Market Insights - Industry Research Report

Power Transformer Market

Report on Power Transformer Market: Size, Share, and Growth – Covering By Core (Closed, Shell, Berry), Insulation (Gas, Oil, Solid, Air, Other), Phase (Single, Three), Rating (100 MVA to 500 MVA, 501 MVA to 800 MVA, 801 MVA to 1200 MVA), Application (Residential & Commercial, Utilities, Industrial) Segments, and Regional Analysis – Providing a Global and Regional Industry Overview, Market Intelligence, Premium Insights, Comprehensive Analysis, Historical Data, and Forecasts for the Period 2023-2030

The Power Transformer Market is valued at USD 22.79 billion in 2023 and is projected to reach USD 41.80 billion by 2030, experiencing a compound annual growth rate (CAGR) of 9.05% from 2023 to 2030.

Power Transformer Market Overview

By using electromagnetic induction, the power transformer functions as an electric device that moves energy between two or more circuits. Before sending electrical energy via cables from one location to another, power transformers are used to raise or lower the voltage. Step-up transformers raise the electrical power voltage, allowing efficient distribution and cost-effective transmission by preventing heat loss. Power transformers have influenced the electrical energy supply sector as a result, enabling generations to be dispersed from centers of demand. Global demand for power transformers is being driven by several important factors, including an increase in electrical energy demand brought on by growing nations, large power plant capabilities, and economic expansion.

The electricity transmission and distribution firms need to find new solutions to lower the transmission losses along with the reduced cost due to the rising demand for energy from developed and emerging nations. The use of high voltage transmission technologies like EHV, UHV, and HVDC Power Transformers will expand if the power transformer manufacturers can find new ways to boost productivity while lowering costs. The aforementioned factors will likely cause the global market for power transformers to expand significantly throughout the projected period.

Power Transformer Market

Market Dynamics

The global market for power transformers is expanding as a result of quick industrialization and increased domestic power demand. The electricity demand is gradually rising globally, which has led to an increase in the consumption of energy resources. There are now more power plants and large transmission networks everywhere as a result. Electricity usage in the automobile sector is rising as a result of the development of contemporary electric vehicles and incentives to use them. The majority of power plants are located in rural locations; the electricity they produce is then sent across HVDC power transmission lines to the substations, where it is subsequently supplied to the final consumers after being stepped down. Energy resources are generally underutilized in underdeveloped countries, and the power infrastructure in less developed nations should be improved. As a result, the need for electricity globally is now driving the global market for power transformers.

The transmission network is composed of poles, switchgear, and power grids. The majority of losses in a power system are caused by transmission losses, and increasing transmission voltage is a continuous effort to reduce these losses. Electric power is generally transmitted at high voltage to reduce transmission losses (above 115KV). A comprehensive overhaul of the transmission network was required due to the advent of Ultra High Voltage (UHV) transmission (1100KV and beyond). China has been using UHV DC/AC transmission since 2009, whereas India can transmit electricity at 1200 kV. When two networks with different voltages are connected, the power transformer is an essential connecting component. The power system’s numerous networks are connected by power transformers. As a result, larger transmission voltages are what are driving the demand for power transformers with higher ratings.

Segmentation Insights
  • Insulation Insights

When considering insulation types, the segment is subdivided into categories like gas, oil, solid, air, and other insulation varieties. In 2022, oil insulation claimed the largest market share at 59.01% and is expected to experience a positive Compound Annual Growth Rate (CAGR) of 7.5% from 2023 to 2030. The prevalent use of oil as an insulation medium across various industries is attributed to its capacity to maintain stability in high temperatures. Its electrical insulation properties, including notable dielectric abilities, mitigate potential damage from high voltage, establishing oil insulators as the preferred choice among manufacturers.

Moreover, oil acts as a safeguard against damage to components like copper coils, preventing issues such as burning. As an insulator, oil finds application in fluorescent lamp ballasts, high-voltage capacitors, oil-filled transformers, high-voltage switches, and circuit breakers. While transformers commonly use mineral oil (primarily naphthenic), silicone, and bio-based oils for insulation, the industry is gradually shifting towards more environmentally friendly alternatives, exemplified by Baoding Tianwei Baobian Electric Co. Ltd’s introduction of a 110KV natural ester oil transformer in September 2022. The ester oil used in this transformer boasts a 98% natural degradation rate and a higher ignition point.

  • Phase Insights

In terms of phase types, the segment is categorized into single and three phases. Three-phase transformers secured a dominant market share of 61.05% in 2022, with an anticipated rapid market growth of 7.05% by 2030. Widely used in precision machine tools, manufacturing, mining, petrochemical, automation, and telecommunication industries, three-phase transformers are preferred for their affordability, lighter weight, and smaller size at higher power ratings. Their adaptability to low voltage distribution with high fluctuation, strong common-mode interference suppression, and customizable design contribute to their widespread usage and projected growth across various industries.

  • Rating Insights

The market, based on rating types, is divided into 100 MVA to 500 MVA, 501 MVA to 800 MVA, and 801 MVA to 1200 MVA. Transformers with a rating of 100 MVA to 500 MVA held the largest market share at 62.9% in 2022 and are anticipated to exhibit the fastest growth rate of 7.3% from 2023 to 2030. These transformers find applications in diverse fields, from industrial use to powering vehicle motors. Increasing global demand for electricity, driven by industrialization and urbanization, fuels the demand for transformers within the 100 MVA to 500 MVA range. Ongoing technological and design refinements further contribute to the increased usage of these transformers.

