Transformer Component Market Size - By Component Type, Analysis, Share, & Forecast, 2025 - 2034

Transformer Component Market Size

The global transformer component market was valued at USD 16.9 billion in 2024 and is estimated to reach the value of USD 36.8 billion by 2034, growing at a CAGR of 7.9% from 2025 to 2034. Renewed emphasis on the power infrastructure systems and the integration of renewable energy sources along with rapid industrialization in emerging economies is increasingly expanding the demand for transformer component.
 

Fluctuating supply chains and raw material prices are some of the factors affecting the market other than the technological improvements made to the core design, cooling systems, and advanced insulation materials, which improve the reliability and efficiency of the transformer components. However, the market is being impacted by volatile prices of raw materials and disruptions within the supply chain.
 

Moreover, strict custom fitting requirements result in operational complexities for the manufactures. The level of competition is still high as businesses pursue innovation and form alliances to increase their market presence. In addition, the market is still responsive to other changing factors in the business such as utility and industrial users along with the environmental factors.
 

For instance, Hitachi Energy allocated an additional USD 250 million toward boosting global transformer component production by 2027. This program is designed to mitigate the global transformer deficit caused by heightened demand due to increased electrification and data centers. The funding will also advance manufacturing in several regions and aid in the transition toward clean energy.
 

Tariffs imposed during the Trump administration could continue to affect the transformer component market by increasing component costs and supply chain uncertainty. Trade restrictions may also reduce competitiveness and limit access to international suppliers, leading to slower growth and higher prices across the industry.
 

Transformer Component Market Trends

• The ongoing electrification of the world, expansion of industrial sectors, and the incorporation of renewable energy sources are driving the growth of the transformer component industry. The rising need for electricity in developing nations is leading to an improvement in investments for power infrastructure. 
   
• Moreover, the introduction of new technologies including the IoT-enabled sensors and digital real time monitoring systems, has changed processes in the market for the better in regard to efficiency, reliability, and maintenance. In addition, these processes are also resulting from the incorporation of smart grid inventions which is fostering the need for advanced transformer components.
   
• The transformer component market is shifting towards eco-friendly insulation materials and energy saving designs due to compliance with environmental regulations. For instance, Lamco Transformers Supported India's renewable energy integration in December 2024 with bolstered cooling technology, amorphous cores, environmentally friendly fluids, and IoT and AI enhanced maintenance features which improved efficiency. 
   
• Moreover, utility and industrial consumers alongside infrastructure projects are perpetually influencing market innovation and expansion, overcoming supply chain challenges such as increased raw materials which negatively impact production costs and timelines.
   

Transformer Component Market Analysis

• The transformer component industry exhibits distinct regional dynamics influenced by varying degrees of industrialization, energy policies, and infrastructure development. The market was evaluated at USD 13.8 billion, USD 15.3 billion and USD 16.9 billion in 2022, 2023 and 2024 respectively.
   
• The Asia Pacific region dominates the transformer component market and is expected to reach over USD 11.5 billion by 2034. In the Asia-Pacific region, urbanization and industrial development are expanding investments in power infrastructure, which grows the need for transformer components. In North America, the focus is on modernizing the aging power infrastructure and adding renewable energy sources, which requires new transformer components to improve the reliability and efficiency of the grids. 
   
• To illustrate, the U.S. Department of Energy planned to invest USD 1.5 billion in 4 major transmission projects to improve grid reliability and the number of customers connected to clean energy in October 2024. The initiative will enable nearly 1,000 miles of new transmission lines in Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas, which are projected to create around 9,000 jobs.
   
• The Europe is focusing on adopting innovative transformer technologies that comply with strict environmental regulations due to an increased focus on energy efficiency and sustainability. Meanwhile, Latin America and Africa are slowly developing their transformer component markets due to the growth of infrastructure projects and electrification programs.
   
• The overall dynamics of the transformer component industry stems from a combination of economic growth of a region, its policies, and the advancement of new technologies, which means that developed and developing regions require different approaches to address their specific challenges and harness available opportunities.
   

• The transformer component market is experiencing significant advancements across core, winding, insulation systems, and tap changers, driven by the need for enhanced efficiency, reliability, and sustainability. The core component segment held 33.5% of market share in 2024 and is anticipated to grow at over 9% CAGR till 2034.
   
