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Transformer Market Size - By Core (Closed, Shell, Berry), By Product (Distribution Transformer, Power Transformer, Instrument Transformer), By Winding (Two Winding, Auto-Transformer), Cooling, Insulation, Rating, Mounting, Application & Forecast, 2024 – 2032

  • Report ID: GMI2100
  • Published Date: Jun 2023
  • Report Format: PDF

Transformer Market Size

Transformer Market size valued at USD 58.8 billion in 2023 and is anticipated to grow at a CAGR of 7% between 2024 and 2032. Large scale integration of renewable energy sources coupled with increasing electrification programs primarily across the emerging economies will accelerate the industry scenario.


Transformer Market

Favorable government policies for refurbishment of existing grid infrastructure along with growing consumer focus toward smart monitoring units and sustainable electricity networks will further drive the business growth. Increasing regulatory focus toward integration of energy efficient electricity supply systems in line with rapid adoption of smart grid technology will positively influence the industry dynamics.



The transformer market growth is on account of the rising demand for electricity in line with favorable regulatory reforms aimed at expanding the existing grid infrastructure. Upgradation and modernization to improve existing grid infrastructure network coupled with growing focus at improving the reliability and efficiency of power distribution systems will complement the industry size. Favorable regulatory schemes and policies in association with ongoing investments in the refurbishment of traditional technologies will drive business expansion. Additionally, the rapid growth of industrialization and increasing energy demand coupled with government initiatives to enhance energy efficiency will further contribute to the industry's development.


COVID-19 Impact

The pandemic has caused a global economic slowdown, leading to reduced investment in infrastructure and industrial projects. This has impacted the demand for transformers in various sectors, including energy, manufacturing, and construction. Restrictions on international trade, temporary factory closures, and transportation disruptions have led to delays in the delivery of transformer components and equipment. Many construction projects, including infrastructure development and power transmission projects, were put on hold or delayed due to the pandemic. The uncertainty surrounding the pandemic and its long-term impact on the economy has resulted in market volatility.


Transformer Market Trends

The rapid expansion of transmission & distribution network in emerging economies through increased investment will augment the industry scenario. The growth of infrastructure development activities supported by both public & private investments and regulatory initiatives will contribute to the overall growth of the industry. There is a growing emphasis on reducing greenhouse gas emissions and implementing energy efficiency measures will create a favorable business environment for the adoption of transformer systems. Additionally, the integration of innovative components, technologies, and control equipment to upgrade existing grid networks and enhance their resilience and efficiency has had a positive impact on the industry's outlook.


Transformer Market Analysis

Transformer Market Size, By Core, 2021 - 2032 (USD Billion)

The closed core transformer market was evaluated over USD 19 billion in 2022 and is set to drive at a CAGR of 6% through 2032. Closed core power transformers have gained substantial growth owing to their versatility in handling different voltage conditions. Renewable energy transformation coupled with offering efficient and long operational lifespans have further stimulated the industry growth. Growing integration of these core transformers into smart grid systems along with allowing real-time data collection, remote operation, and efficient load management will augment business size.

The distribution transformer market size is projected to surge at a CAGR of 8% during 2023 to 2032. Growing demand for cost effective and reliable transformer units in association with the rapid electrification of rural and remote areas in emerging markets will energize the industry outlook. Distribution transformers are being designed to withstand voltage fluctuations, improve power quality, and ensure reliable operation in challenging conditions. Additionally, integration of digitization and Internet of Things (IoT) technologies coupled with introduction of innovative and advancements in transformer will further escalate the market size.

The auto transformer winding segment was reached USD 24 billion in 2022, on account of its effective transformation capabilities and operational flexibility. The compact unit structure, cost-effectiveness, and higher efficiency of auto transformers are the key parameters will drive the adoption of these transformer systems. Additionally, the integration of smart monitoring technologies has further improved the reliability and cost-effectiveness of these products, contributing to their increased demand and overall market growth.

The oil-immersed transformer market is set to record over 5.8% CAGR during the forecast period. The continuous demand for effective compatibility in heavy-duty applications coupled with advancements in cooling technology will further drive the market size. These transformers require fewer cooling components and less complex, which in turn will stimulate the business scenario. Moreover, higher power ratings, easier core cycle, high-end product flexibility, and low operational cost are the key prominent factors will thrust the industry outlook. The dry type transformers are expected to exceed USD 34 billion revenue by 2032.

Transformer Market Revenue Share, By Insulation, 2022

The oil insulated transformer market exceeded USD 31 billion revenue in 2022 and will observe around 6.4% CAGR till 2032. High temperature bearing strength, effective insulation capabilities, and sustainable product applicability have propelled the business outlook. Growing focus toward reduced losses and improved energy efficiency to minimize energy wastage will positively sway the industry outlook. Aging modernization and replacement of traditional transformer with more efficient and environmentally friendly alternatives will energize the adoption of oil insulated transformers.

