Two Winding Air Insulated Transformer Market Size - By Rating, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Two Winding Air Insulated Transformer Market Size

The global two winding air insulated transformer market was estimated at USD 2.7 billion in 2024. The market is expected to USD 4.4 billion in 2034, at a CAGR of 4.9%. Continuous innovations are improving the efficiency, reliability, and performance of air insulated transformers. Advancements include better insulation materials, enhanced cooling systems, and improved design techniques to optimize energy efficiency and reduce losses. With a global shift to greener energy, there is an increasing demand for two winding air insulated transformers that are used in the integration of renewables such as wind and solar energy.
 

Furthermore, the objective of minimization in carbon waste is likely to increase investment potential by different countries in the renewable energy sector, leading to increased demand for two-winding air insulated transformers. Electric vehicles (EVs) achieved a 29.4% market penetration in the UK automobile sector during Q3 of 2024, up from 23.4% the previous year. The share of battery electric vehicles (BEV) was considerable at 20.5%, while Plug-in Electric Hybrid Vehicles (PHEV) made up the remaining 8.9%.
 

Furthermore, the drop in EV prices in other European nations such as Germany also increases the demand for EVs. With EV adoption on the rise, charging stations are being constructed at a greater pace. Two-winding air insulated transformers are used in the EV charging infrastructure to ensure reliable power delivery for the grid, enhance its reliability, and support intelligent energy solutions.
 

The demand for energy continues to increase, particularly for electricity, alongside the growth in population. The construction of several power distribution infrastructures is underway as a result of growing energy consumption. For instance, in 2023, construction had commenced for the NeuConnect submarine power cable, a high voltage direct current cable, which will link England's Isle of Grain with Germany's Wilhelmshaven. The power cable is expected to be functional by 2028, becoming the first interconnector between the UK and Germany with a capacity of 1,400MW. The load is managed by two winding air insulated transformers which contain the overheating and energy losses, and these new transformer designs can even be installed in cities where space is limited.
 

Two Winding Air Insulated Transformer Market Trends

The demand for effective energy management from EVs, renewable energy and other sectors has greatly boosted the positive growth trajectory of the two winding air insulated transformer. With such positive growth, there comes new innovations and initiatives in the industry such as smart air insulated transformers, solid insulation transformers and sustainable air insulated transformers. The technology automates energy consumption Smart transformers perform energy monitoring functions while actively identifying malfunctions, such as irregular voltages or electrical overloads, which threaten the functionality of the grid. These advanced solid insulation transformers are safer and more durable than traditional transformers, utilizing epoxy resin or ceramic composites as insulating materials.
 

To protect the environment and reduce the carbon footprint, these two winding transformers incorporated use of renewable energy. Such as, the use of recyclable materials in the creation of two winding air insulated. The initiative proves to be economically viable owing to the reduction of expenses for the newly targeted materials. Likewise, the adoption of sustainable materials for sensors in two winding air insulated systems enhances overall sustainability. A great number of businesses dealing with the manufacturing of sensors are developing either coreless sensors or lightweight sensors in an effort to lower energy and subsequently the cost of the sensors. These efforts raise the market need for two winding air insulated.
 

In addition, the emerging smart grids and smart meters are expected to increase the need for two winding air insulated transformers to monitor the energy usage. For example, the adoption of smart meters in the European countries is forecasted to increase from 58% – 62% in 2023 to 76% – 80% in 2028 leading to over 300 million smart meter installations across Europe by 2028. It has been noted that the region registered an increase of approximately 3% – 5% in the usage of smart meters from 2022 to 2023, with estimates showing that the total deployed smart meters will exceed 180 million by the end of 2023.
 

Two Winding Air Insulated Transformer Market Analysis

The Two winding air insulated transformer industry reached USD 2.4 billion, USD 2.5 billion and USD 2.7 billion in 2022, 2023 and 2024 respectively.  
 

• The rising upgradation of power grid and automation of energy flow demand for two winding air insulated transformers, especially higher rating range is rising. In addition, owing to its closed and compact design it avoids any energy losses and is ideal choice for small spaces.
   
• Furthermore, rising shift towards renewable energy also increasing demand for two winding air insulated transformer in modern grids. For instance, in 2023, the European Commission announced the revision of the Renewable Energy Directive. The revised directory increases he EU's mandatory renewable energy goal from 32% to at least 42.5% for 2030, with the optimistic objective to reach 45%.
   
• Wherein, small and medium rating two winding air insulated transformers are simple and smaller designed and are cost-effective that are ideal choice for compact spaces. Thus, these two winding air insulated transformers are ideal for EV infrastructure and industrial & commercial uses. Increasing industrial output across the world will boost the demand for two winding air insulated transformers in forecast period.
   

The two winding air insulated transformer market by application is segmented into residential, commercial & industrial and utility. The utility segment accounted for over 39.3% market share in 2024.
 

• Rising industrialization and upgradation of aging grids into modern grid and favorable government initiatives will also increase the demand for two winding air insulated transformer segment. For instance, in January 2025, industrial output in European area grew by 0.8% crossing the estimation of 0.6% growth.
   
• Furthermore, rising energy demand and simultaneously expansion of transmission networking are rising demand for constant battery backup system integrated into the power grid. This increases demand for two winding air insulated transformer especially in substations and offshore networks.
   
• For instance, in January 2025, the UK energy regulator Ofgem approved funding of USD 2.5 billion for around 200 kilometers worth of new subsea and underground cables linking Scotland and the northeast of England. Construction is set to start in 2025 and complete by 2029. The project claims to power over 2 million homes and save consumers more than USD 850 million yearly.
   
