The global power transformer market was valued at approximately USD 22.83 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 7.1% from 2023 to 2030. This growth is expected to be driven by several key factors, with the rising demand for electricity in both emerging and developed countries being a major contributing factor. As nations continue to urbanize and industrialize, there is a growing need for more robust and efficient power infrastructure. Increased investment in infrastructure—especially in power generation, transmission, and distribution networks—is expected to further accelerate the demand for power transformers.

Additionally, there has been a notable push toward the development of smart grids, which aim to improve the efficiency, reliability, and sustainability of electricity networks. The rising demand for smart meters—which are integral components of smart grids—has generated a need for more advanced power transformers. As smart grids become more widespread, they are expected to positively impact the power transformer market. Over the next five years, this trend is likely to continue, driving the need for more efficient and technologically advanced power transformers.

Another key factor fueling the growth of the power transformer market is the ongoing modernization of existing power grids. Governments and utility companies around the world are investing in upgrading outdated infrastructure to improve energy efficiency, reduce transmission losses, and ensure reliable power delivery. Many of these modernization efforts are supported by government initiatives aimed at installing advanced power transformers that are capable of supporting smarter, more efficient power grids. As a result, there will be significant demand for power transformers that can help optimize grid performance and contribute to reducing energy waste.

Gather more insights about the market drivers, restrains and growth of the Power Transformer Market

Regional Insights

In 2022, the Asia Pacific power transformer industry accounted for over 40.41% of the global revenue share and is expected to grow at a CAGR of 7.9% by 2030. This significant market share and projected growth are driven by several factors, primarily the rapid economic development and the increasing demand for reliable, uninterrupted power supply in the region. One of the key drivers is the population growth, which leads to higher electricity demand as more people require access to energy for residential, industrial, and commercial needs.

A major contributor to the growth in the Asia Pacific region is China. As the country undergoes rapid industrialization and urbanization, the demand for electricity has surged. To meet this growing demand, China is making significant investments in the expansion and modernization of its electrical transmission and distribution systems. The expansion includes the construction of new transmission lines and substations to improve the efficiency of power delivery and ensure a stable energy supply to the rapidly growing population and industrial sectors.

In addition to meeting domestic energy needs, China’s power transformer market is being driven by a focus on closing the energy demand and supply gap. As the country continues to expand its infrastructure and improve energy efficiency, the demand for power transformers, which are crucial components in energy transmission, is expected to rise. Moreover, concerns over greenhouse gas emissions and their environmental impacts are pushing China to invest more in renewable energy sources. This shift towards cleaner, sustainable energy will likely drive demand for modern power transformers that can support the integration of renewable energy into the national grid.

The entire Asia Pacific region, not just China, is experiencing a rise in industrialization, infrastructure development, and construction activities, all of which contribute to a higher need for power transformers. As more industries and businesses emerge, the demand for efficient and reliable energy transmission systems becomes even more critical. At the same time, the focus on renewable energy production, particularly in countries like India and Japan, is fueling the demand for advanced power transformers designed to handle the unique challenges of renewable energy integration.

Moreover, Asia Pacific remains one of the world’s top energy producers, making it an attractive market for power transformer manufacturers. With a large and growing population, an expanding industrial base, and an increasing focus on sustainability and renewable energy, the Asia Pacific region presents a wealth of growth opportunities for companies involved in the power transformer industry.

Browse through Grand View Research's Semiconductors Industry Research Reports.

• The global photonic integrated circuit market size was valued at USD 14.08 billion in 2024 and is projected to grow at a CAGR of 10.8% from 2025 to 2030.

• The global chip-on-board LED market size was valued at USD 2.70 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 14.6% from 2024 to 2030.

Key Companies & Market Share Insights

The power transformer industry is highly competitive, with major players such as Siemens AG, Crompton Greaves Ltd, ABB Ltd, Alstom SA, Toshiba Corp, and GE Co dominating the global market. These companies have established themselves as key suppliers of power transformers, leveraging their global reach, technological expertise, and strong market presence to maintain leadership in the industry.

To secure a larger share of the market, industry players are increasingly focused on improving the lifespan and efficiency of their products, as well as increasing production capacity. The ability to offer reliable, long-lasting transformers that can withstand the demands of modern energy grids is a critical factor in gaining a competitive edge. Many of these companies are also diversifying their product portfolios by introducing advanced transformer technologies, such as shunt reactors, HVDC light, and phase-shifting transformers, to cater to the evolving needs of the energy sector.

Some prominent players in the global power transformer market include:

• ABB Ltd.

• Alstom SA

• Hyosung Power & Industrial Systems Performance Group

• Crompton Greaves Ltd.

• GE Co.

• Hyundai Heavy Industries Co. Ltd.

• Siemens Energy

• Mitsubishi Electric Corporation

• Toshiba Corp.

• Bharat Heavy Electricals Limited

Order a free sample PDF of the Power Transformer Market Intelligence Study, published by Grand View Research.