Global Power Transformer Market By Core (Shell, Closed, and Berry), By Insulation (Gas, Oil, Solid, and Air), By Phase, By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

In 2022, the global power transformer market accounted for USD 21.6 billion and will reach USD 38.4 billion by 2032. Between 2023 and 2032, this market is estimated to register a CAGR of 6.1%.

The power transformer market is a segment of the global electrical equipment industry that is responsible for the distribution, production, and utilization of electrical power. Power transformers are devices that transfer electrical energy from one circuit to another, typically from a high-voltage power transmission system to a lower-voltage distribution system.

These transformers are essential components of electrical infrastructure & play a major role in the safe & efficient distribution of electricity. The global power transformer market is predicted to grow outstandingly in the upcoming years, and it is driven by factors like increasing demand for electricity, the need to upgrade & modernize existing power infrastructure, and technological advancements in transformer design & manufacturing processes.

The APAC region is expected to lead the growth of the power transformer market, with China & India being the primary drivers due to their rapidly expanding economies and increasing electricity demand.

Key Takeaways

• Market Size and Growth: In 2022, the global power transformer market was valued at USD 21.6 billion; by 2032 it is anticipated to experience a compound annual growth rate (CAGR) of 6.1%.
• Power Transformers Are Essential Components in Electric Power Distribution: Transformers play an indispensable part in the distribution, production, and utilization of electricity. By moving energy between high-voltage transmission systems to lower-voltage distribution networks safely and efficiently ensuring safe electricity distribution to households across varying voltage ranges.
• Drivers for Market Growth: Rising Demand for Electricity The market growth is driven by rising electricity demand in emerging economies due to industrialization, urbanization, and population expansion.
• Challenges and Restraints of Manufacturing Power Transformers: High Cost The manufacturing and installation of power transformers is costly, creating an entry barrier for smaller businesses. Economic Unstability In uncertain economic environments, businesses may delay investing in infrastructure projects including power transformers.
• Types of Power Transformers: Core Types The market includes shell, closed, and berry core types of transformers; among these, the former has the highest market share at 42.76% with compound annual growth estimated to 7.2% annually while close cores show rapid expansion with compound annual growth estimated at 7.6% per annum.
• Insulation Materials: Different insulation materials include oil, gas, solid, and air. Oil insulation accounts for 58% of the market share with an expected compound annual growth rate of 7.4% over five years while solid insulation shows exceptional growth with 7.8% compound annual growth.
• Phase Analysis: Power transformers come in both three-phase and single-phase varieties, with three-phase transformers having an overwhelming market share at 63.77% and compound annual growth rates of 7.2%.
• Rating Analysis: Of all MVA rating segments, 101 MVA to 500 MVA holds the largest market share with 62.8 % market share and an anticipated compound annual growth rate of 7.1%; whilst among 800MVA rating segments the growth is anticipated at 7.7% compound annual rates.
• Applications: Industrial applications hold the largest market share at 43.8% with compound annual compound growth estimated to reach 7.2% while residential and commercial applications are anticipated to see the fastest expansion with compound annual compound growth projected to hit 7.8% over time.
• Growth Opportunities: Rising electricity demand and digital technologies present tremendous growth potential in the market, particularly renewable energy investments, infrastructure replacement solutions and smart grid technologies. Renewables such as photovoltaic panels may provide one such growth area.
• Recent Trends: Renewable energy sources, smart grid technologies, and eco-friendly transformer materials have become essential trends in the power transformer market in recent years.
• Regional Analysis: The Asia-Pacific (APAC) region dominates with a 41.2% global revenue share and a compound annual growth rate of 7.8% due to rapid economic expansion and demand for reliable electricity supplies.
• Key Market Players: Siemens AG, Crompton Graves Ltd., ABB Ltd., Alstom SA., Toshiba Corp, and General Electric Co. are some of the dominant market players that utilize strategies such as increasing production capacity and product longevity to secure themselves a majority market share.

Driving Factors

Rising Demand for Electricity and Speedy Industrialization and Urbanization is Expected to Drive the Market Growth

The power transformer market is driven by several factors that contribute to its growth and expansion. One primary driver is the rising demand for electricity, especially in emerging economies. This demand is driven by speedy industrialization, urbanization, and population growth.

Another driver is the need to upgrade and modernize existing power infrastructure to improve efficiency and reduce transmission losses. This includes the replacement of old transformers with newer, more efficient models that can handle higher voltages & larger capacities.

Technological advancements in transformer design & manufacturing processes are also contributing to the growth of the power transformer market. These advancements led to the development of more energy-efficient transformers which can minimize energy consumption & reduce operating costs.

Finally, government initiatives for promoting renewable energy sources like wind & solar power are also driving the demand for power transformers as these sources require new infrastructure to be built & connected to the grid. Together, these drivers are expected to continue fueling the growth of the power transformer market in the coming years.

Restraining Factors

High Cost, Economic Instability, and Fluctuations in Demand for Power Transformers Can Hamper the Growth of the Market

The power transformer market faces various restraints which can hinder its growth & profitability. One primary factor is the high cost related to the manufacturing & installation of power transformers. This cost can be a significant barrier to entry for smaller businesses or customers who may opt for less expensive alternatives.

