Transformer Market is expected to reach US$ 135.9 Billion by 2034

Rising Electricity Demand due to industrialization is driving the Transformer Market Growth   

According to our latest study, “Transformer Market Size and Forecast (2021–2034), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Technology, End Users, Application, and Geography," the market was valued at US$ 69.65 billion in 2025 and is expected to reach US$ 135.9 billion by 2034; it is estimated to record a CAGR of 7.97% during 2026–2034. The report includes prospects owing to the current transformer market trends and their foreseeable impact during the forecast period.    
 
Rising electricity demand driven by industrialization is fueling the transformer market growth. As countries develop their industrial base, factories, manufacturing plants, and large-scale facilities need large and reliable supplies of power to run machinery, support process heating, enable automation, and maintain round-the-clock operations. This growing industrial power demand pushes utilities and grid operators to expand and reinforce power generation, transmission, and distribution networks.

Transformers are indispensable in these networks because they step voltage levels up and down efficiently to match generation points with industrial loads and local distribution systems. Without adequate transformer capacity, reliable power delivery to industrial consumers becomes difficult, leading to bottlenecks, inefficiencies, and potential outages. 

Transformer Market Analysis — by Geography 

Source: The Insight Partners Analysis

In June 2025, Hitachi Energy India secured a major order in June 2025 to supply 30 units of 765 kV / 500 MVA transformers to Power Grid Corporation of India, underlining government-led grid expansion and the urgency to support rising electricity usage from industrial growth and energy transition demands. Similarly, in May 2025, GE Vernova won an order to deliver over 70 extra-high-voltage transformers for renewable power corridors in India, showing that utilities and transmission planners are investing in high-capacity transformers to integrate large power flows from new generation to load centers.

Mitsubishi Electric Corp; Eaton Corporation plc; ABB Ltd; HD Hyundai Electric Co., Ltd.; Toshiba International Corporation; Alstom SA; GE Vernova Inc.; WEG SA; Hitachi Energy Ltd; and Siemens Energy AG are among the key players profiled in the transformer market report. Other players were also studied and analyzed to get a holistic view of the market and its ecosystem. 

The report includes the transformer market forecast by Type, Voltage Range, Power Rating, Application, Cooling Type, and Phase. Based on Type, the market is segmented into Power Transformer, Distribution Transformer, Instrument Transformer, and Others. A distribution transformer is used to step down voltage from transmission levels (typically 11 kV or 33 kV) to a lower voltage suitable for end-user consumption, usually below 440 V. It is installed at the final stage of the electrical distribution system to deliver electricity safely to homes, offices, and small industries. These transformers are designed for maximum efficiency at lower loads and continuous operation. Significant benefits provided by distribution transformers- such as low iron losses, high efficiency at varying loads, and compact design for easy installation-are increasing their adoption in the energy sector. The demand for distribution transformers is increasing due to rising urbanization, rural electrification projects, and the expansion of residential and commercial infrastructure. This segment held the largest transformer market share in 2024. 

The scope of the transformer market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East and Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East and Africa), and South and Central America (Brazil, Argentina, and the Rest of South and Central America). Asia Pacific dominated the market in 2024, followed by North America and Europe.

The transformer market in Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. In terms of revenue, China held the largest transformer market share in APAC. China’s transformer market is characterized by rapid growth driven by massive infrastructure projects, industrial development, and renewable energy integration. The country’s continuous expansion of power generation capacity—including hydro, solar, wind, and nuclear energy - is boosting demand for high-voltage power transformers and medium-voltage distribution transformers. 

Urbanization and smart city projects are creating a need for upgraded and efficient power distribution networks, increasing transformer deployment. In December 2025, China issued government guidance on boosting power grid investment to absorb more renewable energy, with plans for large west-to-east transmission networks that will require significant deployment of high capacity transformers and associated equipment to move power across provinces. Technological innovation is a key driver, with Chinese manufacturers offering transformers with advanced cooling systems, high efficiency, and real-time monitoring capabilities to meet the growing demands of modern grids.

Contact Us

Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com