• With regard to core materials, there is a movement towards using amorphous and grain-oriented silicon steel in order to mitigate core losses and enhance the energy efficiency of the system. Cooling systems are also adapting to new standards due to the adoption of Continuous Transposed Conductors (CTC) and other high conductive materials which are designed to deliver less loss and the best possible performance.
   
• More stringent environmental policies as well as the need to improve thermal performance are the reason why insulation systems are migrating from conventional mineral oils to greener ester-Oil and silicone oils as well as solid insulation materials.
   
• For instance, in October 2021, Hitachi Energy has unveiled its EconiQ transformers, designed to advance a sustainable energy future. These eco-efficient transformers are co-created with customers through scientifically transparent methods, as well as having their carbon emissions reduced throughout their lifecycle. They participate in decarbonization, improve safety, ecologically responsible resource consumption, and protect the environment.
   
• Maintaining insulating oil used in the transformers improves operational safety due to the incorporation of vacuum interrupter technology in the tap changers. This reduces maintenance requirements. These trends show the industry’s focus on upgrading transformer elements to meet the energy and legal stipulations of today.

• The U.S. transformer component market experienced significant growth in 2022, 2023 and 2024 and was valued at USD 2.6 billion, USD 2.9 billion and USD 3.2 billion respectively. The market growth is estimated to pass over USD 7 billion by 2034, driven by distinct growth factors.
   
• Integration of renewable energy sources into the grid, as well as overhaul efforts on the grid itself, are primary market drivers. Evolving frameworks for the smart grid are eliciting significant demand for improved winding cores and insulation systems. Enhanced energy and grid reliability remain the top focus for commercial and utility enterprises.
   
• As an illustration, the U.S. Department of Energy’s investment of USD 32 million towards six pilot projects designated to enhance grid efficiency and resilience in January 2025. The projects focus on developing edge of the grid strategies like smart charge control for electric vehicles and their integration, with the goal of improving reliability while decreasing costs across eight states.
   
• Germany leads the European transformer component market, aided by strong commitments to the energy transition and sustainable grid infrastructure. This market is driven by the integration of renewable energies, compliance with regulations, and the use of sustainable materials in eco-friendly transformers. Recent advancements in the region's components are being spurred by smart grids and state-of-the-art digital surveillance systems.
   
• Germany transformer component market is anticipated to spend USD 112.39 billion out of its USD 561.95 billion new infrastructure and defense fund towards the climate and energy transition efforts in March 2025. Reaching the climate-neutral target by 2045 is aimed with this spending towards emission cuts, raising renewables share, climate-resilient infrastructure development, and enabling integrated infrastructure.
   
• China dominates the Asia Pacific transformer component market, driven by large-scale industrialization, urban expansion, and robust power infrastructure development. Investments in ultra-high voltage transmission systems as well as an increasing need for renewable energy are leading to a rise in electricity consumption, which in turn is creating demand for highly sophisticated and reliable components within the region.
   
• For instance, in 2024, for example, China spent nearly USD 940 billion on clean energy, which is close to the global investment on fossil fuels standing at USD 1.12 Trillion. This marked spending included electric vehicles, solar energy, batteries, and grid infrastructure which received investment. Moreover, the Clean Energy’s contribution to China’s GDP grew to 10%, demonstrating its rising importance.
   
• Saudi Arabia is the leading market in the Middle East & Africa region, fueled by infrastructure projects and grid expansion initiatives. The more economically active regions and remote locations have a budding need for high efficiency transformer parts due to necessity for a new set of electricity services, updated utility-scale electricity distribution systems, and expansion in utility-scale electricity distribution.
   
• For example, the Saudi Electricity Company in October 2023 received a USD 3 billion financing agreement aimed at upgrading the power network of the Kingdom.  This financing aligned towards infrastructure overhaul is a step towards the Saudi Vision 2030 targets that seeks to integrate renewable sources of energy while enhancing the reliability of the power grid. The agreement was signed during the Future Investment Initiative held in Riyadh.
   

