The transformer market is estimated to grow from USD 64.64 billion in 2025 to USD 88.48 billion by 2030, at a CAGR of 6.5%. This growth is driven by a combination of rising electricity consumption across emerging and developed economies, large-scale investments in grid infrastructure modernization, and the accelerated integration of renewable energy sources. As nations aim to meet climate goals and improve energy access, the demand for high-efficiency, smart, and environmentally sustainable transformers is rapidly expanding. Additionally, the surge in urbanization, data center construction, and electrification of transport and industry further fuels the need for reliable and advanced transformer technologies.
By type, power transformer held largest share of transformer market in 2024
Power transformers represented the largest share of the transformer market, by type, primarily due to the global expansion and reinforcement of high-voltage transmission networks. As countries invest in bulk power transmission from generation sources, including large-scale solar, wind, hydro, and thermal plants, to urban load centers, the demand for power transformers capable of handling high voltage and long-distance transmission continues to rise. Moreover, aging grid infrastructure in developed regions and ambitious grid expansion plans in emerging economies drive substantial replacements and new installations. The transition toward inter-regional and cross-border power trade, particularly in regions such as Asia Pacific, Europe, and Africa, further amplifies the need for large, efficient, and high-capacity power transformers, solidifying this segment’s dominant market position.
By power rating, the medium segment to exhibit fastest growth during forecast period
Medium (10.1-100 MVA) is expected to be the fastest-growing segment, by power rating, driven by its versatile applications across a broad range of sectors, including industrial facilities, renewable energy projects, urban substations, and large commercial complexes. As economies continue to industrialize and modernize their infrastructure, medium power transformers are increasingly being deployed to support medium-voltage networks that bridge transmission and distribution systems. The rapid growth of solar and wind farms - especially in decentralized formats - also fuels demand for transformers in this rating range, as they are ideally suited to manage fluctuating loads while ensuring grid stability. Furthermore, government-backed urban electrification and smart grid initiatives increasingly favor medium-rated transformers due to their optimal balance between performance, cost, and scalability.
North America to be second fastest-growing region in transformer market during forecast period
North America is likely to be the second fastest-growing region in the transformer market during the forecast period, driven by substantial investments in grid modernization, aging infrastructure replacement, and the integration of renewable energy sources. The US and Canada are upgrading their transmission and distribution networks to improve reliability, support electric vehicle (EV) expansion, and accommodate distributed energy resources such as rooftop solar and battery storage. Federal initiatives such as the US Infrastructure Investment and Jobs Act and Canada's Clean Electricity Regulations are accelerating the deployment of advanced transformer technologies, including digital and eco-efficient models. Additionally, the region’s growing data center footprint and increased electrification across transportation and industry sectors further propel the demand for high-performance and resilient transformers.
Breakdown of Primaries:
In-depth interviews were conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among others, to obtain and verify critical qualitative and quantitative information and assess future market prospects. The distribution of primary interviews is as follows:
By type, power transformer held largest share of transformer market in 2024
Power transformers represented the largest share of the transformer market, by type, primarily due to the global expansion and reinforcement of high-voltage transmission networks. As countries invest in bulk power transmission from generation sources, including large-scale solar, wind, hydro, and thermal plants, to urban load centers, the demand for power transformers capable of handling high voltage and long-distance transmission continues to rise. Moreover, aging grid infrastructure in developed regions and ambitious grid expansion plans in emerging economies drive substantial replacements and new installations. The transition toward inter-regional and cross-border power trade, particularly in regions such as Asia Pacific, Europe, and Africa, further amplifies the need for large, efficient, and high-capacity power transformers, solidifying this segment’s dominant market position.
By power rating, the medium segment to exhibit fastest growth during forecast period
Medium (10.1-100 MVA) is expected to be the fastest-growing segment, by power rating, driven by its versatile applications across a broad range of sectors, including industrial facilities, renewable energy projects, urban substations, and large commercial complexes. As economies continue to industrialize and modernize their infrastructure, medium power transformers are increasingly being deployed to support medium-voltage networks that bridge transmission and distribution systems. The rapid growth of solar and wind farms - especially in decentralized formats - also fuels demand for transformers in this rating range, as they are ideally suited to manage fluctuating loads while ensuring grid stability. Furthermore, government-backed urban electrification and smart grid initiatives increasingly favor medium-rated transformers due to their optimal balance between performance, cost, and scalability.
