Data Center Transformer Market To Reach $11.21 Billion By 2030

Data Center Transformer Market Growth & Trends

The global data center transformer market size is estimated to reach USD 11.21 billion by 2030, expanding at a CAGR of 6.3% from 2025 to 2030, according to a new report by Grand View Research, Inc. Rising number of data centers owing to increasing shift in technology and growing adoption of the cloud computing platform are fueling the market growth. There are various benefits associated with moving to the cloud, such as reduced capital expenditure, improving scalability and elasticity, and overall decreased operational costs.

An organization today needs large storage capacities and facilities to manage enormous data volumes, which is anticipated to be a primary factor driving the adoption of such centers globally. Moreover, large amount of data traffic and emergence of big data have increased the importance of secure data centers, thus driving the demand for transformers.

Transformers are essential components that are necessary to transform and distribute the electric power by increasing or decreasing the voltages based on the application and requirement. Data centers are equipped with electricity consuming equipment, such as chiller and generators. Integration of such components needs a balanced electricity supply. Presence of such components is expected to boost the growth of market.

Constant and maintained electric supply has to be ensured for the uninterrupted and proper functioning of the data centers. With offerings of power distribution unit (PDU) with copper and aluminum transformers, companies are directing customers toward using transformers with lower K-factor to reduce the price of the PDUs. Additionally, some manufacturers are offering PDUs with multi-output transformers, i.e. the output voltage can be changed as per the customers’ requirement. This flexibility offered is projected to have a positive impact on the market growth.

The liquid insulation type used in the transformers removes heat and ensures the efficient working of the data center. The liquid used ensures the dielectric strength of the insulator and provides better temperature control systems and highly reliable insulation. However, liquid insulation requires additional maintenance costs and has a threat of leakage. Thus, usage of liquid insulation might generate a risk of fire hazard, thus causing hindrance in the market growth. However, the usage of dry insulation does not pose any fire hazard and facilitates a safe working environment, which is expected to contribute to the growth of this market.

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Data Center Transformer Market Report Highlights

• The dry insulation type segment is expected to grow significantly during the forecast period. Dry type insulation transformer ensures a safe working environment with zero fire hazard risks as it uses air as a cooling medium.

• The 1,250–3,750 kVA segment accounted for the largest revenue share of 42% in 2024. This size range offers a good balance of power capacity and efficiency, making it ideal for a wide range of data center sizes and configurations.

• The OEMs segment accounted for the largest market share in 2024, driven by the demand for customized, high-quality transformers tailored to specific operational requirements in data centers.

• North America accounted for the largest revenue share of 37% in 2024. Asia Pacific is the fastest-growing regional market for data center transformers with a CAGR of 8.7% over the forecast period due to the rising number of data centers in the region

• Key market players have established partnerships with facility developers and principal contractors to maintain their market position and share.

Data Center Transformer Market Segmentation

Grand View Research has segmented the global data center transformer market based on insulation type, voltage, channel partners, and region:

Data Center Transformer Insulation Type Outlook (Revenue, USD Million, 2018 - 2030)

• Oil Immersed

• Dry

Data Center Transformer Voltage Outlook (Revenue, USD Million, 2018 - 2030)

• Below 625 kVA

• 625-1,250 kVA

• 1,250-3,750 kVA

• Over 3,750 kVA

Data Center Transformer Channel Partners Outlook (Revenue, USD Million, 2018 - 2030)

• OEMs

• Distributors

• Online Retailers

• Electrical Contractors

Data Center Transformer Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East & Africa

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in Data Center Transformer Market

• ABB

• Eaton

• General Electric

• Hitachi Energy

• HYOSUNG HEAVY INDUSTRIES

• Legrand

• Mitsubishi Electric Corporation

• Schneider Electric

• SGB-SMIT Group

• Siemens

• Toshiba Corporation

• Vertiv Group Corp.

• Virginia Transformer Corp