• Due to rise in introduction of EV charging points owing to rising adoption of ecologically friendly transportation and supportive government policies in the field, the two winding air insulated transformer market is expected to witness higher demand for EV charging use.
   
• For instance, by August 2024, Europe had more than 306,000 public EV charging points spread throughout 86,000 stations. The European Commission intends to deploy 3.5 million charging points by 2030, which requires the additional installation of roughly 410,000 public charging points every year.
   

• The U.S. two winding air insulated transformer market reached USD 259.3 million, USD 276.2 million and USD 292.7 million in 2022, 2023 and 2024 respectively. Rising EV sales and higher adoption of renewable energy across the continent the demand for two winding air insulated transformers for power grid and EV infrastructure in U.S. will rise spontaneously. For instance, in January 2025, U.S. recorded more than 100,000 new EV sales, accounting over 29.5% year on year growth.
   
• Similarly, favorable national policies pertaining to energy efficiency and investment into the adoption of smart grids is increasing the need for advanced two winding air insulated transformers in Europe for power grids.
   
• For instance, in December 2024, in December 2024, SSE, ScottishPower and the National Grid energy companies based in Great Britain published their proposed capital expenditures which exceed USD 77 billion for the period 2026-2031. This fund is intended to enhance and extend the electricity infrastructure resources needed to support the transition from conventional fuels to cleaner sources of energy, which is expected to create approximately 100,000 job opportunities.
   

Two Winding Air Insulated Transformer Market Share

Top 5 companies including Hitachi Energy, Eaton, General Electric, Siemens and Schneider Electric held a market share of over 40% in 2024. Numerous participants are active in the two winding air insulated transformer industry and are striving towards developing economical portable LFP batteries with a wide volt range.
 

Among these companies, Hitachi Energy is one of the most competitive shareholding company in the two winding air insulated transformer market. With its extensive range of products and geological clientele, along with strategic client partnerships that enable the firm to provide advanced two winding air insulated transformers alongside standard solutions, this company dominates the market. The demand for two winding air insulated transformers is expected to increase with the growth of the renewable energy and electric vehicle industries, especially in German and UK regions.
 

In addition, supportive government policies for the rest of the developing and developed world, combined with inexpensive labor, bring prices of two winding air insulated transformers down greatly, thus assisting a strong demand in the market among the lower-end cost-sensitive consumers. Other major companies, including Eaton, General Electric, Siemens, and Schneider Electric, are also set to capture a considerable portion of this market, particularly among the low-cost energy supplying and EV serving segments.
 

Two Winding Air Insulated Transformer Market Companies

• Hitachi Energy headquartered in Zurich, Switzerland, is an automation and power technology company. This firm has a notable assortment of transformers manufactured for automation and power technologies. The company generated more than USD 80 billion annual revenue in 2023.
   
• Eaton a multinational firm established in Ireland, reported an estimated USD 25 billion in revenue for 2023. The firm is undertaking a variety of organic strategic initiatives to expand its customer base and capture potential growth revenue in the coming years.
   
• General Electric is a US multinational corporation known for their business aviation, renewable energy and power. Out of their extensive range of services, the company’s revenue grew from USD 58 billion to USD 68 billion in 2023 earning them an additional 17% of income. Currently, the firm has been focusing on electrical equipment for utility sites, engaging alongside numerous power grids to enable efficient partnerships.
   
• Siemens a Germany based multinational company that specializes in developing technology and services for energy production, automation, and digitization. The company has also reported and estimated revenue of 83 billion USD in 2023. Moreover the company is working with other conglomerates in the industry to increase the supply and ease the global constraints.
   
• Schneider Electric is a French multinational corporation that reported roughly USD 39 billion in revenue for 2023. The company is currently augmenting mass production for electrical equipment necessary for the energy transition process.
   

Some of the key players operating across the two winding air insulated transformer market are:

• ARTECHE
• Celme
• CG Power & Industrial Solutions
• DAIHEN Corporation
• Eaton
• Elsewedy Electric
• General Electric
• Hitachi Energy
• Hyosung Heavy Industries
• IMEFY GROUP
• Kirloskar Electric Company
• Mitsubishi Electric Corporation
• Ormazabal
• Pfiffner Group
• Schneider Electric
• Siemens Energy
• Toshiba International Corporation
• Trench Group
   

Two Winding Air Insulated Transformer Industry News

• In January 2025, Efacec signed an agreement with German energy provider EnBW. The agreement includes the supply of thousands of distribution transformers from 2024 through the end of 2028. The contract anticipates the deployment of more than 2,600 distribution transformers over the next five years which has a possible worth of over USD 10 million.
   
• In January 2025, Hitachi Energy announced an investment plan worth over USD 30 million for the expansion and relocation of its dry-type transformer plant in Zaragoza, Spain, to a more modern facility at the Zaragoza Logistics Platform. The new factory has a projected completion date of 2026, which encourages increased production capacity, job creation, increasing the focus on quality, and innovation, and improving sustainability.
   
• In June 2024, Schneider Electric announced the launch of EcoStruxure Transformer Expert service in the UK and Ireland, which aims to extend the life of oil transformers while reducing the time they spend out of operation.
   
• In September 2024, the Danish technological company Hans Folsgaard entered an agreement with the power transformer manufacturer, Koncar who won a tender for distribution transformers for a grid expansion project in eastern Denmark. Under the current contract, the company is obligated to deliver approximately four hundred high efficiency distribution transformers each year during the period from January twenty-five to twenty-nine.
   

The two winding air insulated transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue and volume (USD Million and Units) from 2021 to 2034, for the following segments:

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Market, By Rating

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

Market, By Application

• Residential
• Commercial & Industrial
• Utility

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
  • South Africa
• Latin America
  • Brazil
  • Argentina