Power Transformer Market Report and Forecast 2025-2034

The global power transformer market reached approximately USD 30.97 Billion in 2024. The market is estimated to grow at a CAGR of 6.80% in the forecast period of 2025-2034, reaching a value of around USD 59.79 Billion by 2034.

Power Transformer Market Growth

A power transformer is an electrical device which is used to transfer the electric energy between two circuits through an electromagnetic induction process. Some of its primary functions include changing voltage levels and reducing power loss during distribution and transmission, among others.

The primary driver supporting power transformer market expansion is the growing demand for electricity, which is fuelled by rapid industrialisation and urbanisation in emerging economies. As per industry reports, India's electricity consumption grew nearly 8% to about 847 billion units in the first half of 2023. Additionally, the need for grid expansion and upgradation to meet increasing electricity demand is a significant driver.

Key Trends and Developments

Integration of renewable energy sources, rising electricity consumption, and increasing demand for reliable power supply in industries are factors providing a positive power transformer market outlook

June 2024

Punjab’s Finance Minister Harpal Singh Cheema announced spending of INR 22.12 crore to provide uninterrupted and reliable power supply to the people of Punjab. The project includes constructing new 66 KV grids, augmenting existing power transformers, and constructing new 66 KV lines.

June 2024

The Tamil Nadu Generation and Distribution Corporation (Tangedco) has proposed to improve the distribution network in the Cooks Road substation to address low voltage issues in Jamalia. The aims to resolve the frequent power disruptions faced by residents during summer months.

June 2024

Dakshin Haryana Bijli Vitran Nigam (DHBVN) has installed 20 new transformers with a capacity of 200 KV to meet the rising power demand. The district has seen a significant increase in power consumption due to the use of air conditioners during the heat wave.

March 2024

The National Renewable Energy Laboratory (NREL) in a study revealed the demand for these transformers could increase by 160% to 260% by 2050 compared to 2021 levels. This is due to the need to electrify buildings and transportation and address the impact of extreme weather events on the grid.

February 2024

Siemens Energy announced plans to produce transformers in the US to meet growing electricity demand. The company will invest USD 150 million to expand its power manufacturing facility in Charlotte, North Carolina, and will generate 600 local jobs.

Integration of renewable energy sources

The integration of renewable energy sources such as solar and wind power into the grid is a significant trend as it results in power transformer market development by creating a demand for advanced transformers with high-voltage direct current (HVDC) capability and energy storage integration.

Govt’s focus on efficiency and sustainability

Favourable government incentives and policies that are aimed at promoting the use of energy-efficient power transformers that can conserve energy and reduce electricity costs also provide impetus to the market’s growth.

Rising use of smart grids and automation

Increased deployment of smart power transformers, which can collect and analyse real-time data from the grid, predict potential issues, provide timely maintenance, and prevent system failure, is another crucial trend aiding the power transformer market growth.

Increasing demand for reliable power supply in industries

Technological advancements in materials science, cooling technologies, and digital design tools are transforming the manufacturing processes of power transformers. Advanced transformers are particularly used in manufacturing and mining industries, where reliable power supply is necessary.

Power Transformer Market Trends

Growing applications of power transformers in the transmission and distribution of electricity generated by renewable energy sources such as solar and wind power is one of the prominent trends in the market. Several grid infrastructures are leveraging transformers to effectively use renewable energy for achieving a carbon-neutral future. The International Energy Agency also forecasted that low carbon emission energy sources (wind, solar, nuclear, and hydro) will account for almost 50% of global power sources by 2026. This shift towards renewable energy sources necessitates the integration of power transformers into the existing electrical grid to facilitate efficient transmission and distribution of electricity.

Power Transformer Industry Segmentation

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

Market Breakup by Core Type

• Closed
• Shell
• Berry

Market Breakup by Insulation Type

• Gas
• Oil
• Solid
• Air
• Other

Market Breakup by Phase

• Single
• Three

Market Breakup by Rating

• 100 MVA to 500 MVA
• 501 MVA to 800 MVA
• Above 800 MVA

Market Breakup by Application

• Residential and Commercial
• Utilities
• Industrial

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Power Transformer Market Share

Shell core segment dominates the market, driven by its cost-effectiveness, design flexibility, and performance characteristics

Shell core transformers hold substantial share of the market as these transformers feature a square or rectangular cross-sectional core, which makes them more cost-effective to manufacture. Shell core transformers are widely used in low-voltage and high-output applications due to their efficient cooling system, design flexibility, high seismic withstanding ability, and high short-circuit strength.

