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Europe Oil Filled Transformer Market Size By Core (Closed, Shell, Berry), By Product (Distribution Transformer, Power Transformer, Instrument Transformer), By Winding (Two Winding, Auto-Transformer), By Modes of Cooling, By Mounting, By Rating, By Substation Connectivity (Distribution, Transmission), By Application, Country Outlook & Forecast, 2023 - 2032
- Report ID: GMI5473
- Published Date: Mar 2023
- Report Format: PDF
Industry Statistics
Europe Oil Filled Transformer Market size recorded at USD 5 billion in 2022 and is projected to expand at more than 7.5% CAGR from 2023 to 2032 driven by the strong presence of key industry players in the region.
The demand for transformers in Europe is primarily fueled by the refurbishment of existing grid networks. Supportive regulatory frameworks and policies, along with an upsurge in spending on the modernization of standard technologies are expected to boost industry expansion. In December 2022, the European Commission disbursed more than USD 4 billion to support clean energy transition in 8 countries. The integration of innovative components, machinery, and control equipment in oil-filled transformers is set to make them more resilient, feasible, and suitable for existing grid networks.
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Mounting adoption of alternate transformer technologies may restrain industry progression
Despite a positive outlook for product adoption, the oil filled transformer industry in Europe faces a major hurdle due to the availability of alternate transformer technologies comprising gas-filled and dry-type transformers that exhibit distinct properties. For instance, in April 2022, Siemens Energy, a German energy solutions manufacturer, launched CAREPOLE, its dry-type single-phase transformer a reliable alternative to oil-filled transformers for pole applications. Nonetheless, extensive investments to refurbish the existing grid networks are likely to provide opportunities for industry growth.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | 5.4 Billion (USD) |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 7.6% |
| 2032 Value Projection: | 12.9 Billion (USD) |
| Historical Data for: | 2019 to 2022 |
| No. of Pages: | 350 |
| Tables, Charts & Figures: | 605 |
| Segments covered: | Core, Product, Winding, Modes of Cooling, Mounting, Rating, Substation Connectivity, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Favorable government initiatives for expanding the infrastructural grid to help distribution transformers gain traction
Europe oil filled transformer market from the distribution transformer segment is estimated to attain at 9% growth rate between 2023 and 2032. This growth is attributed to the rising investments in uplifting distribution networks to power remote areas. In September 2022, the EU proposed two new initiatives to build and install the necessary infrastructure for green energy in rural areas. Furthermore, continuous efforts to replace traditional electrical grids and the growing emphasis on the upgradation of modern networks in important geographic regions are promoting the use of distribution oil-filled transformers.
Widespread usage in residential buildings to impel ≤ 5 MVA rated transformer adoption
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Oil filled transformer market size in Europe from the ≤ 5 MVA segment is slated to surpass USD 6 billion by 2032. With the prevalent usage in several infrastructural sectors and the rapid adoption of renewable energy sources in residential buildings, the 5 MVA rating transformers are set to have notable growth. Additionally, the recent expansion of micro-grid networks in the region are fueling the segment growth further. In a recent instance, EU funded SDN for microSENSE project to offer privacy-enabled, secure, cyber-attack-resistant tools to ensure electrical power and energy system (EPES) operations.
Multiple advantages for efficient usability to increase shell transformer segment share
| Core | CAGR, 2023 - 2032 (%) |
|---|---|
| Closed | 6.5% |
| Shell | 6.7% |
| Berry | 9.4% |
The shell core segment held over 40% share in the Europe oil filled transformer market in 2022. High-end product adaptability across high-voltage applications and greater power ratings is encouraging transformer penetration across the region. Moreover, these transformers have a compact design, which is ideal for limited spaces, offer better durability as they are less prone to damage from short circuits & overloading, and produce less noise compared to other forms of transformers, and are thus considered appropriate for residential use.
Sustainability and reliability of cooling technique to accelerate oil natural water forced segment growth
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Based on modes of cooling, the Europe oil filled transformer market from oil natural water forced (ONWF) segment is anticipated to reach approximately USD 740 million by 2032 propelled by its core and windings technique that does not require a continuous water supply, making it a reliable and sustainable solution for cooling transformers. In addition, the availability of ONWF in compact and simple designs enables easy installation and maintenance is bolstering product uptake. Lastly, its environment friendliness allows precise temperature control while catering to limited energy consumption.
Prominent investments to aid France emerge as a key revenue pocket
France oil filled transformer market accounted for 16% of the revenue share in 2022, credited to profitable funding and investment plans from both foreign and private participants to improve regional electrification. In September 2022, Schneider Electric, a French multinational firm, collaborated with Hitachi Energy, a provider of transmission, distribution, and grid automation solutions, to facilitate the energy transition. These companies aim to providing global customers with an operational life cycle, holistic offering, and a better supply chain, which is foreseen to positively influence the industry landscape in the country.
Production facility expansion efforts to foster the industry outlook
Leading participants operating in the oil filled transformer market in Europe are General Electric, Schneider Electric, Eaton Corporation, Siemens Energy, Hyosung Heavy Industries, Toshiba Corporation, CG Power & Industrial Solutions Ltd., Elsewedy Electric, Ormazabal, and Elettromeccanica Colombo s.a.s. These firms majorly engage in product innovation and strategic partnership deals to achieve a competitive edge in the market. For instance, in November 2022, Elsewedy Electric, an Egyptian energy firm, opened its phase two industrial complex transformer factory for regional manufacturing & exporting of wires, insulators, cables, meters, logistics centers, and transformers in Africa & Tanzania.
Impact of COVID-19 on the industry trends
The COVID-19 pandemic had a significant impact on the oil filled transformer market in Europe owing to substantial disruptions in the supply chain, resulting in a shortage of raw materials and components required to manufacture transformers. Moreover, fluctuations in oil prices hampered the volatility of the transformer industry. Similarly, remote working trends, government regulations, and stringent lockdown protocols further impeded product adoption in the region. However, in September 2021, the European Commission informed that the oil exchange-trade commodity (ETC) recorded nearly USD 200 million worth of oil inflows, while CRUD saw oil inflows of USD 240 million. Such events have been lucrative for the business.
The Europe oil filled transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units” & “USD Million” from 2019 to 2032, for the following segments:
Market Insights, By Core
- Closed
- Shell
- Berry
Market Insights, By Product
- Distribution Transformer
- Power Transformer
- Instrument Transformer
- Others
Market Insights, By Winding
- Two Winding
- Auto Transformer
Market Insights, By Modes of Cooling
- Oil Natural Air Natural (ONAN)
- Oil Natural Water Forced (ONWF)
- Oil Natural Air Forced (ONAF)
- Others
Market Insights, By Mounting
- Pad
- Pole
- Foundation
- Others
Market Insights, By Rating
- ≤ 5 MVA
- > 5 MVA to ≤ 10 MVA
- > 10 MVA
Market Insights, By Substation Connectivity
- Distribution
- Transmission
Market Insights, By Application
- Residential
- Commercial & Industrial
- Utility
The above information has been provided for the following countries:
- Germany
- France
- Russia
- UK
- Italy
- Spain
- Netherlands