How Has The Transformers Market Size Evolved In Recent Years?
The transformers market has seen considerable growth due to a variety of factors.
• There has been significant growth in the size of the transformers market in the past few years. The projections show that the market will expand from $76.4 billion in 2024 to $81.77 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 7.0%.
This growth during the history period is driven by factors such as the development of power infrastructure, industrialization and urbanization, the expansion and improvement of the grid, the incorporation of renewable energy, and government policies and regulations.
What are the Forecasted Growth and Key Factors of the Transformers Market?
The transformers market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the transformers market is anticipated to witness significant growth over the next few years, potentially reaching $101.42 billion by 2029 with a 5.5% Compound Annual Growth Rate (CAGR). This projected growth within the forecast period could be attributed to factors such as increased smart grid deployments, electrification efforts, energy storage integration, upgrades to higher voltage levels, and concerns about resilience and grid stability. The forecast period is also expected to highlight some key trends, including the development of superconducting transformers for enhanced efficiency, collaborations aimed at standardization and interoperability, increased investments in upgrading and modernizing transformers, the use of innovative cooling systems for transformers, and growth in the medium and low voltage transformer markets.
What Are The Essential Drivers Behind The Growth Of The Transformers Market?
In an effort to boost electrification worldwide, numerous guidelines are being put into effect by various nations. In March 2023, the U.S. Department of Energy's Federal Energy Management Program (FEMP), a government institution based in the United States, declared a sizable investment initiative amounting to $250 million through the Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) initiative, according to the Department Of Energy (DOE) in January 2024. Subsequently, in January 2024, FEMP shared that 31 federal organization projects would be the beneficiaries of the first $104 million allotment from the AFFECT fund. Consequently, the transformers market is anticipated to expand due to supportive governmental regulations promoting electrification.
How Is the Transformers Market segmented?
The transformers market covered in this report is segmented –
1) By Type: Low Rated Transformer, High Rated Transformer
2) By Transformer Type: Power Transformer, Distribution Transformer
3) By Phase: Single Phase, Three Phase
4) By Application: Residential And Commercial, Utility, Industrial
Subsegments:
1) By Low Rated Transformer: Distribution Transformers, Instrument Transformers, Isolation Transformers
2) By High Rated Transformer: Power Transformers, Autotransformers, Furnace Transformers
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What New Trends Are Influencing the Transformers Market?
The transformation of the transformers market is evident in the rise of autonomous and self-regulating smart transformers. These transformers are designed to continually adjust voltage and keep in touch with relevant parties, offering information and feedback regarding power provision. They ensure precise allocation of power and respond to changes using a method known as voltage optimization. This significantly diminishes greenhouse gas emissions and power usage as they furnish electrical equipment with the appropriate amount of power. For example, in November 2023, the U.S. Department of Energy (DOE) dedicated $42 million to 15 initiatives throughout 11 states aimed at enhancing the reliability, resilience, and adaptability of the local power grid by advancing next-generation semiconductor technologies. These technologies will be funded through the DOE’s Unlocking Lasting Transformative Resiliency Advances by Faster Actuation of power Semiconductor Technologies (ULTRAFAST) program. The developed technologies are anticipated to facilitate more effective management of grid power flow and offer superior safeguarding of vital infrastructure resources. By refining the harmonized operation of power supply and demand, operational efficiency will improve, unexpected outages will be averted, recovery will be expedited, the effects of natural disasters and climate change-induced extreme weather events will be lessened, and grid operating costs and carbon intensity will diminish.
Who Are the Key Players in the Transformers Market?
Major companies operating in the transformers market include:
• Performance Group Crompton Greaves Ltd.
• Hammond Power Solutions Inc.
• Hitachi Ltd.
• Siemens AG
• Mitsubishi Electric Corporation
• Schneider Electric SE
• ABB Ltd.
• Toshiba Corporation
• Eaton Corporation
• Emerson Electric Co.
• Bharat Heavy Electricals Limited (BHEL)
• Daihen Corporation
• Raychem RPG
• SPX Corporation
• Fortune Electric Co.
• Kirloskar Electric Company
• Hyundai Heavy Industries Co. Ltd.
• General Electric Corporation (GE)
• SGB-SMIT Group
• RITZ Instrument Transformers GmbH
• Schaffner Holding AG
• Banmore Electricals Pvt. Ltd.
• TRENCH Group
• KOTSONS Pvt. Ltd.
• Emco Ltd.
What Is The Most Dominant Region In The Transformers Market?
Asia-Pacific was the largest region in the transformers market in 2024. The regions covered in the transformers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
