PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1796191
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1796191
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%.
Scope of the Report | |
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Years Considered for the Study | 2021-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | Value (USD Million/Billion), Volume (Thousand Units) |
Segments | By Type, By Cooling Type, By Power Rating, By Phase, By Insulation, and By End User |
Regions covered | North America, Asia Pacific, Europe, South America, and Middle East & Africa. |
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.
Note: Other designations include sales managers, marketing managers, product managers, and product engineers.
The tier of the companies is defined based on their total revenue as of 2024. Tier 1: USD 1 billion and above, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: <USD 500 million.
A few major players with a wide regional presence dominate the transformer market. The leading players are Hitachi Energy Ltd. (Switzerland), Siemens Energy (Germany), Eaton (Ireland), GE Vernova (US), and Toshiba Energy Systems & Solutions Corporation (Japan).
The report defines, describes, and forecasts the transformer market by type, cooling type, power rating, phase, insulation end user, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report comprehensively reviews the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market, which include the analysis of the competitive landscape, market dynamics, market estimates in terms of value, and future trends in the transformer market.
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