Transformer Market Size - By Core (Closed, Shell, Berry), By Product (Transformer, Power Transformer, Instrument Transformer), By Winding (Two Winding, Auto-Transformer), Cooling, Insulation, Rating, Mounting, Application & Forecast, 2024 – 2032

Transformer Market Size

Transformer Market was valued at USD 58.7 billion in 2023 and is expected grow at a CAGR of over 7% through 2032, due to the increasing electricity demand, urbanization, and modernization of power infrastructure. The primary factors include the global shift towards renewable energy sources, necessitating advanced transformer technologies to integrate renewable power into grids. Additionally, the rise in industrial activities and residential construction boosts the need for efficient power distribution systems.
 

Technological advancements, such as smart transformers, enhance energy efficiency and reliability, further propelling market expansion. Government initiatives and investments in upgrading aging electrical infrastructure also play a significant role. Emerging economies, particularly in Asia-Pacific, are witnessing rapid business growth due to their expanding industrial base and infrastructural developments.
 

Transformer Market Trends

The transformer industry is undergoing significant transformation, driven by various technological advancements, regulatory changes, and evolving energy demands. Smart transformers, equipped with sensors and communication technologies, are gaining traction. These transformers provide real-time monitoring and diagnostics, leading to improved grid reliability and efficiency. Digitalization allows for predictive maintenance, reducing downtime and operational costs. This trend aligns with the broader move towards smart grids and the Internet of Things (IoT) in the power sector.
 

Energy efficiency and sustainability are at the forefront of transformer market trends. There is a growing emphasis on reducing energy losses in transformers, which account for a significant portion of overall energy wastage in power systems. Advanced materials and designs, such as amorphous steel cores and high-efficiency insulation, are being adopted to enhance efficiency. Additionally, the market is seeing a shift towards eco-friendly transformer oils and materials to reduce environmental impact.
 

Transformer Market Analysis

Based on core, the shell segment is expected to cross USD 39.6 billion by 2032 since the shell-type transformers are known for their superior efficiency and better performance in reducing core losses. This efficiency is critical in meeting the growing demand for energy-efficient power distribution systems, aligning with global energy-saving initiatives and regulatory standards. The robust construction of shell-type transformers provides greater mechanical and short-circuit strength. This makes them highly reliable and suitable for applications where durability and operational stability are paramount, such as in industrial and utility sectors.
 

Based on product, the distribution transformers segment is anticipated to grow more than 8% CAGR through 2032, since the Governments worldwide are investing heavily in modernizing aging electrical infrastructure and expanding the grid to underserved areas. Policies and incentives aimed at enhancing energy efficiency and reducing carbon emissions also support the adoption of advanced distribution transformers. Distribution transformers are crucial in stepping down high voltage electricity from transmission lines to a level suitable for residential, commercial, and industrial use, making them essential for expanding power infrastructure.
 

Asia Pacific transformer market is likely to exceed USD 37 billion by 2032, due to experiencing significant urbanization and industrial growth, particularly in countries like China, India, and Southeast Asian nations. This growth necessitates robust power infrastructure to meet the increasing demand for electricity in urban and industrial areas. Governments in the region are investing heavily in upgrading and expanding power infrastructure. Policies aimed at rural electrification, grid modernization, and enhancing energy efficiency are boosting the demand for transformers.
 

The U.S. is a hub for technological innovation in the energy sector, including the development of advanced transformer technologies. American companies are at the forefront of producing high-efficiency, smart, and environmentally friendly transformers, setting benchmarks for the global market. The U.S. has an extensive and mature power infrastructure network that requires continuous upgrades and maintenance. The demand for modern, efficient transformers is driven by the need to replace aging infrastructure and ensure reliable power supply.
 

Transformer Market Share

Companies like ABB, Hitachi, Siemens, and General Electric lead the transformer industry due to their extensive experience, advanced technology, and comprehensive product portfolios. Their strong global presence, robust R&D capabilities, and ability to provide customized solutions cater to diverse industry needs. These companies have established reputations for reliability, quality, and innovation, enabling them to secure large contracts and maintain customer loyalty.
 

Transformer Market Companies

• ABB
• Celme S.r.l.
• ERMCO
• Elsewedy Electric
• Eaton Corporation
• General Electric
• Hitec Products, Inc.
• Hitachi Energy Ltd.
• Hammond Power Solutions
• HYOSUNG HEAVY INDUSTRIES
• Mitsubishi Electric Corporation
• ORMAZABAL
• Power Transformers, Inc.
• Siemens
• Toshiba Energy Systems & Solutions Corporation
• Voltamp
   

Transformer Industry News

• In April 2024, Hitachi Energy announced investments exceeding USD 1.5 billion to enhance its global transformer manufacturing capacity in response to rising demand and to support long-term electrification initiatives. These investments will gradually increase the company’s transformer capacity by 2027, building on the previously announced USD 3 billion aimed at advancing the electrification of the energy system, driven by the ongoing energy transition.
   
• In November 2023, Siemens revealed a USD 150 Mn investment in a new high-tech manufacturing facility in the Dallas-Fort Worth region to enhance American data centers and critical infrastructure. This plant will manufacture cutting-edge, reliable, and efficient electrical equipment, supporting the accelerated growth of U.S. data centers driven by the surge in generative AI adoption.
   

Transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million, ‘000 Units” from 2021 to 2032, for the following segments:

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Market, By Core

• Closed
• Shell
• Berry

Market, By Product

• Distribution transformer
  • ≤ 10 MVA
  • > 10 MVA to ≤ 100 MVA
  • > 100 MVA to ≤ 600 MVA
  • > 600 MVA
• Power Transformer
  • ≤ 10 MVA
  • > 10 MVA to ≤ 100 MVA
  • > 100 MVA to ≤ 600 MVA
  • > 600 MVA
• Instrument Transformer
  • ≤ 10 MVA
  • > 10 MVA to ≤ 100 MVA
  • > 100 MVA to ≤ 600 MVA
  • > 600 MVA
• Others
  • ≤ 10 MVA
  • > 10 MVA to ≤ 100 MVA
  • > 100 MVA to ≤ 600 MVA
  • > 600 MVA

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 countries across the regions:

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