The > 10 MVA to ≤ 100 MVA rated of transformer market is estimated to reach USD 22.5 billion by 2032. The increasing demand for reliable and efficient power distribution systems, particularly in rural and remote areas will play a significant role in driving the adoption of these transformers. The need to upgrade and modernize power infrastructure will further contribute to the demand for transformers with this rated capacity. Additionally, the growing focus on renewable energy sources is boosting the demand for higher-rated transformers, as they are essential for integrating renewable energy into the grid. Ongoing investments in retrofitting and modernizing the conventional grid structure have also spurred the expansion of microgrid networks. The power transformer industry is likely to cross USD 37.6 billion by the end of 2032 driven by rising deployment of renewable energy sources.

The pad mounted transformer market accounted for 33% of revenue share in 2022, owing to their ability to be easily installed on a base foundation and their efficient earthing arrangements. These units have found widespread use across various industries and utility establishments, driven by the need for transformers that can be installed at short distances. The escalating demand for electricity driven by rapid urbanization and commercialization has created a favorable business environment. Supportive regulatory measures and ongoing investments in expanding distribution networks to meet the growing energy demand in key regions will drive the demand for pad mounted transformers.

The commercial & industrial segment will surpass USD 39.5 billion by 2032, driven by growing awareness of energy-efficient electricity networks in developing and the expansion of cross-border transmission and distribution networks. The integration of smart technology systems for efficient energy management and monitoring is also contributing to the adoption of transformers in industrial facilities. Furthermore, the rising focus on retrofitting conventional grid networks and the implementation of electrification programs will fuel the transformer market growth.

North America Transformer Market Size, 2021 - 2032 (USD Billion)

North America transformer market is expected to register 7.8% CAGR from 2023 to 2032, stimulated by favorable regulatory framework that promotes the integration of efficient grids networks along with supportive policies and schemes implemented by national utility companies. Increasing investments across remote electrification areas in line with growing focus on grid resilience and energy efficiency will positively influence the market size. Furthermore, increasing spending in high-capacity alternative energy sources will drive the industry's growth. The changing energy consumption patterns in corporations and households will also have a positive impact on the industry's expansion. The market for transformer in the U.S. is set to exceed USD 20.7 billion by 2032.


Transformer Market Share

The key companies operating in transformer market are

  • Celme S.r.l.
  • Hyosung Heavy Industries
  • DAIHEN Corporation
  • Kirloskar Electric Company
  • Raychem RPG Private Limited
  • Amran Inc
  • Trench Group
  • Pfiffner Group
  • Ormazabal
  • Voltamp
  • CG Power & Industrial Solutions Ltd.
  • Eaton
  • Elsewedy Electric
  • Toshiba International Corporation
  • Schneider Electric
  • ABB
  • Mitsubishi Electric Corporation
  • Siemens Energy
  • General Electric

Transformer Industry News

  • In October 2021, Prolec Transformers Inc, a subsidiary of GE acquired SPX Transformer Solutions Corporation. for strengthening its footprints in Americas and offering sustainable electric equipment to customers. The combined entities planned to support the evolution of advanced grids in the U.S. and other Americas by offering effective energy solutions.
  • In May 2022, Hyundai Electric, a subsidiary of Hyundai Heavy Industries Group won a deal worth USD 122 million for delivering transformers to NextEra Energy Inc, a global leader in renewable generation. The motive of the long-term deal is to offer medium & large power transformers for solar & wind power plants.

This transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2019 to 2032, 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 regions and countries:

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


Authors: Ankit Gupta, Riya Gupta

Frequently Asked Questions (FAQ) :

The market size of transformer reached USD 58.8 billion in 2023 and is anticipated to record around 7% CAGR from 2024 to 2032, on account of the rising demand for electricity coupled with the favorable regulatory reforms aimed at expanding the existing grid infrastructure.

Oil-insulated transformer market generated around USD 31 billion in 2022 and is set to grow at more than 6.4% CAGR through 2032, attributed to the growing focus toward reduced losses and improved energy efficiency to minimize energy wastage.

North America market will witness over 7.8% CAGR from 2023 to 2032, driven by the favorable regulatory framework to promote the integration of efficient grids networks in the region.

Some leading transformer companies include Celme S.r.l., Hyosung Heavy Industries, DAIHEN Corporation, Kirloskar Electric Company, Raychem RPG Private Limited, MEHRU, Amran Inc, Trench Group, Pfiffner Group, and ARTECHE

Transformer Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 2
  • Tables & Figures: 2205
  • Countries covered: 24
  • Pages: 900
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