Power Transformer Market size is expected to reach USD 73.56 billion by the end of 2037, growing at a CAGR of 6.22% during the forecast period i.e., 2025-2037. In the year 2024, the industry size of power transformer was USD 33.6 billion. An increase in power generation and grid development projects is what drives the total quantity of power transformers. Power transformer demand is driven by the modernization, development, and improvement of power grids, which also support the industry's overall growth. Some of the nations and areas leading the way in the implementation of smart grids are Japan, which in 2022 announced a USD 155 billion funding package to encourage investments in smart power networks.
The growing penetration of electric cars (EVs) offers power transformers the chance to assist in the creation of EV charging infrastructure. Transformers are essential for providing charging stations with an effective and dependable power supply. Power transformers are a necessary part of the infrastructure used to charge electric cars. They assist in reducing grid electricity from high voltages to lower voltages required for different EV charging capacities. Electric car charging is now safe and effective thanks to this development. Programs like the FAME India project, tax breaks, and production-linked incentives are designed to give the electric vehicle (EV) sector a boost.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.22% |
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Base Year Market Size (2024) |
25.11 billion |
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Forecast Year Market Size (2037) |
73.56 billion |
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Regional Scope |
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Phase (Single Phase, Three Phase)
In terms of phase, the three-phase segment in power transformer market is anticipated to surpass USD 45.03 billion by the end of 2037. Three-phase transformers have six windings, three for the primary and three for the secondary, connected in either a delta or a triangle configuration. These circuits can be regarded as part of a single-phase converter. Delta and star are the two most common forms of three-phase connections. A delta connection, also known as a mesh connection, consists of three windings connected at the end, forming a closed loop without a neutral point.
End User (Residential & Commercial, Industrial, Utility)
Based on end user, the industrial segment in power transformer market is anticipated to record the highest revenue of USD 32.88 billion during the forecast period. These transformers are mainly used in industrial settings, such as manufacturing plants, refineries, mining operations, and other heavy-duty applications. To be able to withstand the intense operating conditions, heavy construction and insulation are commonly used in industry transformers. Industrial supply voltage in Canada stands at 600 VAC similar to that of the US at 480 VAC on the other hand Europe stands at 400 volts in common industrial voltage. The majority of factories are typically supplied with 480V three-phase power, but stepping down the transformers reduces the voltage to 240 V, 208 or 120 for small devices and appliances.
Our in-depth analysis of the global power transformer market includes the following segments:
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Phase |
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Core |
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Insulation |
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Power Rating |
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End User |
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APAC Excluding Japan Market Forecasts
The Asia Pacific excluding Japan power transformer market is slated to cross USD 30.37 billion by the end of 2037. The growth of the power transformers industry can be boosted by renewable energy adoption in this region. Integration into the grid of these subsidiary energy resources is needed in order to move away from conventional energy sources, such as solar and wind. In order to ensure efficient transmission and distribution of renewable energy, power transformers play a crucial role in raising or lowering voltage levels. In Asia, in 2019 there was renewable energy production around 2,929,465 GWh, 3,150,570 GWh in 2020, and 3,480,502 GWh in 2021. It is expected that the region will present favorable growth prospects for the power transformers industry due to rising concerns over greenhouse gas emissions and their environmental risks. The need for power transformers in the country is growing due to an increase in manufacturing, infrastructure development and construction work. Rising energy demand and growing interest in the production of renewables are at the heart of power transformer market expansion.
North American Market Statistics
The power transformer market in the North America region is expected to cross USD 19.35 billion during the forecast period. Due to increased electricity demand, the market for power transformers is growing in this area. The need for additional power transformers to increase and improve the electric grid is growing as a result of increasing worldwide demand
Author Credits: Dhruv Bhatia
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