Power Transformer Market

Power Transformer Market is Expected to be Flourished by Growing Renewable Energy Generation


The power transformer market comprises transformers that are primarily utilized for electricity transmission and distribution across high voltage transmission networks and lower voltage distribution systems. Power transformers raise or lower voltages of alternating current power to a level suitable for transmission as well as distribution over electric power grids and utilization by electric motors, lights, and other electric loads. Major end uses of power transformers include utilities, industrial, and commercial sectors. Utilities account for more than 60% of total power transformer demand globally owing to rising investments towards the expansion of T&D networks. The global power transformer market is estimated to be valued at US$ 44.47 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Growing renewable energy generation is expected to drive the power transformer market growth over the forecast period. According to the heading, renewable energy generation has been flourishing rapidly and many countries are investing aggressively in solar and wind power projects to meet their renewable energy targets. This growing renewable energy capacity addition is requiring robust power transmission infrastructure including transformers for effective integration into the grid. For instance, international consortium consisting of USAID, Power Africa and REEEP has launched ‘Beyond the Grid Fund for Africa’ with funding of US$ 57 million to invest in innovative business models and technologies that deliver affordable, renewable off-grid and mini-grid energy solutions in sub-Saharan Africa. Such initiatives are expected to propel the demand for small distribution transformers.

Segment Analysis
The power transformer market size is dominated by the transmission segment which accounts for over 45% of the overall market share. Transmission transformers are used to step up voltage in order to send power over long distances. They form a crucial link in the transmission network to efficiently transfer bulk power from generating stations to load centers. The increased uptake of renewable energy and expansion of T&D networks have boosted demand for transmission transformers globally.

PEST Analysis
Political: Government policies promoting renewable energy adoption and grid infrastructure modernization programs have encouraged investments in transmission networks, thereby propelling the need for transmission transformers.

Economic: Strong GDP growth in developing nations is driving power demand which needs to be met through capacity addition. This has spurred investments to strengthen grids and will augment transformer procurement.

Social: Rising electrification rates in rural areas push governance toward ensuring reliable electricity access. This accentuates the necessity for robust T&D infrastructure encompassing high-capacity transformers.

Technological: Advances in materials science have enabled development of amorphous metal and nanocrystalline core transformers offering higher efficiency. Progress in condition monitoring technologies aids in predictive maintenance to enhance operational life.

Key Takeaways
The global power transformer market is expected to witness high growth supported by spending on modernizing aging grids and expanding transmission infrastructure.

Asia Pacific dominates currently attributed to power sector investments in India, China and Southeast Asian countries as they pursue electrification goals. Regional analysis key players like Phantom Buster and Mozenda, Inc. have established market share in Asia Pacific owing to large manufacturing footprints and strategic partnerships with utilities.
China has emerged as the major manufacturing hub globally and also enjoys a sizeable domestic market for transformers. The country has highly ambitious targets for renewable energy and invested heavily in transmission projects in recent years driving transformer demand.

Key players operating in the power transformer market are Phantom Buster, Mozenda, Inc., Hangzhou Duosuan Technology, SysNucleus, Octopus Data Inc., and Newprosoft. These companies have a wide product portfolio and established distribution networks catering to utilities and industrial customers worldwide. They are focusing on digital solutions and services to enhance asset performance and enable condition-based maintenance.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraaged AI tools to mine information and compile it