Europe Transformer Market Size - By Core, By Product, By Winding, By Cooling, By Insulation, By Rating, By Mounting, By Application, Analysis, Share, & Forecast, 2025 - 2034

Europe Transformer Market Size

The Europe transformer market was valued at USD 11.5 billion in 2024 and is set to register at a CAGR of 8.1% from 2025 to 2034, driven by the growing demand for electricity.  Many countries in the Europe are investing significantly in order to expand the power distribution network. In last 10 years, European Investment Bank has spent more than USD 145 billion in energy sector, that has enabled efficient energy supply in Europe. These investments have increased the demand for transformer across the Europe.
 

Europe transformer market is expected to grow remarkably in coming years on account of the rising urbanization and industrialization. Countries including Germany, France, UK are focusing on clean energy technologies, which further boosts the demand for efficient transmission systems. For instance, in 2023, Europe disclosed that it would invest invested more than 100  billion in renewable energy, which will be creating a strong demand for the transformers.
 

Manufacturers are working on innovation with the ongoing trend of advanced technologies, creating a positive environment for the production of efficient transformers. For instance, in 2023, ABB, transformer manufacturing company, have developed dry-type transformer reduced overall energy costs by 10-12%%, which will also remove the risk of oil leakages. These advancements as well as innovation will also propel the transformer industry in the Europe.
 

A huge emphasis on smart grids integration and adoption of EVs is visible, which, along with modernization of power systems, increases the need for energy efficient transformers. For instance, Electric vehicles sales in 2023 reached over 14 million worldwide. Norway had most deployments at 93% market share in 2023.
 

Since the Europe is witnessing crucial need for expansion of distribution network, need for efficient systems is highly needed. The rising trend of advanced technologies including AI, IoT have further spurred the need for efficient power distribution systems, thereby creating a demand for transformer across the Europe.
 

Europe Transformers Market Trends

• The rising trends in European transformer industry is mainly advanced technology including AI, IoT, and blockchain. These technologies are creating major impact on the market growth. The rising preference for these technologies and growing use of AI in electrical industry, are significantly aiding the business growth.
   
• The number of projects regarding the electrification of rail tracks are also increasing, which further will spur the growth of transformer industry. In Europe, 60% of European rail tracks in the Europe region are electrified, whereas in countries including Switzerland are stepping ahead and almost reached to the 100% electrification. Similarly, grid modernization is also becoming critical, aiding the transformers market grow in the coming years.
   
• There are multiple industries, where the energy efficient transformer are highly essential. These requirements are fulfilled by smart transformers, which may include dry type as well as digital transformers. Nowadays, utilities are preferring to prefer ecofriendly transformer to curb the pollution.
   
• Another important development is the deployment of smart transformers which aid in developing smart grids. The transformers possess sophisticated monitoring and diagnostic capabilities that augment the dependability of the power grid, allowing for the immediate examination of collected data, and improve energy management. The growth of digitalization is driving the need for manufacturers to adopt IoT-enabled systems, automated predictive maintenance solutions.
   
• The increasing number of renewable projects is reshaping the transformer industry significantly. In 2022, Amazon, with the investment of 2 Bn, will be commencing 39 utility projects. So far, it has worked on 160 winds as well as solar projects across the Europe, which also indicates the promising future for transformers market across the Europe.
   
• Grid modernization and interconnection projects are critical growth drivers, propelling the market significantly. Europe’s focus on enhancing cross-border electricity trade and building resilient, interconnected grids is increasing the deployment of high-capacity power transformers. Initiatives under the Trans-European Networks for Energy (TEN-E) framework are promoting grid upgrades and energy security, further stimulating the market.
   

Europe Transformers Market Analysis

• The Europe transformer industry was valued at USD 9.5 billion, USD 10.5 billion and USD 11.5 billion in 2022, 2023 and 2024 respectively. The industrial sector’s expansion, coupled with urbanization and rising electricity consumption, will be fueling the market growth in coming decades.
   
• The shell core segment is anticipated to cross more than USD 8.7 billion by 2034 and will significantly grow, due to the rising preference for renewable energy across the world. Renewable sources of energy are around 43% of total energy production in Europe in 2022, leading the continent in energy production.
   
