Europe Distribution Transformer Market Size – By Core, By Installation, By Winding, By Cooling, By Insulation, By Phase, By Rating, By Mounting, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Europe Distribution Transformer Market Size

The Europe distribution transformer market was estimated at USD 7.1 billion in 2024 and is expected to reach USD 16.9 billion by 2034, growing at a CAGR of 9% from 2025 to 2034. As Europe transitions toward a greener energy landscape, the demand for oil-filled distribution transformers is being influenced by the growing integration of renewable energy sources, such as wind and solar. These energy sources often require more efficient distribution systems. Oil-filled transformers, known for their ability to handle high capacities and withstand extreme weather conditions, remain integral in supporting this energy shift, especially in regions with heavy renewable energy generation.
 

Moreover, owing to rising objective of reduction in carbon elimination the rise in investment potential in renewable energy sector by different countries is expected to increase the demand for distribution transformers. For instance, during Q3 of 2024, electric vehicles (EVs) accomplished a market share of 29.4% of the UK automobile industry, improving from the year-on-year 23.4%. The share of Battery Electric Vehicles (BEV) was substantial at 20.5% while Plug-In Electric Hybrid Vehicles (PHEV) claimed the remaining 8.9%.
 

Additionally, EV sales owing to the price reduction in European countries such as Germany further rises demand for EV. As EV adoption is on rise the number EV charging station is also rising. Distribution transformers in EV charging infrastructure are used for ensuring stable power delivery, enhancing grid reliability, and supporting smart energy solutions.
 

As the population rising the electricity demand is also increasing worldwide. As the energy demand growing various power distribution networking is on rise as well. For instance, Currently in construction since 2023, the submarine power cable NeuConnect, a high-voltage direct current cable, will connect the Isle of Grain in England to Wilhelmshaven in Germany. Anticipated to be functional by 2028, it will serve as the first interconnector between the UK and Germany serving 1,400MW capacity. Distribution transformer handle the load without overheating and energy losses and newly designed transformers can even used in urban spaces with space constrained issues.
 

Europe Distribution Transformer Market Trends

The Europe distribution transformer industry has been registering a noteworthy positive trend owing to growing demand for effective energy management from various end users such as EV, renewable energy and others. This promotes numerous innovative initiations in the industry. Smart distribution transformer, solid-state transformers being some of these innovations in the field. The technology helps to automate and improve the energy consumption. Smart transformers provides real time monitoring of electrical parameters and detection of irregularities in voltage load to safe guard grid functions. Solid-state transformers (SST) utilize semiconductor machinery to manage power more effectively and flexibly in comparison to traditional transformers.
 

SSTs are ideal choice in case of space constrained cases as they can be designed compact yet efficient. Owing to such benefits and rising demand for advanced transformers, region is initiating research and development of efficient SSTs. For instance, initiated in 2022, SSTAR (Innovative HV Solid-State TrAnsformer for maximizing Renewable energy penetration in energy distribution and transmission systems) project with objective of developing high-voltage SSTs to further incorporate renewable energy sources into Europe's power grid. The project is set to complete by February 2026.
 

Moreover, rising smart grids and smart meters also rises the demand for distribution transformer to monitor the energy consumption. For instance, the adoption of smart meter across the European countries is predicted to grow from 58-62% from 2023 to 76-80% in 2028. Thus crossing 300 million smart meter deployment by 2028 in Europe. It is observed that the region witnessed around 3%-5% growth in smart meter adoption from 2022 to 2023, accounting more than 180 million smart meters by the end of 2023.
 

Further grid upgradation in the region is likely to increase demand for new distribution transformer for better load management. For instance, Europe is projected to spend nearly €800 billion by the year 2030 to modernize its electrical grids. Such spending appears to be crucial for increasing the integration of renewable energy and maintaining Europe’s transition to sustainable energy sources within its strict climate goals. The intended spending of €800 billion will mainly target enhancements of storage facilities, transmission networks, distribution networks, and other cross-border interfaces.
 

