Transformer Market Forecasts to 2030 - Global Analysis By Type (Power Transformer, Distribution Transformer and Other Types), Cooling Type (Oil Cooled and Air Cooled), Insulation, Power Rating, Mounting Location, Core, End User and By Geography

According to Stratistics MRC, the Global Transformer Market is accounted for $58.9 billion in 2023 and is expected to reach $109 billion by 2030 growing at a CAGR of 9.2% during the forecast period. Transformers are electrical devices that alter the voltage of alternating-current (AC) electricity. Transformers are essential components in power generation, enabling efficient transmission, distribution, and regulation of electrical energy. They reduce energy losses during transmission, enhancing the overall efficiency of electrical systems.

According to the International Energy Agency, the amount of wind-generated power reached more than 2 100 TWh in 2022, an all-time high rise of 265 TWh (up 14%).

Market Dynamics:

Driver:

Rising demand for electricity

As economies expand and industrialization progresses, the need for a reliable and efficient power infrastructure becomes paramount. Transformers play a central role in the electricity supply chain by enabling the transmission and distribution of power over long distances. Moreover, the electrification of various industries and the adoption of electric vehicles further contribute to the surge in demand. Therefore, the rising demand for electricity stands as a pivotal driver in the transformer market.

Restraint:

High cost

Transformers, being crucial components of power infrastructure, require substantial upfront investments for design, manufacturing, and installation. The complex engineering involved, coupled with the use of specialized materials, contributes to elevated production costs. However, this high initial cost becomes a barrier, particularly for smaller businesses and developing economies, limiting their ability to invest in modern and efficient transformer technologies, these factors hamper market expansion.

Opportunity:

Technological advancements

Innovations in materials, design, and manufacturing processes have led to the development of transformers with improved performance characteristics. Advanced core materials, such as amorphous metals and nano-crystalline alloys, reduce core losses, significantly enhancing the overall efficiency of transformers. Additionally, these innovations enable real-time data collection, remote diagnostics, and predictive maintenance, optimizing transformer performance and minimizing downtime. Therefore, technological advancement is a significant factor in accelerating market demand.

Threat:

Fluctuations in raw material prices

Transformer manufacturing relies heavily on materials like copper and steel, both subject to market volatility. The unpredictable nature of raw material prices introduces uncertainties in production costs, making it challenging for manufacturers to maintain stable pricing and profit margins. Moreover, these fluctuations complicate long-term planning and pricing strategies for manufacturers, impacting their competitiveness and financial stability.

Covid-19 Impact

The COVID-19 pandemic caused disruptions in supply chains, manufacturing, and project timelines. Lockdowns, travel restrictions, and economic uncertainties led to project delays and reduced demand. Fluctuations in raw material prices and logistical challenges also affected production. However, the increasing need for reliable power infrastructure, coupled with post-pandemic economic recovery efforts, is expected to drive demand for transformers in the long term, especially with a growing emphasis on renewable energy integration and grid modernization.

The air cooled segment is expected to be the largest during the forecast period

The air cooled segment is estimated to hold the largest share. Air-cooled transformers employ air as the cooling medium for dissipating heat generated during operation. This design eliminates the need for complex cooling systems and insulating oils, reducing maintenance requirements and environmental risks. Moreover, air-cooled transformers are compact and offer flexibility in installation, often requiring less space than their oil-immersed counterparts.

The small power segment is expected to have the highest CAGR during the forecast period

The small power segment is anticipated to have lucrative growth during the forecast period. These transformers typically handle power ratings ranging from a few kilovolt-amperes (kVA) to a few hundred kVA. Their compact size and lightweight design make them suitable for various settings where space constraints and portability are crucial considerations. Furthermore, the demand for small power-rated transformers is driven by the proliferation of decentralized power sources, such as rooftop solar panels and small-scale renewable energy installations.

Region with largest share:

North America commanded the largest market share during the extrapolated period owing to the growing emphasis on sustainable energy solutions. The region's robust power sector and increasing investments in grid modernization contribute to the continuous demand for transformers. The United States, being a major economic powerhouse, plays a central role in driving innovation and shaping the transformer industry landscape. Moreover, initiatives promoting energy efficiency and the integration of smart grid technologies further fuel the demand for advanced transformers in North America.

Region with highest CAGR:

Asia Pacific is expected to witness profitable growth over the projection period. The region's expanding energy infrastructure, rapid urbanization, and increasing electricity demand are driving the demand for transformers across diverse applications, including power transmission and distribution. Countries like China and India are at the forefront of this surge, with massive investments in smart grid initiatives and renewable energy projects. Additionally, rising industrialization and the development of smart cities in the region further boost the transformer market.

Key players in the market

Some of the key players in the Transformer Market include Siemens AG, ABB Ltd., Eaton Corporation Plc, Bharat Heavy Electricals Limited, Mitsubishi Electric, Hyosung Power & Industrial Solutions, Toshiba Corporation, General Electric, SPX Transformer Solutions, Inc., Elsewedy Electric, Kirloskar Electric Company, Crompton Greaves Ltd., CG Power & Industrial Solutions Ltd. and Voltamp.

Key Developments:

In December 2023, Toshiba Energy Systems & Solutions Corporation ("Toshiba") and Lummus Technology, a global provider of process technologies and value-driven energy solutions announced a master collaboration agreement to jointly pursue carbon capture projects.

In December 2022, GE Renewable Energy signs strategic partnership agreement with Hyundai Electric to support the growth of offshore wind in South Korea. Hyundai Electric to build factory, invest in tooling, and hire and train local team to produce Haliade-X turbines and generators in South Korea

In September 2022, Mitsubishi Electric India launched the all new M800V & M80V series Computerized Numerical Controllers (CNCs) with state-of-the-art solutions to revolutionize smart manufacturing in India.

In June 2022, Power management company Eaton Corporation plc has reportedly extended its partnership with technology corporation, Microsoft. This initiative has been taken to expedite applications of its UPS (uninterruptible power system) technology, EnergyAware, across key segments globally.

Types Covered:

• Power Transformer
• Distribution Transformer
• Other Types

Cooling Types Covered:

• Oil Cooled
• Air Cooled

Insulations Covered:

• Gas
• Oil
• Air
• Solid
• Other Insulations

Power Ratings Covered:

• Small Power
• Medium Power
• Large Power

Mounting Locations Covered:

• Pole Mount Transformers
• Pad Mount Transformers
• Underground Transformers

Cores Covered:

• Closed Core
• Shell Core

End Users Covered:

• Industrial
• Residential
• Oil and Gas
• Energy and Power
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances