Transformer Market Report 2026

The transformer market size has grown strongly in recent years. It will grow from $78.29 billion in 2025 to $82.23 billion in 2026 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to rising electricity demand, expansion of urban infrastructure, industrialization in emerging economies, adoption of high-voltage transmission lines, development of conventional energy generation plants.

The transformer market size is expected to see strong growth in the next few years. It will grow to $102.46 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to renewable energy integration, smart grid deployment, electrification of transportation, increased automation in manufacturing, government incentives for energy efficiency. Major trends in the forecast period include advanced transformer materials, smart grid integration, energy efficiency optimization, predictive maintenance & monitoring, compact & modular designs.

The increasing consumption of electricity is expected to drive the growth of the transformer market going forward. Electricity consumption refers to the total amount of electrical energy used across residential, commercial, and industrial sectors, and it rises significantly with the electrification of transportation, heating, and digital infrastructure. The growing demand for electricity is driven by the expanding use of electric vehicles, ongoing urbanization, and the rising reliance on energy-intensive technologies. Transformers are essential for maintaining reliable power distribution and ensuring grid stability to support this increasing demand. For example, in July 2023, according to the International Energy Agency (IEA), an Austria-based organization, net electricity output reached 980.6 TWh, marking a 13.5% increase compared to the same month in the previous year. Therefore, rising electricity consumption is fueling the growth of the transformer market.

Major companies in the transformer market are prioritizing the development of innovative products, such as copolymer cast resin instrument transformers, to deliver reliable performance for outdoor applications. Copolymer cast resin instrument transformers use insulation materials suitable for challenging outdoor environments. For instance, in June 2023, Straton Electricals Pvt. Ltd., an India-based transformer manufacturer, introduced copolymer cast resin instrument transformers. These transformers are engineered to withstand extreme temperature fluctuations and harsh environmental conditions. They utilize casting materials such as cycloaliphatic epoxy resin, which offers excellent insulation properties and strong resistance to moisture, chemicals, and other environmental factors.

In August 2024, Integrated Power Services (IPS), a U.S.-based provider of electromechanical, rotating equipment, and power distribution systems, acquired B & B Transformer for an undisclosed amount. This acquisition aims to strengthen IPS’s power management portfolio, enhancing its capability to offer comprehensive solutions across various industries. B & B Transformer is a U.S.-based transformer manufacturing company.

Major companies operating in the transformer market are ABB, General Electric, Schneider Electric, Mitsubishi Electric, Toshiba Corporation, Siemens Energy, SGB-SMIT Group, Hammond Power Solutions, Hitachi Energy, Eaton Corporation, SPX Corporation, Kirloskar Electric Company, RITZ Instrument Transformers, TBEA Co., Ltd., Jefferson Electric, Fortune Electric Co., Ltd., EFACEC, Fuji Electric Co., Ltd., Hyosung Corporation, HyundAI Electric & Energy Systems, JSHP Transformers, Bharat Heavy Electricals Limited, CG Power and Industrial Solutions Limited, Crompton Greaves Limited, Delta Star, Inc., Emerson Electric Co., Howard Industries, Inc., HyundAI Heavy Industries Co., Ltd., Pacific Transformer Corporation.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the transformer market by increasing import costs for raw materials and components, creating higher production expenses for manufacturers. The impact is most significant in high-rated transformers and power transformers segments, particularly in regions like North America and Europe that rely on imported steel and copper. While tariffs have led to temporary supply chain disruptions, they have also encouraged local manufacturing investments and innovation in cost-efficient transformer technologies, providing some positive outcomes for regional markets.

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.

A transformer serves as a device for transferring energy from one electrical circuit to another. It accomplishes this by either increasing or decreasing voltage and current levels, adjusting capacitor values, blocking the passage of direct current between two circuits, and isolating the circuits from each other. Transformers play a crucial role in the production of power, distribution of electricity, and in specialized transformer applications.

The primary categories of transformers include power transformers and distribution transformers. Power transformers are specifically designed for transferring electrical energy between the generator and the primary circuits in distribution systems. These transformers facilitate the transition between higher and lower voltage levels in the distribution network. They come in two main variants: low-rated transformers and high-rated transformers. These transformers are used by a wide range of consumers, including utility companies, residential households, commercial establishments, and industrial facilities.Asia-Pacific was the largest region in the transformers market in 2025. Western Europe was the second-largest region in the transformer market analysis. The regions covered in the transformer market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transformer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The transformer market consists of sales of instrument transformers, medium-power transformers, and other types. 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.

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