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

Transformer Market Size

The global transformer market was valued at USD 63.8 billion in 2024 and is set to grow at a CAGR of over 6.6% from 2025 to 2034. Large scale renewable integration of energy sources along with rising electrification programs mainly across the developing economies will strengthen the industry scenario. Positive government policies for restoration of prevailing grid infrastructure coupled with growing consumer focus toward smart monitoring units and sustainable electricity networks will facilitate the overall business growth.
 

Increasing regulatory focus towards the integration of energy efficient power supply systems along with ongoing adoption of smart grid technology will positively influence the industry dynamics. The industry has grown significantly owing to favorable regulatory initiatives that encourage the development of the current grid infrastructure and the growing demand for electricity. The regulators' main priorities, which evidently motivates the reforms & policies implemented, has been the supply of reasonably priced, continuous electricity.
 

Transformer Market Trends

Continuous efforts to develop the power grid have resulted in a significant expansion of the energy industry. Initiatives pertaining to grid energy storage, enhancement of smart grid, and advanced technology research will be crucial in determining the direction of the sector.
 

The rising demand for cutting-edge products in the power industry will also benefit from the penetration of interactive capabilities, including adaptive networks, and intelligent control & communication systems. Major advancements in smart technologies & grid modernization, resulting in more resilient, reliable, & modern electrical infrastructure. In particular, the use of solid-state transformers and power flow controllers will enhance grid stability and power transfer.
 

The increasing concerns regarding greenhouse gas emission and the enforcement of strict energy-efficiency policies has stimulated the business environment for renewable energy. Due to further adoption of sustainable technologies, micro-grid networks have grown significantly, which supports the grid connection of renewable energy sources.
 

The deployment of renewable energy sources seems to progress quite rapidly due to the new legislation that aim to create a sustainable energy mix across Europe. In Europe, regulators have enacted schemes that provide bonus payments, feed-in tariffs, grant, and subsidies to promote the use of clean energy. Policies of this nature that foster the use of renewable energy are likely to fuel the regional revenue.
 

Transformer Market Analysis

• The global market for transformers reached USD 54 billion, USD 58.8 billion, and USD 63.8 billion in 2022, 2023, and 2024 respectively. Stringent government policies toward rural electrification along with growing concern toward minimizing power theft will foster the closed core transformer industry size. Increasing applicability of these units across low & medium power grid networks coupled with rising digital transformation of power utilities is set to augment the business landscape.
   

• The shell core segment across the transformer market is set to grow at a CAGR of over 6% through 2034. The technology, in the recent years have gained appreciable market penetration owing to improved efficiencies and economical cost structure when compared to the conventional closed core units. Furthermore, the high-end product flexibility coupled with the integration of smart monitoring unit have proliferated the product demand.
   
• Berry core transformer market in 2024, was valued over USD 17 billion. These units are typically deployed in lower-power applications, making them suitable for residential and small commercial settings. With rising urbanization and electrification, particularly in developing countries, there’s an increasing demand for transformers that support localized power needs effectively.
   

• Based on product, the transformer market is segmented into distribution transformer, power transformer, instrument transformers and others, where distribution transformer held approximately 51.8% revenue share in 2024. Accruing energy security concerns coupled with exponentially rising energy consumption across the developing economies will fuel the distribution transformer industry share.
   
• Escalating infrastructural spending supported by favorable norms pertaining to the refurbishment and expansion of existing grid networks have instilled an upsurge the demand for power transformers. Rapid urbanization along with ongoing industrial expansion across the developing economies will further augment business growth. Increasing demand for the upgradation and replacement of aging electric network across the North America & Europe region have instituted a favorable industrial scenario.
   
• The instrument transformer market is projected to grow significantly at a CAGR of over 6% from 2025 to 2034. The rise in industrial & commercial activities creates a greater need for power monitoring and control, thus driving the demand for instrument transformers. The oil and gas, manufacturing, utilities, and other industry sectors require high precision and reliability. Moreover, regulatory requirements on safety and accuracy of power monitoring across grids and industries are further increasing the adoption of instrument transformers.
   

• The U.S. transformer market size exceeded USD 10.4 billion, USD 11.3 billion and USD 12.2 billion in 2022, 2023 and 2024 respectively. The growing focus toward replacement of the existing electrical equipment with advanced high-quality systems will further fuel the product demand. Moreover, the U.S. government has introduced policies and incentive schemes with an aim to integrate sustainable resources and improve the conventional electrical networks across the rural areas.
   
• Shifting trends toward energy-efficient technologies will drive the transformer market size in Europe. T&D retrofitting industry plays a vital role in raising the transformer demand across the region. According to Siemens, over 60% of the transformers in the region have been operating for over 25 years and need to be replaced. The rising electricity demand will significantly impact the investments in Europe T&D retrofitting industry, which will also influence the market size in the coming years.
   
• Asia Pacific transformer market in 2024 was valued over USD 20 billion and is projected to grow at CAGR of over 5% through 2034. Increasing T&D infrastructural spending toward the development of long-distance electricity networks along with shifting trends toward deployment of energy-efficient technologies will augment the business landscape. Ongoing refurbishment of conventional grid infrastructure favored by digitalization of power utilities is set to fuel the product demand.
   
• Expanding industrial and economic diversification under Saudi Vision 2030 is driving transformer demand across new industrial zones, business hubs, and infrastructure projects. Along with this advancement, reliable power distribution is necessary to cater to the ever-increasing industrial and commercial activities in the Middle East region. The Oil & Gas as well as petrochemical industry sector across the region that are energy- dependent and robust transformers are required to ensure operational stability.
   

Transformer Market Share

In the transformer industry, key manufacturers are focusing on the technological advancements along with partnerships and acquisitions to meet the predominant competition in the industry. The industry manufacturers laying importance on economies of scale and forward integration for nourishing quality standards are strengthening the overall industry. Market players including Siemens, Schneider, General Electric, Eaton, and Mitsubishi Electric are the top 5 companies in the market.
 

The key players hold nearly 40% of the overall transformer market share. Among these, General Electric is one of the leaders in the market. Owing to its efficient product portfolio, wider regional presence and smooth supply network for raw material procurement. As the digitalization and refurbishment across the existing grid keeps growing, especially in developing countries including China, and India the transformer demand will witness positive growth.
 

Transformer Market Companies

• General Electric (GE) has a significant market share in the transformer industry. In 2023, GE's total revenue was USD 67.95 billion, with USD 1.90 billion going toward research and development (R&D) to create better products. In 2023, Amprion GmbH awarded a contract to GE Vernova's Grid Solutions division for the delivery of 12 400 kV power transformers.
   
• Siemens Energy is investing heavily in the improved and more optimized electrical infrastructure and intends to maintain its position in the transformer sector. The company introduced its plans to erect the first LPT facility in Charlotte, North Carolina, U.S., in 2024. With this investment of USD 150 million, the company seeks to strengthen and enhance the US electric grid which procures over 80% of its large power transformers from foreign markets.
   
• Schneider Electric's new products and services make a significant contribution to the development of the electric grid. The company generated about USD 29 billion of revenue while allocating USD 140 million to expand its operations in U.S. manufacturing facilities. In addition, it further cleared that out of the allocated budget, USD 85 million would be used to upgrade its current manufacturing site in Smyrna, Tennessee, and equip and develop a 500,000 square foot facility in Mt. Juliet, Tennessee.
   

Transformer Industry News

• General Electric expanded its Power Transmission Services network in 2024 with new units in UK, UAE, Mexico, India, and China. These additions accompanied by existing service expert shops in Europe, Turkey, and Canada will provide a comprehensive support for high voltage switchgears and transformers, including spare parts, maintenance, and modernization. This expansion enabled efficient, local access to repairs and emergency services, optimizing the installed base with expertise from a global leader.
   
• In October 2024, IMEFY Group secured an 8-year contract with Enedis, France's leading energy distribution company, for the supply of over 12,000 oil and resin-based transformers. This milestone strengthened IMEFY’s footprint in the French market and deepened its collaboration with Enedis, a company committed to modernizing sustainable energy infrastructure. The agreement reinforced IMEFY’s dedication to innovation and energy-efficient solutions for powering millions of homes and businesses in France.
   
• In July 2024, Hyosung Heavy Industries secured a USD 240 million contract to supply 420 kV high-voltage transformers to Norway’s Statnett. The project aimed to enhance renewable energy infrastructure and replace aging facilities by 2029. Featuring advanced technology, the transformers are designed for efficient energy transmission over long distances while reducing energy loss. Moreover, Hyosung’s expertise in the design and installation of transformers was a key factor in securing the contract.
   
• In July 2024, CG Power announced a USD 78 billion investment to complete its capacity expansion within 18 months, focusing on scaling up production for transformers, motors, and switchgears. The company also ventured into semiconductor manufacturing and initiated development of an Outsourced Assembly and Testing (OSAT) facility in Gujarat, reinforcing its strategic growth in high-demand sectors.
   

This transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” and “000 Units” from 2021 to 2034, for the following segments:

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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
  • Self-Air
  • Air Blast
• Oil Immersed
  • Self-cooled
  • Water cooled
  • Forced Oil
  • Others

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 regions and country:

• 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