Transformer Market Synopsis

Transformer Market Size Was Valued at USD 51.42 Billion in 2023 and is Projected to Reach USD 88.43 Million by 2032, Growing at a CAGR of 6.21% From 2024-2032.

Transformers are machines that transfer electric power between multiple circuits using electromagnetic induction, and they are mainly employed to raise or lower voltage levels in power distribution and transmission systems. The transformer market includes the worldwide sector engaged in creating, producing, delivering, and selling transformers, which are vital parts of electrical systems.

• The shift worldwide to renewable energy sources such as wind and solar power requires investments in power infrastructure. Transformers are essential for linking these sources to the grid and controlling their fluctuating output. Transformers are also essential for maintaining local voltage levels and integrating rooftop solar panels into the grid in decentralized power generation systems. The rapid growth of cities and industries in developing countries is leading to higher electricity usage, which is creating a demand for new power infrastructure such as transformers.
• Upgrading grid systems in developed countries are improving outdated power infrastructure by replacing obsolete transformers with more innovative models. Advanced transformers are needed for improved monitoring and control in smart grids that use digital technology to optimize electricity production and distribution. Growing need for energy-efficient transformers driven by regulations and cost factors. Digital transformers are becoming more popular for enhancing grid reliability through real-time monitoring, and are essential for upgrading power systems.
• Authorities and businesses are being encouraged to reduce carbon emissions, which is causing an increase in the demand for environmentally friendly transformers. Dry or gas-insulated transformers are favored for environmental safety compared to oil-filled transformers. Ensuring a dependable power supply is essential due to increasing energy usage. Investing in top-notch transformers helps ensure a continuous flow of power, decreases power outages and effectively manages peak loads. The demand for transformers in backup power systems like generators, UPS, and microgrids is growing to meet energy security needs.

Transformer Market Trend Analysis

Increasing Energy Demand

• Countries are boosting their power generation capabilities by constructing new power plants and extending current ones to keep up with rising energy needs. This involves utilizing a variety of energy sources like thermal, nuclear, hydro, and renewable energy. Specialized high-capacity transformers are essential for effectively transmitting the produced voltage across long distances, resulting in a varied market with unique transformer designs for every energy source. With the growth in energy demand, the transmission infrastructure needs to be enlarged to efficiently distribute power.
• Aging power networks are also being updated to handle increased demands, incorporate renewable energy sources, and enhance dependability, frequently substituting old transformers with more effective versions. Transformers are essential in high-voltage networks for minimizing losses in lengthy transmission processes Renewable energy sources such as wind, solar, and hydropower are satisfying the increasing worldwide need for energy. Transformers play a vital role in incorporating these diverse voltage sources into the electrical grid.
• Small-scale transformers are needed for decentralized energy systems like rooftop solar panels and small wind turbines to control power internally and return extra electricity to the grid, showcasing the trend towards distributed energy production. Rising global energy needs are leading to greater funding for power infrastructure development, specifically emphasizing the creation of robust systems. Authorities, energy providers, and businesses are improving power grids to guarantee a dependable electrical supply. The need for transformers equipped with advanced monitoring systems is increasing to improve resistance against natural disasters and cyber-attacks.

Integration of Smart Grids and Digitalization

• The increasing use of smart grids is leading to a rise in the need for smart transformers. These transformers, with sensors and communication technologies, can offer instant data and adjust to varying load conditions. They also enable remote monitoring and diagnostics, assisting utilities in addressing problems pre-emptively to ensure grid reliability. This is why smart transformers are highly sought-after in today's power systems. Smart grids utilize current data to enhance the efficiency of electricity distribution and ensure grid security. Digital transformers offer important data on voltage, current, and temperature for making educated choices and enhancing grid efficiency.
• Integrated smart grids enable the dynamic management of loads, decreasing energy waste and improving grid performance as a whole. There is a high demand for transformers with advanced load management capabilities to ensure efficient power distribution. Smart grids play a vital role in incorporating renewable energy sources like wind, solar, and hydropower into the grid. These sources are frequently fluctuating and dispersed across multiple sites. Intelligent transformers are crucial for handling the fluctuation of renewable energy and guaranteeing effective incorporation into the grid.
• Smart grids allow for power to flow in both directions. The growth of Distributed Energy Resources (DERs) such as rooftop solar panels and battery storage systems in smart grids has led to a higher need for transformers to control their integration. Microgrids need transformers that are both flexible and effective to easily blend into the existing power systems. This trend is leading to the development of a targeted market for intelligent transformers that can manage the complexities of distributed energy resources.

Transformer Market Segment Analysis:

• The Transformer Market is Segmented on the basis of Type, Power Rating, Cooling Type, End-User, And Region.

