transformers is expected to expand.
 

A shell core transformer is a type of electrical transformer that features a distinctive core construction design. The core consists of a series of concentrically arranged laminations, resembling the shape of a cylindrical shell or drum. The windings are typically placed on the outside of the core, resulting in a compact and efficient design. The development of smart grids, which enable two-way communication and real-time monitoring of power flow, is driving the demand for advanced transformers such as shell core transformers. These transformers are compatible with smart grid systems and can facilitate better management and control of power distribution networks. Rapid urbanization and infrastructure development in emerging economies are fueling the demand for reliable and efficient power distribution systems. Shell core transformers, with their compact design and high-power density, are well-suited for urban areas where space is limited.

The production of shell core transformers requires specific materials, such as high-grade electrical steel and high-quality insulation materials. Limited availability or fluctuations in the prices of these raw materials can affect the manufacturing and supply of shell core transformers. Shell core transformers tend to have a higher initial cost compared to other types of transformers. This can be a barrier for adoption, especially in cost-sensitive markets or regions with limited financial resources. Retrofitting existing power distribution infrastructure with shell core transformers can be challenging and costly. This can deter the replacement or upgrade of older transformer units, especially in regions with limited infrastructure development. However, continuous technological advancements in the design and manufacturing processes of shell core transformers are driving shell core transformer market growth. These advancements include the development of advanced insulation materials, improved cooling systems, and enhanced monitoring and control capabilities.
 

COVID-19 Impact

The outbreak of the novel coronavirus (COVID-19) has caused an unprecedented disruption in global trade and the economy as countries scale back production and consumption. The virus was initially identified in China's Hubei province in December 2019 and has since become a global health crisis. According to the World Health Organization (WHO), COVID-19 has affected 140 countries, leading to widespread national and international lockdown measures.
 

This pandemic has had a significant impact on major economies across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region, causing disruptions to numerous commercial and industrial establishments and facilities. On the contrary, the power sector being the necessity and backbone for an economy will have minimal impact of ongoing pandemic. The developed regions are focusing on over-compensating the impacts of COVID- 19 by advancing the operations as the opportunity arises, in turn, resulting in gradual market growth.
 

Shell Core Transformer Market Trends

The aging electric infrastructure is facing the need for operational enhancements beyond its original design capabilities. To address this, there is a growing focus on modernizing grid networks to make them smarter and more resilient by integrating innovative equipment, technologies, and controls. This shift towards modernization is expected to have a positive impact on the business outlook. By incorporating smart monitoring units and sustainable electricity networks, the modernized grid can deliver reliable electricity more efficiently. It has the potential to reduce the duration and frequency of power outages, restore service faster, and minimize the impact of storms. Moreover, consumers will have easier access to data, enabling them to better manage their energy consumption and costs. Furthermore, Utilities can also benefit from a modernized grid through reduced peak loads, improved security, lower operational costs, and increased integration of renewable energy sources.
 

Shell Core Transformer Market Analysis

Based on product, the shell core transformer market is segmented as power transformer and distribution transformer. The distribution transformer segment held a majority market value of over USD 9.5 billion in 2022. The distribution transformer market is expected to witness significant growth due to increasing energy security concerns and the exponential rise in energy consumption, particularly in developing economies. The rapid expansion of grid infrastructure, coupled with the substantial growth of the renewable energy sector, creates favorable conditions for industry expansion.
 

Based on winding, the shell core transformer market is segmented as two winding and auto-transformer. The two winding segment is set to grow at a CAGR of over 5.5% through 2032. The two winding segment is expected to witness growth due to increased investments in the infrastructure sector, driven by the expansion of commercial and residential establishments. The refurbishment of aging electric networks, combined with the rapid adoption of smart monitoring and control distribution units, will further boost the demand for different transformer technologies. The Government of Serbia, in collaboration with regulators in China, has proposed plans for the modernization of Serbia's traditional grid infrastructure. This initiative aims to upgrade and enhance the efficiency of the existing electrical grid in Serbia. Such modernization efforts contribute to the overall growth of the transformer industry in the country.
 

Based on cooling, the shell core transformer market is segmented as dry type and oil immersed. The dry type segment held a market share of more than 25% in 2022. Dry-type shell core transformers have become increasingly important in recent years due to their operational safety and cost-effectiveness compared to other available alternatives. However, these products are still in the process of gaining a strong foothold in high-voltage electrical applications, which presents significant growth potential for the industry.
 

Based on insulation, the market is segmented as gas, oil, solid, air, and others. The solid insulated shell core transformers is set to witness a CAGR of more than 9% through 2032. Solid insulation has had limited industry penetration in the past, mainly due to strong competition from existing insulation units and low consumer awareness. However, the product is expected to experience substantial growth in the future due to its cost-effectiveness, compact configuration, and excellent insulating properties. The effective cost structure of solid insulation makes it an attractive choice for various applications. Its compact configuration allows for more efficient use of space, which is particularly beneficial in industries where space is limited.
 

 Based on mounting, the shell core transformer market is segmented as pole mounted, pad mounted, and others. The pole mounted segment held a market value of over USD 5.5 billion in 2022. Pole-mounted shell core transformers have achieved significant market penetration due to their widespread use in large unit installations for long-distance electrical supply. These transformers are particularly valuable in regions with limited grid access, where they provide an effective solution for delivering electricity to distant load centers.
 

Based on application, the shell core transformer market is segmented as residential, commercial & industrial, and utility. The commercial & industrial segment witnessed a growth rate of over 6.6% between 2023 to 2032. The industrial segment is expected to grow due to increasing emphasis on the integration of wide-ranging frequency distribution links and growing concerns for energy efficiency. The demand for ultra-high voltage networks is also expected to contribute to the growth of the market. Additionally, increasing investments by both private and governmental organizations in developing countries for electrification programs will further drive the industry's growth.
 

Europe shell core transformer market has witnessed a growth rate of over 6.3% between 2023 and 2032 owing to the growing focus toward replacement of the existing electrical equipment with advanced high-quality systems. The transformer market in Europe is expected to grow due to the shifting trends towards energy-efficient technologies. The retrofitting industry in the transmission and distribution (T&D) sector is a key driver of transformer demand in the region. Siemens estimates that more than 60% of transformers in Europe have been in operation for over 25 years and require replacement. Europe has been at the forefront of renewable energy adoption and integration. Shell core transformers play a crucial role in efficiently converting and transmitting power generated from renewable sources such as wind and solar into the electrical grid. The growing emphasis on clean energy will drive the demand for shell core transformers in Europe.
 

Shell Core Transformer Market Share

Some of the key market players operating across the shell 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.
 

Shell Core Transformer Industry News:

• In October 2021, Prolec Transformers Inc, a subsidiary of GE acquired SPX Transformer Solutions Corporation. for strengthening its footprints in Americas and offering sustainable electric equipment to customers. The combined entities planned to support the evolution of advanced grids in the U.S. and other Americas by offering effective energy solutions.
   

Shell 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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By Product

• Distribution Transformer
• Power Transformer
• Others

By Winding

• Two Winding
• Auto-Transformer

By Cooling

• Dry Type
• Oil Immersed

By Insulation

• Gas
• Oil
• Solid
• Air
• Others

By Mounting

• Pad
• Pole
• Others

By Application

• Residential
• Commercial & Industrial
• Utility

The above information is 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