Transformers Market Report 2025

The transformers market size has grown strongly in recent years. It will grow from $76.4 billion in 2024 to $81.77 billion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to power infrastructure development, industrialization and urbanization, grid expansion and upgradation, renewable energy integration, government initiatives and regulations.

The transformers market size is expected to see strong growth in the next few years. It will grow to $101.42 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to growing smart grid deployments, electrification initiatives, energy storage integration, upgradation to higher voltage levels, resilience and grid stability concerns. Major trends in the forecast period include development of superconducting transformers for efficiency, collaboration for standardization and interoperability, investments in transformer upgradation and modernization, utilization of advanced cooling systems for transformers, expansion of medium and low voltage transformer markets.

The increasing demand for electric vehicles is expected to contribute significantly to the growth of the transformer market. Electric vehicles (EVs) are powered by motors that run on electricity stored in batteries, eliminating the need for traditional fossil fuels such as gasoline or diesel. These vehicles operate on electric motors and recharge their batteries using electricity. Charging stations, connected to the grid, require transformers to efficiently manage the power supply. For example, a May 2022 Global EV Outlook report indicated a substantial increase in electric vehicle sales. In 2021, EV sales doubled from the previous year, reaching a new high of 6.6 million units. The total sales of electric cars worldwide in 2021 amounted to 6,600,000 units, up from 2,980,000 units. This surge in demand for electric vehicles is a key factor propelling the growth of the transformers market, as the infrastructure supporting these vehicles requires efficient power distribution and management facilitated by transformers.

Countries worldwide are undertaking various initiatives to enhance electrification efforts. For example, in January 2024, the U.S. Department of Energy (DOE), a government agency, reported that in March 2023, its Federal Energy Management Program (FEMP) launched a substantial funding initiative of $250 million through the Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) program. Subsequently, in January 2024, FEMP announced that 31 federal agency projects would receive the initial allocation of $104 million in AFFECT funding. As a result, supportive government policies aimed at boosting electrification are expected to positively influence the growth of the transformers market.

The transformers market is advancing towards the development of independent and self-regulating smart transformers. These smart transformers are designed to continuously regulate voltage, maintain communication with stakeholders, and provide information and feedback regarding the power supply. They deliver the precise amount of power required and can respond to fluctuations through a process known as voltage optimization. By supplying electrical equipment with the optimal amount of power, they significantly reduce greenhouse gas emissions and power consumption. For example, in November 2023, the U.S. Department of Energy (DOE) announced $42 million in funding for 15 projects across 11 states aimed at enhancing the reliability, resiliency, and flexibility of the domestic power grid through the advancement of next-generation semiconductor technologies. This funding comes from DOE’s Unlocking Lasting Transformative Resiliency Advances by Faster Actuation of power Semiconductor Technologies (ULTRAFAST) program. The technologies being developed will facilitate more effective control of grid power flow and better protection of critical infrastructure assets. Improving the coordinated operation of electricity supply and demand will enhance operational efficiency, prevent unexpected outages, enable faster recovery, mitigate the impacts of natural disasters and extreme weather events fueled by climate change, and reduce grid operating costs and carbon intensity.

In March 2022, Spang Engineered Solutions (SES), a US-based company specializing in the design and manufacturing of inductors and transformers, acquired Wirebenders, Inc for an undisclosed amount. This strategic acquisition is aimed at expanding SES's market presence and enhancing its capabilities, particularly in the aerospace and defense industries. Wirebenders, Inc., the acquired company, is also based in the US and is known for manufacturing small transformers, high-frequency transformers, and inductors, including coaxial cable assemblies. Its product offerings cater to various industries, including aerospace, defense, and medical.

Major companies operating in the transformers market include Performance Group Crompton Greaves Ltd., Hammond Power Solutions Inc., Hitachi Ltd., Siemens AG, Mitsubishi Electric Corporation, Schneider Electric SE, ABB Ltd., Toshiba Corporation, Eaton Corporation, Emerson Electric Co., Bharat Heavy Electricals Limited (BHEL), Daihen Corporation, Raychem RPG, SPX Corporation, Fortune Electric Co., Kirloskar Electric Company, Hyundai Heavy Industries Co. Ltd., General Electric Corporation (GE), SGB-SMIT Group, RITZ Instrument Transformers GmbH, Schaffner Holding AG, Banmore Electricals Pvt. Ltd., TRENCH Group, KOTSONS Pvt. Ltd., Emco Ltd.

Asia-Pacific was the largest region in the transformers market in 2024. The regions covered in the transformers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transformers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The transformers market consists of sales of low-rated transformers and high-rated transformers. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

A transformer facilitates the transfer of energy from one circuit to another. Transformers have the capability to either amplify or reduce voltage and current levels, modify capacitor values, block the flow of direct current between two circuits, and provide circuit isolation.

The primary categories in the transformers market include low-rated transformers and high-rated transformers. Low-rated transformers are employed for transmitting power to the receiving end. Transmitting power at low voltage levels results in higher line current, contributing to increased line losses. Transformer types are further classified into power transformers and distribution transformers. These transformers operate in either single-phase or three-phase configurations. The diverse applications of transformers span residential and commercial use, utility services, and industrial settings.

The transformers market research report is one of a series of new reports that provides transformers market statistics, including transformers industry global market size, regional shares, competitors with a transformers market share, detailed transformers market segments, market trends, and opportunities, and any further data you may need to thrive in the transformers industry. This transformers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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