Traction Transformer Market Size

Traction Transformer Market size was valued at USD 1.63 billion in 2024 and is set to exceed USD 3.65 billion by 2037, registering over 6.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of traction transformer is evaluated at USD 1.71 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.