Transformer Component Market Share

• The top five companies in the transformer component industry include Hitachi Energy, Eaton, Howard Industries, ERMCO and Amran Inc. which held over 35% market share in 2024. These companies are well positioned in the market because of their diverse product lines, well established distribution channels, and strong customer bases within the utilities and industrials regions.
   
• Hitachi Energy is the leader in the transformer component market share due to the immense scale of their business, sophisticated manufacturing abilities, and extensive range including cores, windings, insulation systems, and tap changers. In 2024, Hitachi Energy reported their revenue to be 614.9 million dollars, alongside an operational EBITDA of 30.6 million dollars.
   

Transformer Component Market Companies

• Eaton provides an extensive variety of components for transformers, including bushings, tap changers, and insulation systems. In the report for 2024, the company recorded net sales of USD 24.8 billion, out of which the electrical global segment provided USD 6.2 billion. Eaton's innovation and reliability combined with its reputation as an industry leader in power management solutions enables the company to effectively service the energy, industrial, and utility sectors growing at multi-regional levels.
   
• Howard Industries specializes in the custom manufacturing of transformers and offers a full range of bushings, tap changers, and windings. In the year 2024, the firm documented earnings amounting to USD 13.6 million. Howard Industries strategically directed its attention to North American industrial and utility markets with regard to custom-engineered utilities and energetic designs.
   
• ERMCO is known for producing transformer components like bushings, tap changers, and transformer tanks. In 2024, the company experienced a revenue growth of USD 69.7 million. As one of the leading suppliers within North America, ERMCO specializes in providing dependable and efficient solutions to the utility and industrial sectors, meeting the power distribution and renewable energy project demands.
   
• Amran Inc. designs and fabricates transformer elements like cores and windings, focusing on agile customization and precise engineering. This firm achieved revenue of USD 5.6 million in 2024. The company caters to almost any industry as their components have specific electrical and thermal requirements, especially for utility and industrial markets, making them high-grade essential components.
   
• Emerald Transformer has been acknowledged for their exceptional components for the transformers which include cores, bushings, and insulation systems. In the year 2024, the firm claimed a revenue of USD 69.4 million. The company also boasts having extensive knowledge in offering proven innovative designs and solutions for the utility and renewable energy markets by designing off the shelf and bespoke transformer components to improve the operational efficacy and dependability in power delivery.
   

Key players operating across the transformer component industry are:

• Alamo Transformer Supply Company (ATSCO)
• Amran Inc.
• BHEL
• Eaton
• EIS Legacy, LLC
• ELSCO Transformers
• Emerald Transformer
• ERMCO
• Hitachi Energy
• Howard Industries
• Johnson Bros. Roll Forming Co.
• LCS Company
• Magnetics
• Mapes & Sprowl Steel
• Metglas Inc.
• Power Asset Recovery Corporation
• Renco Electronics
• TC Metal
• Tempel
• The H-J Family of Companies
• Triad Magnetics
• VoltageShift Engineering Solutions LLP
• Von Roll USA
   

Transformer Component Industry News

• In March 2025, Hitachi Energy is committing an additional USD 250 million with the aim of increasing worldwide production of transformer parts by 2027. This investment is intended to help alleviate the global transformer shortage resulting from increased utilization due to electrification and data centers. The investment will improve manufacturing capacity in multiple regions and facilitate the transition to cleaner energy sources.
   
• On December, 2024 Lamco Transformers advanced their transformer technologies to aid with the integration of renewable energy within India. Some innovations include more efficient cooling systems as well as automatic on-load tap changes, and amorphous cores that increase efficiency while managing varying loads. IoT along with AI is also being integrated to enable the company to provide real-time monitoring and predictive maintenance in alignment with smart grid technologies. Furthermore, the company is switching to eco-friendly insulating fluids.
   
• In May 2022 Hitachi Energy invested more than USD 10 million on the transformer plant in Jefferson City, U. S., modernizing and expanding it. The investment sought to improve the capacity and the manufacturing capabilities of the plant. The allocation sought the installation of an additional production line for large transformers. The new line incorporates state-of-the-art technology needed by renewable power generation and high-tech data centers.
   

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

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Market, By Component Type

• Core
• Winding
• Insulation system
• Tap changers
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Russia
  • UK
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Egypt
  • South Africa
• Latin America
  • Brazil
  • Argentina