Economic instability is another restraint that can impact the power transformer market. During times of uncertainty, businesses may delay investments in infrastructure, including the purchase of power transformers. Additionally, fluctuations in demand for power transformers can make it challenging for manufacturers to plan production schedules and manage inventory levels.

Regulatory changes can also be a restraint for the power transformer market, as compliance with environmental and safety regulations can be costly and time-consuming for manufacturers. These restraints, among others, highlight the need for the power transformer industry to adapt to changing market conditions and explore innovative solutions to remain competitive.

By Core

The Shell Core Segment Holds the Significant Share in Core Segment in the Power Transformer Market.

Based on the core, the power transformer market is attributed to the shell, closed, and berry. Among these types, the shell core segment is dominant in the global power transformer market, with a market share of 42.7% & CAGR of 7.2%.

Owing to Shell cores being used in electronic circuits as well as low-voltage power systems. These transformers are used for optimizing circuit costs because they have a core with a square or rectangle cross-section.

Shell core transformers also offer several advantages, including an efficient cooling system & design flexibility. They are also known for their high groundbreaking resistance, effective control of magnetic flux leakage, and high short circuit strength.

Closed Core Segment is Expected to Fastest Grow in Power Transformer Market in Forecasted Period.

Closed cores experienced rapid growth in recent years with a CAGR of 7.6% because currently, closed cores are the most commonly used type of magnetic core in power transformers which is dominating the power transformer market. This is because of their low noise levels, high efficiency, and ability to handle high voltages & currents.

Closed cores are also relatively easy to manufacture and offer good magnetic properties, making them an attractive choice for power transformer manufacturers.

By Insulation

The Oil Segment Accounted for the Largest Revenue Share in 2022.

Based on insulation, the market is divided into oil, gas, solid, and air. Among these types, the oil segment is expected to be dominant in the global power transformer market, with a market share of 58.4% & projected CAGR of 7.4% during the forecast period.

Due to oil is used as insulation material in many industries because of its ability to remain stable at high temperatures. Electrical insulation properties like dielectric ability can reduce damage caused by high voltage. These advantages make oil insulators the preferred choice of manufacturers. Oil is also used as an insulator in high-voltage transformers, fluorescent lamp ballasts & high-voltage switches.

The Solid Segment is Expected to be the Fastest Growing Segment.

The solid segment is expected to be the fastest-growing insulation segment in the forecasted period, with a CAGR of 7.8%. Owing to their improved safety, environmental friendliness, and better resistance to aging make, them an attractive option for a wide range of applications.

Solid insulation transformers offer many advantages over traditional oil-filled transformers, which include the low risk of fire, reduced maintenance requirements, and better performance in harsh environmental conditions. In addition, they do not require oil for cooling & insulation which makes them more environmentally friendly & reduces the risk of oil spills.

By Phase Analysis

The Three Phase Segment Holds a Significant Share of the Phase Segment in the Power Transformer Market.

Based on phase, the market for Power Transformers is divided into three and single. Among these types, the three-phase segment is expected to be dominant in the global power transformer market, with a market share of 63.7% and a CAGR of 7.2%.

Owing to Industrial equipment is best distributed by three-phase transformers, which are smaller, lighter, and more affordable. In three-phase applications, a variety of single-phase ferro resonant or toroid devices may be beneficial.

Three-phase transformers can also be used for low voltage distribution, with high fluctuations and low voltage, due to their high-level isolation, strong common mode interference suppression & customizable design. Three-phase transformers are used in a wide range of applications. The market is expected to grow over the forecast period due to its advantages & widespread use across different industries.

By Rating Analysis

The 101 MVA to 500 MVA Accounted for the Largest Revenue Share in the End-Use Segment in the Market.

Based on the rating, the market for power transformers is segmented into Below 100 MVA, 101 To 500 MVA, 501 To 800 MVA, and Above 800 MVA. Among these, the 101 MVA to 500 MVA segment is dominant in the market, with a share of 62.8% and a CAGR of 7.1%.

Owing to transformers from 100 MVA to 500 MVA range are used in a wide range of fields, including industrial use and powering vehicle motors. Transformers in the 100 MVA-500 MVA range are increasingly in demand due to the growing demand for electricity worldwide owing to urbanization and industrialization. The increasing demand for these transformers is due to the technological and design refinements that are being implemented.

The 501 MVA to 800 MVA Segment is Expected to be Fastest Growing in Projected Period.

The 501 MVA to 800 MVA segment is expected to grow faster in the forecasted period with a CAGR of 7.7%. Owing to the increasing demand for high-capacity transformers for large-scale industrial & utility applications like power generation & transmission, as well as the increasing adoption of renewable energy sources.

The 501 MVA to 800 MVA rating segment offers various advantages over lower-rated transformers, which include improved efficiency, reduced transmission losses, and the ability to handle higher power capacities. These transformers are designed for operating at high voltages & frequencies, which makes them perfect for use in big power plants & other high-capacity applications.

By Application Analysis

The Industrial Segment Holds the Significant Share of the Application Segment in the Power Transformer Market.

Based on applications, the market for power transformers is divided into industrial, residential & commercial utilities. Among these types, the industrial segment is expected to be dominant in the global power transformer market, with a market share of 43.8% and a CAGR of 7.2%.

Owing to Power transformers are used in industrial sectors to ensure accurate, safe, and risk-free electricity usage. The apparel of smart transformers has contributed to the growth of industrial transformer usage, which gives market players a competitive advantage.

In addition, the heavy investment in energy generation, industrialization & urbanization around the world is forcing market players to allocate resources towards research & development of eco-friendly transformers.

Residential & Commercial Segment is Expected to Fastest Grow in Power Transformer Market in Forecasted Period.

The residential & commercial segments have experienced rapid growth in recent years with a CAGR of 7.8% because residential & commercial transformers are important for distributing power to homes & businesses; they typically don’t require the same level of capacity or durability as industrial transformers.

Key Market Segments

Based on Core

• Shell
• Closed
• Berry

Based on Insulation

• Gas
• Oil
• Solid
• Air

Based on Phase

• Three
• Single

Based on Rating

• Below 100 MVA
• 101 To 500 MVA
• 501 To 800 MVA
• Above 800 MVA

Based on Application

• Industrial
• Residential & Commercial
• Utilities

Growth Opportunity

Increasing Demand for Electricity and Integration of Digital Technologies Creates Opportunities in the market

The power transformer market presents various opportunities for companies operating in the energy sector. One major driver for the growth of this market is the increasing electricity demand which led to the evolution of power generation properties in some regions across the world.

Another important opportunity is the increasing investments in renewable energy sources like solar & wind power which require efficient & reliable power transmission and distribution systems. Furthermore, the need to replace aging power infrastructure presents a significant opportunity for businesses that can provide innovative & reliable transformer solutions.

Additionally, the integration of digital technologies & smart grid solutions is opening up new avenues for innovation in the power transformer market. As such companies which can offer high-quality & cost-effective power transformer solutions that meet the evolving needs of the energy industry stand to benefit from the growing demand for these products.

Latest Trends

Increasing Demand for Renewable Energy Sources is Trending in the Market

The power transformer market is constantly evolving with new trends & technologies emerging regularly. One major trend in the power transformer market is the increasing demand for renewable energy sources like solar & wind power which require large-scale transformers for efficient power transmission.

Another trend is the adoption of smart grid technologies which allows for better monitoring & management of power distribution systems which leads to greater efficiency & reliability. Additionally, there is increasing interest in eco-friendly & sustainable transformer materials as well as advancements in transformer design and manufacturing processes that focus on reducing energy loss and improving performance.

Overall, the power transformer market is expected to continue to grow & evolve in response to other trends as well as increasing demand for electricity in developing countries & emerging economies.

Regional Analysis

Asia-Pacific Accounted for the Largest Revenue Share in Power Transformer Market in 2022.

APAC is the dominant region in the global power transformer market. It is expected that Asia-Pacific will have the highest revenue share 41.2%. APAC should also register a CAGR of 7.8% over the forecast period.

Owing to the rapid growth of the region which is facilitated by rapid economic development & the increased need for a reliable & uninterrupted power supply which can be attributed to the increasing population in the area. China invests in its electrical transmission & distribution network to meet the increasing demand for electricity due to its rapid industrialization & urbanization.

Asia-Pacific is Expected as Fastest Growing Region in Projected Period in Power Transformer Market.

APAC is expected as the fastest-growing region in the forecast period in the power transformer market with a CAGR of 7.8%. The rapid economic growth & the increasing need for reliable and uninterrupted electricity supply are driving the growth of power converters. China is investing in its electrical transmission & distribution network to meet the nation’s rising demand for electricity due to rapid urbanization & industrialization which is also supporting regional market expansion.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The power transformer market is dominated by Siemens AG, Crompton Graves Ltd., ABB Ltd., Alstom SA., Toshiba Corp., and General Electric Co. To gain a majority share of the market, industry players have adopted strategies like increasing the production capacity & improving product longevity.

Some notable companies provide shunt reactors & HVDC-light as well as phase shifting variations along with improving their existing product portfolio.

Market Key Players

• Mitsubishi Electric Corporation
• Alstom SA
• Hyosung Power & Industrial Systems Performance Group
• Crompton Greaves Ltd.
• GE Co.
• Hyundai Heavy Industries Co. Ltd.
• Siemens Energy
• ABB Ltd.
• Toshiba Corp.
• Bharat Heavy Electricals Limited
• Other Key Players

Recent Developments

• In May 2021, Schneider Electric announced that it had launched a new range of dry-type transformers that use an innovative insulation system for reducing energy losses & improve efficiency.
• In April 2021, Hitachi ABB Power Grids won a contract to supply transformers for a new 500 kV substation in Oman as part of the plan to strengthen the country’s electricity grid.
• In March 2021, Mitsubishi Electric Corporation announced that it had developed new transformer insulation technology that uses a resin with high thermal conductivity for improving heat dissipation & reducing transformer size.

Report Scope