Transformers Market Size, Share, Growth Analysis, By Application(Power utilities, industrial, commercial, and residential), By Type of transformer(power transformers, distribution transformers, instrument transformers, and specialty transformers), By Size(Large, Medium, and Small), By Insulation(Liquid immersed, Dry type, Solid), By Mounting(Pad Mount Transformers, Pole Mount Transformers), By Winding(Helical, Cylindrical), By Region - Industry Forecast 2024-2031

Transformers Market size was valued at USD 45 billion in 2021 and is poised to grow from USD 48.2 billion in 2022 to USD 83.43 billion by 2030, growing at a CAGR of 7.1% in the forecast period (2023-2030).

In the coming years, the competition in the transformer market is expected to intensify as new players enter the market and the number of devices compatible with transformers increases. Currently, only a few key players dominate the market, but this is likely to change as more companies seek to enter the market and offer their services.This increasing competition can drive innovation and lead to the development of new and improved transformer technologies and solutions, benefiting customers by providing them with more options to choose from.However, it can also result in market saturation and lower profit margins for manufacturers as they compete for market share.To remain competitive, transformer manufacturers will need to stay ahead of the curve by investing in research and development, expanding their product portfolios, and improving their manufacturing processes. They may also need to explore new business models and partnerships to differentiate themselves from their competitors and capture new market opportunities. 'ABB Ltd.', 'Siemens AG', 'Schneider Electric SE', 'General Electric (GE) Company', 'Mitsubishi Electric Corporation', 'Hitachi Ltd.', 'Toshiba Corporation', 'Hyundai Electric & Energy Systems Co., Ltd.', 'Bharat Heavy Electricals Limited (BHEL)', 'SPX Transformer Solutions, Inc.', 'Hammond Power Solutions Inc.', 'SGB-SMIT Group', 'Virginia Transformer Corp.', 'Wilson Power Solutions Ltd.', 'Kirloskar Electric Company Limited', 'CG Power and Industrial Solutions Limited', 'TBEA Co., Ltd.', 'Crompton Greaves Limited (CG)', 'Schneider Electric India Pvt. Ltd.', 'HICO America Inc.', 'In October 2022, NTPC Renewable Energy Limited (NTPC REL), a subsidiary of NTPC LTD, awarded Hitachi Energy India Limited (Hitachi Energy) a contract to supply power transformers for their upcoming 4.75 GW renewable energy park in Gujarat. This renewable energy park is part of India's largest solar park, covering an area of 72,600 hectares in Kutch, and is a significant step towards achieving the country's goal of a carbon-neutral future..'

The worldwide trend towards cleaner and sustainable energy has led to a surge in the integration of renewable energy sources into power grids. This integration requires transformers to connect the intermittent power generated from sources such as wind and solar to the grid, which drives up the demand for transformers. Renewable energy integration is a crucial component of the push towards decarbonization and reducing greenhouse gas emissions. Renewable energy sources are often located in remote areas, making it necessary to transport the electricity they generate over long distances to where it's needed. This requires a robust power transmission and distribution infrastructure, which relies on transformers to step-up or step-down the voltage to the appropriate levels. The growing demand for renewable energy integration has created opportunities for transformer manufacturers to develop new technologies and solutions that can better accommodate the unique characteristics of renewable energy sources. For example, transformers designed for wind power generation often have special features to deal with the highly variable output of wind turbines. As a result, governments and energy companies around the world are investing heavily in renewable energy integration, driving up the demand for transformers.

The adoption of smart transformer technologies is increasing, as utilities seek to improve their grid efficiency, reliability, and flexibility. These technologies are designed with features such as remote monitoring, advanced control systems, and condition-based maintenance. By using these technologies, utilities can monitor and manage transformers in real time, enabling them to detect potential issues before they become critical and optimize transformer performance. Overall, the increasing adoption of smart transformer technologies is expected to drive innovation in the transformer market, and help utilities meet the growing demand for electricity.

The Asia Pacific region accounted for the highest share of the power transformer industry and is projected to grow at a CAGR of 7.9% by 2030. The regional growth can be attributed to the rapid economic development and an increased need for reliable and uninterrupted power supply due to the rise in population. To cater to the growing need for electricity as a result of fast industrialization and urbanization, China is expanding its existing electrical transmission and distribution system.The expansion of new transmission lines and substations to close the energy demand and supply gap is driving the power transformer industry in China. Furthermore, with growing concerns over greenhouse gas emissions and their environmental impact, the Asia Pacific region is expected to present attractive growth prospects in the power transformer industry. Increased industrialization, infrastructure development, and construction activities have led to an increased demand for power transformers in the region. Rising energy demand and a growing focus on the production of renewable electric power are the two primary factors driving the market expansion in the region. Additionally, the Asia Pacific region remains one of the world's leading energy producers, making it a lucrative market for power transformer manufacturers.