India Transformers Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The India transformers market size reached around USD 2.24 Billion in 2024. The market is projected to grow at a CAGR of 7.60% between 2025 and 2034 to reach nearly USD 4.66 Billion by 2034. The market growth can be attributed to increasing government initiatives to modernise existing power infrastructure and the ongoing development of new metro rail networks. Besides, the increasing production of green transformers and greater emphasis on the use of prime-grade CRGO steel are expected to favourably influence the market growth over the forecast period.

India Transformers Market Summary

Market Size 2024

• USD Billion 2.24

Market Size 2034

• USD Billion 4.66
• CAGR 2025-2034
• 7.60%

CAGR 2025-2034 - Market by Region

• East India
• 8.7%

CAGR 2025-2034 - Market by Region

• West and Central India
• 8.1%

CAGR 2025-2034 - Market by Application

Commercial and Residential

• 8.3%

CAGR 2025-2034 - Market by Power Rating

Medium Power Transformers (10 MVA to 100 MVA)

• 8.0%

Market Share by Region 2024

• South India
• 21.4%

India Transformers Market Growth

In FY 2024, India imported 239.2 thousand tons of CRGO (Cold-Rolled Grain-Oriented) steel, which is extensively used in the production of distribution transformers. Distribution transformers face the highest failure rate worldwide due to inadequate infrastructure capacity and poor installation processes. India annually produces 50,000 tons of CGRO steel. However, it has an annual requirement of 40,000 tons of steel, which is met through imports from China, South Korea, Russia, and Japan. As the supply of raw materials to small and medium size enterprises improves, the India transformers market expansion is expected to rise in the coming years.

The Indian government is expected to create a favourable environment for CRGO steel production by providing tax incentives to market players. The construction of a CRGO production facility requires around USD 400-600 of investment and can take 3-5 years for completion. As supply improves, the India transformers market value is expected to rise significantly. Moreover, the introduction of star-label upgrades by the Bureau of Energy Efficiency to improve the performance of distribution transformers (effective from January 1 st, 2025) is creating a favourable market outlook. As India aims to integrate 500 GW of green energy into its electricity grid by 2030, the market revenue is expected to increase significantly, as transformers are extensively used for transferring electrical energy between different circuits via electromagnetic induction.

Key Trends and Developments

Rising demand for dry type transformers; shift towards international manufacturing standards; government emphasis on prime grade CRGO steel; and increasing production of green transformers are the major factors driving the India transformers market growth.

October 2024

Hitachi Energy announced its decision to invest INR 2,000 crore over the next 5 years in India to increase its transformer production capacity, including dry, power, and traction types. It is also expected to expand its high-voltage direct current (HVDC) systems to minimise power losses during long-distance electricity transmission. This strategic initiative can bolster India’s local manufacturing ecosystem and enhance its vision for achieving self-reliance in the energy sector.

July 2024

Toshiba Transmission & Distribution Systems (India) Pvt Ltd (TTDI) announced its decision to increase its power/distribution transformer production capacity by 1.5 times from FY 2023 over FY 2024-26 with an investment of INR 500 crore. This can enhance its competitiveness substantially and support the growth of the domestic energy industry. This is creating a favourable India transformers market outlook.

November 2023

Power Grid Corporation of India awarded a contract worth GE T&D India worth INR 500 crore for supplying shunt reactors and 765 kV power transformers for various projects across India. This collaboration is aimed at strengthening India’s power transmission infrastructure and managing any voltage fluctuations effectively.

March 2021

Hitachi ABB Power Grids obtained orders worth USD 23 million from the Indian government to provide transformers for electric freight locomotives operating for Indian Railways, thereby contributing to its modernisation. This is in alignment with the government’s plan of reducing the carbon emissions to zero by 2030.

Rising demand for dry type transformers

Rapid industrialisation and urbanisation, growth of steel production industry, and increasing establishment of data centres are leading to a higher demand for dry type transformers in India. These require less maintenance, are relatively safer and power-efficient, and reduce the risk of fire breakout in confined spaces.

Shift towards international manufacturing standards

BIS rating for transformers has evolved rapidly in recent times, which has increased time and cost pressure on manufacturers due to a lack of an adequate number of certification labs. Over the forecast period, manufacturers are expected to shift towards manufacturing transformers for Indian applications as per international standards, thereby driving India transformers market expansion.

Government emphasis on prime grade CRGO steel

Market players with access to prime grade CRGO steel can obtain special government incentives for ease of doing business in India since it has a significant impact on transformers’ quality and helps lower power losses.

Increasing production of green transformers

Green transformers are produced from bio-based ester oils, eco-friendly plastics, acrylic adhesives, glass-fibre-reinforced paper, and dry insulation systems. They are comparatively more durable and energy efficient than other transformers, which is boosting their appeal.

India Transformers Market Trends

The strengthening of government regulations surrounding the energy performance of transformers and the push for sustainable energy solutions, smart grids, and renewable power generation have necessitated the adoption of energy-efficient transformers across various industrial applications. These facilitate a substantial reduction in operational costs, enhance system reliability, and support green energy initiatives. Thus, India transformers market expansion is being driven by the introduction of innovative designs and advanced technologies of transformers that can successfully meet the evolving demands of consumers.

The National Industrial Corridor Development Program aims to create a necklace of 12 industrial smart cities along the backbone of India’s Golden Quadrilateral network. It is expected to attract net investments worth INR 1.5 lakh crore-28, 602 crore and incorporate the latest concepts of urban planning, such as 'plug-n-play'. By spurring regional economic development, these industrial cities across 6 corridors and 10 states are expected to revolutionise Indian economic growth. This is expected to fuel the market development in the upcoming years.

India Transformers Industry Segmentation

The report titled “India Transformers Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Type

• Power Transformers
• Distribution Transformers
• Instrument Transformers
• Current Transformers
• Voltage Transformers

Breakup by Power Rating

• Small Power Transformers (Up to 10 MVA)
• Medium Power Transformers (10 MVA to 100 MVA)
• Large Power Transformers (Above 100 MVA)

Breakup by Cooling Type

• Air Cooled
• Oil Cooled

Breakup by Insulation

• Dry
• Liquid
• Immersed

Breakup by Number of Phase

• Three Phase
• Single Phase

Breakup by Application

• Utility
• Industrial
• Commercial and Residential

Breakup by Region

• East India
• West and Central India
• North India
• South India

India Transformers Market Share

Based on region, the market is segmented into East India, West and Central India, North India, and South India. Over the forecast period of 2025-2034, the market for transformers in East India is expected to grow at a CAGR of 8.7% amid rapid infrastructural development activities and increasing investments in rural electrification and industrial expansion.

As per the India transformers market analysis, West and Central India, meanwhile, is estimated to grow at a CAGR of 8.1% between 2025 and 2034 amid rapid industrialisation, increasing infrastructural development activities in cities like Pune, Mumbai, Surat, and Ahmedabad, and surging production of renewable energy.

CAGR 2025-2034 - Market by

• Region
• East India
• 8.7%
• West and Central India
• 8.1%
• North India
• South India

Leading Companies in the India Transformers Market

Major players are expanding their in-house testing capabilities for high-quality transformers to reduce their dependence on European labs. Moreover, they are making substantial investments in the development of sustainable and smart transformers that can support smart grid systems. This can increase the India transformers market revenue. As companies bolster their service capabilities to meet the burgeoning demand from the power distribution sector, the market is expected to witness significant growth.

Bharat Heavy Electricals Limited

Bharat Heavy Electricals Limited was founded in 1964 and is headquartered in New Delhi. It is one of the world’s leading manufacturers of power equipment products, with a network of 16 manufacturing facilities and 8 service centres.

Transformers and Rectifiers (India) Ltd.

Transformers and Rectifiers (India) Ltd. was founded in 1994 and is headquartered in Ahmedabad, Gujarat. It is India’s 3rd largest transformer manufacturer with a total installed capacity of around 36000 MVA.

Kirloskar Electric Company Ltd.

Kirloskar Electric Company Ltd. was founded in 1946 and is headquartered in Bangalore, Karnataka. It produces over 70 different products under 8 categories to cater to the requirements of the power generation, transportation, transmission and distribution, and renewable energy sectors.

Crompton Greaves Consumer Electricals Ltd.

Crompton Greaves Consumer Electricals Ltd. was founded in 1937 and is headquartered in Mumbai, Maharashtra. It is engaged in manufacturing and marketing a wide range of consumer products, including LED lighting products, water heaters, pumps, and transformers.

Other players included in the India transformers market report are ABB Ltd., Siemens AG, Voltamp Transformers Limited, and GE Grid Solutions, LLC, among others.