Power Transformer Market Size, Share & Trends Analysis Report By Core (Closed, Shell, Berry), By Insulation, By Phase, By Rating, By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

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.

Due to the environmental safety precautions and cutting-edge features supplied by eco-friendly products, traditional transformers are expected to be replaced. These are incompatible with the current environmental and technological criteria. Moreover, developed nations are incorporating wind and other renewable sources into cross-border electricity trading, which is increasing the pressure on aging networks.

Additionally, due to the current aging infrastructure, challenges like short circuits occur frequently, creating profitable growth potential for players in the power transformer industry. A super grid and smart grid are being developed since low-carbon emissions are becoming a bigger concern. Additionally, it is predicted that increasing PCB replacement programs, burgeoning green initiatives, and service expansions in resource-based industries would all present significant prospects for the power transformer industry.

The primary materials used in the production of power transformers are steel, aluminum, and copper. The sale of power transformers will be restricted in middle- and low-income nations due to an increase in the overall price of these raw materials. Power transformers are more expensive than traditional power distribution systems due to fluctuations in the raw material supply and disruptions in the supply channels and distribution brought on by pandemics.

Over the forecast period, the lack of quality steel, installation processes, lengthy manufacturing for power transformers, and the significant capital expenditures necessary to build the supporting infrastructure for reliable and stable transformer operation will negatively impact the power transformer industry’s expansion. Leading industry competitors are attempting to lower the cost of producing transformers. Using more effective monitoring methods and alternative materials is one of their primary cost-cutting strategies.

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.

Furthermore, oil also prevents other components such as copper coils from damage such as burning Oil as an insulator is used in fluorescent lamp ballasts, high-voltage capacitors, oil-filled transformers, high-voltage switches, and circuit breakers. Generally, the transformers use mineral oil (mostly naphthenic), silicone, and bio-based oils for insulations. However, as environmental concerns are becoming more prevalent among transformer manufacturers worldwide, they are shifting toward more eco-friendly alternatives such as ester oil for developing transformers. For instance, on September 2022, Baoding Tianwei Baobian Electric Co. Ltd announced the development of its 110KV natural ester oil transformer. The ester oil used in the transformer has a 98% natural degradation rate and a higher ignition point.

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.

Three-phase transformers are the best choice for industrial equipment since they are more affordable, lighter, and smaller at greater power ratings. In three-phase applications, numerous single-phase toroid or ferroresonant devices may also be advantageous. Three-phase transformers are also appropriate for low voltage distribution with high fluctuation and low voltage owing to their high level of isolation, strong common-mode interference suppression, and customizable design by end-users parameters. Hence, three-phase transformers have a wide range of applications. Its advantages and widespread usage across different industries is poised to grow over the forecast period.

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.

The shell core is also frequently utilized in both electronic circuits and low-voltage power circuits. Since these transformers feature a square or rectangular cross-sectional core, which is less expensive, they are also utilized to optimize the cost of a circuit. Additionally, shell core offers various advantages such as an efficient cooling system, design flexibility, high seismic withstanding ability, efficient control of leakage magnetic flux, and high short circuit strength.

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.

The power transformer industry in China will be driven by the expansion of new transmission lines and substations to close the energy demand and supply gap. The growing concerns over greenhouse gas emission rates and their risks to the environment, the Asia Pacific is predicted to present attractive growth prospects in the power transformer industry. Increased industrialization, infrastructure development, and construction work have all contributed to a rise in the need for power transformers in the nation. The two main reasons propelling the market expansion in the nation are rising energy demand and a growing focus on the production of renewable electric power. Additionally, the Asia Pacific continues to be one of the world's top producers of energy, making it a lucrative market for power transformer producers.

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:

• ABB 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

Power Transformer Market Report Scope

Global Power Transformer Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global power transformer market report based on core, insulation, phase, rating, application, and region:

• Core Outlook (Revenue, USD Billion, 2018 - 2030)

  • Closed

  • Shell

  • Berry

• Insulation Outlook (Revenue, USD Billion, 2018 - 2030)

  • Gas

  • Oil

  • Solid

  • Air

  • Other

• Phase Outlook (Revenue, USD Billion, 2018 - 2030)

  • Single

  • Three

• Rating Outlook (Revenue, USD Billion, 2018 - 2030)

  • 100 MVA to 500 MVA

  • 501 MVA to 800 MVA

  • 801 MVA to 1200 MVA

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential & Commercial

  • Utilities

  • Industrial

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • 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