Transformer Market Report 2025

This Transformer market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The transformer 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 electrification and industrialization, infrastructure development, economic growth, regulatory standards.

The transformer 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 renewable energy integration, grid modernization, electrification of transportation, increased urbanization, demand for more efficient transformers. Major trends in the forecast period include smart transformers, energy-efficient designs, compact and eco-friendly transformers, renewable integration transformers, resilience and reliability.

Favorable government policies aimed at increasing electrification are expected to drive the growth of the transformers market during the forecast period. Various countries worldwide are implementing initiatives to boost electrification. For example, since 2022, government policies have increasingly focused on electrification and grid modernization, fueling the growth of the transformers market. In the U.S., the Biden Administration has launched several programs to decarbonize the electricity system by 2030, increasing the demand for transformers. These efforts prioritize replacing outdated grids and expanding electrified infrastructure, especially for renewable energy sources like wind and solar, which necessitate additional transformer installations to support their decentralized nature.

The increasing consumption of electricity is expected to be a key driver for the transformers market. Growing electricity consumption across various sectors, including transportation and heating, contributes to the market's expansion. For example, according to the International Energy Agency (IEA) in July 2023, net electricity output reached 980.6 TWh, marking a 13.5% increase compared to the same month in the previous year. This surge in electricity demand is anticipated to drive the transformers market's growth.

Major companies in the transformers market are concentrating on product innovation, such as the development of cloaliphatic cast resin instrument transformers, to offer reliable services to customers. These transformers feature outdoor insulation that makes them suitable for outdoor applications. For example, in June 2023, Straton Electricals Pvt. Ltd., an India-based transformer manufacturer, introduced cloaliphatic cast resin instrument transformers. These transformers are designed to endure extreme temperature fluctuations and challenging environmental conditions. They are available in a variety of casting materials, such as cycloaliphatic epoxy resin, which offers excellent insulation properties and is highly resistant to moisture, chemicals, and other environmental factors.

Major companies in the transformers market are embracing innovative technologies, including oil-free and plug-and-play traction transformers. These innovations eliminate the need for oil, reducing maintenance costs, downtime, and improving efficiency and safety. They are particularly suitable for rail electrification systems where reliability, safety, and efficiency are critical. For example, in September 2022, Hitachi Energy introduced an oil-free and plug-and-play traction transformer with a factory-installed cooling system that eliminates the need for oil, enhancing safety and security.

In October 2021, Royal SMIT Transformers, a Netherlands-based electrical equipment company, acquired DNV to strengthen its high-quality transformer portfolio. DNV, based in Norway, is an independent company operating in the transformers sector. This strategic acquisition further bolsters SGB-SMIT Group's transformer services.

A transformer serves as a device for transferring energy from one electrical circuit to another. It accomplishes this by either increasing or decreasing voltage and current levels, adjusting capacitor values, blocking the passage of direct current between two circuits, and isolating the circuits from each other. Transformers play a crucial role in the production of power, distribution of electricity, and in specialized transformer applications.

The primary categories of transformers include power transformers and distribution transformers. Power transformers are specifically designed for transferring electrical energy between the generator and the primary circuits in distribution systems. These transformers facilitate the transition between higher and lower voltage levels in the distribution network. They come in two main variants: low-rated transformers and high-rated transformers. These transformers are used by a wide range of consumers, including utility companies, residential households, commercial establishments, and industrial facilities.

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.

Major companies operating in the transformer market include ABB Ltd., General Electric Corporation, Schneider Electric S.A., Mitsubishi Electric Corporation, Schneider Electric, Toshiba Corporation, Siemens Energy AG, SGB-SMIT, Hammond Power Solutions Inc., Hitachi Energy, Alstom, Eaton Corporation, SPX Transformer Solutions, Kirloskar Electric Company, RITZ Instrument Transformers GmbH, TBEA Co. Ltd., Jefferson Electric, Mace, Performance Group, Fortune Electric Co. Ltd., Schaffner Holding AG, EFACEC Power Solutions SGPS, Fuji Electric Co. Ltd., Hyosung Heavy Industries Co. Ltd., Hyundai Electric & Energy Systems Co. Ltd., JSHP Transformer Co. Ltd., Altran Corp., Bharat Heavy Electricals Limited (BHEL), CG Power and Industrial Solutions Limited, Crompton Greaves Limited, Daelim, Delta Star Inc., ELANTAS PDG Inc., Emerson Electric Co., Howard Industries Inc., Hyundai Heavy Industries, Pacific Transformer Corp., Pico Electronics.

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

The transformer market consists of sales of instrument transformers, medium-power transformers, and other types. 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.

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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