Transformer Market Size, Share, Growth, Report 2025 to 2034

Transformer Market Size and Growth 2025 to 2034

The global transformer market size was valued at USD 26.68 billion in 2024 and is expected to be worth around USD 48.10 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.07% over the forecast period 2025 to 2034.

The transformers market is growing very fast due to the rising demand for energy-efficient and technologically advanced systems in sectors like oil and gas, power generation, HVAC, and manufacturing. Increased infrastructure development and industrialization further boost the presence of transformers in energy and construction projects. Stricter environmental regulations, coupled with a shift toward eco-friendly practices, are driving the adoption of transformers with oil-free technology. Advancements like IoT-enabled transformers and variable-speed drives improve operational efficiency, reduce energy consumption, and lower maintenance costs. Continuous research and development efforts are enhancing the performance, reliability, and affordability of transformers for various industrial applications. As technological innovations shape the market, it is expected to continue growing at a steady pace, driven by regulatory requirements and evolving consumer demands.

Report Highlights

• The Asia Pacific has dominated the market with revenue share of 40% in 2024.
• The North America has accounted for revenue share of 31% in 2024.
• By type, the power transformer segment has leading the market in 2024.
• By insulation, the dry segment has held revenue share of 67% in 2024.
• By cooling type, the air-cooled segment has recorded revenue share of 69% in 2024.
• By phase, the three phase segment has generated revenue share of 70% in 2024.
• By power rating, the small segment has held revenue share of 49% in 2024.
• By application, the industrial segment has captured highest revenue share in 2024.

CEO Statements

Siemens Energy– Christian Bruch, CEO: "We are focused on delivering next-generation power transformers that provide unparalleled efficiency and reliability. Our smart grid solutions and digital transformer technologies are transforming energy distribution, helping industries optimize their operations while contributing to a sustainable energy future.”

ABB – Björn Rosengren, CEO: ABB is committed to innovation in the transformer market, with advancements in digitalization and connectivity. Our efforts to enhance operational efficiency through smart transformers are aligning with the increasing demand for energy-efficient solutions in renewable energy integration and industrial applications.”

Transformer Market Growth Factors

• Increasing Global Demand for Electricity: The increase in population, urbanization trend and technological advancements remain major growth factors for the global transformer market. Transformers is an important device for efficient long-distance transmission of electricity. This demand is in turn tapping the players like Siemens Energy, providing high-efficiency transformers for grid expansion projects to basically support increased demand across the regions in power. For example, it has enhanced its transformer portfolio with a focus on the ramp-up of electricity demand in developing regions; thereby informally powering a highly efficient distribution system as per the needs of urban and industrial development.
• Grid Infrastructure Upgrades: Continuous modernization as well as upgrading of aging global grid infrastructure has created enormous demand for transformers. The augmentations improve reliability and resilience towards a continuing supply of power among public services. Schneider Electric is focused on providing cutting-edge transformers as part of smart grid solutions partnerships for such infrastructure improvements. For example, the advance transformers of Schneider Electric are central to grid modernization efforts throughout the world, setting up for performance optimization and improvement in energy distribution systems, especially in cities.
• Renewable Energy Integration: Renewable energy integration into the electricity grid through solar power or wind requires transformers to manage various power loads. The ever-growing systems require specialized transformers to ensure that they manage well in intermittency from the renewable sources. Innovations in the current power transformers from ABB will offer a platform for this shift towards green energy integration. For instance, Schneider Electric's renewable energy solutions which include high-tech transformers will enable further integration for solar and wind energy in the grid with increased energy efficiency and sustainability.

Transformer Market Trends

Miniaturization and Transformers

• The trend in transformer design is to achieve miniaturization based on the demands for compactness while ensuring effectiveness in space-limited environments. Smaller transformers at least maintain and often may even enhance performance standards and reduce size and weight. Such devices are, thus, increasingly popular for use in urban settings and portable equipment. For instance, Siemens has put a lot of effort into miniaturized high efficiency transformers for applications requiring limited space, such as electric vehicles and renewable energy systems.

IoT-enabled Transformers

• IoT-enabled transformers are capable of real-time monitoring, predictive maintenance, and performance optimization to give more control over the grid stability. The implementation of the IoT provides operational efficiency through the data scored to enhance decision-making. The General Electric (GE) offers IoT-based transformer solutions to optimize power supply, improve reliability, and lower maintenance through remote monitoring and smart diagnostics solutions for them.

Energy Efficiency Focus

• As energy efficiency regulations rise, transformers are being designed to use less power hence lowering operational costs and environmental concerns. Advanced transformer designs focus on energy conservation so that energy losses in transmission can be minimized. ABB has been the pioneer in manufacturing energy-efficient transformers, keeping in mind the stringent requirements of global standards, which provide considerable savings both for utility companies and industrial consumers.

Report Scope

Transformer Market Dynamics

Drivers

Growing Global Demand for Power

• First, rising electricity demand to population growth, industrialization, and urbanization must be matched by the construction of extensive distribution networks, which creates more demand for transformers. Scheider Electric is cranking out high-capacity transformers to cope with the rising demand from the developing economies, where urbanization is roaring ahead.

Government Investments in Infrastructure

• New infrastructures, like the power grid, which guarantee proper electricity supply, are of top priority in many countries' agendas, which has led to the increase in transformer sales. ABB is currently undertaking massive infrastructure development, smart grid projects in particular, especially in fast-growing energy infrastructure in emerging economies.

Integrating Renewables into Electricity Grids

• The increasing installation of renewable energy sources, like solar and wind, demands use of specific transformers that deal with the unstable nature of renewables. Siemens is at the top in assisting transformers that are custom-designed to function with renewable energies, aiding in pooling them into existing grids to ensure regular power supply.

Technological Advances in Transformer Design

• Advancements in transformer materials to include high-performance insulating oils and solid-state transformers are contributing to greater efficiency and dependably so. For example, ABB is leading in the development of digital transformers that take advantage of active technologies for better monitoring and control which ultimately enhance operational efficiency and dependability.

Restraints

High Initial Investment

• An expensive manufacturing process for transformers followed by long payback periods will limit investments, especially in developing regions with limited budgets. This way, ABB has to face this challenge in developing economies where the chief concern of their customers is not making large investments on advanced transformer technologies.

Limited Availability of Raw Materials

• The limited supply of important raw materials like copper and steel will raise production costs as well as create interruptions in the supply chain for transformer manufacturers. For instance, Siemens has also faced certain obstacles in trying to procure enough raw materials for transformer manufacturing, consequently causing delays and cost increases.

Environmental Impact Concerns

• The environmental impact of the generator and disposal process of the transformers, especially the usage of harmful products and chemicals, have led to tightened regulations. Schneider Electric focused on diminishing its ecological repercussions by designing transformers with high sustainability criteria from the earth while minimizing toxic wastes and pollution.

Opportunities

Emerging Markets Demand

• The rapid industrialization and urbanization of emerging economies are occurring mainly in Asia and Africa. With all this happening, transformers see a high demand because their companies expand into those areas and offer affordable, efficient transformers to meet the surging demand for power infrastructure.

Smart Cities Growth

• The development of smart cities requires sophisticated grid systems in order to manage energy efficiently; this opens up opportunities for transformer manufacturers who can supply advanced solutions to meet the demand. Schneider Electric is taking advantage of this trend by offering innovative solutions in transformers that support smart city infrastructure in efficient energy distribution.

Electric Vehicle Infrastructure

• With the corresponding growth of electric vehicles (EVs) in their infrastructure, such as provision for charging, it increases the need for transformers that can withstand high-power charging systems. ABB is also developing transformers for utilities in respect of all encompassing EV charging networks for managing higher power demand from EV.

Power Distribution Networks in Developing Countries

• Growing the power distribution networks in developing regions provides a growth opportunity to the transformer manufacturer. Companies such as GE are involved in large-scale projects in India, where demand for more power is in great demand, and huge improvements in the grid and installations of transformers are required.

Challenges

Fluctuating Raw Material Prices

• Price instability for raw material, especially copper and steel, may have massive impacts on transformer production costs, rendering it impossible to maintain price stability for many manufacturers. GE's pricing structure has been subjected to fluctuations due to price changes in the raw materials, which have a direct bearing on margins on their transformer units.

Grid Modernization Costs

• High modernization costs incurred in the upgrade of aged power grid systems necessitating the use of new transformer technologies generally become a burden for utilities, mainly in economically challenged regions. Siemens is responding to this challenge by providing affordable and flexible solutions for grid upgrades, thus enabling utilities to modernize infrastructures at lower costs.

Competitive Market Dynamics

• The transformer market is highly competitive, with several manufacturers offering utility products and engendering pressure on prices and profit margins. Very stiff competition has developed around ABB from other global players such as Siemens and Schneider Electric, providing similar advanced transformer solutions to a wide range of applications.

Transformer Market Segmental Analysis

The transformer market is segmented into type, power rating, cooling type, winding, insulation, number of phase, mounting outlook, application, and region. Based on type, the market is classified into power transformers, distribution transformers, instrument transformers, current transformers, voltage transformers, and others. Based on power rating, the market is classified into large, medium, and small. Based on cooling type, the market is classified into air-cooled, and oil-cooled. Based on winding, the market is classified into two winding and auto transformer. Based on insulation, the market is classified into dry and liquid immersed. Based on number of phase, the market is classified into three phase and single phase. Based on rating, the market is classified into ≤ 10 MVA, 11 to 60 MVA, 61 MVA to 600 MVA, and >600 MVA. Based on mounting outlook, the market is classified into pad, pole, PC/PCB, and others. Based on application, the market is classified into residential & commercial, utility, and industrial.

Type Analysis

Power Transformers: The power transformers segment hold leading position in 2024. Power transformers modify and change the voltage level according to the needs of electrical energy safety before being distributed across long distances for transmission. They occupy a very vital portion in terms of carrying out the flow of power in an electric grid system. Siemens manufactures power transformers for either power or distribution systems with a high degree of efficiency for the purpose of reliable energy transfer over long distances.

Distribution Transformers: Distribution transformers take high voltage electricity supply from the grid and reduce it down to a level that can be reasonably used for domestic and commercial use. They are required to ensure the approachable electrical supply with safety quotas. Schneider Electric has always been around for the supply of distribution transformers for urban and rural networks providing some comprehensive solutions to combat energy needs for cities and more remote areas.

Instrument Transformers: Instrument transformers measure up high energy from the electrical system in terms of measuring the system's current and voltage levels, thereby enabling self-system monitoring. The outcome of the transformer relates to protection, control, and measurement in the power system. ABB provides soft instrument transformers so that grid operators are enabled to perform precise electricity measurements as well as enhance stability in the grid.

Current Transformers: Current transformers reduce high currents down to a lower, measurable level so they can be regulated and monitored properly to ensure safety standards are maintained. They are very important for equipment monitoring and supervisory relay systems. GE's current transformers are extensively used in power plants and substations for electrical safety and operational efficiency.

Voltage Transformers: Voltage transformers reduce high voltage to a lower measurable level for use by the control and protection system. Hence, it is possible that high voltage transmissions to these lines can be run very safely. The voltage transformers from Siemens uphold line voltage meters in operation and impart a lot of safety on the operation and actions of the generation and development of electrical services. Such easy transformers form a core portion of the protective relay systems and equipment monitoring. The usage of current transformers is predominant in power plants and substations.

Application Analysis

Residential & Commercial: Transformers used in residential and commercial applications ensure stable power to homes, offices, and businesses. They step the voltage down to safe consumption. Schneider Electric specializes in providing small-sized reliable transformers for the residential and small-business areas, hence ensuring energy efficiency,y and safety in the everyday use of electricity.

Utility: In utility applications, substations and grid systems use transformers that help in handling the distribution of high-voltage energy. These transformers hold critical positions in national and regional grid systems. GE provides utility-grade transformers which provide support for large-scale electricity distribution across countries and thereby ensures grid reliability and efficient transmission of energy to different geographical areas.

Industrial: THe heavy-duty industrial applications are meant to control the energy supply to machines, facility systems, and production lines. Design can be on the heavy-duty application for industrial plants. ABB is a manufacturer of industrial transformer types for the factories, mines, and plants, which supplied energy-efficient solutions. Large industrial processes need continuous and reliable power.

Transformer Market Regional Analysis

The transformer market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

Asia-Pacific is leading the transformer market

The Asia-Pacific transformer market size was valued at USD 10.67 billion in 2024 and is expected to be worth around USD 19.24 billion by 2034. The Asia-Pacific region is fueled by the rapid development of industries, urbanization, and the rising demand for electricity. The infrastructure projects currently under way across several East Asian nations including China, India, and Japan are quite vast. Among them, China is a major contributor to the world market with its boost into the sector of generation and distribution. Same as this, companies like Toshiba and Hitachi, Schneider Electric take part in the process of providing transformers for residential, commercial, and industrial use to respond to the increasing energy demand.

North America Transformer Market Trends

The North America transformer market size was valued at USD 8.27 billion in 2024 and is projected to reach around USD 14.91 billion by 2034. The growing need for reliable power infrastructure and high-tech advancement will bring growth in North America. U.S and Canada lead in the market and have heavy investment in grid modernization, along with integration of renewable energy. Key players of the market are General Electric and Siemens, who are good suppliers of high-efficiency transformers for utility and industrial applications. Further expansion of renewable energy and smart grid initiatives keep fueling demand for the transformers.

Europe Transformer Market Growth

The Europe transformer market size was estimated at USD 5.87 billion in 2024 and is predicted to hit around USD 10.58 billion by 2034. Europe is primarily driven by stringent environmental regulation, grid modernization, and the move to renewable energy sources. The region envisages the reduced carbon footprint coupled with improved grid reliability. The main market players including ABB, Schneider Electric, and Siemens produce energy-efficient transformers that support large energy projects such as wind and solar.', further for countries such as Germany, France, and the UK that launch new transformers along their continued effort in sustained energy infrastructure and support for sustainability.

LAMEA transformer market is expanding

The LAMEA transformer market size was valued at USD 1.87 billion in 2024 and is anticipated to reach around USD 3.37 billion by 2034. The expanding demand for the electricity, the fast-paced urbanization, and the industrial development give a boost to the market under LAMEA region. Moreover, in Latin America, Brazil and Mexico have been setting up large energy projects that aim to boost infrastructure. The Middle East is targeting improving grid stability and the consumption of more renewable sources along with other countries such as South Africa in its improvement of energy grids. Among these major players include ABB and General Electric, who provide solutions to energy-efficient and reliable power distribution.

Transformer Market Top Companies

• ABB Ltd.
• Eaton Corporation plc
• Schneider Electric
• Siemens AG
• Crompton Greaves Ltd.
• Mitsubishi Electric Corporation
• Toshiba Corporation
• Bharat Heavy Electricals Limited
• Hyosung Power & Industrial Solutions
• SPX Transformer Solutions Inc.

The new entrants in the transformer industry are employing technology to devise the most advanced and efficient transformer systems. These new market players focus on developing smart transformers with integrated IoT capabilities, enabling remote monitoring, predictive maintenance, and improved operational efficiency. By leveraging artificial intelligence (AI) and automation, they are creating transformers that offer enhanced performance, energy savings, and reliability. This shift towards digitalization and innovation helps meet the growing demand for sustainable and high-performance energy solutions across industrial and residential sectors. For example, startups like Grid Edge are focusing on the digital transformation of energy systems with their advanced transformer technology.

Recent Developments

• In May 2022, Siemens Energy successfully delivered ten mobile transformers and ten substations to the Transmission Company of Nigeria (TCN). The contract, awarded in July 2020, was completed in May 2022, marking a significant milestone in enhancing Nigeria's energy infrastructure.
• In January 2022, Power Grid Corporation of India Ltd (PGCIL) entered into a joint development agreement with Africa50 to advance the Kenya Transmission Project under a public-private partnership model. The project includes the development, financing, construction, and operation of key transmission lines, including the 400kV Lessos-Loosuk and 220kV Kisumu-Musaga lines, with PGCIL providing crucial technical and operational expertise.

Market Segmentation

By Type

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

By Power Rating

• Large
• Medium
• Small

By Cooling Type

• Air-cooled
• Oil-cooled

By Winding

• Two Winding
• Auto Transformer

By Insulation

• Dry
• Liquid Immersed

By Number of Phase

• Three Phase
• Single Phase

By Rating

• ≤ 10 MVA
• 11 to 60 MVA
• 61 MVA to 600 MVA
• >600 MVA

By Mounting Outlook

• Pad
• Pole
• PC/PCB
• Others

By Application

• Residential & Commercial
• Utility
• Industrial

By Region

• North America
• APAC
• Europe
• LAMEA