Closed core transformers, on the other hand, are a type of power transformer that feature a closed magnetic circuit. They are known for their efficient design and ability to handle high overloads and short-circuit currents. As per power transformer market analysis, closed core transformers are commonly used in applications where space is limited, such as in urban areas. Berry core transformers are another type of power transformer that feature a circular cross-section. They are known for their efficient control of leakage magnetic flux and are often used in electronic and low-voltage power circuits.

Oil insulated transformers are highly used due to their excellent dielectric strength

Oil-based insulation occupies a significant portion of the power transformer market share as it provides better thermal stability compared to other insulation materials and prevents the risk of overheating. Its excellent dielectric strength also makes it tolerable to high voltages and minimises the possibility of damage due to power overload. Furthermore, the rising trend of sustainability has fuelled the demand for eco-friendly oils such as ester oils that have a better environmental footprint compared to standard mineral oils.

Gas insulation is another popular choice for power transformers due to its high dielectric strength and low maintenance. Gas-insulated transformers (GITs) use sulfur hexafluoride (SF6) as the insulating medium. They are widely used in high-voltage applications due to their ability to withstand high voltages. Meanwhile, solid insulation is a newer and an eco-friendlier option for power transformers. Solid-insulated transformers (SITs) use solid materials, such as epoxy resin or polyurethane, as the insulating medium.

Leading Companies in the Power Transformer Market

Market players are focused on enhancing power distribution networks to meet escalating global demand for electricity

ABB Ltd.

ABB Ltd., established in 1988, is a pioneer of digital technology, with its headquarters in Zurich, Switzerland. It offers services across the automotive, buildings and infrastructure, food and beverage, marine, metals, mining, and power generation sectors, among others.

Hitachi, Ltd.

Hitachi, Ltd. is a multinational electronics company, founded in 1910 and based in Tokyo, Japan. The company offers its solutions to digital IT infrastructure, social infrastructure, government and public corporations, and hyper-converged infrastructure, among others.

General Electric Company

General Electric Company, incorporated in 1892, is a multinational corporation operating in the fields of aerospace, power, and renewable energy, among others. The company, headquartered in Boston, United States, implements sustainable practices to reach its goal of carbon neutrality by 2030.

Mitsubishi Electric Corporation

Mitsubishi Electric Corporation is an electrical equipment manufacturing company headquartered in Tokyo, Japan. Founded in 1921, it offers elevators and escalators, high-end home appliances, air conditioning systems, factory automation systems, electric motors, semiconductors, and satellites.

Other key players in the global power transformer market include HD Hyundai Electric Co., Ltd., Siemens AG, Toshiba Corp., Alstom SA, Hyosung Heavy Industries Corp., CG Power and Industrial Solutions Ltd., and Bharat Heavy Electricals Ltd., among others.

Power Transformer Market Analysis by Region

The Asia-Pacific region dominated the market due to the region's rapid population growth, which have led to an increasing demand for electricity and power infrastructure

The North American market is driven by several factors, including the increasing demand for electricity in residential and commercial sectors, the need for renewable energy integration, and the modernisation of ageing infrastructure. As per industry reports, more than 60% of the power transformers in the United States are over 25 years old. This ageing infrastructure faces increased risks of failures, reduced efficiency, and higher maintenance needs, making modernisation and replacement a pressing need. Also, recently, the White House and federal government has allocated more than USD 100 billion to modernise the US electric grid, which will improve infrastructure resilience and reduce transmission and distribution losses.

According to power transformer market report, Asia Pacific accounts for a substantial share of the global market due to the growing demand for electricity in the region. Factors such as rapid urbanisation, rising requirement for uninterrupted power supply, and favourable government schemes to expand power transmission and distribution in rural areas offer a positive market outlook. In September 2023, Hitachi Energy opened its advanced transformer manufacturing facility in Liang Jiang New Area, China, to support the region's growing demand for power transformers.