Europe Distribution Transformer Market Analysis

Based on core the market is segmented into closed, shell and berry. Europe distribution transformer industry reached USD 5.8 billion, USD 6.4 billion and USD 7.1 billion in 2022, 2023 and 2024 respectively.
 

• The closed core segment is predicted to reach over USD 4.8 billion in 2034. The rising upgradation of power grid and automation of energy flow demand for closed core in distribution transformer is rising. In addition owing to its closed and compact design it avoids any energy losses and is ideal choice for small spaces.
   
• Furthermore, rising shift towards renewable energy also increasing demand for closed core distribution transformer in modern grids. For instance, in 2023, the European Commission announced the revision of the Renewable Energy Directive. The revised directory increases he EU's mandatory renewable energy goal from 32% to at least 42.5% for 2030, with the optimistic objective to reach 45%.
   
• Wherein, shell as well as berry type distribution transformer has much more complicated design than that of closed distribution transformers. However, these distribution transformers reduces the risk of energy leakage and are efficient choice industrial usage. Increasing industrial output in Europe will increase the demand for berry and shell core distribution transformer in forecast period.
   

The Europe distribution transformer market by insulation is segmented into gas, oil, solid, air and others. The oil segment is accounted for over 59% market share in 2024.
 

• Rising industrialization and upgradation of aging grids into modern grid and favorable government initiatives will also increase the demand for oil insulated distribution transformer segment. For instance, in January 2025, industrial output in European area grew by 0.8% crossing the estimation of 0.6% growth.
   
• Furthermore, rising energy demand and simultaneously expansion of transmission networking are rising demand for constant battery backup system integrated into the power grid. This increases demand for oil insulated distribution transformer especially in substations and offshore networks.
   
• For instance, in January 2025, the UK energy regulator Ofgem approved funding of USD 2.5 billion for around 200 kilometers worth of new subsea and underground cables linking Scotland and the northeast of England. Construction is set to start in 2025 and complete by 2029. The project claims to power over 2 million homes and save consumers more than USD 850 million yearly.
   
• Due to rise in introduction of EV charging points owing to rising adoption of ecologically friendly transportation and supportive government policies in the field, the Europe distribution transformer market is expected to witness higher demand for EV charging use.
   
• For instance, by August 2024, Europe had more than 306,000 public EV charging points spread throughout 86,000 stations. The European Commission intends to deploy 3.5 million charging points by 2030, which requires the additional installation of roughly 410,000 public charging points every year.
   

• The Germany distribution transformer market reached USD 675.4 million, USD 745.6 million and USD 822.4 million in 2022, 2023 and 2024 respectively. Rising EV sales and higher adoption of renewable energy across the continent the demand for distribution transformers for power grid and EV infrastructure in Europe will rise spontaneously. For instance, in 2024, Germany recorded more than 380,000 new battery-electric vehicles (BEVs), making it fourth largest EV geographic market globally.
   
• Favorable government initiatives for energy efficiency and investment in smart grid adoption across the nation are driving demand for advanced distribution transformer for power grids.
   
• For instance, in December 2024, the National Grid, SSE, and ScottishPower are among the energy companies in Great Britain announced the investment proposals of over USD 77 billion between 2026 and 2031. This fund aims towards improving and expanding the electricity infrastructure for transitioning from traditional fuels to clean energy, which may generate about 100,000 jobs.
   

Europe Distribution Transformer Market Share

Top 5 companies including Hitachi Energy, Eaton, General Electric, Siemens and Schneider Electric held a market share of over 40% in 2024. Many market players are working to develop cost-effective and wide volt range portable LFP batteries.
 

Among these companies Hitachi Energy is one of the largest share holding company in the Europe distribution transformer market. Owing to its vast product offerings, widespread of geological clientele and strategic partnership with clients to offer advanced distribution transformers along the side of standard solutions. The demand for distribution transformers is expected to boost as the renewable energy and electric vehicle industry constantly grow, especially in European countries such as Germany and UK.
 

