Traction Transformer Market Size

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.