North America to be second fastest-growing region in transformer market during forecast period
North America is likely to be the second fastest-growing region in the transformer market during the forecast period, driven by substantial investments in grid modernization, aging infrastructure replacement, and the integration of renewable energy sources. The US and Canada are upgrading their transmission and distribution networks to improve reliability, support electric vehicle (EV) expansion, and accommodate distributed energy resources such as rooftop solar and battery storage. Federal initiatives such as the US Infrastructure Investment and Jobs Act and Canada's Clean Electricity Regulations are accelerating the deployment of advanced transformer technologies, including digital and eco-efficient models. Additionally, the region’s growing data center footprint and increased electrification across transportation and industry sectors further propel the demand for high-performance and resilient transformers.
Breakdown of Primaries:
In-depth interviews were conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among others, to obtain and verify critical qualitative and quantitative information and assess future market prospects. The distribution of primary interviews is as follows:
- By Company Type: Tier 1 - 65%, Tier 2 - 24%, and Tier 3 - 11%
- By Designation: C-level Executives - 25%, Directors - 30%, and Others - 45%
- By Region: North America - 25%, Europe - 40%, Asia Pacific - 25%, Middle East & Africa - 5%, and South America - 5%
- Note: Other designations include sales managers, marketing managers, product managers, and product engineers.
- Product Development/Innovation: Key drivers (Need to modernize power infrastructure due to escalating energy demand), restraints (High initial investment cost and fluctuating raw material prices), opportunities (Evolution of smart, digital, and resilient grids), and challenges (Sustainability and safety challenges linked to transformer insulating oils) influence the market.
- Market Development: In June 2024, Siemens Energy invested in expanding its grid division, a strategic move to strengthen global energy infrastructure and accelerate the energy transition. This expansion includes building new manufacturing facilities, such as a large power transformer plant in Charlotte, North Carolina, which will help address the critical shortage of transformers in the US and support aging grid infrastructure.
- Market Diversification: In February 2025, Eaton invested in a new manufacturing facility in South Carolina for its three-phase transformers, marking the company's third facility in the United States. The image shows the transformers' manufacturing process at the company's facility in Wisconsin.
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players, Hitachi Energy Ltd. (Switzerland), Siemens Energy (Germany), Eaton (Ireland), GE Vernova (US), and Toshiba Energy Systems & Solutions Corporation (Japan), among others, in the transformer market.
Table of Contents
1 Introduction
2 Research Methodology
4 Premium Insights
5 Market Overview
6 Transformer Market, by Type
7 Transformer Market, by Cooling Type
8 Transformer Market, by Power Rating
9 Transformer Market, by Phase
10 Transformer Market, by Insulation
11 Transformer Market, by End-User
12 Transformer Market, by Region
13 Competitive Landscape
14 Company Profiles
15 Appendix
List of Tables
List of Figures
Companies Mentioned
- Hitachi Energy Ltd.
- Siemens Energy
- Eaton
- Ge Vernova
- Toshiba Energy Systems & Solutions Corporation
- Schneider Electric
- Abb
- Mitsubishi Electric Corporation
- Bharat Heavy Electricals Limited
- Hd Hyundai Electric Co. Ltd.
- Hubbell
- Cg Power & Industrial Solutions Ltd.
- Hyosung Heavy Industries
- Fuji Electric Co. Ltd.
- Weg
- Ls Electric Co. Ltd.
- Arteche Group
- Končar D.D.
- Jshp Transformer
- Tbea
- China Xd Group
- Voltamp Transformer
- Meidensha Corporation
- Ormazabal
- Henan Hengyu Electric Group Co. Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 351 |
| Published | August 2025 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value in 2025 | 64.64 billion |
| Forecasted Market Value by 2030 | 88.48 billion |
| Compound Annual Growth Rate | 6.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 25 |