Furthermore, supportive government regulations in the developing and developed countries and affordable labor cost further decreases prices of distribution transformer and aids strong uphold of market in the cost-sensitive group of consumers. Other major companies including Eaton, General Electric, Siemens and Schneider Electric are also poised to target significant share of the market in focus, particularly in cost-sensitive energy providing group and EV sectors.
 

Europe Distribution Transformer Market Companies

• Hitachi Energy is an automation and power technology company based in Switzerland. They offer many different types of distribution transformers and are increasing production to assist in the worldwide effort of decarbonization. The company registered more than USD 80 billion annual revenue in 2023.
   
• Eaton is Ireland based multinational company that held around USD 25 billion revenue in 2023. The company is opting various organic strategic moves to boost its clientele and capture potential revenue growth in future.
   
• General Electric is a U.S. based multinational company dealing in different business segment such as aviation, renewable energy and power. The company witnessed around 17% increase in revenue recording USD 68 billion in 2023. The company is engaging in partnership with several power grids to offer efficient electrical equipment for utility sites.
   
• Siemens a Germany headquartered multinational company with global footprint in energy, automation, and digitalization business segments. The company registered a revenue of USD 83 billion in 2023. In addition, the company is collaborating with other players in the industry to enhance its manufacturing capacity and ease global supply.
   
• Schneider Electric is a French multinational company that held around USD 39 billion revenue in 2023. The company currently enhancing volume production capabilities for electrical equipment required during the energy transition process.
   

Some of the key players operating across the Europe distribution transformer market are:

• CG Power & Industrial Solutions
• Eaton
• Elsewedy Electric
• General Electric
• Hitachi Energy
• HYOSUNG HEAVY INDUSTRIES
• IEO Transformers
• IMEFY GROUP
• Kon?ar
• Mitsubishi Electric
• ORMAZABAL
• Schneider Electric
• SGB SMIT
• Siemens
• Toshiba Energy Systems & Solutions
   

Europe Distribution Transformer Industry News

• In January 2025, Efacec entered an agreement with EnBW a Germany based energy provider. The agreement include supply of thousands of distribution transformers from 2024 up to the end of 2028. The contract predicts supply of more than 2,600 distribution transformers for next five years with potential value of over USD 10 million.
   
• In January 2025, Hitachi Energy announced plan of an investment worth over USD 30 million for expansion and relocation of its dry-type transformer plant in Zaragoza, Spain, to a new modern facility at the Zaragoza Logistics Platform. The factory plans completion by the end of 2026 which allow for increased capacity, improved job creation, and heightened emphasis on quality, innovation, and sustainability.
   
• In June 2024, Schneider Electric unveiled the introduction of EcoStruxure Transformer Expert service in UK and Ireland for the purpose of prolonging the life of oil transformers while minimizing their non-operating periods.
   
• In September 2024, The Danish technological company Hans Folsgaard entered an agreement with the power transformer manufacturer, Koncar won a tender for distribution transformers for a grid expansion project in eastern Denmark. Under the current contract, the company is obligated to deliver about 400 high efficiency distribution transformers per year between January 2025 and 2029.
   

The Europe distribution transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue and volume (USD Million and ‘000 Units) from 2021 to 2034, for the following segments:

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Market, By Core

• Closed
• Shell
• Berry

Market, By Winding

• Two - Winding
• Auto - Transformer

Market, By Installation

• Outdoor
• Indoor

Market, By Cooling

• Dry Type
• Oil Immersed

Market, By Insulation

• Gas
• Oil
• Solid
• Air
• Others

Market, By Phase

• Single
• Three

Market, By Rating

• ≤ 2.5 MVA
• 2.6 MVA to 10 MVA
• > 10 MVA

Market, By Mounting

• Pad
• Pole
• Others

Market, By Application

• Residential & Commercial
• Utility
• Industrial

The above information has been provided for the following countries:

• UK
• France
• Germany
• Italy
• Russia
• Spain