Transformer Market Size

Transformer Market size was valued at USD 63.4 billion in 2024 and is projected to reach USD 172.4 billion by the end of 2037, rising at a CAGR of 8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of transformer is assessed at USD 68.4 billion. 

The global transformer market is expanding due to the growing demand for electrification and the development of renewable infrastructure, which influences the global economy. Advanced transformers are in high demand due to the increasing need for reliable energy systems. In April 2024, Hitachi Energy announced an investment of more than USD 1.5 billion in expanding transformer manufacturing capacity globally, thus becoming highly indicative of the trend for this industry to respond to growing demand. High investment at this level, in the wider energy transition ensures that transformer manufacturers are in a better position to meet this surging demand for sustainable power infrastructure. In addition, governments are also adopting supportive green energy policies, along with providing subsidies, thereby accelerating growth in the transformer market.

Furthermore, governments worldwide are actively developing policies that can help promote energy-efficient infrastructure, thus encouraging the adoption of eco-friendly transformers. Such initiatives help reduce carbon emissions and encourage the adoption of advanced technology-based transformers, including but not limited to IoT-enabled smart monitoring systems. As a result of these factors, budget allocations for energy infrastructure projects have gone up in major economies. This, along with funding in the sphere of smart grid projects, is expected to significantly increase demand for technologically advanced transformers during the forecast period.