Power Transformer Market to Reach USD 45.3 Billion by 2035, Driven by Grid Modernization and Smart Energy Infrastructure Expansion

The global Power Transformer Market is projected to grow from USD 24.6 billion in 2025 to USD 45.3 billion by 2035, expanding at a CAGR of 5.7% during the forecast period.

This growth is driven by accelerated grid modernization, renewable integration, and the deployment of AI-enabled smart transformers that improve energy reliability, enable predictive maintenance, and enhance grid stability in an era of electrification and decentralized power systems.

MarketGenics, a leading research firm, highlights the power transformer sector as a critical backbone of the global energy transition, underpinning infrastructure resilience, digital transformation, and the shift toward low-carbon power systems across industrial, urban, and renewable networks.

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Recent Developments Shaping the Market
Siemens Energy Expands U.S. Transformer Production for AI and Grid Demand
In June 2025, Siemens Energy announced a major expansion of its Charlotte, North Carolina facility to locally produce large industrial transformers for the growing U.S. grid and AI data center demand.
This move aligns with the U.S. government's $2 trillion infrastructure investment and aims to enhance domestic production capacity for high-voltage transformers by 2027.

Hitachi Energy Invests $250 Million to Strengthen Global Manufacturing Resilience
In March 2025, Hitachi Energy committed $250 million to expand transformer production in the U.S., Europe, India, and China.
This strategic investment is aimed at reducing lead times, improving delivery resilience, and meeting rising transformer demand from renewable power plants and data-driven industrial grids.

GE Vernova Launches Next-Generation Digital Power Transformers
In May 2025, GE Vernova introduced its AI-powered digital transformer platform, featuring embedded analytics and real-time monitoring capabilities.
These digital systems enable predictive maintenance, load optimization, and improved energy flow management - key for utilities modernizing aging grids.

Power Transformer Market Forecast 2035
The market is set to create an incremental opportunity of USD 20.7 billion between 2025 and 2035.

Asia Pacific will remain the largest and fastest-growing market, supported by large-scale electrification programs, renewable integration, and rapid industrialization.

North America will see renewed growth through domestic manufacturing expansion and smart grid deployments.

Europe will advance steadily with demand for eco-efficient and amorphous-core transformers aligned with decarbonization goals.

By 2035, digital and eco-efficient transformers will become standard assets in transmission and distribution networks - transforming passive infrastructure into intelligent, data-driven grid components.

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Key Drivers, Challenges, and Opportunities
Driver - Smart Grid Modernization and Renewable Integration
The global shift toward smart grids and distributed generation is accelerating transformer upgrades.

Utilities are deploying IoT-enabled transformers with advanced monitoring to handle variable renewable loads, reduce losses, and predict failures before they occur.

In 2024, Prolec GE launched an AI-based smart transformer series that allows utilities to remotely manage power flow and detect faults in real time, improving reliability in urban networks.

Restraint - Raw Material Price Volatility
Volatility in the prices of copper, aluminum, and electrical steel continues to challenge transformer manufacturers.

In 2024, surging copper prices and disrupted supply chains increased production costs, leading to longer lead times and delayed project deliveries.

This cost pressure is particularly significant for developing economies with limited grid funding, restraining modernization efforts.

Opportunity - Eco-Friendly and Amorphous-Core Transformers
As ESG regulations tighten, demand for low-loss, environmentally sustainable transformers is rising rapidly.

In 2025, Siemens Energy introduced amorphous-core power transformers designed for urban grids and renewable installations, achieving over 70% lower no-load losses compared to conventional designs.

Utilities are also adopting biodegradable ester fluids to improve safety and reduce environmental risk, supporting global decarbonization targets.

Key Trend - Digitalization and DER-Ready Transformer Systems
Power transformers are evolving into intelligent nodes within digital energy systems.

Manufacturers like ABB and GE Vernova are embedding transformers with cloud-based monitoring, AI-driven analytics, and edge computing capabilities to support distributed energy resources (DERs) such as rooftop solar, wind, and battery storage.

A 2025 launch of modular solar-integrated transformers in Southeast Asia exemplifies this trend - capable of managing bi-directional power flow and stabilizing microgrids in remote and rural applications.

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Segmental Insights
Oil-Immersed Transformers Lead the Market with 72% Share
The oil-immersed power transformer segment continues to dominate, favored for heavy-duty, high-voltage applications and superior cooling efficiency.

In June 2025, Hitachi Energy India secured a contract to deliver 30 oil-immersed 765 kV / 500 MVA transformers to Power Grid Corporation of India - a flagship project enabling nationwide transmission expansion.

The segment's proven reliability under high thermal and load stress ensures its continued dominance through 2035.

Smart and Digital Transformers Driving Adoption
The emergence of digital power transformers featuring embedded sensors, communication systems, and AI analytics is transforming traditional T&D infrastructure.

By 2030, utilities are expected to allocate over 40% of grid modernization budgets toward digital transformer upgrades that enable predictive maintenance and data-driven optimization.

Regional Highlights
Asia Pacific:

Holds ~45% of global revenue, driven by rapid industrialization, urban electrification, and renewable integration.

Projects in China, India, and Indonesia are expanding ultra-high-voltage corridors and rural grid networks.

Example: Toshiba Energy Systems is supplying high-capacity power transformers for Indonesia's 2030 full electrification goal.

North America:

Experiencing a revival in domestic manufacturing under U.S. energy infrastructure and AI data center demand.

Siemens Energy's expansion in Charlotte and Hitachi Energy's $250M North American investment reinforce regional supply resilience.

Europe:

Focused on green, amorphous-core, and ester-fluid transformers aligned with EU Green Deal energy transition initiatives.

Middle East & Africa:

Investing in robust T&D infrastructure and hybrid grid systems to support industrialization and renewable power integration.

Competitive Landscape
The global power transformer market is moderately consolidated, with the top five players holding ~54% market share in 2025.
Tier 1 manufacturers lead through technology and scale, while Tier 2-3 players focus on regional or specialized segments.

Tier 1 Leaders
Siemens Energy

ABB Ltd.

General Electric (GE Vernova)

Hitachi Energy

Mitsubishi Electric Corporation

Specialized & Tier 2 Players
Toshiba Energy Systems & Solutions

Schneider Electric

WEG SA

Virginia Transformer Corporation

Wilson Power Solutions

Rising competition is centered around digitalization, eco-efficiency, and high-voltage grid modernization, with companies investing in AI, IoT, and amorphous material R&D to strengthen their market position.

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Future Outlook
By 2035, the power transformer market will transition into a digitally connected and eco-efficient ecosystem, where smart transformers will act as dynamic, data-driven enablers of global power reliability.
Key growth areas include:

Smart grid expansion and HVDC integration

Renewable and EV charging infrastructure

Amorphous and ester-fluid transformer technologies

AI-based monitoring and predictive maintenance platforms

This evolution will make transformers central to the world's decarbonized, electrified, and intelligent power future.

Prominent Companies Operating in the Global Power Transformer Market
Siemens Energy, ABB Ltd., General Electric (GE Vernova), Hitachi Energy, Mitsubishi Electric Corporation, Toshiba Energy Systems, Schneider Electric, WEG SA, Virginia Transformer Corporation, Wilson Power Solutions, and other key players.

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This release was published on openPR.