Power Transformers Market to Grow by USD 13.20 Billion (2025-2029), Driven by Modernization of Existing Transformers, with AI Impact – Technavio

NEW YORK, Feb. 11, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global power transformers market size is estimated to grow by USD 13.20 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 6.2%  during the forecast period. Modernization of existing transformers is driving market growth, with a trend towards increasing popularity of bio-based and naphthenic transformer oil. However, increasing cost of power transformers  poses a challenge. Key market players include ALTRAFO Srl, Altro Transformers Pty. Ltd., CG Power and Industrial Solutions Ltd., DuPont de Nemours Inc., Eaton Corp., ETEL TRANSFORMERS PTY LTD., Fuji Electric Co. Ltd., General Electric Co., Hammond Power Solutions Inc., Hitachi Ltd., Hyundai Electric and Energy Systems Co. Ltd., Kirloskar Electric Co. Ltd., Layer Electronics Srl, MGM Transformer Co., Schneider Electric SE, Siemens Energy AG, Southern Electronic Services, Tyree Industries, and Wilson Power And Distribution Technologies Pvt. Ltd..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Market Driver

The power transformers market is experiencing growth due to the increasing use of bio-based and naphthenic transformer oil. Bio-based oil, with its non-toxic and incombustible attributes, offers advantages such as excellent insulation, biodegradability, high fire point, and extended transformer life. Its biodegradability also provides cost savings from oil spill remediation. The rise in transformer fires and the non-biodegradable nature of mineral oil are driving the shift towards bio-based oil. Naphthenic oil, popularly used in transformer oil and lubricant production, also sees demand from the automotive and construction industries. This trend is expected to boost the efficiency and longevity of power transformers, positively impacting the market. 

The Power Transformers Market is experiencing significant growth, driven by increasing demand for efficient power transmission solutions. Power transformers are crucial components in the power sector, converting voltage levels to match the requirements of different applications. The market is witnessing trends towards smaller, lighter, and more efficient transformers. Circuits and capacitance are key considerations in transformer design. Advanced materials like aluminum and composite materials are being used to reduce weight and improve performance. Grid modernization and renewable energy integration are also driving the market, as transformers play a vital role in integrating renewable energy sources into the power grid. The market is expected to continue growing, with a focus on innovation and cost-effectiveness. 

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

 Market Challenges

• The power transformers market in Europe and the US is subject to increasing energy efficiency regulations. In the US, the DOE mandates NEMA TP-1 standards since 2007 for low-voltage dry-type transformers, with new efficiency standards in 2016. Europe’s Ecodesign Directive covers small to large power transformers since 2015. India’s Ministry of Power follows IS 1180:2014 since 2014. While these regulations save energy, they increase transformer costs due to high-quality materials and larger sizes, potentially hindering market growth.
• The Power Transformers Market faces several challenges in the industry. One major challenge is the increasing demand for more efficient and eco-friendly transformers. This requires continuous research and development in materials and technologies. Another challenge is the need to meet stringent regulatory requirements, particularly in terms of safety and emissions. Additionally, the market is experiencing intense competition, with numerous players vying for market share. Cost pressure from customers and the need to maintain profitability add to the challenges. Furthermore, the global economic situation and geopolitical instability can impact the market’s growth. Despite these challenges, the Power Transformers Market continues to grow, driven by the increasing demand for electricity and the need for reliable power transmission.

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview 

This power transformers market report extensively covers market segmentation by  

• Type

• Liquid Immersed
• Dry Type

• Commercial Power
• Residential Power
• Industrial Power

• Core Transformer
• Shell Power Transformer
• Berry Power Transformer

• APAC
• Europe
• North America
• Middle East And Africa
• South America

1.1 Liquid immersed-  The power transformers market is primarily driven by the demand for liquid-immersed transformers in the Middle East and APAC. Fueled by population growth and economic expansion, these regions are witnessing increased electricity coverage and industrial development, leading to the installation of new grid networks and the replacement of existing transformers. In North America and Europe, post-financial crisis investments in power generation have resulted in the adoption of high-efficient power transformers, further boosting market growth. Despite the advantages of SF6 gas insulation, oil remains the dominant insulation due to cost considerations.

Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics

Research Analysis

The Power Transformers Market is experiencing significant growth due to the increasing demand for electricity generation from renewable resources. Aging power grids require upgrades to maintain investor confidence and ensure reliability. Sociopolitical instability in certain regions can impact the transmission of electricity, making cross-border transmission a crucial aspect of infrastructure development. Terawatt-hour capacity expansion is essential to meet electricity demand, and smart grid development, including smart meters, is key to minimizing losses in power transmission. Power transformers play a vital role in this process, ensuring the appropriate voltage and frequency levels for efficient electricity distribution. The power transformer industry is focusing on research and development to improve transmission network efficiency, particularly in remote places where access to electricity is limited. Carbon emissions reduction is also a significant factor driving innovation in the power transformer market.

Market Research Overview

The Power Transformers Market encompasses the production, sales, and installation of transformers used in the power sector. These transformers play a crucial role in increasing or decreasing the voltage of electrical power for efficient transmission and distribution. The market is driven by factors such as increasing electricity demand, government initiatives to improve power infrastructure, and technological advancements in transformer design and manufacturing. Various types of power transformers are available, including oil-filled, dry-type, and cast resin transformers. The market is segmented based on voltage level, application, and region. The Asia Pacific region is expected to dominate the market due to the high electricity demand and growing industrialization in countries like China and India. The market is competitive, with several players offering a wide range of transformer solutions to meet the diverse needs of the power sector.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type

• Liquid Immersed
• Dry Type

• Commercial Power
• Residential Power
• Industrial Power

• Core Transformer
• Shell Power Transformer
• Berry Power Transformer

• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio