Transformers Global Market Report 2024

The transformers market size has grown strongly in recent years. It will grow from $89.31 billion in 2023 to $95.32 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The growth observed in the historical period can be ascribed to the development of power infrastructure, industrialization and urbanization trends, expansion and upgrading of grids, integration of renewable energy, and the implementation of government initiatives and regulations.

The transformers market size is expected to see strong growth in the next few years. It will grow to $119.05 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. The anticipated growth in the forecast period can be associated with the increasing deployments of smart grids, initiatives towards electrification, integration of energy storage, upgrading to higher voltage levels, and concerns related to grid resilience and stability. Notable trends in the forecast period encompass the development of superconducting transformers to enhance efficiency, collaborative efforts for standardization and interoperability, investments in the upgrading and modernization of transformers, the adoption of advanced cooling systems for transformers, and the expansion of the medium and low voltage transformer markets.

The increasing demand for electric vehicles is expected to contribute significantly to the growth of the transformer market. Electric vehicles (EVs) are powered by motors that run on electricity stored in batteries, eliminating the need for traditional fossil fuels such as gasoline or diesel. These vehicles operate on electric motors and recharge their batteries using electricity. Charging stations, connected to the grid, require transformers to efficiently manage the power supply. For example, a May 2022 Global EV Outlook report indicated a substantial increase in electric vehicle sales. In 2021, EV sales doubled from the previous year, reaching a new high of 6.6 million units. The total sales of electric cars worldwide in 2021 amounted to 6,600,000 units, up from 2,980,000 units. This surge in demand for electric vehicles is a key factor propelling the growth of the transformers market, as the infrastructure supporting these vehicles requires efficient power distribution and management facilitated by transformers.

Countries worldwide are enacting various initiatives to enhance electrification efforts. For example, in September 2021, the U.S. Department of Agriculture revealed a $464 million investment aimed at constructing or enhancing renewable energy infrastructure to support rural communities. Additionally, in April 2021, the Indian Ministry of New and Renewable Energy launched the "National Programme on High-Efficiency Solar PV Modules" Production Linked Incentive Scheme with a budget of Rs. 4,500 crores to foster the production of high-efficiency solar PV modules. Hence, favorable government policies promoting electrification are expected to have a positive impact on the transformers market.

Market instability arises from the volatility in raw material prices such as steel, copper, and crude oil. Steel and copper are predominant materials in transformer manufacturing. Elevated tariffs on raw materials, such as steel and copper, intensify price fluctuations, thereby constraining the growth of the medium power transformers market. For instance, in October 2021, the United States and the European Union reached an agreement to lift U.S. tariffs of 25 percent on steel imports and 10 percent on aluminum imports from the EU. The resultant price increases lead to higher operating expenses, hindering market growth.

The transformers market is progressing toward the development of independent and self-regulating smart transformers. Smart transformers are designed to continually regulate voltage, maintain communication with stakeholders, and offer information and feedback on power supply. They deliver precisely the required amount of power, responding to fluctuations through voltage optimization. These transformers significantly reduce greenhouse gas emissions and power consumption by supplying electrical equipment with the optimal power amount. For instance, in 2021, the U.S. Department of Energy (DOE) allocated $20 million in funding for innovative research and development in artificial intelligence (A.I.) and machine learning. The DOE's Office of Electricity selected eight projects, receiving nearly $7 million in total, to explore the use of big data, artificial intelligence, and machine learning technologies for enhancing grid operation and management. Companies should consider investments in technologies for the production of smart transformers tailored for commercial establishments.

In March 2022, Spang Engineered Solutions (SES), a US-based company specializing in the design and manufacturing of inductors and transformers, acquired Wirebenders, Inc for an undisclosed amount. This strategic acquisition is aimed at expanding SES's market presence and enhancing its capabilities, particularly in the aerospace and defense industries. Wirebenders, Inc., the acquired company, is also based in the US and is known for manufacturing small transformers, high-frequency transformers, and inductors, including coaxial cable assemblies. Its product offerings cater to various industries, including aerospace, defense, and medical.

Major companies operating in the transformers market report are Performance Group Crompton Greaves Ltd., Hammond Power Solutions Inc., Hitachi Ltd., Siemens AG, Panasonic Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, ABB Ltd. , Toshiba Corporation, Eaton Corporation, Alstom Ltd., Emerson Electric Co., Murugappa Group, Bharat Heavy Electricals Limited, Mace Group Ltd., Daihen Corporation, Raychem RPG, SPX Corporation, Fortune Electric Co., Kirloskar Electric Company, Hyundai Heavy Industries Co. Ltd., General Electric Corporation, SGB-SMIT Group, RITZ Instrument Transformers GmbH, Schaffner Holding AG, Banmore Electricals Pvt. Ltd., TRENCH Group, KOTSONS Pvt. Ltd., IMEFY Group, Emco Ltd.

Asia-Pacific was the largest region in the transformers market in 2023. The regions covered in the transformers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transformers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories in the transformers market include low-rated transformers and high-rated transformers. Low-rated transformers are employed for transmitting power to the receiving end. Transmitting power at low voltage levels results in higher line current, contributing to increased line losses. Transformer types are further classified into power transformers and distribution transformers. These transformers operate in either single-phase or three-phase configurations. The diverse applications of transformers span residential and commercial use, utility services, and industrial settings.

The transformers market research report is one of a series of new reports that provides transformers market statistics, including transformers industry global market size, regional shares, competitors with a transformers market share, detailed transformers market segments, market trends, and opportunities, and any further data you may need to thrive in the transformers industry. This transformers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The transformers market consists of sales of low-rated transformers and high-rated transformers. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.