Power Transformer Industry

The global power transformer market size was worth USD 22.83 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 7.1% from 2023 to 2030. Increasing electricity demand in emerging and developed countries with rising investment in infrastructure is expected to be the key driving force for the market’s growth over the forecast period. High demand and supportive initiatives for smart grid development have resulted in the need for smart meters, which is expected to positively impact power transformer industry growth over the next five years. Additionally, a number of government initiatives for installing technologically advanced power transformers and modernizing the existing power grids for improving energy efficiency and minimizing losses are projected to positively impact demand for the power transformer industry.

The power transformer industry will be driven by rising transmission network research and the fast use of non-traditional and renewable energy sources for generating electricity in remote places during the assessment period. Smart grids can be accessed and monitored remotely, and they can rapidly adjust to changes in electricity demand. Additionally, they guarantee effective cooling and power delivery, which lowers carbon emissions. During the projection period, the development of green transformers, high voltage transmission technologies, and strict government regulations aimed at lowering greenhouse gas emissions will support the expansion of the worldwide power transformer industry.

Gather more insights about the market drivers, restrains and growth of the Global Power Transformer market

Power Transformer Market Segments:

Insulation Insights

Based on insulation type, the segment is divided into sub-segments such as gas, oil, solid, air, and other insulation types. The oil insulation type accounted for the largest market share of 58.9 % in 2022 and is expected to foresee a positive CAGR of 7.7 % from 2023 to 2030. Oil as an insulation medium is often used in different industries, owing to its ability to maintain stability in high temperatures. Its electrical insulation qualities such as its dielectric ability reduce any incoming damage from high voltage. These advantages position oil insulators as the preferred choice among manufacturers.

Phase Insights

Based on phase type the segment is divided into two types namely single and three phases. Based on the estimations, the three phase segment established a dominant market share of 62.2% in 2022 and is expected to register the fastest market growth of 7.2 % by 2030. Three-phase transformers are generally used in precision machine tools, manufacturing industry, mining industry, petro chemical industry, automation equipment and telecommunication industry among others for generating power and distribution.

Rating Insights

Based on rating type the market is fragmented into 100 MVA to 500 MVA, 501 MVA to 800 MVA, and 801 MVA to 1200 MVA. Among the three types, 100 MVA to 500 MVA rating transformers held the largest market share of 63.8 % in 2022 and are expected to register the fastest market growth rate of 7.7 % from 2023 to 2030. The 100 MVA to 500 MVA transformers finds applicability in the amplitude of field such as industrial usage to powering a vehicle motor. The growing demand for electricity owing to industrialization and urbanization worldwide is proliferating the demand for transformers within the range of 100 MVA to 500 MVA. Technological and design refinement to implement are further adding to the growing usage of these transformers.

Application Insights

On the basis of application, the market is further branched into residential & commercial, utilities, and industrial applications. Throughout the estimation period, the industrial sub-segment registered the highest market share of 43.4 % in 2022. The sub-segment is further anticipated to reflect the highest growth rate of 7.5 % within the forecast period. Power transformers in industrial sectors ensure safe, risk-free, and accurate usage of electricity Industries use. The growth in the industrial usage of transformers is affiliated with the advent of smart transformers providing a competitive edge to the market players. Additionally, heavy investment worldwide towards energy generation, industrialization, and urbanization is pushing market players to dedicate resources towards research and development for developing eco-friendly transformers.

Core Insights

Based on core type, the market is divided into closed, shell, and berry cores. Among the three types, shell core held a majority market share of 41.5 % in 2022, while registering the fastest growth rate of 7.6 % within the forecast period. These are commonly used for low-voltage and high-output applications.

Regional Insights

The Asia Pacific power transformer industry accounted for over 40.41% of the global revenue share in 2022, and is expected to grow at a CAGR of 7.9 % by 2030. The regional growth, facilitated by rapid economic development and an increased need for uninterrupted and reliable power supply, is due to the increase in population in the region. To meet the country's growing need for electricity as a result of its fast industrialization and urbanization, China is investing in the expansion of its current electrical transmission and distribution system.

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Key Companies & Market Share Insights

Siemens AG, Crompton Greaves Ltd, ABB Ltd, Alstom SA, Toshiba Corp, and GE Co dominate the power transformer industry. Improving product life along with increasing production capacity are a few of the key strategies adopted by the industry participants to gain considerable industry share. Notable companies have been providing shunt reactors, HVDC light, phase-shifting variants, etc. along with enhancing their current product portfolio. Some prominent players in the global power transformer market include:

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

Segments Covered in the Report

Grand View Research has segmented the global power transformer market based on core, insulation, phase, rating, application, and region:

Power Transformer Core Outlook (Revenue, USD Billion, 2018 - 2030)

1. Closed

2. Shell

3. Berry

Power Transformer Insulation Outlook (Revenue, USD Billion, 2018 - 2030)

1. Gas

2. Oil

3. Solid

4. Air

5. Other

Power Transformer Phase Outlook (Revenue, USD Billion, 2018 - 2030)

1. Single

2. Three

Power Transformer 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

Power Transformer Application Outlook (Revenue, USD Billion, 2018 - 2030)

1. Residential & Commercial

2. Utilities

3. Industrial

Power Transformer Regional Outlook (Revenue, USD Billion, 2018 - 2030)

1. North America

   1. US

   2. Canada

2. Europe

   1. UK

   2. Germany

   3. France

   4. Rest of Europe

3. Asia Pacific

   1. China

   2. India

   3. Japan

   4. Rest of Asia Pacific

4. Latin America

   1. Brazil

   2. Mexico

   3. Rest of Latin America

5. Middle East & Africa

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