Traction Transformer Market size was over USD 1.6 billion in 2023 and is anticipated to reach USD 3.2 billion by the end of 2036, growing at a CAGR of 6.7% during the forecast period, i.e., 2024-2036. In 2024, the industry size of traction transformers is estimated at USD 1.7 billion.
Railroad electrification is a crucial strategy for decarbonizing rail and has been steadily increasing over the past few decades. This is generating significant growth in the railroad industry's traction transformers, which deliver power to DC/AC motors in engines and are critical for electrifying and modernizing train lines. As more rail networks transition from diesel to electric, the need for traction transformers rises. According to The National Academies of Sciences, Engineering, and Medicine, approximately 25% of railways globally are electrified, and 50% of railway traffic occurs on electrified lines.
Moreover, high-speed trains, which are typically electric and use electricity from renewable sources (such as solar or hydroelectric power) rather than fossil fuels, result in lower CO2 emissions. Efficient traction transformers aid in effective electricity utilization and driving traction transformer market growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
6.7% |
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Base Year Market Size (2023) |
USD 1.6 billion |
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Forecast Year Market Size (2036) |
USD 3.2 billion |
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Regional Scope |
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Voltage Network (Alternative Current (AC) Systems, Direct Current (DC) Systems)
The alternative current (AC) systems segment in the traction transformer market is estimated to gain the largest revenue share of 70.1% by 2036. AC systems are known for their high efficiency and reliability in long-distance power transmission. Traction transformers in AC systems are designed to handle the variable loads and high power demands of rail systems, ensuring stable and continuous operation. The integration of smart technologies in AC traction transformers, such as remote monitoring and diagnostics, is becoming more prevalent. These advancements enhance the efficiency and reliability of rail systems. Many high-speed rail networks in Europe, such as TGV France use AC systems (25 kV AC). The need for efficient and reliable traction transformers in these systems influences global market trends.
Mounting Position (Over the Roof, Machine Room, Under the Floor)
Under the floor segment in the traction transformer market is estimated to contribute significant growth by optimizing space, improving thermal management, and leveraging technological advancements. Transformers mounted under the floor can benefit from the natural airflow and cooling provided by the train’s movement. This can reduce the need for additional cooling systems and improve the efficiency and longevity of the transformers.
Urban rail systems, such as subways and night rail networks, are increasingly adopting under the floor mounting solutions to optimize space and improve operational efficiency contributing to market growth.
Our in-depth analysis of the traction transformer market includes the following segments:
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Voltage Network |
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Mounting Position |
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Type |
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APAC Market Statistics
The Asia Pacific traction transformer market is poised to gather the largest revenue share of 50.1%, attributed to the burgeoning construction of a high-speed railway network. The area is home to several rail projects, including high-speed rail networks and urban metro systems, which are likely to boost the demand for traction transformers. In addition, governments of the region are stepping up to modernize their rail systems, leading to a higher demand for traction transformers. Asia may have more than 60,000 km of high-speed rail network by 2030, an increase of roughly 27,000 km from 2020.
China's fundamental national policy is to save energy, which may drive traction transformer market growth in the coming years. For instance, to save energy, guarantee safety, and safeguard the environment, the China Railway Electrification Engineering Group and the China Railway Eryuan Engineering Group have created a new kind of vegetable oil-insulated traction transformer for use on railroads.
In India, the government has been investing in the electrification of railway lines, which may boost the demand for traction transformers. Indian Railways has placed orders with Hitachi Energy India Ltd. for traction transformers that helped the Indian government realize its goal of electrifying the whole broad-gauge network in 2023.
Europe Market Analysis
The traction transformer market in Europe is projected to experience a significant rise in revenue over the projected timeframe encouraged by the increasing funding for the construction of the metro network. To lessen traffic congestion on the roads, lower emissions, and boost the industry's digital connectivity, EU has made financing available to support rail infrastructure initiatives, which is expected to augment market demand for traction transformers. For instance, various rail upgrading projects have received around USD 6.63 billion in funding under the most recent EU Connecting Europe Facility grant provisions.
The traction transformer market in Germany may witness tremendous growth as the German government has intensified its efforts to promote train travel in the face of climate change and has provided subsidies to build more railroad lines.
After Germany, France, and Spain, Italy has the fourth-largest high-speed rail network in all of Europe and is the only nation to have staged a direct competition over its complete high-speed rail (HSR) network. As a consequence, the demand for traction transformers may rise in the country.
The traction transformer market consists of many key players who are launching various strategic initiatives to expand their market position in the industry. Major players leverage their extensive global networks to provide traction transformers worldwide, ensuring timely delivery and localized support.
Author Credits: Dhruv Bhatia
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