By Type, Power Transformers Segment Is Expected to Dominate the Market During the Forecast Period

• Power transformers are essential in transmitting high-voltage electricity from power plants to long distances by increasing their efficiency. The substantial demand for power transformers is driven by the increasing need to transmit power over large areas due to the rising energy demand. They are connected to power plants and substations, as demand rises with the growth of renewable energy facilities globally.
• International governments and private organizations are making significant investments in energy infrastructure, particularly in developing countries. This involves building new power plants, extending transmission networks, and enhancing current infrastructure, resulting in a higher demand for power transformers. High-capacity transformers are in high demand due to large energy projects such as mega-dams and nuclear power plants.
• Improving energy efficiency and reducing loss, especially in transmission, are top priorities. Power transformers play a vital role in reducing energy wastage during transmission, specifically emphasizing on improved efficiency. In numerous countries, regulations are spurring the need for transformers that can minimize transmission losses, particularly in long-distance high-voltage networks.
• New advancements in transformer technology, such as digital power transformers and environmentally friendly designs with biodegradable insulating fluids, are opening up fresh possibilities in the industry. These developments provide better monitoring, management, effectiveness, and a smaller environmental footprint, making them appealing choices for utilities and grid operators aiming to update their infrastructure.

By Application, Air-Cooled Segment Held the Largest Share In 2023

• Transformers cooled by air are a safer and more eco-friendly option compared to transformers cooled by oil. They prevent oil leaks that could result in environmental contamination and fire dangers. Because of stringent regulations and environmental considerations, air-cooled transformers are a popular option due to their decreased environmental impact and minimized pollutant production while in use. •          Urban and commercial areas are seeing an increased need for air-cooled transformers because of urbanization and infrastructure growth.
• Air-cooled transformers are appropriate for indoor areas with adequate airflow and limited room, such as commercial buildings and hospitals, guaranteeing safety and managing noise levels. They are favored in high-risk environments such as chemical plants and offshore platforms for their ability to reduce fire hazards by not using oil, which is essential for safety in dangerous areas. These transformers are small, secure, and simple to upkeep, which makes them perfect for being placed in commercial and residential structures in areas where safety, noise, and space are key factors to consider.
• Air-cooled transformers are more reliable and require less maintenance than oil-cooled transformers. They need less supervision and do not need oil changes, which decreases operating expenses. Their enclosed structure shields internal parts from environmental elements, making them perfect for situations where moisture and impurities can impact oil-filled transformers. Wind farms and solar power plants are more frequently using air-cooled transformers due to their positive effects on the environment and safety advantages.

Transformer Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• Fast urban growth in Asia-Pacific is causing extensive urban development in nations such as China, India, Indonesia, and Vietnam, resulting in higher electricity needs. The fast industrial development is linked to the economic expansion of the area, necessitating high-capacity transformers for powering heavy industries and manufacturing plants. The rapid increase in population in the Asia-Pacific area, especially in China and India, has resulted in a sharp rise in the need for energy.
• Increased economic growth has also led to higher per capita electricity consumption, necessitating the growth of power generation and distribution infrastructure to fulfill the rising demand for transformers. China and India are at the forefront of renewable energy, with China concentrating on solar and wind energy initiatives, while India is working towards significantly increasing its solar and wind capabilities. Both nations need transformers to integrate into the grid. Vietnam, Thailand, and the Philippines are also boosting their renewable energy capacities, leading to a rise in demand for transformers in other Southeast Asian countries.
• Continuing infrastructure projects, like new construction areas and transport systems, boost the need for transformers to support wide-reaching power distribution networks in commercial, residential, and industrial zones, as well as high-speed train lines and subways. Expanding the grid in Asia-Pacific is crucial for keeping up with increasing energy demands and incorporating fresh sources of power. This includes enhancing transmission and distribution networks by incorporating various transformers. At the same time, old infrastructure is being upgraded with the installation of energy-efficient transformers to improve reliability and efficiency.

Transformer Market Active Players

• ABB Ltd. (Switzerland)
• Siemens AG (Germany)
• General Electric (GE) Co. (USA)
• Schneider Electric SE (France)
• Mitsubishi Electric Corporation (Japan)
• Eaton Corporation plc (Ireland)
• Toshiba Energy Systems & Solutions Corporation (Japan)
• CG Power and Industrial Solutions Limited (India)
• Bharat Heavy Electricals Limited (BHEL) (India)
• Hyosung Heavy Industries (South Korea)
• SPX Transformer Solutions, Inc. (USA)
• Fuji Electric Co., Ltd. (Japan)
• NARI Group Corporation (China)
• SGB-SMIT Group (Germany)
• TBEA Co., Ltd. (China)
• HYUNDAI Electric & Energy Systems Co., Ltd. (South Korea)
• JSHP Transformer Co., Ltd. (China)
• Wilson Transformer Company (Australia)
• Ruhstrat GmbH (Germany)
• Pauwels Transformers (Belgium)
• Howard Industries (USA)
• ERMCO (Electric Research and Manufacturing Cooperative, Inc.) (USA)
• DAIHEN Corporation (Japan)
• Alstom SA (France), and Other Active Players.