• The closed core segment held around 39.8% of the market share in 2024 and changing growing utility across the sector. There are renewable energy projects, that are under construction, will be creating a strong need for transformers. For instance, The EU is experiencing record-breaking solar capacity additions, with forecasts indicating over 60 GW of new solar PV installations in 2024 alone, surpassing previous years' records.
   
• Similarly, berry core segment also carries high importance because of its multiple features in various end use industries. The rising number of projects are tremendously propelling the need for transformers. Interconnections border projects also plays crucial role in this industry. Europe has total 155 GW of capacity across its grid, with the aim to add further capacity of 225-274 GW by 2030.
   
• The shell and closed core segments have considerable influence in the transformer market in areas of efficiency, performance, and application versatility. The performance of shell core design, which contains the windings inside the core, has higher mechanical strength and less leakage reactance. Such designs increase the short-circuit withstand capability hence are best suited for super grade transformers in industrial and utility applications.
   

• In the Europe transformer market, the distribution transformer segment has the majority revenue share of over 56.5% in 2024 due to the significantly rising demand for energy across the world as well as growing industrialization and urbanization, helping the transformer market grow across the Europe.
   
• The European market for transformer continues to be strong owing to the simultaneous efforts towards upgrading electrical grids, modernizing utilities and replacing inadequate infrastructure. In 2021, EU announced that it would invest 5.84 billion from CEF for the energy infrastructure projects for 2021-2027, which mainly has its focus on grid improvements.
   
• The power transformer segment is anticipated to grow at a CAGR of over 3.5% through 2034. With the increase in energy consumption all over the world, there is a rapid growth of innovation in the advanced technology. This facilitates the need for power distribution systems, in which transformer plays a crucial role.
   
• In long-distance transmission of power, voltage or line loss regulation is a major issue and requires proper infrastructure and power transformers deal with either case. The market is also benefiting from the shift towards renewing older grid systems across Europe. Numerous nations are replacing aging equipment to improve productivity and effectively handle the fluctuating output from renewable energy sources.
   
• The instrument transformers, comprising of current and voltage transformers, are essential for secure measurements, controls and protections of the boundaries of the electrical systems. It has a steady growth due to the widening scope of smart grid technologies and advanced metering infrastructures (AMI) in Europe.
   

• The Germany transformer market in 2022, 2023 and 2024 was valued at USD 1.2 billion, USD 1.3 billion and USD 1.4 billion respectively. Geopolitical relations in Europe indicate that these government bodies are legislating both measures and policies referring to consumption to establish order on the electricity usage and that gives rise towards the necessity of efficient transformers. All these requirements would increase demand for the transformers within the European region.
   
• France covers overall market share of around 15.8% in 2024, which is projected to rise further by 2034 since it is also contributing massive amount in this sector. In 2023, the country has invested near about USD 55 Bn in the electrical infrastructure. It will further increase due to the increased demand for energy operational management and the modernization of electrical infrastructure.
   
• The UK transformer market is projected to cross USD 3.5 billion by 2034 due to rising number of electrical infrastructure projects and industrialization in the UK. Power systems are operated in infrastructure including factories, manufacturing plants, and data centers which increasingly open up due to industrialization. The expansion of industries calls for new up-to-date robust and modular electrical power systems to be constructed, growing the transformer market in that region.
   
• Germany continues to play an important role in the development of this market because, Germany invests heavily in the construction of sensors, controllers, and automation equipment which is the backbone of transformers solutions. In 2023, this showed an increase where Germany invested roughly 35 billion on renewable energy plants.
   
• Specialized firms like Siemens and Schneider Electric are spearheading the development of cutting-edge transformer technologies in Germany. These automates and energy systems from Germany have already adopted smart grids, energy storage, and IoT solutions, which are now in the process of being implemented for commercial and industrial applications in smart cities.
   

Europe Transformers Market Share

Top 4 companies including ABB, Siemens, General Electric hold more than 40% revenue share around the world. In Europe transformer industry, ABB, Siemens and General Electric hold the crucial share on account of their large network all over the world. The giant companies continuously research the new product and solutions, making them vital player in this industry worldwide. These companies prefer a massive investment specially in R&D. Additionally, these companies executes various business expansion tactics to gain a significant market share in that industry.
 

