Power Transformer Market Size, Share, Growth Analysis Report and Forecast Trends (2026-2035)

Power Transformer Market Growth

A power transformer is an electrical device which is used to transfer the electric energy between two circuits through an electromagnetic induction process. Some of its primary functions include changing voltage levels and reducing power loss during distribution and transmission, among others.

The primary driver supporting power transformer market expansion is the growing demand for electricity, which is fuelled by rapid industrialisation and urbanisation in emerging economies. As per industry reports, India's electricity consumption grew nearly 8% to about 847 billion units in the first half of 2023. Additionally, the need for grid expansion and upgradation to meet increasing electricity demand is a significant driver.

Key Trends and Developments

Power Transformer Market Trends

Growing applications of power transformers in the transmission and distribution of electricity generated by renewable energy sources such as solar and wind power is one of the prominent trends in the market. Several grid infrastructures are leveraging transformers to effectively use renewable energy for achieving a carbon-neutral future. The International Energy Agency also forecasted that low carbon emission energy sources (wind, solar, nuclear, and hydro) will account for almost 50% of global power sources by 2026. This shift towards renewable energy sources necessitates the integration of power transformers into the existing electrical grid to facilitate efficient transmission and distribution of electricity.

Power Transformer Industry Segmentation

Power Transformer Market Share

Shell core segment dominates the market, driven by its cost-effectiveness, design flexibility, and performance characteristics

Shell core transformers hold substantial share of the market as these transformers feature a square or rectangular cross-sectional core, which makes them more cost-effective to manufacture. Shell core transformers are widely used in low-voltage and high-output applications due to their efficient cooling system, design flexibility, high seismic withstanding ability, and high short-circuit strength.

Closed core transformers, on the other hand, are a type of power transformer that feature a closed magnetic circuit. They are known for their efficient design and ability to handle high overloads and short-circuit currents. As per power transformer market analysis, closed core transformers are commonly used in applications where space is limited, such as in urban areas. Berry core transformers are another type of power transformer that feature a circular cross-section. They are known for their efficient control of leakage magnetic flux and are often used in electronic and low-voltage power circuits.

Oil insulated transformers are highly used due to their excellent dielectric strength

Oil-based insulation occupies a significant portion of the power transformer market share as it provides better thermal stability compared to other insulation materials and prevents the risk of overheating. Its excellent dielectric strength also makes it tolerable to high voltages and minimises the possibility of damage due to power overload. Furthermore, the rising trend of sustainability has fuelled the demand for eco-friendly oils such as ester oils that have a better environmental footprint compared to standard mineral oils.

Gas insulation is another popular choice for power transformers due to its high dielectric strength and low maintenance. Gas-insulated transformers (GITs) use sulfur hexafluoride (SF6) as the insulating medium. They are widely used in high-voltage applications due to their ability to withstand high voltages. Meanwhile, solid insulation is a newer and an eco-friendlier option for power transformers. Solid-insulated transformers (SITs) use solid materials, such as epoxy resin or polyurethane, as the insulating medium.

Leading Companies in the Power Transformer Market

Other key players in the global power transformer market include HD Hyundai Electric Co., Ltd., Siemens AG, Toshiba Corp., Alstom SA, Hyosung Heavy Industries Corp., CG Power and Industrial Solutions Ltd., and Bharat Heavy Electricals Ltd., among others.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Power Transformer Market Analysis by Region

The Asia-Pacific region dominated the market due to the region's rapid population growth, which have led to an increasing demand for electricity and power infrastructure

The North American market is driven by several factors, including the increasing demand for electricity in residential and commercial sectors, the need for renewable energy integration, and the modernisation of ageing infrastructure. As per industry reports, more than 60% of the power transformers in the United States are over 25 years old. This ageing infrastructure faces increased risks of failures, reduced efficiency, and higher maintenance needs, making modernisation and replacement a pressing need. Also, recently, the White House and federal government has allocated more than USD 100 billion to modernise the US electric grid, which will improve infrastructure resilience and reduce transmission and distribution losses.

According to power transformer market report, Asia Pacific accounts for a substantial share of the global market due to the growing demand for electricity in the region. Factors such as rapid urbanisation, rising requirement for uninterrupted power supply, and favourable government schemes to expand power transmission and distribution in rural areas offer a positive market outlook. In September 2023, Hitachi Energy opened its advanced transformer manufacturing facility in Liang Jiang New Area, China, to support the region's growing demand for power transformers.

Power Transformer Market Report Snapshots

Power Transformer Companies