Key Industry Developments in the Transformer Market:

• In March 2024, Voodoo is pleased to announce a collaboration with Hasbro, a leading toy and game company, to integrate the beloved TRANSFORMERS franchise into our most popular game, Mob Control.
• In Feb 2024, Huawei launched an Intelligent Distribution Solution (IDS) to Accelerate Electric Power Intelligence. Electric power customers and leaders from international organizations gathered to discuss the latest practices and innovations in digitalization and intelligence for the electric power industry. Huawei launched its Intelligent Distribution Solution (IDS) during the summit themed "Leading Infrastructure to Accelerate Electric Power Intelligence".
• In Feb 2024, Kyndryl, the world’s largest IT infrastructure services provider, announced the launch of a unified, multi-IMSI SIM service designed to provide comprehensive, expanded connectivity beyond the private LTE/5G connectivity deployed by Kyndryl today across industrial environments to mobile devices. The data-only service will have the capability to reach over 150 countries through global carriers, with the ability to dynamically switch between private LTE/5G and public mobile networks for optimal connectivity performance and cost management.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. TRANSFORMER MARKET BY TYPE (2017-2032)
   1. TRANSFORMER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. POWER TRANSFORMERS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. DISTRIBUTION TRANSFORMERS
   5. ISOLATION TRANSFORMERS
   6. INSTRUMENT TRANSFORMERS
   7. AUTOTRANSFORMERS
   8. OTHER {CURRENT TRANSFORMER AND VOLTAGE TRANSFORMER}
7. TRANSFORMER MARKET BY POWER RATING (2017-2032)
   1. TRANSFORMER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. SMALL
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. MEDIUM
   5. LARGE
8. TRANSFORMER MARKET BY COOLING TYPE (2017-2032)
   1. TRANSFORMER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. AIR-COOLED
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. OIL-COOLED
9. TRANSFORMER MARKET BY END-USER (2017-2032)
   1. TRANSFORMER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. UTILITIES
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. INDUSTRIAL
   5. RESIDENTIAL
   6. COMMERCIAL
   7. RENEWABLE POWER GENERATION
   8. INFRASTRUCTURE
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Benchmarking
       2. Transformer Market Share by Manufacturer (2023)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. ABB LTD. (SWITZERLAND)
       1. Company Overview
       2. Key Executives
       3. Company Snapshot
       4. Role of the Company in the Market
       5. Sustainability and Social Responsibility
       6. Operating Business Segments
       7. Product Portfolio
       8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
       9. Key Strategic Moves and Recent Developments
       10. SWOT Analysis
    3. SIEMENS AG (GERMANY)
    4. GENERAL ELECTRIC (GE) CO. (USA)
    5. SCHNEIDER ELECTRIC SE (FRANCE)
    6. MITSUBISHI ELECTRIC CORPORATION (JAPAN)
    7. EATON CORPORATION PLC (IRELAND)
    8. TOSHIBA ENERGY SYSTEMS & SOLUTIONS CORPORATION (JAPAN)
    9. CG POWER AND INDUSTRIAL SOLUTIONS LIMITED (INDIA)
    10. BHARAT HEAVY ELECTRICALS LIMITED (BHEL) (INDIA)
    11. HYOSUNG HEAVY INDUSTRIES (SOUTH KOREA)
    12. SPX TRANSFORMER SOLUTIONS, INC. (USA)
    13. FUJI ELECTRIC CO., LTD. (JAPAN)
    14. NARI GROUP CORPORATION (CHINA)
    15. SGB-SMIT GROUP (GERMANY)
    16. TBEA CO., LTD. (CHINA)
    17. HYUNDAI ELECTRIC & ENERGY SYSTEMS CO., LTD. (SOUTH KOREA)
    18. JSHP TRANSFORMER CO., LTD. (CHINA)
    19. WILSON TRANSFORMER COMPANY (AUSTRALIA)
    20. RUHSTRAT GMBH (GERMANY)
    21. PAUWELS TRANSFORMERS (BELGIUM)
    22. HOWARD INDUSTRIES (USA)
    23. ERMCO (ELECTRIC RESEARCH AND MANUFACTURING COOPERATIVE, INC.) (USA)
    24. DAIHEN CORPORATION (JAPAN)
    25. ALSTOM SA (FRANCE)
11. GLOBAL TRANSFORMER MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Type
       4. Historic And Forecasted Market Size by Power Rating
       5. Historic And Forecasted Market Size by Cooling Type
       6. Historic And Forecasted Market Size by End-User
       7. Historic And Forecasted Market Size by Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Brazil
          2. Argentina
          3. Rest of South America
12. INVESTMENT ANALYSIS
13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies
       1. 1. Thailand
          2. Vietnam
          3. The Philippines
          4. Australia
          5. New-Zealand
          6. Rest Of APAC
    3. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    4. SOUTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Brazil
          2. Argentina
          3. Rest of South America
14. INVESTMENT ANALYSIS
15. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies