Transformer Market Size, Share, Growth and Industry Analysis by Type (Single-Phase Transformer, Three-Phase Transformer) By Application (Chemical Industry, Transportation Industry, Power Industry, And, Other), Regional Insights, and Forecast From 2024 To 2031

Updated On: 08 April 2024

Transformer Market Report Overview

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The global transformer market size was USD 260300.47 million in 2021 and is projected to touch USD 480005.11 million by 2031 with a CAGR of 6.31% during the forecast period.

Transformer is an equipment which is used for transferring electric energy from one AC that is alternating Current to other circuits. While transferring the electrical energy, the voltage can be either stepped up that is increased or stepped down that is reduced.

Globalization has become the major reason for several developments in the electrical industry. New type of transformer has been introduced. Ultra-high voltage transmission helps in upgrading the global transmission network. This is considered as the latest trend in the market.

Harmful effects of using fossil-based fuels are creating several environmental related concerns. Therefore, actions have been taken to implement renewable sources of energy with the help of transformers. High operational capability of auto transformers is benefitting the market.  All of these factors have resulted in the transformer market growth.

COVID-19 impact: Decreased Usage of Electrical Energy in Industries Reduced Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.The spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

The pandemic of COVID-19 changed the functioning of each and every sector across the globe. Every industry had to adopt itself to the changes which were brought by the pandemic. Most of the factories were either shut down or were allowed to work at only half of their operating capacity.

This was due to lockdowns and social distancing rules that were imposed by the government as a safety measure against the novel coronavirus. Electrical energy is one of the most widely used form of energy for operating machineries. With the reduction in the working of factories, power consumption also decreased considerably. As a result, the transformer market saw a decline during the pandemic.

LATEST TRENDS

"Highly Developed Current Transmission Networks to Increase Market Growth"

Due to urbanization and rapid globalization, highly developed current transmission networks are being established. A transmission network consists of poles, switch equipments, transmission lines, and power grids. Within a power system most of the power losses can be attributed to transmission losses.

In order to minimize these losses, the transmission voltage must be raised. One such new development that can be witnessed in the market is the introduction of ultra-high voltage transmission. With this the global transmission network can be upgraded. This has been identified as the latest trend in the market.

Transformer Market Segmentation

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• By Type:

The market can be divided on the basis of type into the following segments:

Single-phase transformer, three-phase transformer. The plugs segment is anticipated to dominate the market during the forecast period.

• By Application:

Classification based on application into the following segment:

Chemical industry, transportation industry, power industry, and, other. The chemical industry segment is predicted to dominate the market during the research period.

DRIVING FACTORS

"Increasing Focus on Renewable and Non-Conventional Sources of Energy to Accelerate Market Growth"

Usage of fossil-based fuels can lead to a lot of pollution. Emission of harmful gases from many years has been constantly damaging the environment. Increase in the temperature due to global warming, rise in sea levels, and depletion of ozone layer are some of the consequences of pollution on environment and human life. 

Increasing awareness of people, and strict rules imposed by the concerned government bodies about using cleaner sources of fuel has shifted the focus towards renewable or non-conventional sources of energy. Transformers can be helpful in converting the alternating current produced by hydro-electric plants into a very high voltage current. Use of transformers in the production of renewable source of energy is increasing transformer market share.

"High Operational Capability of Auto Transformers to Propel Market Growth "

Auto transformers have high operational capability due to which it in employed in various industries. Also, these transformers have immense operational flexibility. They are compact in size with sustainable cost.

Increasing construction of buildings and infrastructures has propelled the market growth for transformers. With construction of new buildings more and more investment is being done on expanding and refurbishing the grid networks that already exist. Transformers also have improved safety features. All of these factors have helped in the growth of transformer market.

RESTRAINING FACTOR

"High Cost Involved in Installing Transformer to Decrease Market Growth"

Transformers are devices which need to be installed with the help of skilled labors. Installation of transformers will involve high costs. Some of the important metals that are used in the construction of transformers include aluminum, steel, and copper.

These metals are not very available. The prices of raw materials also keep on fluctuating constantly which can become a very big difficulty for the manufacturers. Logistics is a very important component of installing a transformer. The time required to manufacture a transformer is very long. All of these factors can hinder the growth and development of transformer market.

Transformer Market Regional Insights

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"Asia Pacific to Dominate Market Share in Upcoming Years"

Asia Pacific is exhibiting a tremendous growth rate especially during the forecast period. Many factors have favored the development of the transformer industry in Asia Pacific. Many countries in these regions have large-scale industries that require great amounts of electricity.

In order to fulfill the power and electricity demands of all the factories, it is essential to install transformers in many regions. India and China are the two major countries which are identified as the frontrunners of the market. High population has resulted in growing needs of energy. Strict rules and regulations imposed by governments of various nations about the usage of renewable and non-conventional sources of energy to protect environment is also fueling the usage of transformers. These factors have made Asia Pacific the largest share holder in the market.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

• Mitsubishi (Japan)
• TBEA (China)
• Hitachi (Japan)
• XD Group (China)
• GE (U.S.)
• Schneider (France)
• Toshiba (Japan)
• Siemens (Germany)
• ABB (Switzerland)

Report Coverage

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. This report also provides a list of the key industry players in the market to provide a clear understanding of competition in the industry.