Instrument Transformer Market Estimated at USD 5.20 Billion in 2025; Projected to Reach USD 6.68 Billion by 2030 at a CAGR of 5.13%, Driven by Smart Grids, Renewables and Infrastructure Upgrades

Mordor Intelligence has published a new report on the "Instrument Transformer Market" offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

The global Instrument Transformer Market is poised for steady growth, with market size estimated at approximately USD 5.20 billion in 2025, and projected to reach around USD 6.68 billion by 2030, registering a compound annual growth rate (CAGR) of 5.13% over the forecast period.

Instrument transformers-including current transformers (CTs), potential (voltage) transformers (PTs), and combined units-play a critical role in power utilities and industrial sectors by enabling accurate voltage and current measurement, system protection, and revenue metering. As energy systems modernize with smart grids and renewables integration, demand for these components continues to grow.

Investments in transmission & distribution (T&D), increasing electrification, aging grid infrastructure needing upgrades, and rising penetration of renewable energy sources are key growth drivers. At the same time, expansion of high‐voltage direct current (HVDC) networks poses certain constraints. Meanwhile, technological innovation such as AI and IoT‐enabled smart instrument transformers opens new opportunities.

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Key Trends

Strong Power Utilities Adoption

The power utility industry dominates instrument transformer demand. These devices are used in generation, transmission and distribution systems to convert high-voltage currents and voltages into measurable secondary values for protection relays, meters, and control systems. This is especially critical in high-voltage applications above 72.5 kV, where CTs, PTs and combined transformers ensure safe and accurate measurements.

Renewable Energy Integration

Rapid growth of solar, wind and hydroelectric power globally is boosting demand for instrument transformers. Renewable energy projects require precise and reliable measurement and protection equipment to maintain grid stability. The shift to sustainable energy sources is driving utilities and developers to deploy advanced CTs and PTs designed for renewable microgrids and substations.

Smart Grid & Digital Substations

The transition to smart grids and digital substations is fueling demand for instrument transformers embedded with IoT, AI, and real‐time monitoring capabilities. These smart transformers offer predictive maintenance, automated load balancing, and high‐precision metering. Investments in this area are expected to deliver major efficiency gains and are being funded heavily by utilities and governments alike.

Regional Infrastructure Upgrades

Countries in Asia‐Pacific, particularly China, India, Japan, and South Korea, are leading the growth, investing heavily to modernize aging T&D infrastructure and expand grid coverage. Asia‐Pacific is estimated as the largest and fastest‐growing regional market during the forecast period

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Market Segmentation

By Type

Current Transformers (CTs): Expected to command the lion's share-worth approx. USD 2.08 billion in 2024 according to MRFR, with strong growth through 2035
Voltage Transformers (PTs): Projected to reach USD 2.73 billion by 2035, supporting high‐precision voltage measurements in grids
Combined Instrument Transformers: Merging CT and PT functions, valued at around USD 1.35 billion in 2024, growing to USD 2.36 billion by 2035

By End‐User

Power Utilities: The primary demand driver, since instrument transformers are integral to protective relaying, metering, and voltage conversion in generation, transmission and distribution systems.

Industrial Sector: Factories, mining, oil and gas, and large industrial installations use instrument transformers for internal power monitoring, safety and reliability.

Other Sectors: Including infrastructure, commercial buildings, railways and others requiring power monitoring and protection.

By Geography

Asia‐Pacific: Leading in both market size and growth rate, fueled by electrification and infrastructure projects across India, China and Southeast Asia.

North America: Significant growth supported by renewable energy rollouts, grid modernization efforts, and smart grid adoption.
Europe: Strong due to regulatory mandates on energy efficiency and grid reliability.

Middle East & Africa and South America: Smaller today, but with growing infrastructure investments and energy transitions, offering future opportunities.
Bullet summary of segmentation:

Type: Current, Voltage, Combined
End‐User: Power Utilities; Industrial; Other
Region: Asia‐Pacific; North America; Europe; South America; MEA
These segmentations reflect the breadth of application areas and growth opportunities present in the global market through 2030.

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Key Players

The global Instrument Transformer Market is moderately fragmented, with several Tier‐1 and regional manufacturers competing across technologies and geographies

Prominent international players include:

General Electric Company
Schneider Electric SE
ABB Ltd
Siemens Energy AG
Arteche Group
Crompton Greaves Ltd
Bharat Heavy Electricals Limited (BHEL)
Mitsubishi Electric
RITZ Instrument Transformers
Ametek

These companies are investing in R&D to deliver next‐generation smart transformers, improve accuracy, efficiency and integrate AI/IoT technologies
Recent developments include:

Siemens Energy's expansion in Dallas‐Fort Worth (USA) in late 2023 to ramp up manufacturing of compact, energy‐efficient transformers for critical infrastructure and data centers

Schneider Electric's 2024 launch of AI‐driven IoT‐enabled smart instrument transformers for predictive grid management and automated maintenance
ABB's collaboration with Titagarh Rail Systems in India (Nov 2023) to supply digital instrument transformers and propulsion systems for metro rolling stock
These strategic moves reinforce global players' positions in emerging smart grid and renewable integration markets, while regional firms like Crompton Greaves and BHEL capitalize on local manufacturing strengths and government programs.

Explore more about the Instrument Transformer Market Competitive Landscape: https://www.mordorintelligence.com/industry-reports/instrument-transformer-market/companies?utm_source=openpr

Conclusion

Current transformers are expected to remain the dominant segment, while voltage and combined transformers continue to gain prominence. Asia‐Pacific leads in both market share and growth rate, although opportunities are increasingly robust in North America and Europe owing to smart grid mandates. Investments in AI, IoT, and digital grid technologies are redefining instrument transformer design-delivering higher accuracy, predictive maintenance, and real‐time monitoring. Established global players like GE, ABB, Siemens and Schneider Electric are at the forefront of this technological shift. Regional leaders such as Crompton Greaves and BHEL are also gaining traction through local production and government-supported electrification policies.

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