Transformers Market Expected to Reach $103 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Transformers Market," The transformers market was valued at $58.6 billion in 2021, and is estimated to reach $103.0 billion by 2031, growing at a CAGR of 6.1% from 2022 to 2031.

A transformer is a device which transfers electrical energy from one circuit to another through inductively coupled conductors. In 1831, Michael Faraday constructed the apparatus and invented electromagnetic induction device which contained all basic elements of transformer. During half-century, several induction devices were constructed which were similar to the heavy-current transformer, however all were different in their construction or operating method. On the basis of differences in design and construction method, the transformer design was regarded as an independent invention.

Transformer is a type of electronic device which helps in reducing or increasing the electrical force (voltage). The basic principle behind working of a transformer is the phenomenon of mutual induction between two windings linked by common magnetic flux. Basically a transformer consists of two inductive coils; primary winding and secondary winding. The primary use of transformers is to increase or decrease the level of voltage or current in power plant producing stations and distributing electrical power to consumer units for domestic and industrial applications.

Transformers are static electrical devices which are used in electrical power systems to transfer electrical power among circuits. The purpose of a transformer is to convert power from one system voltage to another. Transformers with low-voltage windings specifically designed for use with rectifiers to provide a DC supply which is boost the global transformers market share in forecasted period. In addition, rise in demand for power from manufacturing industries and residential sector are anticipated to fuel the growth of the global transformers market trends in the future.

Increase in applications of transformers in utility areas is expected to fuel the global transformers market size in the near future. Moreover, growth in demand for electricity and power and rise in smart grid projects are factors that drive the global transformers market growth. As per global transformers market forecast, surge in sales of electric vehicles across the U.S., China and Europe increases the demand for electric vehicle fueling stations which in turn is expected to create global transformers market opportunity. Some of the restraints associated with the market are risks associated with high DC voltages. This is expected to hamper the market growth.

The transformers market is segmented on the basis of type, power rating, cooling type, number of phase, insulation application, and region. On the basis of type, it is categorized into distribution transformer power transformer, and others. On the basis of power rating, it is classified into small, medium, and large. On the basis of cooling type, it is bifurcated into oil cooled, and air cooled. On the basis of number of phase, it is divided into single phase and three phase. On the basis of insulation segmentation, it is bifurcated into two types- dry and liquid immersed insulation. On the basis of application, it is classified into commercial, and residential sector, utility, and industrial sector. Region-wise, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.

On the basis of type, the distribution transformers segment held the highest market share in 2021 and is expected to maintain its dominance during the forecast period. This is attributed to rise in demand for distribution transformers from various applications, including residential, commercial, and industrial sector, and others.

On the basis of power rating, the small segment held the highest market share in 2021 and is expected to maintain its dominance during the forecast period.. Small transformers are utilized for power distribution in rural regions, which increases the dominance of the small segment in the market.

By cooling type, the air-cooled segment held the largest share in 2021, in terms of revenue, and is expected to grow at a CAGR of 6.3%, owing to increase in usage for air-cooled cooling types of transformers in renewable energy projects across the US. In addition, advantages associated with air cooled, including cost effectiveness, efficiency, and resistance toward both, horizontal and vertical surfaces are expected to fuel the growth of the market during the forecast period.

On the basis of insulation, the dry segment held the highest market share in 2021 and is expected to maintain its dominance during the forecast period. Dry transformers are safe, ecofriendly and also lower the wastage of energy during the transmission which contribute to the growth of dry segment in global transformer market.

On the basis of number of phase, three phase segment held the highest market share in 2021 and is expected to maintain its dominance during the forecast period. The tree phase transformers are highly acceptable in the industrial and utility sector to transfer and storage of high voltage energy.

On the basis of application, the utility segment held the largest share in 2021, in terms of revenue, and is expected to grow at a CAGR of 6.3%, due to rise in demand for transformers in utility sector for conversion of higher voltage to medium level voltage is anticipated to drive the growth of the market in the coming years.

On the basis of region, Asia-Pacific held more than 35% share in terms of revenue and is anticipated to grow at a CAGR of 6.4% during the forecast period. Future developments in China and India solar industry and rise in investment toward smart grids projects are projected to drive the growth of the transformer market in the region. LAMEA region is growing with the highest CAGR of 6.6% in the forecasted period as countries are involved in power transition and increasing demand for electricity in manufacturing industries..

The global transformers market analysis covers in-depth information of the major transformers industry participants. The key players operating and profiled in the report include ABB Ltd., Siemens AG, General Electric, Eaton., TOSHIBA CORPORATION, Schneider Electric, Mitsubishi Electric Corporation, CG Power & Industrial Solutions Ltd., VTC/GT, and SGB SMIT.

Key findings

• In 2021, the distribution transformers segment accounted for about half of the share in the global transformers market and is expected to maintain its dominance during the forecast period
• In 2021, the small power rating transformers segment accounted for more than 40% market share and is anticipated to grow at a rate of 5.6% in terms of revenue
• In 2021, the air-cooled segment accounted for more than 60% market share and is anticipated to grow at a rate of 6.3% in terms of revenue
• Utility sector is the rapidly growing segment in the global transformers market and is expected to grow at a CAGR of 6.3% during 2022–2031
• In 2021, Asia-Pacific dominated the global transformers market with more than 35% of the share, in terms of revenue