Europe Transformers Market Companies

• General Electric: In 2023, GE's total revenue was USD 67.95 billion, with USD 1.90 billion going toward research and development (R&D) to create better products. In 2023, Amprion GmbH awarded a contract to GE Vernova's Grid Solutions division for the delivery of 12 400 kV power transformers.
   
• In 2023, Eaton announced that it will expand its capabilities and resources in Europe, Middle East, and Africa (EMEA) with the recent announcements of two grants from the Czech Republic. The grants will fund participation in two innovative mobility projects, including assisting in the design and development of an electrified off-road truck and to develop and demonstrate a new power distribution unit (PDU) and DC/DC converter (200 kW) for hydrogen fuel cell powered trucks.
   
• Schneider Electric: In 2024, Schneider Electric has generated a net sale of USD 28.99 billion up to quarter 3. Schneider Electric, the leader in the digital transformation of energy management and automation, has announced that its EcoStruxure. Transformer Expert service is now available to businesses in the UK & Ireland. Designed to help extend the life of oil transformers and meet regulatory requirements, the subscription-based service monitors the health of transformers using a combination of IoT sensors and advanced software analytics.
   

Europe Transformers Market Companies

Major players operating in the wire and cable industry are:

• ABB
• Celme S.r.l.
• ERMCO
• Elsewedy Electric
• Eaton Corporation
• General Electric
• Hitachi Energy Ltd.
• Hammond Power Solutions
• HYOSUNG HEAVY INDUSTRIES
• Mitsubishi Electric Corporation
• ORMAZABAL
• Power Transformers, Inc.
• Siemens
• Toshiba Energy Systems & Solutions Corporation
• Voltamp
   

Transformers Industry News

• In November 2024, Hitachi ABB launched a portfolio of transformer products for offshore floating applications, designed to overcome the challenging offshore environment and withstand the physically demanding conditions on floating structures. The portfolio will enable much greater volumes of wind to be efficiently harvested and integrated into the global energy system, directly supporting the transition to a sustainable energy future.
   
• In December 2024,  Siemens and Tietoevry, a leading Nordic digital engineering and software company, have teamed up to accelerate the digital transformation of the power utilities sector in Northern and Central Europe. Using Siemens’ Gridscale X software platform in conjunction with their own IT services, Tietoevry will be adding new capabilities to their solutions to support grid operators in the Nordics to effectively manage their grids and address challenges related to the energy transition.
   
• In July 2024, TenneT and Siemens Energy have signed an agreement to reduce their CO2 footprint at the Siemens transformer plant in Nuremberg. A first milestone of the partnership is the production of transformers from 100% recycled copper. From now on, Siemens Energy will produce all future transformers for TenneT with copper. By 2030, TenneT expects to have around 52 transformers from Siemens Energy, each of which will install 72 tonnes of recycled copper. These transformers will help TenneT to significantly reduce CO2 emissions during grid expansion. Siemens Energy and TenneT can reduce 100 metric tonnes of CO2 emissions per transformer alone.
   
• In September 2024, US-based GE Vernova announced the expansion of its existing transformer manufacturing facilities in Stafford, UK. According to the company in a release, the expansion is aimed at supporting the fast-growing demand for HVDC transmission systems that will help power renewable energy projects throughout Europe, Asia and North America, while also supporting the UK’s energy transition. The expansion focuses on two key sites of its Electrification Systems’ Grid Solutions business in Stafford.
   

Europe transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million and “000 Tonnes” from 2021 to 2034, for the following segments:

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Market, By Core

• Closed
• Shell
• Berry

Market, By Product

• Distribution Transformer
• Power Transformer
• Instrument Transformer
• Others

Market, By Winding

• Two Winding
• Auto Transformer

Market, By Cooling

• Dry Type
  • Self-Air
  • Air Blast
• Oil Immersed
  • Self-Cooled
  • Water Cooled
  • Forced Oil
  • Others

Market, By Insulation

• Gas
• Oil
• Solid
• Air
• Others

Market, By Rating

• ≤ 10 MVA
• > 10 MVA to ≤ 100 MVA
• > 100 MVA to ≤ 600 MVA
• > 600 MVA

Market, By Mounting

• Pad
• Pole
• Others

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following countries:

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