Instrument Transformer Market - Forecasts from 2023 to 2028

The instrument transformer market is estimated to grow at a CAGR of 6.5% during the forecast period.

The instrument transformer is an electrical device utilized in power systems to accurately measure and monitor electrical quantities such as voltage and current. The primary function of such a transformer is to transform high voltage or high current levels into standardized, lower magnitudes suitable for measurement and protection purposes. Instrument transformer is of two types current transformer and potential transformer, and is used in the residential, commercial, and industrial areas for the efficient and safe operation of electrical systems. The growing demand for reliable electricity supply for industrial and residential use coupled with favorable smart grids is driving the demand for instrument transformers, thereby fostering their market growth.

The growing need for reliable electricity supply for residential and industrial usage is expected to boost market growth.

Homeowners are seeking ways to monitor and manage their energy consumption effectively to reduce costs and minimize their environmental footprint. Instrument transformers enable accurate energy metering, allowing residents to track their electricity usage, identify energy-saving opportunities, and make informed decisions about their energy consumption habits. The increasing adoption of renewable energy sources, such as solar panels in residential buildings, has a growing need for instrument transformers to facilitate the connection and measurement of energy generated from these sources. Instrument transformers enable accurate monitoring of the voltage and current flowing in and out of residential renewable energy systems, allowing homeowners to track their energy production and efficiently utilize renewable resources. Instrument transformers provide accurate, current measurements for residential circuit breakers and protective devices, helping to detect and protect against overcurrent, short circuits, and faults. Instrument transformers are essential for accurately measuring and monitoring voltage and current levels in industrial settings. They enable precise control and management of power flow, facilitating optimal utilization of electrical resources and minimizing energy wastage. The increasing demand for electricity in the residential and industrial sectors boosts the demand for instrument transformers. According to the World Economic Forum, in 2022, residential rooftop solar capacity in Gujarat increased from 0.085 GW in 2019 to 1.2 GW by March 2022. According to the Centre for Sustainable Systems, in 2021, the residential sector utilized 96% of all electricity sold in the United States, which consumed 3.79 trillion kWh. According to the International Energy Agency (IEA), in 2022, the electricity supply for buildings by renewable sources like wind and solar energy will increase from 9 % in 2020 to 40% in 2030. According to the IEA 2022, the industrial sector consumed 36.6 EJ of electricity in 2021 and is expected to consume 48.9 EJ by 2030. This demonstrates that instrument transformers will have a great demand in the future.

The surge in smart grids and energy systems investments is propelling the demand for instrument transformers.

Smart grids are intelligent electrical grids that utilize advanced technologies to monitor, control, and optimize the flow of electricity. Instrument transformers are vital for smart grids as they provide accurate measurements and protection to various equipment and systems. Instrument transformers, such as current transformers and potential transformers, are used for voltage and current measurement, monitoring, and protection in power systems. The investments in smart grids and energy systems have created a demand for advanced instrument transformers. According to the International Energy Agency (IEA) in 2022, China was expected to accelerate investment in 2022 to develop smart grids, with the State Grid Corporation of China budgeting more than CNY?500?billion.

The Asia-Pacific region is expected to hold a significant market share throughout the forecast period.

The Asia-Pacific region is expected to dominate the market because of rising power consumption and the increasing initiatives by the government to boost the use of renewable energy sources for power generation in Japan and India. In 2019, Gujarat launched its solar subsidy program, Surya, with a goal of 1.6 GW of solar power from 800,000 residential rooftop solar units. In June 2020, the Japanese government passed a round of reforms to strengthen the electricity sector’s resilience and efficiency by promoting distributed grids. Such positive developments accelerate the demand for instrument transformers, boosting regional growth.

Market Developments:

• December 2021: Hitachi Energy and Arteche announced the establishment of a new joint venture (JV), Arteche Hitachi Energy Instrument Transformers S.L to build gas-insulated instrument transformers to deliver solutions for gas-insulated switchgear and air-insulated switchgear.
• September 2021: WEG acquired Balteau Produtos Elétricos Ltda., a manufacturer of instrument transformers, to improve its scope of products and solutions related to the energy generation, transmission, and distribution segment
• June 2021: TMC Transformers announced the acquisition of the power transformers division of RITZ Instrument Transformers GmbH to meet the demands of rapidly-growing markets and applications.

Market Segmentation:

By Type

• Current Transformer
• Potential Transformer

By Voltage

• Low
• Medium
• High

By End-User

• Residential
• Commercial
• Industrial

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others