  • Applications Insights

Based on application, the market is segmented into residential & commercial, utilities, and industrial applications. The industrial sub-segment led with the highest market share of 44.05% in 2022 and is expected to display the highest growth rate of 7.1% within the forecast period. Power transformers in industrial sectors ensure safe, risk-free, and accurate electricity usage. The rise in industrial transformer usage aligns with the emergence of smart transformers, providing a competitive edge to market players. Additionally, substantial global investments in energy generation, industrialization, and urbanization prompt market players to allocate resources to research and development for eco-friendly transformer development.

  • Core Insights

Regarding core types, the market is categorized into closed, shell, and berry cores. Among these, shell cores dominated with a majority market share of 42.01% in 2022 and are projected to experience the fastest growth rate of 7.6% within the forecast period. Shell cores are commonly employed in low-voltage and high-output applications, both in electronic circuits and low-voltage power circuits. Their square or rectangular cross-sectional core design, offering cost optimization, makes them a preferred choice. Additionally, shell cores present various advantages, including an efficient cooling system, design flexibility, high seismic resistance, efficient control of leakage magnetic flux, and high short circuit strength.

Regional Analysis

The Power Transformer market is studied across North America, Europe, Asia Pacific, Latin America and the Middle East and Africa

During the projection period, Asia Pacific will hold the largest market share for power transformers globally. Australia, China, and India are just a few of the countries in the Asia-Pacific area that regularly invest in the power industry to upgrade their electrical infrastructure. Due to its high adoption rate, Asia-Pacific is anticipated to drive market expansion during the projection period. The highest average solar radiation per square meter is received in Australia, which contributes significantly to the expansion of renewable energy. Additionally, being two of the economies with the greatest rates of expansion, China and India rank among the top producers of energy and have substantial transmission networks. Both countries have placed a priority on developing intelligent networks and incorporating renewable energy sources into the domestic power infrastructure. Three UHV AC transmission networks and one UHV DC power transmission network have each received major financial investments from China. In the Asia-Pacific region, the replacement of old equipment has opened up new opportunities.

Key Players
  1. ABB Ltd.
  2. Alstom SA
  3. Hyosung Power & Industrial Systems Performance Group
  4. Crompton Greaves Ltd.
  5. GE Co.
  6. Hyundai Heavy Industries Co. Ltd.
  7. Siemens Energy
  8. Mitsubishi Electric Corporation
  9. Toshiba Corp.
  10. Bharat Heavy Electricals Limited
Recent Development:
  • August 2022 Siemens Mobility announced Siemens Xcelerator, a brand-new digital business platform, at InnoTrans 2022. To build a strong ecosystem of partners that can work together to accelerate digital transformation and sustainability in mobility at scale, Siemens created the open digital business platform Siemens Xcelerator.
Segmentation of the Global Power Transformer Market

The report comprehensively segments the global power transformer market, forecasting revenue growth at the global, regional, and country levels. It includes an analysis of the latest industry trends within each sub-segment, spanning the period from 2018 to 2030. Beyond Market Insights has categorized the global power transformer market report based on core, insulation, phase, rating, application, and region:

Core Outlook (Revenue, USD Billion, 2018 – 2030)

  1. Closed
  2. Shell
  3. Berry

Insulation Outlook (Revenue, USD Billion, 2018 – 2030)

  1. Gas
  2. Oil
  3. Solid
  4. Air
  5. Other

Phase Outlook (Revenue, USD Billion, 2018 – 2030)

  1. Single
  2. Three

Rating Outlook (Revenue, USD Billion, 2018 – 2030)

  1. 100 MVA to 500 MVA
  2. 501 MVA to 800 MVA
  3. 801 MVA to 1200 MVA

Application Outlook (Revenue, USD Billion, 2018 – 2030)

  1. Residential & Commercial
  2. Utilities
  3. Industrial

Regional Outlook (Revenue, USD Billion, 2018 – 2030)

  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa


Power Transformer Market Report Scope
Report AttributeDetails
Market Size Value in 2023USD 22.79 billion
Revenue Forecast in 2030USD 41.80 billion
Growth RateCAGR of 9.05% from 2023 to 2030
Base Year for estimation2022
Historical Data2018 – 2022
Forecast Period2023 – 2030
Report UpdatedDec-23
Quantitative UnitsRevenue in USD million and CAGR from 2023 to 2030
Report CoverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments CoveredCore, Insulation, Phase, Rating, Source, Grade, Application, Region
Regional ScopeNorth America; Europe; Asia Pacific; Latin America; MEA
Country ScopeU.S.; Canada; UK; Germany; France; Italy; Spain; Denmark; Sweden; Norway; Japan; China; India; Australia; South Korea; Thailand; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE; Kuwait
Key Companies ProfiledABB Ltd, Alstom SA, Hyosung Power & Industrial Systems Performance Group, Crompton Greaves Ltd GE Co, Hyundai Heavy Industries Co Ltd, Siemens Energy, Mitsubishi Electric Corporation, Toshiba Corp, Bharat Heavy Electricals Limited

Frequently Asked Questions

The global power transformer market size was approximated at USD 22.79 billion in 2023 and is anticipated to reach USD 24.85 billion in 2024.
The global power transformer market is poised to grow at a compound annual growth rate of 9.05% from 2023 to 2030, aiming to achieve USD 41.80 billion by 2030.
Asia Pacific claimed the majority share in the power transformer market, contributing 41.05% in 2022. This dominance is attributed to rapid industrialization and an increased demand for uninterrupted and reliable power supply in response to the growing population in the region.
Key players in the power transformer market include ABB Ltd., Alstom SA, Bharat Heavy Electricals Limited, Crompton Greaves Ltd., Hyosung Power & Industrial Systems Performance Group, and Hyundai Heavy Industries Co. Ltd., among others.


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